Image: WAM
Abu Dhabi Securities Exchange (ADX) has launched the ADX Group market infrastructure, marking a key milestone in transforming Abu Dhabi’s capital market.
As part of the expansion, two independent subsidiaries have been launched: Abu Dhabi Clear (AD Clear) and Abu Dhabi Central Securities Depository (AD CSD).
This new initiative aligns with Abu Dhabi’s long-term economic vision and underscores ADX’s commitment to becoming a developed market.
The launch of the ADX Group was celebrated in a high-profile event in Abu Dhabi, attended by over 500 industry participants from across the globe.
Strengthening Abu Dhabi’s role as an international financial hub
Ghannam Al Mazrouei, chairman of the ADX Group, stated: “With the launch of ADX Group, we are not just building a financial marketplace; we are shaping the future of investment in Abu Dhabi and contributing to the long-term economic development of the UAE and the region.
“More regional and global investors will benefit from seamless access to the ADX platform to unlock opportunities for expansion in the emirate’s thriving sectors and industries.”
Al Mazrouei added that ADX Group will continue to innovate, ensuring a robust and reliable marketplace to raise capital, facilitate greater investment flows, and uphold financial resilience and stability.
Revolutionising trading and investment solutions
The new infrastructure will feature enhanced market access, cutting-edge trading technology, and a broadened range of post-trade services to provide faster, more efficient trade clearing and settlement solutions.
The ADX Group aims to unlock greater investment opportunities, deepen market liquidity, and provide quicker access to Abu Dhabi’s dynamic industries.
Abdulla Salem Alnuaimi, group CEO of ADX, highlighted the significance of this transformation, saying: “The ADX Group is leading the way in using new technology to expand and strengthen Abu Dhabi’s investment landscape.
“Our enhanced trading system aims to increase resilience and performance by 400 per cent, reinforcing the emirate’s position as a global financial hub.”
ADX Group marks a new chapter in capital markets infrastructure
A key feature of the ADX Group’s new strategy is its strategic partnership with Nasdaq, which supports the modernisation of the trading infrastructure through a core platform upgrade (CPU).
The CPU integrates multiple asset classes: equities, ETFs, debt instruments, and derivatives – into a single, high-performance platform, optimised for high-frequency trading and algorithmic strategies.
Magnus Haglind, SVP and head of Marketplace Technology at Nasdaq, commented: “We are excited about the opportunity to partner with ADX and help deliver this forward-thinking vision for its marketplace. By modernising the infrastructure, we can remove barriers to wider participation and help economies thrive.”
The platform improvements also include new order types, negotiated deal features, and integration with international financial institutions using the ISO 20022 messaging protocol.
Post-trade services: AD Clear and AD CSD
In addition to the new trading capabilities, the ADX Group has launched two subsidiaries focused on post-trade services: Abu Dhabi Clear (AD Clear) and Abu Dhabi Central Securities Depository (AD CSD).
These entities will enhance the market’s efficiency by providing clearing, settlement, depository, and risk management services for both local and international investors.
AD Clear is a Central Counterparty Clearinghouse designed to improve clearing and settlement efficiency while reducing counterparty risk.
AD CSD, the region’s leading central securities depository, will ensure the resilience and stability of the capital market by safeguarding securities, managing corporate actions, and facilitating the seamless transfer of shares.
ADX’s global growth and investment appeal
ADX has consistently outperformed the MSCI Emerging Markets Index since 2020, with its General Index growing by 86 per cent over the past five years.
Ranked 7th globally by market capitalisation for emerging market exchanges, ADX is a major player in global capital markets.
As the largest capital market in the UAE, ADX offers investors access to some of the country’s most valuable companies.
In 2024, ADX accounted for 27 per cent of IPO proceeds raised in the Middle East and ranked among the top 10 globally for IPO proceeds for two consecutive years.
With a vibrant investor base of over 200 nationalities, ADX serves a diverse community of investors trading in 188 listed securities.
The ADX Group’s enhancements are designed with the future in mind, catering to the evolving needs of institutional investors, brokers, issuers, and businesses.
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