Abu Dhabi Securities Exchange Chairman
(Mohammed Ali Al Shorafa Al Hammadi, chairman of ADX)

Abu Dhabi Securities Exchange introduces derivatives market powered by Nasdaq


The Abu Dhabi Securities Exchange (ADX) launched on Thursday (Nov. 4) a derivatives market, using the marketplace technology delivered by Nasdaq. The move comes as the emirate’s bourse ramps up initiatives to develop Abu Dhabi’s capital market, increase liquidity and broaden its range of products and services bringing them in line with global peers.

Traders can access single equity futures of blue chips including Etisalat, First Abu Dhabi Bank (FAB), International Holding Company (IHC), ADNOC Distribution and Aldar Properties from Thursday. More securities will be added later this year and in 2022. Index futures will be introduced in the first-quarter of 2022, ahead of the expansion into a wider range of derivative products.

Three market makers including ADQ’s Q Market Makers, BHM Capital, and Al Ramz Capital join the ADX Derivatives market to provide liquidity on the new platform.

Mohammed Ali Al Shorafa Al Hammadi, chairman of ADX, commented: “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.”

ADX ONE strategy was launched at the start of 2021. Since the beginning of the year, the benchmark Abu Dhabi General Index (ADI) has rallied about 56% supported by a series of initial public offerings (IPOs), increased international investment as well as higher oil prices that have boosted investor confidence, making it one of the best performing equity indexes in the world. Meanwhile, the market capitalisation of the Abu Dhabi Securities Market General Index has soared to nearly Dh1.5 trillion ($403 billion) within the same period.

Billions of dollars of derivatives trade every year on exchanges around the world. Just like equities, derivatives can be traded by individuals or institutions through a derivatives broker. The new ADX derivatives market brings exciting opportunities for investors to diversify their investments in an efficient and cost-effective way. ADX now offers equity futures that gives investors the ability to trade short term stock price movements and also to efficiently manage their investment portfolios.