CBUAE and ADX Sign Agreement to Enhance AED Cash Settlement Processes

UAE, 25 February, 2025 : The Central Bank of the UAE (CBUAE) has signed an agreement with the Abu Dhabi Securities Exchange (ADX) to process AED cash settlements for trades and margin transactions via the CBUAE network. The agreement aims to improve security, reliability, and efficiency in the settlement of financial instruments listed on ADX.

The deal, signed by H.E. Saif Al Dhaheri, Assistant Governor at CBUAE, and H.E. Ghannam Butti Al Mazrouei, Chairman of ADX, aligns with global standards set by the International Organisation of Securities Commissions (IOSCO). This collaboration will ensure that cash settlements for trades, including shares, bonds, and ETFs, are processed smoothly through the CBUAE network, reducing settlement risks and increasing operational efficiency.

Additionally, margin call and collateral transactions for ADX-CCP will also be managed through the CBUAE network, streamlining the settlement process and ensuring timely financial obligations.

H.E. Saif Al Dhaheri emphasized that the agreement strengthens the UAE's financial infrastructure, while H.E. Ghannam Butti Al Mazrouei highlighted its role in enhancing ADX’s market security and efficiency. This partnership is a vital part of ADX’s Core Platform Upgrade, aimed at modernizing the market’s trading and post-trade systems.