ADX adds five more single stock futures to its derivatives market

Addition of new contracts has doubled the total number of derivative products on the bourse to 10 in less than a year

Abu Dhabi Securities Exchange ADX launched its derivatives market in November. Photo: ADX
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The Abu Dhabi Securities Exchange, the Arab world's second-largest bourse by market value, introduced five more single stock futures in a bid to boost its derivatives market.

Stock futures on Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Fertiglobe, Borouge and AD Ports were made available for trading on the ADX derivatives market starting on Thursday, the bourse said in a statement.

The addition of new contracts has doubled the total number of derivative products on ADX to 10 in less than a year.

ADX launched its derivatives market in November to provide investors and traders with access to two-way market exposure, while providing for hedging and leveraging capabilities.

It began with trading in the single stock futures of Etisalat, First Abu Dhabi Bank, International Holding Company, Adnoc Distribution and Aldar Properties.

The move is part of the bourse's strategy to develop the emirate's capital markets and bring its products and services in line with its global peers.

“The expansion of products on the derivatives market is important for the development of ADX as a vibrant trading hub for both investors and issuers,” said Saeed Al Dhaheri, managing director and chief executive of ADX.

“ADX is committed to broaden its range of offerings to meet the demands of its expanding investor base.”

ADX also launched FADX 15 futures contracts trading on its derivatives platform in June. The 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.

The ADX derivatives market has rapidly become one of the most active in the region due to a blend of “strong partnerships and world-class infrastructure”, the statement said.

ADX partnered with Nasdaq in September last year to put in place technology solutions for the derivatives market, including matching, real-time clearing and settlement technology.

It also introduced a central counterparty clearing mechanism to promote clearing efficiency, stability and confidence in the market.

The value of trades on the derivatives market surged by “more than 950 per cent” from the beginning of the year to the end of May, the bourse said earlier this year.

Updated: October 06, 2022, 4:17 PM