ADX, FTSE Russell launch benchmark growth market index

The Abu Dhabi Securities Exchange (ADX) and FTSE Russell, under their index partnership, have co-developed a new benchmark, the FTSE ADX Growth Market Index (FADGMI) that will track the performance of the ADX’s recently rebranded Growth Market segment.

FADGMI, the new index that went live on Thursday, includes the eligible constituents of the Growth Market, will provide investors with the ability to mimic the Growth Market performance that consists of a wide range of emerging and fast-growing companies starting their capital market journey.

The launch of FADGMI is a result of ADX’s successful partnership with FTSE Russell and closely follows the launch in March of the FTSE ADX 15 Index (FADX15), a blue-chip benchmark of the 15 largest and the most liquid companies on ADX. More co-branded indices are expected to be launched under the partnership in the coming months.

The ADX Growth Market, the new brand of the Second Market, is an emerging equity segment on the exchange that connects investors and privately owned businesses in sectors as diverse as sports, transportation, wholesale trading, and healthcare.

The first of its kind in the region, ADX’s partnership with FTSE Russell is part of the exchange’s ambitious strategy to provide its investors with world-class benchmark indices and to broaden its product offerings further. This includes the introduction of the derivatives market with single stock futures in the fourth quarter of 2021 and FADX15 index futures in June this year.

Saeed Hamad Al Dhaheri, Managing Director and Chief Executive Officer of Abu Dhabi Securities Exchange, commented, “The introduction of the FTSE ADX Growth Market Index (FADGMI) demonstrates our commitment to providing market participants with new benchmarks that meet world-class standards particularly with the Exchange’s rapidly growing international investor base. The new index will enable investors to track the exciting opportunities in the Growth Market segment and make insightful investment decisions to better manage their investment portfolios. Our collaboration with FTSE Russell is an important component in increasing liquidity and supporting the exchange’s market capitalisation growth.”

Arne Staal, Chief Executive Officer, FTSE Russell, said, “The launch of the FADGMI index is another important milestone in our strategic partnership with ADX that harnesses FTSE Russell’s world-class expertise to create best-in-class equity benchmarks for one of the region’s fastest growing exchanges.”

The launch of FADGMI is a result of ADX’s successful partnership with FTSE Russell and closely follows the launch in March of the FTSE ADX 15 Index (FADX15).

ADGM Financial Services Regulatory Authority penalises 5 Reporting Financial Institutions.  Meanwhile, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has imposed penalties and administrative fees ranging from Dhs30,000 to Dhs119,000 on five Reporting Financial Institutions for contraventions of the Common Reporting Standard Regulations 2017.

The Organisation for Economic Co-operation and Development (OECD) developed the Common Reporting Standard (CRS), which was established in the UAE with effect from 1st January, 2017.

The CRS concerns financial and tax-related information exchange on a global level between tax authorities and other international financial regulators through secure channels. It sets out the scope of information to be reported, the financial institutions required to report, the account holders subject to reporting, as well as the procedures to be followed by financial institutions.

The actions imposed by the FSRA address failures (to the extent applicable in each case) to apply adequate due diligence procedures; keep records of the performance of due diligence; report required information in a complete and accurate manner; and obtain valid self-certification of tax information from clients.

Emmanuel Givanakis, Chief Executive Officer of the FSRA, said, “The Abu Dhabi Global Market  is committed to ensuring its regulations are complied with, including those related to tax reporting, which are based on international obligations and standards. A key objective of the FSRA is to promote and enhance the integrity of the ADGM financial system. Accordingly, the FSRA supports initiatives to make tax systems more transparent, and to prevent practices intended to circumvent tax reporting.”

WAM