ASE, Securities Depository Centre sign linkage agreement with Abu Dhabi Securities Exchange

AMMAN — The Amman Stock Exchange (ASE) and the Securities Depository Centre on Wednesday signed an agreement in Abu Dhabi, UAE, to establish an electronic link with the Abu Dhabi Securities Exchange (ADX). 

The agreement aims to integrate with the ADX-operated Tabadul platform, which connects a network of Arab and Asian stock exchanges, according to the Jordan News Agency, Petra. 

ASE CEO Mazen Wathaifi, CEO of the Securities Depository Centre Sara Tarawneh and ADX CEO Abdullah Naimi signed the agreement.

Launched in July 2022, the Tabadul platform facilitates interconnectivity among member markets, allowing brokerages to easily access each market. 

The agreement will allow investors to take advantage of investment opportunities by trading remotely across markets, within the framework of a bilateral agreement between the exchanges.

Brokerage transactions in the other market will follow the rules of that market, with each custodian handling the financial settlement of contracts involving local brokers.

A joint statement said that the next steps include the development of regulations for the registration of brokerage firms that wish to trade in the other market through the Tabadul platform. 

Arrangements will be made to ensure the proper settlement of securities transactions, with the aim of setting an implementation date for the agreement in both markets.

Chairperson of the Jordan Securities Commission Adel Bino highlighted that the agreement aligns with the Cabinet’s directive to advance the electronic linkage project between Jordan’s capital market institutions and ADX.

Bino noted that the initiative aims to enhance cooperation between the two markets, improve liquidity, and facilitate direct trading for investors via the Tabadul platform, stressing that this step supports "broader economic growth" by expanding and developing the financial markets of both countries.

Wathaifi underlined that the agreement reflects the "robust" strategic partnership between Jordan and the UAE. 

He said that the agreement would support the Economic Modernisation Vision by fostering openness to regional and global financial markets, encouraging knowledge exchange, and enhancing market liquidity.

Tarawneh said that the agreement would expand investment opportunities, enabling seamless cross-border securities trading within a "solid" legal framework, adding that it guarantees "accurate and reliable" completion of pre- and post-trade processes, including account setup and securities price settlements.