13 November 2017, Abu Dhabi, UAE: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has issued a consultation paper inviting public feedback on its proposal to introduce a new Remote Membership framework as well as various other amendments to enhance ADGM’s capital market regime.
By enabling brokers located outside of the ADGM to access exchanges and clearing houses located within ADGM, the Remote Membership framework aids to expand the pool of international investor participation, facilitates cross-border flows and increases liquidity for ADGM’s capital market. The proposed new framework will extend the reach of ADGM-based exchanges by allowing international investors to trade and settle their trades with greater convenience and choice. With the introduction of remote trading members, foreign investors can also be served by the trading professionals with access to the Abu Dhabi and regional markets.
Other key proposals of the consultation paper include:
- Rely on data feeds from ADGM-based exchanges, instead of reporting by Authorised Persons, to monitor trading activities, as well as, simplify transaction reporting requirements within ADGM;
- Clarification of the availability of, and constraints imposed by, the price stabilisation regime permitted by the Markets Rules (MKT);
- Introduction of changes to naming conventions to clarify distinctions between ADGM-based exchanges and clearing houses compared to remote exchanges and clearing houses; and
- Other miscellaneous amendments that will provide greater clarity to operators and users of ADGM capital markets.
This proposed revision is part of the FSRA’s commitment and ongoing efforts to maintain an internationally-recognised, transparent and robust capital markets regime. For more details of the Consultation Paper, please click here.
The FSRA invites the public and industry participants to submit their comments to “Consultation Paper No. 5 of 2017” by 2 January 2018 to:
Consultation Paper No. 5 of 2017
Abu Dhabi Global Market
ADGM Square, Al Maryah Island
PO Box 111999, Abu Dhabi, UAE