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The Abu Dhabi Securities Exchange (ADX) launched on Thursday a derivatives market and announced plans to introduce index futures next year as part of a strategy to boost liquidity and enhance product offerings to regional and international investors.
ADQ’s Q Market Makers, BHM Capital and Al Ramz Capital, have joined the ADX Derivatives market to provide liquidity on the new platform, which uses marketplace technology delivered by Nasdaq, a statement said.
ADX said it has commenced trading in the single equity futures of some of the UAE’s biggest companies, including Etisalat, First Abu Dhabi Bank (FAB), International Holding Company (IHC), ADNOC Distribution and Aldar Properties.
“With the launch of single equity futures, the new market will give investors and traders the opportunity to benefit from increased leverage, two-way market exposure and hedging capabilities,” a statement said.
The introduction of single stock futures is part of a strategy to widen the range of derivative products. ADX said it will be introducing index futures around the first quarter of 2022.
“The launch of derivatives trading on the ADX is a significant milestone for our young but fast-growing exchange. The introduction of stock and index futures will support our ‘ADX One’ strategy which aims to provide diversification avenues and enhance liquidity to create a dynamic capital market,” said Mohammed Ali Al Shorafa Al Hammadi, chairman of ADX.
Al Shorafa said that by providing innovative products and services, ADX will provide “further opportunities for investors in the unique growth opportunities afforded by Abu Dhabi companies”.
Last September, ADX announced the signing of an agreement with Nasdaq to deliver marketplace technology solutions for the platform.
The Abu Dhabi bourse has gained 52 percent year to date and recently reached 7,700 points for the first time, following a series of listings by various companies and participation by international investors.
(Writing by Cleofe Maceda; editing by Seban Scaria )
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