ADX launches derivatives market

The Abu Dhabi Stock Exchange (ADX) has launched a derivatives market that allows trading in single equity futures in some of its listed companies.

The move is designed to attract more international players to Abu Dhabi’s capital markets by bringing its products and services in line with other global exchanges.

According to the ADX, the new derivatives market will “give investors and traders increased leverage, two-way market exposure and hedging capabilities”.

Trading began with four listed companies and more will be added this year and next. “Index futures will be introduced in the first quarter of 2022, ahead of the expansion into a wider range of derivative products,” stated the exchange.

The ADX is the region’s second largest exchange behind Saudi Arabia’s Tadawul and has seen a 59% surge this year and its market capitalisation now stands at $370.31 billion. It has also seen its largest listing to date with Adnoc Drilling, owned by state-owned Abu Dhabi National Oil Company.

The launch also comes on the back of a $1.4 billion IPO fund launched by the Abu Dhabi government last month.

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