Abu Dhabi Securities Exchange (ADX) participated in SALT Conference panel discussions held in the capital, Abu Dhabi, last week. The Conference was held in partnership with event organisers Abu Dhabi Global Market.
The conference discussions included a key session titled “The Disruption of Traditional Asset Exchanges”, which featured H.E. Khalifa Salem Al Mansouri, Chief Executive of ADX. H.E. spoke about the latest solutions and innovations that ADX employs to attract new investors, facilitate a smooth investment experience and create a stimulating environment for investors, as well as ADX’s global standards in innovation, digital and sustainable financing.
During the discussions, His Excellency reviewed the most prominent features of the development of ADX’s performance throughout the year, noting that its index has increased by 2.4% from beginning of year until end of November 2019. In addition, the market capitalization of ADX reached about 523.6 billion dirhams by end of November 2019, an increase of 6.9%, up from same period in 2018 where it was around 490 billion dirhams. The total of trading since the beginning of the year until the end of November 2019 was around 45.6 billion dirhams; an increase of 33.4% compared to 34.2 billion dirhams during the same period last year.
Al Mansouri outlined that the value of net foreign investment was about 2.6 billion dirhams from the beginning of year until end of November, up from 2.1 billion dirhams, leading to an increase of 23.8% over the same period in 2018. The total value of trading (buy + sell) of institutional investments in ADX from the beginning of year until end of November was around 68.4 billion dirhams, compared to around 46.1 billion dirhams over the same period in 2018 (an increase of 48.5%). The value of net institutional investment amounted to around 2.7 billion dirhams from the beginning of year until end of November with comparison to 1.9 billion dirhams during same period last year which is an increase of 42.1%.
The comprehensive vision pursued by ADX towards developing its digital services was detailed to the audience, a strategy specifically designed to cope with the rapid growth in the field of information technology and digital software for financial markets. The vision lies within the framework of ADX’s support for the digital transformation of the Abu Dhabi government, developed in accordance with the best international standards as part of the operational market operations. ADX employs blockchain technology in its electronic voting service in the general assemblies – a first-of-its-kind precedent for MENA region financial markets. The Exchange has also signed an MOU with the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and seven leading global Central Securities Depository (CSD) companies to collaborate on Distributed Ledger Technology (DLT) implementation in post trade operations, as well as capital market transactions.
As he covered the technical development of the ADX, Al Mansouri observed that ADX has launched innovative digital platforms that made it easy for clients and institutions to conduct investment business. On top of which is the Exchange’s accession to the IDC’s ‘Smart City Middle East Awards’ Finals, through its participation in the Smart Government Administration category with its CRM Digital Transformation Program (SAHMI).
On the subject of automated systems improvements in ADX, His Excellency pointed out that it has made adjustments to the electronic disclosure system and mechanisms, so that companies can practice disclosure immediately without the need for prior approval. With the exception of cases of suspension, re-trading and insider trading. Mention was also given to the Arqaam platform launch which is powered by artificial intelligence technologies. This technology can be used in business management and is beneficial due to its quick access to multiple sources of information, as well as computerized advice and expectations which it provides to make the right administrative decisions.
Al Mansouri also covered ADX’s Digital Wallet powered by PAYIT, which facilitates the sending and receiving of funds through a phone application that is linked to the investor’s number. This application enables investors to deal with ADX in real time, as well as receiving immediate cash dividends to investors, saving time and effort by conducting transactions more quickly. ADX also introduced the launching of a new integrated digital platform Sahmi which provides services for investors.
In addition, ADX has adopted its new product Short-Term Trading, which will be made available through brokerage companies approved by ADX and licensed by the Securities and Commodities Authority. This approach conducts financial brokerage activities within the conditions and controls set by ADX to protect both investors and stakeholders. ADX made this product available within the framework of its strategy to increase trading volumes and diversify the products available to investors, by financing four times the market value of the securities purchased from the client. The client should be committed to selling these securities funded during a period not exceeding three trading days, in accordance with the provisions of the controls set by ADX.
Saada Saab Antypas