Abu Dhabi Securities Exchange (ADX) participated last week at the Technology of the Future Forum that took place in Stockholm, and was organized by Nasdaq OMX aiming at discussing plans for technological development in the financial services field.
The event, taking place every 18 months, was attended by a number of major corporations and financial markets including the stock exchanges of Japan, Hong Kong, Singapore, Bahrain and Kuwait, in addition to Dubai Financial Market.
The forum’s agenda included discussing the requirements of major and high frequency traders in relation to the latency of buy and sell orders execution as well as the plans of Nasdaq OMX to develop the trading systems and to accelerate orders execution.
“ADX has emphasized during the forum the importance of developing the clearance, settlement and central depository systems through adopting the “Swift” system; in a manner that ensures safety and confidentiality , as well as supporting the implementation of Delivery versus Payment (DvP) a development that will result in upgrading the UAE by international indices classification agencies,” commented Ghanem Al Dhaheri, ADX’s head of Information Technology Department who represented the exchange in the event.
DvP offers custodians a mechanism for delivering securities to clients upon the transfer of funds to the settlement bank, or even settling the value on behalf of clients in the cases of ownership transfer on the settlement date (T+2), and hence the system will work in favor of all market participants and in particular the custodians according to Al Dhaheri.
“ADX’s participation in the event reflects our support and commitment to the development of our IT systems, and accordingly enhancing the efficiency of the trading system; ensuring the application of international best practices in tandem with the objectives of Abu Dhabi Economic Vision 2030,” he concluded.