The Abu Dhabi Securities Exchange (ADX) and FTSE Russell have partnered to develop co-branded indices, supporting the exchange’s recently launched derivatives market and bringing the exchange’s stock performance measures into line with global standards.
As of 10th of January 2022, the FTSE ADX General Index is replacing the ADX General Index, and FTSE ADX sector indices will take the place of the existing sector indices, leveraging the Industry Classification Benchmark. ADX is the first exchange in the region to make FTSE Russell its index administrator. Further new indices will be co-developed under the partnership to support ADX’s vision of introducing tradable new index products on its market. The exchange launched single stock futures in the fourth quarter of 2021 following an agreement sealed in September with NASDAQ in September to deliver matching, real time clearing and settlement technology as ADX broadens its asset class offerings. Saeed Hamad Al Dhaheri, Chief Executive Officer of Abu Dhabi Securities Exchange commented: “Our partnership with FTSE Russell is part of ADX’s wide-ranging strategy to develop a dynamic exchange, which includes investment in state-of-the art market technology and increasing the opportunity set for investors and issuers. The new range of FTSE-ADX indexes will provide robust benchmarks and support the listing of index derivatives, ETFs other index-based products on the exchange.”
Arne Stall, Chief Executive Officer, FTSE Russell, said: “ADX is an innovative and vibrant marketplace that empowers the UAE’s economy. We are delighted to work together to strengthen the country’s capital markets with open access to data, pricing, and performance metrics. Our collaboration confirms FTSE Russell’s commitment to the Middle East region and we look forward to announcing a range of new benchmarks in the coming months.”
ADX’s benchmark index, the ADI, crossed the 9,000-point threshold in 2021 for the first time. The benchmark gauge rose 68% last year, making it one of the best performing exchanges in the world. At the same time, the exchange’s market capitalization more than doubled to AED 1.6 trillion with net foreign investment reaching AED 15.2 billion.