Following the signing of the Memorandum of Understanding in October 2021 between the AIX and the ADX, the two exchanges announced that officials from both financial markets met to define the areas of mutual collaboration further and target immediate next steps in a clear direction commitment to achieving the goals of the MOU.
Fostering ties between trading members of both exchanges is seen as a key priority that will help enhance market liquidity. The two market aim towards initiating mutual introduction to facilitate bilateral direct market access (DMA) links between brokers allowing AIX brokers to access ADX and vice-versa.
Establishing simplified central securities depository (CSD) links is considered to pave the way for cross-listings of ETFs and fixed income securities. Additionally, collaboration in the field of Shariah-compliant exchange-traded products is also of particular interest to both exchanges.
Other longer-term areas of cooperation include fintech market development opportunities, market infrastructure technology, investor awareness and staff secondment.
Renat Bekturov, Chief Executive Officer of AIX, stated:
“We continue to grow our international potential and expand ties with market participants demonstrating impressive development rates. I believe that collaboration with Abu Dhabi Securities Exchange will allow us to expand the capabilities of AIX and provide our customers with access to the Abu Dhabi market and vice-versa in the future, as well as contribute to further development of financial and economic ties between our countries.”
Chief Executive Officer of ADX, Saeed Hamad Al Dhaheri, said:
“Forming alliances with exchanges in capital markets around the world is a key part of our ‘ADX One’ strategy, which we launched earlier this year to enhance liquidity, further improve market efficiency and significantly increase market capitalization. Our objective is to align with best international practices and make ADX a more attractive market for international investors. Through our partnership with AIX, we hope to introduce investors to new opportunities and in doing so enhance liquidity for both exchanges.”
Reference:
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, Goldman Sachs, the Shanghai stock exchange, the Silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favourable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. More details:www.aix.kz
Abu Dhabi Securities Exchange (ADX) was established on November 15 of the year 2000 by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance, and management. The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions. On 17th March 2020, ADX was converted from a “Public Entity” to a “Public Joint Stock Company PJSC” pursuant to law No. (8) of 2020. ADX is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
ADX is a market for trading securities; including shares issued by public joint-stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA). ADX is the second-largest market in the Arab region and its strategy of providing stable financial performance with diversified sources of income is aligned with the guiding principles of the UAE “Towards the next 50” agenda. The national plan charts out the UAE’s strategic development scheme which aims to build a sustainable, diversified, and high value-added economy that positively contributes to the transition to a new global sustainable development paradigm.
The Astana International Financial Centre (AIFC) is an independent jurisdiction that started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus. www.aifc.kz