The Abu Dhabi Securities Exchange (ADX) and the Budapest Stock Exchange (BSE) have entered into a Memorandum of Understanding (MOU) to establish a partnership.

The agreement aims to enhance collaboration across several key initiatives. It also covers the analysis of possibilities for dual listings and cross-border trading. The signing ceremony occurred during the state visit of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, to Hungary.

Deepening Capital Market Ties

The MOU outlines efforts to share best practices and foster greater connectivity between the two nations' capital markets.

This collaboration aligns with ADX’s ongoing drive to strengthen relationships with leading global financial institutions and supports BSE’s strategic initiatives to expand its international presence, particularly within the Middle East.

Officials anticipate the partnership will open new opportunities for investors in both regions. Under the agreement, ADX and BSE will jointly promote the visibility of their respective capital markets.

This includes organizing joint investor roadshows, seminars, and educational programs. Both exchanges are also exploring avenues for cooperation in developing and promoting Exchange Traded Fund (ETF) products. This initiative aims to provide investors with more diversified and modern investment instruments.

Additionally, the MOU covers the analysis of possibilities for dual listings and cross-border trading, alongside plans for closer professional cooperation in Environmental, Social, and Governance (ESG) initiatives.

Best Practice Exchange and Tabadul Hub Integration

A central tenet of the MOU involves sharing and exchanging best practices. This encompasses insights on market developments, regulatory practices, product innovation, and IT capacity building. A significant aspect of the agreement is evaluating pathways for the Budapest Stock Exchange to integrate into the Tabadul Hub.

Launched by ADX in 2022, Tabadul is the region’s first digital exchange based on a mutual market access model. It facilitates cross-border trading by connecting exchanges through a digital network, providing brokerage firms remote access to international markets. This collaboration establishes a platform for financial growth and connectivity between the UAE and Hungary.

Expect ongoing updates as this story evolves.

Source: Finance Magnates