Dubai:
Abu Dhabi Securities Exchange (ADX) and Nasdaq Dubai have signed an agreement to develop and launch an Index Futures contract based on the Abu Dhabi General Index (ADI) on Nasdaq Dubai’s derivatives platform.
The ADI indicates the performance of ADX listed stocks and is widely tracked by the investment and trading community locally and internationally. The ADI’s value has risen by 70 per cent in the last 5 years. It tracks the performance of companies from multiple sectors such as telecommunication, financial services, real estate, energy and more, providing a good benchmark of the overall performance of the ADX market.
Additionally, the two exchanges signed a memorandum of understanding focusing on further collaboration in terms of developing the local capital market, and jointly focusing on regional and local investor awareness programs about the new product offering through extensive educational workshops.
“One of the most important objectives for ADX within its strategic plan 2016-2020 are to attract and activate a wider range of investors, and increase market cap and product range. In addition, attracting foreign investment is one of the main projects in ADX’s plan, and thus these objectives have led us to the development of an attractive offer for investors including a stable trading environment, innovative products and services, and the adoption of best international practices in terms of disclosure, transparency, corporate governance and investor relations,” Rashed Al Balooshi, Chief Executive of ADX, said in a statement.
Nasdaq Dubai’s derivatives platform currently comprises single stock futures on 13 leading UAE-listed companies. More than 2.5 million future contracts have traded since the market opened in September 2016.
