Abu Dhabi Securities Exchange, Bahrain Bourse sign strategic partnership agreement

On Wednesday, Abu Dhabi Securities Exchange (ADX) signed a strategic cooperation partnership agreement with Bahrain Bourse (BHB).

It aims to achieve synergies and cross border cooperation to enhance market liquidity and promote the issuance of low-cost investment vehicles.

The two entities agreed to implement new measures over the next nine months to strengthen ties between investors based in both countries by enabling the seamless placement of orders on both securities markets, while reducing transaction costs.

As part of the agreement, ADX and BHB have agreed to introduce a number of products and services including Exchange Traded Funds (ETFs), smart order routing and cross-border direct tradind, according to news agency WAM.

As part of ADX’s strategy for growth announced at the beginning of the year, the exchange is forging partnerships with global exchanges, offering a broader range of products and services to the market, and investing in infrastructure too.

“The alliance between ADX and Bahrain Bourse will further enhance the relationship between the UAE and Bahrain, showcasing the high growth opportunities on both exchanges and encouraging capital market activity through the introduction of innovative products and services. In turn, this will provide tangible benefits to the economies of the UAE and the kingdom of Bahrain,” said Mohammed Ali Al Shorafa Al Hammadi, ADX chairman.

Meanwhile, Shaikh Khalifa bin Ebrahim Al Khalifa, Bahrain Bourse’s CEO and vice chairman and managing director of Bahrain Clear added, “This strategic collaboration follows our innovative approach to widen cross-border investment opportunities. We aim to develop seamless offers to investors, and to provide enhanced access with unmatched efficiency workflow in both markets whilst reducing transaction costs and bolstering market liquidity. Innovation sits at the heart of our collaboration, in line with our mandate to evolve the Middle East’s capital market ecosystem, and hence we also aim to promote the listing of ETFs, enable CSD integration in both markets, and automate smart order routing systems. This partnership will enable us to set a blueprint for future regional collaboration and harness each other’s capabilities.”