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ADX and Nasdaq Dubai sign an Index License Agreement to launch ADI Futures

PUBLISHED ON 23-Oct-2017
ADX and Nasdaq Dubai sign an Index License Agreement to launch ADI Futures

  • Nasdaq Dubai intends to expand its futures offering with the addition of ADI futures on its derivatives platform

  • The two exchanges agree on further collaboration in market development and awareness programs for local and regional investors.

Abu Dhabi Securities Exchange (ADX) and Nasdaq Dubai have signed an agreement to develop and launch an Index Futures contract based on the Abu Dhabi General Index (ADI) on Nasdaq Dubai’s derivatives platform.

The ADI indicates the performance of ADX listed stocks and is widely tracked by the investment and trading community locally and internationally. The ADI’s value has risen by 70% in the last 5 years. It tracks the performance of companies from multiple sectors such as telecommunication, financial services, real estate, energy and more, providing a good benchmark of the overall performance of the ADX market.

Additionally, the two exchanges signed a memorandum of understanding focusing on further collaboration in terms of developing the local capital market, and jointly focusing on regional and local investor awareness programs about the new product offering through extensive educational workshops.

Rashed Al Blooshi, Chief Executive of ADX, said: "One of the most important objectives for ADX within its strategic plan 2016-2020 are to attract and activate a wider range of investors, and increase market cap and product range.  In addition, attracting foreign investment is one of the main projects in ADX’s plan, and thus these objectives have led us to the development of an attractive offer for investors including a stable trading environment, innovative products and services, and the adoption of best international practices in terms of disclosure, transparency, corporate governance and investor relations. Signing the agreement with Nasdaq Dubai underscores local and global investments communities’ trust in the quality of the global standards adopted by ADX particularly those in terms of measuring the overall performance of listed shares.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “The introduction of index futures is a significant step in the evolution of the UAE capital markets and we are delighted to join hands with ADX to bring the benchmark ADI Futures on our derivatives platform. Index futures is a universal choice with market participants in an evolving derivatives marketplace and we believe this partnership will enable new opportunities for investors and lead to the development of UAE capital markets.”

Nasdaq Dubai’s derivatives platform currently comprises single stock futures on 13 leading UAE-listed companies. More than 2.5 million future contracts have traded since the market opened in September 2016.

Subject to regulatory approval ADI futures are expected to be traded later this year with the support of leading UAE brokers and targeted at professional and institutional investors enabling them to take a macro view on the ADX market.

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