The Abu Dhabi Securities Exchange (ADX) announced adding five more single stock futures in a bid to strengthen the bourse’s derivatives market.
The new stock futures are Abu Dhabi Islamic Bank (ADIB), Abu Dhabi Commercial Bank (ADCB), Fertiglobe, Borouge and AD Ports.
Trading on these company derivatives commenced on Thursday, the exchange said.
The addition of new contracts doubled the total number of derivative products on ADX to 10 in less than a year.
The Abu Dhabi bourse said market participants would be able to trade on leverage and hedge their equity exposure using these contracts.
Addition of the latest lot of single stock futures followed the launch of single stock futures of Etisalat, First Abu Dhabi Bank, International Holding Company, ADNOC Distribution and Aldar Properties earlier.
ADX also launched futures contracts on the FTSE ADX 15 (FADX 15) Index in June this year.
The exchange introduced the derivatives market in November 2021 as part of its move to augment trading and provide investors and traders with access to two-way market exposure, while providing for hedging and leveraging capabilities.
Saeed Hamad Al Dhaheri, managing director and chief executive officer of ADX, said the launch of the new lot of single stock futures was in line with its effort to further broaden the range of offerings to meet the demands of its expanding investor base.
“The ADX derivatives market has rapidly become one of the most active in the region due to a blend of strong partnerships and world-class infrastructure,” he said.
ADX sealed an agreement with Nasdaq in September 2021 to put in place marketplace technology solutions for the derivatives market, including matching, real-time clearing, and settlement technology.
The launch of the derivatives market was also accompanied by the introduction of central counterparty clearing (CCP) to promote clearing efficiency, stability, and confidence in the market.
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