The Abu Dhabi Securities Exchange (ADX) announced its new market technology agreement with Nasdaq and its intentions to introduce single-stock and index futures by the end of 2021. In an interview with ADX’s CEO Saeed Hamad Al Dhaheri, he discussed the drivers for the launch.
“The introduction of CCP services will help us take on counterparty credit risk and provide clearing and settlement services for trades. This is important because it will bring about greater stability across the market and reduce operational risk and potential default by participants.
“This is part of our strategy to create greater choices for investors while building robust governance structures. In recent years, we have introduced a diverse range of new products and services to market, including Market Making, Covered Short Selling (CSS) and Securities Lending and Borrowing (SLB).
We are working toward introducing single-stock and index futures by the end of this year to further meet the requirements of sophisticated global investors. The introduction of a derivatives market will also enable institutional investors to hedge their investments so that they can execute more complex trading strategies.
“The clearing solution is a proven and flexible system that delivers clearing, settlement and risk management functions to help ADX effectively manage its clearing operations. Nasdaq clearing technology includes clearing, risk, collateral management and settlement functionality all in one application.”