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ADX signs bonds listing and trading agreement

June 23, 2014



The introduction of debt listing and trading has long been anticipated in the emirate the largest and richest of the seven which make up the UAE as a way to expand the exchange's activities and make it easier for local companies to sell debt instruments.



Abu Dhabi Securities Exchange, or ADX, has signed an agreement paving the way for bonds and other debt instruments to be listed and traded through the bourse, it said in a statement on Sunday.







The introduction of debt listing and trading has long been anticipated in the emirate the largest and richest of the seven which make up the UAE as a way to expand the exchange's activities and make it easier for local companies to sell debt instruments.







Developing a domestic debt market was a "national priority", the UAE central bank governor said last November, while the head of the emirate's department of finance said the local government would dual-list government bonds in Abu Dhabi and London in future.







Under the agreement signed by ADX and National Bank of Abu Dhabi, the UAE's largest lender, bonds can be listed and then traded through the exchange by local and international investors, with NBAD using its account with Euroclear to process the transactions.







Euroclear is one of the main international clearing houses for trades in public debt instruments.












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Source: Khaleej Times (United Arab Emirates)


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