On Wednesday, 11/12/2024, in the UAE - Abu Dhabi, the Amman Stock Exchange (ASE) and the Securities Depository Center (SDC) signed an agreement with the Abu Dhabi Securities Exchange (ADX), which aims to join “Tabadul” Hub operated by the ADX and includes some Arab and Asian stock exchanges.
Tabadul launched by ADX in July 2022 to provide an interconnection between the platform’s member markets and facilitate mutual access by brokerage firms in each market, to enable these firms to smoothly access the Tabadul platform’s member markets within the framework of bilateral agreements concluded between them, and to enable them and investors to easily seize available investment opportunities through remote trading in the other market, noting that the transactions of brokerage firms in the other market are subject to the provisions of the legislation in force in that market, and the depository centers in each market are responsible for the financial settlement of their local brokers’ contracts.
Dr. Adel Bino, Chairman of the JSC, pointed out that “signing this agreement comes within the framework of implementing the Cabinet’s decision to proceed with the electronic linkage project between the Jordanian capital market institutions and the Abu Dhabi Securities Exchange, and to strengthening cooperation between the two markets and create a qualitative shift that contributes to enhancing liquidity in both market, by providing the possibility of direct trading for investors between the two markets through the “Tabadul” platform by financial brokerage companies that are registered in each market for this purpose within the framework of the provisions of the agreement and the legislation in force in each market, in a way that contributes to achieving further expansion and development and contributing to supporting the economic growth of the two countries.”
Mazen Al Wathaifi, CEO of the ASE, added: “signing this agreement with the Abu Dhabi Securities Exchange comes within the framework of the strategic partnership between the two brotherly countries and the joint cooperation in economic fields that serve the interests of both countries. It also comes in line with the objectives of the Economic Modernization Vision and the implementation of the strategic objectives that the ASE seeks to achieve, by enhancing openness to regional and global financial markets and exchanging expertise, in addition to enhancing the liquidity and depth of the financial market by facilitating the flow of Arab and foreign investments into the market.”
Sarah Al-Tarawneh, CEO of the SDC, pointed out that “signing this agreement enhances the diversity of investment opportunities and allows investors to trade securities between the two markets easily and conveniently within a legal framework based on this agreement. It also ensures the completion of pre- and post-trading services and related procedures for opening securities accounts and financial settlement with accuracy and reliability.”
In the upcoming phase, the necessary regulations will be established to facilitate the registration of brokerage companies wishing to trade for their clients in ADX through Tabadul Hub. Additionally, all arrangements and guarantees related to the settlement will be completed in accordance with the provisions of that agreement and its appendices, in preparation for determining the date of the agreement coming into force and putting it into actual practice in the two markets.
