The Abu Dhabi Securities Exchange and Kazakhstan’s Astana International Exchange (AIX) are boosting co-operation to improve liquidity on both bourses.
The two stock exchanges will focus on enhancing ties between trading members and establishing simplified depository links for central securities to pave the way for cross-listings of exchange-traded funds and fixed-income securities.
The two exchanges will also collaborate in the field of Sharia-compliant exchange-traded products and look into new opportunities in the FinTech sector, they said on Thursday.
“Forming alliances with exchanges in capital markets around the world is a key part of our ‘ADX One’ strategy, which we launched last year to enhance liquidity, further improve market efficiency and significantly increase market capitalisation,” ADX chief executive and managing director Saeed Al Dhaheri said.
“Our objective is to align with best international practices and make ADX a more attractive market for international investors. Through our partnership with AIX, we hope to introduce investors to new opportunities, and in doing so enhance liquidity for both exchanges.”
The Abu Dhabi bourse also aims to strengthen corporate governance and “meet the evolving needs of global issuers and investors” as part of its ADX One strategy.
ADX introduced a derivatives market in the fourth quarter of 2021 and signed an agreement with FTSE Russell to develop co-branded indices, including a tradeable FTSE ADX Blue Chip Index that will be unveiled this year.
The exchange also established the region's first special purpose acquisition company framework, which was approved by the Securities and Commodities Authority in January.
The collaboration with ADX “will allow us to expand the capabilities of AIX and provide our customers with access to the Abu Dhabi market and vice versa in the future, as well as contribute to further development of financial and economic ties between our countries”, AIX chief executive Renat Bekturov said.
ADX, the Arab world’s second-largest stock market, is also strengthening ties with other exchanges including Boursa Kuwait, Bahrain Bourse and Turkey's Borsa Istanbul.