Sheikh Mansour Bin Zayed witnesses the launch of ICE Futures Abu Dhabi and ICE Murban Crude Oil Futures contract at ADGM

ADGM 29/03/2021
5-year anniversary
  • ICE Futures Abu Dhabi (IFAD) is the First International Derivatives Exchange in Abu Dhabi and ADGM

His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs of the UAE, witnessed the launch of ICE Futures Abu Dhabi (IFAD) and Abu Dhabi National Oil Company’s (ADNOC) Murban Crude Oil Futures Contract at Abu Dhabi Global Market (ADGM) on 29th March 2021. His Highness Sheikh Mansour bin Zayed was accompanied by senior officials including H.E. Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Group CEO of the Abu Dhabi National Oil Company (ADNOC), H.E. Khaldoon Khalifa Al Mubarak, Chairman of the Executive Affairs Authority of Abu Dhabi and Managing Director and Group CEO of Mubadala, H.E. Suhail Mohamed Al Mazrouei, UAE Minister of Energy and Infrastructure, H.E Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of ADGM, and H.E Engineer Awaidha Murshed Ali Al Marar, Chairman of Abu Dhabi Department of Energy.

ADGM is pleased to welcome IFAD, the first international derivatives exchange in Abu Dhabi and set up at ADGM, and the trading of the world’s first ICE Murban Crude Oil Futures on IFAD. Set up by the Intercontinental Exchange with the support of ADNOC and nine of the world’s largest energy companies, IFAD is the first exchange to be approved by the Financial Services Regulatory Authority (FSRA) of ADGM under its “Recognised Investment Exchange” regime.

His Excellency Ahmed Ali Al Sayegh, Minister of State (UAE) and Chairman of ADGM, said : “IFAD is the first derivatives exchange established in Abu Dhabi. It is also the first time that Abu Dhabi’s flagship Murban crude will be traded as a futures contract and establishing itself alongside global price benchmarks. This development has heralded in a new era for the global oil and financial landscape, and bears testament to Abu Dhabi’s status as a global energy and trading hub. We are pleased to play a part in bringing to life this landmark achievement.

ADGM is pleased to be the preferred financial ecosystem for home-grown institutions and global corporations in achieving their business objectives and expanding their growth. We will continue to actively support and contribute towards Abu Dhabi and the UAE’s strategic growth blueprint and economic sustainability.”

Richard Teng, CEO, ADGM Financial Services Regulatory Authority, added: “Our heartfelt congratulations to ICE, ADNOC and its partners in the establishment of IFAD and championing the needs of the energy industry. As part of our ongoing commitment to provide a fair, efficient and transparent marketplace, we have established robust information sharing coordination with regulators from leading global financial jurisdictions, including the United States of America, the United Kingdom, Switzerland and Singapore. This is to enable more global members and industry players to participate in the trading of ICE Murban Crude Oil Futures Contract and a range of related cash settled derivatives. Such arrangements will also facilitate closer cross-border supervision of the trading activities. We will remain agile to the needs of the market participants and investors and respond appropriately to facilitate developments and opportunities.”

Sourced from ADNOC’s onshore concessions, Murban is a light sweet crude that is recognised for its consistent production capacity of around 2 million barrels, representing more than half of the UAE total oil production. ICE Murban Crude Oil Futures Contracts will be complemented with a range of cash settled derivatives, including differentials against leading global crude oil benchmarks of Brent and WTI, as well as to a wider array of energy products such as gasoil and naphtha among others. The Futures Contracts will be physically delivered at Fujairah in the UAE.

Through ADGM’s market infrastructure platform, leading regional and global oil and energy market participants can access IFAD to effectively manage their risk exposures using ICE Murban Crude Oil Futures. By establishing a secondary market and offering inter-commodity spreads, these participants will have more options to manage risk and clear trades.

ADGM is also the headquarters for two major commodity trading firms, ADNOC Trading (AT), which focuses on the trading of crude oil, and ADNOC Global Trading (AGT), a joint venture between ADNOC, ENI and OMV. Participants are expected from across the crude market, including National Oil Companies, Producers, Merchants and Refineries, as well as financial entities including Investment Banks and Broker Dealers.

As an IFC, ADGM supports primary and secondary markets across its Market Infrastructure framework, ranging from the offering and listing of Securities to having bespoke trading venues focused on derivatives, Virtual Assets and securities (including Digital Securities). Further details are available on the ADGM Market Infrastructure webpage.