ADX hosts signing agreement between Mbank and Al Dar Shares & Bonds to provide liquidity for margin trading
Mbank to provide Al Dar investors margin trading facilities of up to Dh500 million
In a step to enable Abu Dhabi Securities Exchange (ADX) investors to leverage their investments, and further take advantage of timely market opportunities, ADX hosted the signing of an agreement between Al Maryah Community Bank (Mbank) and Al Dar Shares & Bonds.
The agreement will see Al Maryah Community Bank (Mbank), a leading digital bank in the United Arab Emirates, partnering with Al Dar Shares & Bonds, a major established brokerage firm in Abu Dhabi, to offer Al Dar investors margin trading facilities of up to AED 500 million; to enable them to fulfill their trading goals on ADX. The margin trading facilities are exclusive to Al Dar customers trading on ADX.
As per the agreement between both parties, Mbank will allocate a set amount of AED 500 million to finance the margin trading operations of Al Dar Shares & Bonds investors; whereby Al Dar will act as an agent for Mbank in its financing operations while implementing the margin trading rules on behalf of the bank.
In order for customers to have a smooth trading experience at ADX, they must open both a bank account at Mbank and a margin trading account at Al Dar Shares & Bonds so that the systems are interlinked, automated, and their trading experience is seamless. Opening a bank account with Mbank can be done in less than 5 minutes through the Mbank UAE mobile application by using the Emirates ID or the UAE Pass, without a need to visit any branch or submit any physical documentation.
Mr. Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, said of the agreement: “Working with ambitious partners like Mbank and Al Dar Shares & Bonds to facilitate access to the unique opportunities offered on ADX supports our mission to drive growth through an integrated, innovative, and transparent marketplace. This partnership also reinforces our commitment to driving market connectivity and facilitating trading, in line with our strategy to enhance market liquidity and attract a greater range of investors to our dynamic marketplace.”
Commenting on this agreement, Mr. Mohammed Wassim Khayata, Chief Executive Officer at Mbank, said: “This product is the first of its kind in the United Arab Emirates and offers a unique and easy digital experience that falls in line with our Nation’s leadership’s vision towards digital transformation. We have absolute confidence in ADX’s performance, whereby financial foundations have been laid to increase the liquidity of markets and promote in return foreign investments”.
He added: “This experience is our first building block in creating a digital platform that provides margin trading services in local markets, and our aim is to attract other banks and brokerage firms to provide margin trading facilities and encourage investments in the Abu Dhabi Stock Exchange. This framework is the result of a joint effort between Mbank and Al Dar Shares & Bonds, and we cannot but immensely thank Abu Dhabi Stock Exchange for their efforts and constant cooperation that resulted into this agreement”.
Mr. Moh’d Al Dhaheri, Vice Chairman of Al Dar Shares and Bonds, said: “The signing of this agreement is the culmination of collective endeavors between ADX, Mbank, and Al Dar to deliver an automated solution that adheres to the best industry practices; thereby augmenting the market liquidity and the competitive edge of both Mbank and Al Dar for the benefit of their end clients”.