'ADX Group' unveiled to advance Abu Dhabi's investment landscape

26/02/2025 09:50 AST

The Abu Dhabi Securities Exchange (ADX), the second largest exchange in the Middle East, has launched the new 'ADX Group' market infrastructure and two new subsidiaries, Abu Dhabi Clear (AD Clear) and Abu Dhabi Central Securities Depository (AD CSD).

This development aligns with Abu Dhabi's long-term economic vision and augments ADX's efforts towards being a developed market, a statement said.

ADX announced its new market infrastructure at a celebrative event with more than 500 regional and global industry participants in Abu Dhabi on Monday.

Ghannam Al Mazrouei, Chairman of the ADX Group, said: "With the launch of ADX Group, we are not just building a financial marketplace; we are shaping the future of investment in Abu Dhabi and contributing to long-term economic development of the UAE and in the region.

"More regional and global investors will benefit from seamless access to the ADX platform to unlock opportunities for expansion in the emirate's thriving sectors and industries. The ADX Group will continue to innovate to ensure a robust and reliable international marketplace to raise capital, facilitate greater investment flow, and uphold financial resilience and stability."

Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, added: "The ADX Group is leading the way in using new technology to expand and strengthen Abu Dhabi's investment landscape. Our enhanced trading system aims to increase resilience and performance by 400%, reinforcing the emirate's position as a global financial hub. We express our sincere appreciation to our trading and clearing members, custodians, banks, and industry partners for their invaluable support and collaboration in achieving the transformation and success."

Gateway to opportunities
The ADX Group's new business model aims to transform and future-proof its thriving capital market, it said. The group, empowered by new post-trade capabilities and services, a state-of-the-art trading system, and new clearing and settlement platforms aims to unlock more investment opportunities and deepen market liquidity by providing investors and industry participants with greater and faster access to market activities and growth sectors in Abu Dhabi.

These advancements will enable the ADX Group to introduce more diverse product offerings and services to address the evolving needs of institutional and retail investors, issuers and businesses in the UAE and wider Middle East region.

Cutting-edge technology
At the heart of this transformation is a strategic technology partnership with Nasdaq to deliver a Core Platform Upgrade (CPU), which introduces advanced capabilities across trading, clearing, and post-trade services. All enhancements further boost ADX's operational readiness, attract new types of new market participants, and increase trading activities. Key features include:

 A key element of the CPU modernizes the trading infrastructure and integrates multiple asset classes (equities, ETFs, debt instruments, and derivatives) into a single, high-performance platform.
 Optimization for high-frequency trading and algorithmic strategies, offering faster execution of trades and deeper market liquidity.
 New order types and negotiated deal features for greater trading flexibility and efficiency, enabling more sophisticated trading strategies.

Magnus Haglind, SVP and Head of Marketplace Technology at Nasdaq, added: "We are excited about the opportunity to partner with ADX and help deliver this forward-thinking vision for its marketplace. Capital markets are already an integral part of the global economy, but by modernizing the infrastructure that powers it we can remove barriers to wider participation and help local and national economies thrive. By leveraging Nasdaq's integrated trading, clearing and settlement platform, ADX will be underpinned by world-leading technology, capable of attracting global sources of liquidity and accelerating the region's exciting growth story."

As part of the group's digital and technology enhancements, ISO 20022 messaging protocols were introduced to improve transaction processing, enhance data transparency, and support seamless integration with international financial institutions.

To improve user experience, the ADX Group launched a robust customer-management system, a new corporate website, and mobile app to empower investors with direct access to real-time market data, advanced analytics, and more services for portfolio management.

New divisions
The ADX Group's new Post Trade Division, comprising AD Clear and AD CSD, supports the smooth function of the securities market by providing essential clearing, settlement, depository, and risk management services for both local and international investors. These services will help boost market efficiency and facilitate the flow of capital to further economic growth.

 AD Clear is the new Central Counterparty Clearinghouse, created to improve clearing and settlement efficiency, reduce counterparty risk, and ensure compliance with global standards. It is a wholly owned independent subsidiary of the ADX Group.

 AD CSD, another wholly owned independent subsidiary of the ADX Group, serves as a leading regional central securities depository. It plays a key role in maintaining the resilience, efficiency, and stability of the capital market by safekeeping securities, clearing and settling trades, transferring shares, and managing corporate actions.

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