Finstreet launches regulated digital market at ADGM for private and secondary securities

Finstreet, a Rorix Holdings subsidiary, has launched a digital multilateral trading facility (MTF) to allow trading of private and secondary securities at the Abu Dhabi Global Market. The marketplace will offer end-to-end protection from a traditional and blockchain-powered ecosystem for investors and issuers, Finstreet said in a statement on Monday. The platform will cover all functions of financial assets including origination, issuance, trading, settlement and custody. The launch will be marked with the issuance of eight licenses to Finstreet's selected subsidiary entities that will house the digital MTF, central securities depository and private financing platform in one environment. “Finstreet's digitised trade exchange platform will provide markets with a holistic approach towards international trade and bring a new standard to capital markets on a global scale,” said Dr Thani Al Zeyoudi, Minister of State for Foreign Trade and executive chairman of Rorix Holdings. Rorix Holdings was established last month by Abu Dhabi's global conglomerate International Holding Company and its subsidiary Sirius International Holding to facilitate and innovate global finance trade with a focus on services, advisory, commodities and trade insurance sectors. “Finstreet provides a foundation for a new, innovative infrastructure to allow global financial market participants to both realise their own capital raising ambitions and participate in the substantial growth story of UAE-based firms,” said Ajay Bhatia, managing director of Finstreet and chief executive of Sirius International Holding. The digital MTF will follow English common law under the regulation of ADGM's Financial Services Regulatory Authority, with the goal of transitioning towards the future of capital markets, the ADGM said. As an MTF, Finstreet will provide a secondary market trading facility for professional clients for securities having their primary market listing on other exchanges, it added. Established in 2015, ADGM, one of the world's fastest-growing financial districts, has recorded rapid growth as the UAE capital boosts its non-oil economy and focuses on attracting more international companies and investors. The financial centre is home to international banks, insurance houses, global asset managers as well as financial technology and cryptocurrency exchanges. ADGM's assets under management soared by 211 per cent annually in the three months ended March, as the number of operational entities rose by 30 per cent year-on-year to 1,950, including 291 financial services entities. The number of fund and asset managers operating at the ADGM has reached 107, which collectively manage 137 funds. Last year, ADGM, which operates across Al Maryah Island and Al Reem Island, saw its AUMs rise by 35 per cent annually . A total of 1,825 operational entities were active last year, which was 32 per cent higher compared to 2022. ADGM said in March that it expects 125 companies to join its fold this year. It also said in July that it will cut its commercial registration licence fees for certain categories while raising them for others, as part of its transitional strategy after the financial district expanded to include Al Reem Island under its jurisdiction. The revised fee structure, which will come into effect on January 1, 2025, will see new registration fees in the non-financial category halved to $5,000, with annual licence renewal fees cut to $5,000 from $8,000, ADGM said at the time. In the financial category, fees have increased to $20,000 from $15,000, with renewals for an annual ADGM licence rising to $15,000 from $13,000. Finstreet’s initiative embodies ADGM’s “commitment to driving innovation and redefining the future of global finance”, ADGM chairman Ahmed Al Zaabi said on Monday. “By establishing the first regulated digital market for the trading of both public and private securities within our jurisdiction, we are further solidifying Abu Dhabi’s status as a premier global financial hub,” he added. In future, Finstreet said, it plans to expand into a full suite of assets, including commodities. "By harnessing Finstreet’s innovative infrastructure ... we are opening up new avenues for investment and trading for issuers and investors both in the region and abroad,” Sunidhi Pasan, chief executive of Finstreet, said.