Saudi Arabia: Abu Dhabi Securities Exchange (ADX) announced on Wednesday that it has taken a key step toward launching a derivatives market this year by signing an agreement with Nasdaq to deliver marketplace technology solutions, including matching, real-time clearing and settlement technology.

ADX plans to launch single stock futures and index futures in the fourth quarter of this year before expanding to a wider range of derivative products, to further diversify investment avenues and provide investors with hedging tools for effective risk management, the exchange said in a statement.

The derivatives market will be accompanied by introducing central counterparty clearing (CCP) to promote clearing efficiency, stability and confidence in the market.

ADX is rapidly expanding asset classes and developing new offerings for both regional and international investors.

The ADX General Index (ADI) recently reached 7,700 points for the first time, supported by a series of listings and increased participation by international investors.

In addition, the index has gained 52 percent year to date, making it one of the best performing equity indexes in the world.

Nasdaq’s end-to-end market technology powers more than 2,300 companies in 50 countries, spanning the world’s financial industry, including capital markets infrastructure operators, market participants, banks, and regulators.