ADGM’s FSRA amends capital markets framework to bolster investment activities

Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA) has announced significant enhancements to its capital markets framework covering spot commodities, securities, derivatives, benchmarks, environmental instruments and virtual assets.

The wide-ranging changes were first proposed in March and received a significant and supportive response from the industry and wider stakeholders.

Read: UAE’s ADGM, FSRA look to amend capital markets framework

These changes enable greater participation within primary and secondary markets while also ensuring ADGM market participants continue to operate in accordance with and under the protection of the highest regulatory standards

The implementation of these changes is intended to significantly benefit markets-related activities, affecting recognised investment exchanges, recognised clearing houses, multilateral trading facilities (MTFs), organised trading facilities (OTFs), market intermediaries, remote bodies, remote members, offerors/issuers, listed entities, reporting entities, and sponsors.

ADGM has now implemented its regulatory framework for spot commodity and environmental instrument activities, making it the first international financial centre in the MENA region to do so. Another region-first inclusion in this framework highlights purpose-built offerings and listing rules relating to mining and petroleum companies.

The FSRA has also strengthened its requirements in line with IOSCO and comparable jurisdictions in respect of capital raising requirements, continuous disclosure obligations, preference securities and weighted voting rights.

Multilateral trading facilities/ custodians operating within ADGM can seek approval from the FSRA to engage in non-fungible token (NFT) activities.

Ahmed Jasim Al Zaabi, chairman of ADGM, said: “ADGM wishes to thank all those who responded to the consultation paper released earlier this year.  The degree of interest shown in the consultation, as well as the keen interest by participants looking to undertake activities in these significant new areas, is hugely positive.

“These enhancements to our capital markets framework will unlock the next stage of investment and growth opportunities, across commodities, environmental instruments, virtual assets activities and wider financial markets.”

Emmanuel Givanakis, CEO of the FSRA, said: “These important and major enhancements to our capital markets regulatory framework are a vital part of the FSRA’s objective to continue developing ADGM’s overall comprehensive and progressive regulatory framework. It will help to support and bolster the growth of our vibrant ecosystem that will, in turn, contribute to the growth and diversification of Abu Dhabi, the UAE and the MENA region’s economy as a whole.”