ADX Group Launches New Market Infrastructure To Strengthen Abu Dhabi's Investment Landscape

The Abu Dhabi Securities Exchange (ADX) has introduced a new market infrastructure, "the New ADX Group," along with two subsidiaries: Abu Dhabi Clear (AD Clear) LLC and Abu Dhabi Central Securities Depository (AD CSD) LLC. This development aligns with Abu Dhabi's economic vision and enhances ADX's status as a developed market. The announcement was made at an event attended by over 500 industry participants on 24th February.

Ghannam Al Mazrouei, Chairman of the ADX Group, stated, "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." This initiative aims to attract more investments into the UAE and strengthen Abu Dhabi’s position as a global financial centre.

The ADX Group is leveraging technology to enhance its trading systems. Abdulla Salem Alnuaimi, Group CEO of ADX, highlighted that their improved trading system boosts performance by 400%, reinforcing Abu Dhabi's role as a financial hub. He expressed gratitude to partners for their support in this transformation. The new system aims to increase resilience and efficiency in trading operations.

A strategic partnership with Nasdaq is central to this technological upgrade. The Core Platform Upgrade (CPU) introduces advanced capabilities across trading, clearing, and post-trade services. Magnus Haglind from Nasdaq remarked on this collaboration: "We are excited about the opportunity to partner with ADX and help deliver this forward-thinking vision for its marketplace."

The CPU modernises trading infrastructure by integrating multiple asset classes like equities, ETFs, debt instruments, and derivatives into one platform. It optimises high-frequency trading and algorithmic strategies for faster trade execution. New order types and negotiated deal features offer greater flexibility and efficiency for sophisticated trading strategies.

The introduction of ISO 20022 messaging protocols enhances transaction processing and data transparency. These protocols support seamless integration with international financial institutions. Additionally, a robust customer-management system, new corporate website, and mobile app provide investors with real-time market data access.

Subsidiaries Supporting Market Efficiency

The ADX Group's Post Trade Division includes AD Clear and AD CSD, which ensure smooth securities market operations through essential services like clearing, settlement, depository functions, and risk management. These services aim to boost market efficiency and facilitate capital flow for economic growth.

AD Clear acts as a Central Counterparty Clearinghouse to improve clearing efficiency while reducing counterparty risk. It ensures compliance with global standards as an independent subsidiary of the ADX Group. Meanwhile, AD CSD serves as a regional central securities depository maintaining market resilience by safekeeping securities and managing corporate actions.

The new business model of the ADX Group is designed to transform its capital market by introducing diverse product offerings tailored to institutional and retail investors' evolving needs. By providing faster access to growth sectors in Abu Dhabi, it aims to deepen market liquidity.

With inputs from WAM