Nasdaq to deploy tech for ADX’s upcoming derivatives market

Rick Steves

Nasdaq’s end-to-end market technology powers more than 2,300 companies in 50 countries.

Nasdaq growth record

Nasdaq will be deploying the firm’s marketplace technology solutions, including matching, real-time clearing and settlement technology for the Abu Dhabi Securities Exchange (ADX).

The partnership with a reliable technology provider is a key step towards launching a derivatives market later this year as the exchange plans to launch single stock futures and index futures in the fourth quarter before expanding to a wider range of derivative products.

Launching a derivatives market will further diversify investment avenues and provide investors with hedging tools for effective risk management. ADX will also introduce central counterparty clearing (CCP) to promote clearing efficiency, stability, and confidence in the market.

The derivatives market is part of the ADX One strategy, launched at the start of 2021, which aims to bring a broader offering of products and services to market and invest in state-of-the-art infrastructure in partnership with global market leaders.

H.E. Mohammed Ali Al Shorafa Al Hammadi, Chairman of ADX, commented: “ADX is on a journey to significantly enhance liquidity and expand market capitalization through our ‘ADX One’ strategy, which provides a clear road map for further development of a vibrant exchange. By deepening our capital markets and increasing the range of innovative products and services, we are supporting the UAE’s strategy for economic diversification, providing growth companies with favorable access to global capital and allowing investors to participate in the UAE’s ambitions.”

Saeed Hamad Al Dhaheri, Chief Executive Officer of ADX, added: “Our commercial relationship with Nasdaq dates to ADX’s establishment in 2000, and over the last two decades, we have collaborated on a range of initiatives to ensure investors benefit from efficient market infrastructure technology. We are confident that the launch of a derivatives market will be another important milestone, empowering investors on the exchange who wish to implement sophisticated trading strategies. Our strategy is to ensure that investors and issuers derive significant benefits of a sophisticated marketplace by investing further in technology, broadening our offering, and attracting a wider range of institutional investors.”

Lars Ottersgård, Executive Vice President and Head of Nasdaq Market Technology, said: “ADX continues to be an industry leader in innovating and evolving the Middle East’s capital market ecosystem. By leveraging Nasdaq’s robust and flexible technology solutions, ADX can further evolve its endeavors to expand into a leading derivatives marketplace and one of the largest multi-asset marketplaces in the Middle East. We look forward to progressing our technology partnership and supporting ADX in their growth journey.”

Nasdaq’s end-to-end market technology powers more than 2,300 companies in 50 countries, spanning the world’s financial industry, including capital markets infrastructure operators, market participants, banks, and regulators.

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