Abu Dhabi Securities Exchange (ADX) has signed an agreement with Nasdaq to deliver marketplace technology solutions, as part of its plans to launch a derivatives market.

Under the agreement Nasdaq will deliver technology solutions, including matching, real-time clearing and settlement technology, according to a statement from ADX Wednesday.

The exchange plans to launch single stock futures and index futures in the fourth quarter of this year before expanding to a wider range of derivative products. The initiative will further diversify investment avenues and provide investors with hedging tools for effective risk management, it said.

Alongside the derivatives market, it will also launch central counterparty clearing to promote clearing efficiency, stability and boost investor confidence.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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