Abu Dhabi Securities Exchange launches a financial derivatives market

The Abu Dhabi Securities Exchange officially launched the financial derivatives market as part of a set of initiatives aimed at developing the capital markets in Abu Dhabi and keeping pace with the innovative products and services offered by similar global markets that meet the aspirations of investors.

With the launch of future contracts for single shares, the new platform will provide investors and traders with the opportunity to benefit from a set of advantages, the most important of which is increasing financial leverage, the possibility of making gains during times of market ups and downs, as well as hedging against the risks of investment portfolios.

Today, the market witnessed the start of trading the single-share futures contracts of Etisalat Group, First Abu Dhabi Bank, International Holding Company, ADNOC Distribution and Aldar Properties, and more single-share futures contracts will be added later this year. and next. The market will launch index futures contracts in the first quarter of 2022 before the Abu Dhabi Securities Exchange expands its portfolio of financial derivative products, the operation of which depends on modern technologies provided by Nasdaq for the financial markets.

Three market makers, namely “Q Market Maker” of ADQ Holding, BHM Capital and Al Ramz Capital, will join the new financial derivatives market to provide liquidity in the new platform, which will enhance the efficiency and regularity of activity, and granting licenses for short margin trading will contribute. Term for more intermediaries to increase market participation. The launch of the financial derivatives market coincides with the launch of the central counterparty, with the aim of enhancing the efficiency and stability of the market and improving confidence in its capabilities.

On this occasion, Mohamed Ali Al Shurafa Al Hammadi, Chairman of the Board of Directors of the Abu Dhabi Securities Exchange, said: “The launch of the financial derivatives market is a milestone in the success of the Abu Dhabi Securities Exchange, which, despite its short history, was able to achieve a series of qualitative achievements to move forward at an accelerated pace of growth. Future contracts for both single stocks and indices will support the 'ADX One' strategy, which aims to double its market value and enhance its activity and depth.In return, our efforts to provide a wide portfolio of innovative products and services will enhance the momentum of sustainable economic growth in the emirate, thus opening wider horizons for investors to benefit from One of the unique growth opportunities offered by Abu Dhabi companies and participating in their success stories.”

On his part, Saeed Hamad Al Dhaheri, CEO of the Abu Dhabi Securities Exchange, said: “The launch of the derivatives market is an important step that will add a new chapter to the success story of the Abu Dhabi Securities Exchange, as it will provide investors with the tools necessary to implement complex trading strategies and enable them to form a more comprehensive view of the future. Trends in individual stocks and indices in an efficient manner.With the support of Q Market Maker and other market makers, the new financial instruments will have a high level of liquidity which will stimulate trading activity and market participation.Our continuous endeavors to develop the ADX will encourage companies to take advantage of our leading platform for raising capital necessary to fund its growth needs and expansion plans while diversifying its investor base. We will continue our efforts to attract a wider segment of investors from around the world through various initiatives, including developing our technology platform and providing more choices of products and services.”

Magdy Shannoun, General Manager of Q-Market Maker, said: "In order for the capital markets in Abu Dhabi to develop and mature, they definitely need liquidity as a key enabler. The launch of the financial derivatives market in the Abu Dhabi Securities Exchange is an important achievement in the development process. The market, and we are fully prepared to contribute to its success by providing the required liquidity to support market stability, narrow price differences, and encourage building a record of trading deals, giving investors and traders greater confidence in the market.The market industry has always been an important pillar in the infrastructure of any financial market, And its important role will continue as long as the trading of financial assets continues.”

The objective of the "ADX One" strategy, which was launched at the beginning of 2021, is to consolidate the attractiveness of the Abu Dhabi Securities Exchange based on several axes, including expanding the portfolio of products and services in the market, and investing in the development of modern and advanced infrastructure in partnership with leading global companies.

The market capitalization of companies listed on the Abu Dhabi Securities Exchange has doubled since the beginning of the year, exceeding the AED 1.48 trillion threshold, supported by a series of listings and increased international investment.

While the general index of the Abu Dhabi Securities Exchange increased by more than 50% during the current year, making it one of the best performing stock indices worldwide during the same period.

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