International lenders did not disclose specificities, but said it was part of global cost-cutting plansNovember 26, 2015 11:32
Derivates trading plans in Gulf pushed back -ADX CEO
The ADX initiated plans at a GCC level to create a derivatives market about three years ago-says ADX CEO.
November 8, 2010 3:58 by Reuters
Plans to create a regional derivatives market by the Abu Dhabi Securities Market (ADX) have been put on the back burner due to the financial crisis, the exchange’s chief executive said on Monday.
Rashed al Baloushi also said new initial public offerings (IPOs) are unlikely to be launched until investor confidence is restored and with further economic recovery.
The ADX initiated plans at a GCC level to create a derivatives market about three years ago when the financial crisis took hold, he told the MEED Abu Dhabi Conference.
“It was not the right time because derivates were blamed. So we decided to reprioritise and shifted it back,” he said.
Nor are any IPOs likely to hit the market soon, after two companies postponed plans earlier this year.
“We expect an IPO to come back when confidence comes back and the economy starts growing,” he said.
There are no bonds listed yet on the ADX but the exchange has the structure and legal framework ready for their listing, he said.
Set up in late 2000, ADX is the youngest stock exchange in the Gulf with shares of 66 companies listed currently and an investor base of 890,000, mostly retail investors, he said.
(Reporting by Stanley Carvalho, editing by Reed Stevenson)