ADX launches FADX 15 Futures, its first index derivatives

Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) has launched FADX 15 futures contracts trading on its derivatives platform. The futures, based on the FTSE ADX 15 (FADX 15) Index, are the first index derivatives to be listed on the ADX.

FADX 15 futures are cash-settled contracts that will replicate the price performance of the benchmark FADX 15 index, which comprises the most liquid and the largest 15 companies listed on the ADX main market. Each FADX 15 Index futures contract is equivalent to the dirham (AED) value of the FADX 15 index.

Launched in March 2022 with the aim of supporting the derivatives market, exchange traded funds, and other index tracking products, the FADX 15 selects companies by free float adjusted market capitalisation and median trading value.

The introduction of FADX 15 futures will provide a new way for investors to trade equities listed on ADX’s main market, facilitating risk management for portfolio investors during periods of market volatility.

Saeed Hamad Al Dhaheri, Managing Director and CEO of Abu Dhabi Securities Exchange said: “The launch of FADX 15 Index futures will increase opportunities for investors and traders to gain two-way market exposure while enhancing their hedging and leveraging capabilities. The roll out of a wider array of products on our derivatives market continues to reflect our commitment to meet the evolving needs of sophisticated market participants and attract global institutional investors.”

ADX launched its derivatives market in November 2021, when trading in the single equity futures of Etisalat, First Abu Dhabi Bank, International Holding Company, ADNOC Distribution and Aldar Properties commenced. The value of trades on the derivatives market increased by more than 950 per cent from beginning of the year to end of May.