Abu Dhabi Securities Exchange will, at the end of the week, list the first Exchange Traded Fund to boost investment opportunities, curb market risks and attract more liquidity. ADX is the first to launch such an important financial tool in the region. The launch will be done in co-operation with a major Abu Dhabi bank.
Deputy CEO of ADX, Rashid Al Baloushi told Emirates Business: "We have readied well for the launch of the Exchange Trading Funds (ETFs)."
He said the market had taken measures to list the funds in 2008 but had it not been for the difficult financial circumstances, "we would have listed those funds, which are very important financial tools that have proved to be successful at world market level".
Al Baloushi said the circumstances are now suitable to list the ETFs.
The ADX last year announced the enforcement of the ETFs but listing was postponed many times. It organised several forums for local and international experts to raise the investors' awareness of ETFs. Also, training courses were organised for market workers and traders on how to handle ETFs.
The ADX has been involved in talks with a number of exporters of the investment tool, which is new in the market, said Al Baloushi, adding that the Abu Dhabi Exchange had been careful to have a local establishment familiar with the local market situation as the first exporter. He refrained from giving the name of the establishment.
Listing details will be given in a ceremony at the ADX at the end of the week in the presence of Minister of Economy and Board Chairman of the Securities and Commodities Authority and other senior economic figures.
The ADX said the ETF is a combined investment tool that can be exchanged and traded in financial markets as is the case with the listed public joint stock companies.
ADX in ME Securities Forum
Abu Dhabi Securities Exchange is participating in the two-day 2010 Middle East Securities Forum in Doha, Qatar, which started yesterday. ADX is represented by Khaled Khalfan Al Suwaidi, Head of Listed Companies Department.
The event is dedicated to discussing ways to improve the region's appeal as an investor destination. It will discuss the alignment of the region's capital markets with the movements of global markets, the exaggerated risks of the GCC, developing regulatory frameworks, as well as the current trends in the region's financial markets.
Al Suwaidi said: "We are sharing with the region's financial community the latest developments and initiatives for ADX, including the application of the Extensible Business Reporting Language, the introduction of Exchange Traded Funds as a new investment vehicle, as well as the latest developments related to applying the appropriate corporate governance codes."
The forum includes key industry speakers from the region and the world, including the heads of the stock exchanges of Qatar and Bermuda, as well as senior executives from HSBC, Deutsche Bank, Citi, JP Morgan, Bank of New York Mellon and Commercial Bank of Qatar.