Armenian AMX joins Tabadul project by Abu Dhabi ADX

ArmInfo. The Armenian Stock Exchange (AMX) intends to sign an agreement in the coming days to join the Tabadul exchange platform, which belongs to the Abu Dhabi Securities Exchange (ADX). This was told to ArmInfo by the Chairman of the AMX Board of Governors Hayk Yeganyan. 

Tabadul Hub is an exchange platform based on the model of mutual  access to markets. It provides a digital exchange network for trading  between market participants - members of exchanges at the regional  and global levels. Moreover, securities on Tabadul are traded in the  local currency of the corresponding exchange, and in some cases - in  the specified currency of the traded asset, while there are no  minimum amount limits. Currently, several exchanges are registered on  Tabadul - Abu Dhabi Securities Exchange (ADX), Bahrain Exchange,  Muscat Stock Exchange and Astana International Exchange (AIX).  Several other exchanges, including Armenia's AMX, are in the process  of becoming Tabadul members.

According to Yeganyan, Abu Dhabi is trying to become an important  regional exchange center, currently occupying the 2nd place among  stock exchanges in Arab countries. In order to strengthen its  position both in the region and in the world, ADX came up with the  Tabadul Hub project, which is supposed to provide access to exchange  platforms that have joined the platform. According to Yeganyan, the  creation of such a platform is very beneficial for Armenia, since  members of the exchanges participating in the platform are also large  investors represented by international banks, which will thereby  receive direct access for direct trading on the currency and debt  platforms of the Armenian Exchange. Moreover, the clearing system for  trading with counterparties will be located in Abu Dhabi. As Yeganyan  noted, this is a rather expensive infrastructure - Central  Counterparty (CCP) - an organization that takes on the risks of  transactions concluded by participants during exchange trading,  acting as an intermediary between the parties.  Therefore, the  Armenian side came up with a proposal to ADX to start providing this  service to the Armenian market.

According to Yeganyan, the signing of the agreement with ADX to join  Tabadul Hub can be considered the first step towards opening Armenian  exchange platforms to external investors. The technical part has been  resolved, and it will take time for regulatory changes. Yeganyan  hopes that in six months the project to join the ADX platform will  already be operational.