ADX moves up with international best practices of transparency

Abu Dhabi Securities Exchange (ADX), celebrated its 19th anniversary. The past year has seen many achievements, which has strengthened ADX’s position among the leading financial markets in the region and the world, moving up international best practices of disclosure and transparency.

ADX has attained incredible progress over the last 19 years since it was established at both global and regional levels. It was granted Emerging Market status by FTSE in 2009, Standard & Poor’s, and Russell Investments in 2011 and Morgan Stanley Capital International and Standard & Poor’s Dow Jones in 2014, as ADX progressed up international standards.

Khalifa Salem Al Mansouri, Chief Executive of ADX, said: “At ADX, this occasion marks a new chapter as we gradually progress the market into a new phase of shifting from regional to global leadership and our 19 years also marks the launch our new strategy ADX One. ADX is playing an aessential role in enhancing the Emirate’s global position, helping to realise sustainable development goals for the nation and deliver prosperity for the UAE and future generations of Emiratis. We are gearing up for the UAE’s Golden Jubilee, making contributions towards the UAE Vision 2021. We are implementing our wise leadership’s vision for the future, as we implement the Fourth Industrial Revolution, Artificial Intelligence and digital transformation. We are also using this 19th anniversary to look forward to our ‘Shaping the Twenties’ strategy, which aims to make Abu Dhabi one of the best cities in the world to invest in.”

Meanwhile tlhe Abu Dhabi Securities Exchange (ADX) has issued a paper titled ‘Crypto Assets: Moving from theory to practice’.

The paper was prepared in cooperation with global Central Securities Depositories, asset managers and custodians, and under the patronage of the International Securities Service Association (ISSA) in which ADX is an active member, said a press release issued by ADX on Saturday.

The paper talks about the best practices and provides recommendations for developing platforms in the Crypto Asset space. It also outlines recommendations and best practice considerations in relation to issuance, settlement, safekeeping, asset servicing and regulation of Crypto Assets. Focusing on inter-operability, the paper suggests that the securities industry can fully benefit from solutions based on Distributed Ledger Technology (DLT).

Each dedicated chapter addresses the fundamentals of the opportunity, the challenges to delivery as well as potential solutions to issues in a way that is easily accessible to interested parties.

The publication comes as ADX makes a transition from conventional assets to more encrypted assets, which the Exchange is spearheading for the region. Further the paper comes at an opportune time and follows on from the issuing of Crypto-Assets regulations draft by the Security Commodity Authority, which will provide a clear framework for regional digital assets.

ADX momentum has created a dynamism attracting a large and new group of investors, with building services that provide flexibility, transparency and efficiency that make it easier for customers and institutions to do business and invest easily.

The market has used its key status as a core UAE institution to lead the implementation of the Year of Tolerance by our wise leadership. The International Day for Tolerance was celebrated by ADX through ringing the trading hall bell, in addition to planting the Ghaf tree in the courtyard of the headquarters, as the tree is considered to be an authentic national symbol of the UAE and the main component of the slogan “Year of Tolerance” Logo.

The year 2019 has been a strong year for listings, with the ADX launching a series of listings this year, the latest of which was in November. The second tranche of Sukuk was listed on Aldar Properties, one of the largest real estate investment companies in the UAE, worth $ 500 million. Aldar Investment Sukuk and Ireland’s Dublin Stock Exchange together carried out a dual listing of the largest medium-term bond programme ever issued by the Emirate of Abu Dhabi valued at $10 billion. The first issuance of the Sukuk of ESIC Sukuk Ltd was also carried out, which was worth a significant USD$600 million. The market also listed sovereign bonds issued by the Maldives Ministry of Finance and Treasury on behalf of the Government of Maldives for the Abu Dhabi Fund for Development, a listing that is the first of its kind in the UAE and the region.

The year also saw an important regulatory decision from ADX, with the announcement of a trading commission fees reduction of 50 per cent up to 90 per cent, which made ADX amongst the Mena region’s least expensive stock markets for trading commissions.

WAM/Agencies