ADX and Virtu Financial have launched POSIT® block-trading indications for equities listed on the Abu Dhabi Securities Exchange (ADX), giving exchange members and their institutional clients another way to source large trades with less market impact and information leakage.
The facility follows recent enhancements to ADX’s Negotiated Block Trade facility. Virtu is the first firm to use the upgraded facility to complete electronic block trades sourced through POSIT, according to the companies’ announcement. ADX’s own website is carrying the launch as part of its current market news.
What ADX Virtu POSIT changes for large trades
POSIT is an electronic block-trading indications network. It connects institutional investors looking for liquidity in larger orders with potential counterparties, while keeping those transactions separate from the public order book until a trade is arranged through the exchange’s facility.
All trades will settle on a T+2 basis through the Abu Dhabi Central Securities Depository, the same settlement cycle used for standard ADX trades. Firms that are not direct ADX members can use connectivity, brokerage and post-trade services provided by Arqaam Capital, Virtu’s regional partner.
A first step into MENA equity markets
The ADX launch is the first phase of Virtu’s plan to facilitate POSIT block-trading indications for Middle Eastern and North African equity securities. The companies said the network is intended to widen institutional access to ADX-listed shares without forcing large orders to advertise their full size in the public market.
Abdulla Salem Alnuaimi, Group Chief Executive Officer of the ADX Group, said the partnership would give institutions seeking large trades access to new liquidity opportunities while preserving price discovery on the public order book. Rob Boardman, CEO of Virtu Execution Services, EMEA, said extending POSIT to ADX-listed securities would improve the appeal and accessibility of Abu Dhabi’s equity capital markets for institutional investors.
The launch is aimed at professional market participants rather than retail investors. It gives ADX another piece of exchange infrastructure as Abu Dhabi works to deepen international participation and attract more institutional liquidity.
What is POSIT block trading?
POSIT is Virtu’s electronic network for matching indications of interest in larger institutional trades.
How will ADX Virtu POSIT trades settle?
Trades will settle on a T+2 basis through the Abu Dhabi Central Securities Depository.
Can non-ADX members use the facility?
Arqaam Capital provides connectivity, brokerage and post-trade services for firms that are not direct ADX members.
