NYSE in tie-up with Abu Dhabi

NYSE in tie-up with Abu Dhabi

By Simeon Kerr in Abu Dhabi and Anuj Gangahar in New York

Published: March 19 2008 01:26 | Last updated: March 19 2008 01:26

NYSE Euronext has became the latest exchange to forge a deal with a Gulf state, agreeing to provide the Abu Dhabi stock exchange with new systems and trading products.

Tom Healy, the director-general of the Abu Dhabi Securities Market, said on Tuesday that one of the first areas of co-operation with the US-European exchanges group would be to develop a derivatives market. The use of derivatives products in Gulf markets is limited.

Abu Dhabi will also upgrade its trading platform to NYSE Euronext technology in a separate commercial deal. ADSM and NYSE Euronext, which under the deal will become exclusive partners in the Gulf states, will also consider ways to increase cross listings.

The deal is the latest in a string of tie-ups between international exchange companies and Gulf states which are keen to develop their relatively unsophisticated capital markets and expand their global reach.

Neighbouring Dubai’s international exchange is rebranding as Nasdaq DIFX as part of a cross-ownership deal with the combined Nasdaq/OMX group. And Qatar holds a 15 per cent stake in the London Stock Exchange. Abu Dhabi’s deal does not include an equity stake in NYSE Euronext.

Duncan Niederauer, chief executive of NYSE Euronext, said the move was consistent with the exchange’s wider vision.

Mr Healy said he hoped the deal would make Abu Dhabi’s bourse the international gateway to the Gulf.