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The Abu Dhabi Securities Exchange (ADX) is celebrating an unprecedentedly successful year for its derivatives trading market.
In just 12 months since its launch in November 2021, the ADX derivatives market has grown to be the most liquid derivatives market in the Arab region, as well as being the youngest. In its first year, it had a turnover of 1 billion dirhams ($271 million) and traded more than 1 million contracts — more than 100 percent more than its peers in the region, a statement said.
The exchange launched an initial five single stock futures: Etisalat, First Abu Dhabi Bank, International Holdings, Adnoc Distribution and Aldar Properties. This was followed by the June 2022 launch of a futures contract on the FTSE ADX 15 (FADX 15) index, one of the best performing indices in the MENA region. In October, ADX added five more single stock futures, bringing the total number of derivatives traded to eleven.
The purpose of introducing the derivatives market is to provide investors and traders with two-way market exposure, while providing hedging and leverage functions. It has quickly become one of the most active companies in the region thanks to strong partnerships and world-class infrastructure. It uses central counterparty clearing (CCP) to improve clearing efficiency, stability and market confidence. In addition, market makers continue to provide liquidity and facilitate an efficient and orderly derivatives market.
Saeed Hamad Al Dhaheri, Managing Director and CEO of ADX, said: “I am incredibly proud of what the ADX Derivatives Marketplace has achieved in its first year of trading. Launching the market is an important milestone for our young and fast-growing exchange. Milestone. We have been working to launch new products on our derivatives platform and expect trading to expand further in the coming months as ADX continues to be an active trading hub for investors and issuers.”
The launch of the derivatives market is part of the exchange’s strategy to grow Abu Dhabi’s capital markets and bring its products and services in line with global counterparts. The strategy aims to encourage listing pipelines, strengthen corporate governance, and launch new products and services that meet the requirements of issuers and global investors, the statement said. -TradeArabia News Service
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