Abu Dhabi - Mubasher: The Abu Dhabi Securities Exchange (ADX) has launched a derivatives market as part of its ADX One strategy to improve market liquidity and expand its products and services offering, the Abu Dhabi media office reported.

The derivatives market allows initial trading in single-stock futures of Etisalat, First Abu Dhabi Bank (FAB), International Holding Company (IHC), ADNOC Distribution, and Aldar Properties, with more securities to be added later this year and in 2022.

By introducing single equity futures, the new market will enable investors and traders to benefit from increased leverage, two-way market exposure, and hedging capabilities. 

Meanwhile, index futures will be introduced in the first quarter (Q1) of 2022 before the expansion into a wider range of derivative products. 

To provide liquidity, ADQ’s Q Market Makers, BHM Capital, and Al Ramz Capital join the ADX Derivatives market, which deploys Nasdaq-delivered marketplace technology.

The Chairman of ADX, Mohammed Ali Al Shorafa Al Hammadi, commented: "The introduction of stock and index futures will support our ‘ADX One’ strategy which aims to provide diversification avenues and enhance liquidity to create a dynamic capital market."

Meanwhile, the CEO of ADX, Saeed Hamad Al Dhaheri, said: "The introduction of derivatives marks an important new chapter in the history of the ADX, providing tools to investors to trade on their views on the direction of individual securities and indices and execute sophisticated trading strategies in an effective manner."