Business | Markets
ADX ropes in Deutsche Bank as custodian
The Abu Dhabi Securities Exchange (ADX) and Deutsche Bank have signed a custody agreement under which Deutsche Bank will provide custody of ADX-listed shares to institutional investor clients.
- Staff Report
- Published: 23:25 September 9, 2008
Dubai: The Abu Dhabi Securities Exchange (ADX) and Deutsche Bank have signed a custody agreement under which Deutsche Bank will provide custody of ADX-listed shares to institutional investor clients.
This agreement is expected to encourage and facilitate international investment in Abu Dhabi, which will lead to a broadening of the exchange's international investor base, ADX said in a statement.
"Abu Dhabi is a rapidly growing economy and ADX is responding to investor demands to diversify the services on offer. Currently, 12 per cent of listed ADX stock is owned by foreign investors. While the execution of trades takes place through brokers, a custodian performs key functions such as opening cash and securities accounts, settlement of trades, collection of dividends and safeguarding clients' assets. This custody agreement is a further step in providing high quality custodial service and easier access to Abu Dhabi's capital market," said Tom Healy, ADX chief executive.
Services
"Deutsche Bank is one of only a few international banks offering its clients local custody services in the UAE. We have worked closely with ADX over the past 12 months to develop a best-in-class product, helping our client base gain access to the debt and equity securities listed on the ADX.
"The UAE's pioneering economic initiatives are generating strong interest from both our regional and international clients, particularly in Abu Dhabi-listed securities," said Henry Azzam, Deutsche Bank's chief executive officer for the Middle East and North Africa.
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