ADX to upgrade company disclosure method

The Abu Dhabi Securities Exchange (ADX) is planning to upgrade the method of disclosure by listed companies to give quicker and more comprehensive access to investors, its Deputy Chief Executive has said. The plan is in response to demands by investors, who expressed concerns about the method of disclosure by the nearly 70 listed firms in a survey conducted by ADX over the past few weeks, Rashed Al Baloushi said. The survey, which covered 801 investors, showed 58.64 were satisfied by ADX’s services, indicating the success of the bourse’s improvement plans. The one-month survey was launched from June 20 to measure the satisfaction level among its investors and to identify the services and areas that need consideration or improvement within the framework of the exchange’s strategic objectives and plans, according to Baloushi. “Nevertheless, we have noticed that many investors expressed reservations against the disclosure of company financial data and information, despite the fact that ADX passes such information promptly as soon as it is received and according to the criteria set by the Securities and Commodities Authority and the exchange’s rules and regulations,” Baloushi said late on Saturday. “However, such concerns are mostly related to the method of retrieving and reviewing such information, a matter that will witness a revolutionary transformation soon, upon the introduction of the Extended Business Reporting Language (XBRL) platform.” He said ADX, one of the largest bourses in the Middle East, is currently working on the introduction of XBRL to be the norm for disclosure, and hence allow for better retrieving in multiple languages and better analytical tools by allowing for comparisons between companies, sectors and economies. “ADX management is thoroughly assessing all the remarks, complaints and proposals presented by the investors through the survey, carefully considering all the outlined weaknesses and evaluating the feasibility of objective proposals.” In a statement, Baloushi said the survey also provided for what he described as invaluable information related to ADX’s efforts in the areas of investor awareness and the introduction of new investment products that will have a positive impact on the exchange’s plans and programs in this respect. “We are carrying out these surveys twice a year to identify the general trend and to be able to adapt ourselves to the changing needs of the financial community through responding to necessary requirements and adjusting the mechanisms of operation in accordance with our policy of implementing the best international practices and our endeavors to become the market of choice in the region.”