Emirates News Agency-ADGMFSRA Releases Consulting Paper to Advance Capital Markets Framework

Abu Dhabi, March 21, 2022 (WAM)-Financial Services Regulators (FSRA) of the Abu Dhabi Global Markets (ADGM) announced on Monday to continue its innovative and progressive leadership in financial markets. A consultation paper that proposes major changes to the capital market framework, such as virtual assets, cash products, securities, derivatives, benchmarks, and emission allowances.

The widespread changes proposed will encourage participation in both the primary and secondary markets and will ensure that ADGM market participants continue to operate in a protected manner in accordance with the highest regulatory standards.

The proposed changes are expected to bring significant benefits to market-related activities such as virtual assets, securities, derivatives, commodities, benchmarks, etc., approved investment exchanges, approved clearinghouses, MTFs, OTFs, remotes. Affects body, remote members, providers, publishers and listings. Entity, reporting entity and sponsor.

Ahmed Jasim Al Zaabi, Chairman of ADGM, said: The Next Stage of Investment and Growth Opportunities, Including Virtual Assets, Spot Commodities and Emissions These changes strengthen innovative leadership in virtual assets and regional and international commodity trading, making ADGM and Abu Dhabi into the future. Promote breakthroughs that are positioned towards you. ”

In 2018, ADGM became the world’s leading jurisdiction for regulating virtual asset-related activities with the introduction of a comprehensive regulatory framework. It is complemented by an ecosystem that supports key players in the virtual asset industry, increasing market confidence and positioning ADGM as a key destination for virtual asset-related businesses. Over the last four years, ADGM has significantly increased the number of licensed companies offering virtual asset-related activities in its jurisdiction, with 11 fully licensed and approved major virtual asset players.

With the issuance of the consultation document, ADGM has begun the transition to the Virtual Asset Framework 2.0, signaling a new milestone in the asset class. The proposed changes include changes to public key use, sharing, and reuse requirements, risk disclosure requirements, and activities related to non-fungible tokens (NFTs) by regulated MTF / custodian groups within ADGM. Includes approval to do.

Similar to its innovative approach to virtual assets, ADGM proposes to introduce a new unprecedented regulatory framework for managing spot commodity transactions and provides a framework for regulating spot commodities and emission quotas MENA. It will be the first international financial center in the region. The proposed changes also cover the listed mining and oil companies, as well as new regulatory requirements for benchmarking activities.

With this new framework, ADGM will support Abu Dhabi’s economic plans to open up new markets for commodities such as carbon, hydrogen and ammonia.

To support the growth of the United Arab Emirates, ADGM has evolved into a commodity trading hub that covers both physical and financial derivative markets. In February 2022, PTT joined the growing ADGM-based energy trading community with ADNOC Global Trading, ADNOC Trading and ICE Futures Abu Dhabi (IFAD), which launched Marvan Futures in March 2021.

The opening of the Reliance Industries Trading Desk in India in October 2021 further strengthened ADGM’s position as a major regional hub for commodity trading.

ADGM proposes to improve the regulatory framework to attract growing companies by allowing oil and mining companies to bid and list, providing a capital structure and more flexible financing methods. .. For example, one of the proposed changes is a new share to a new investor that represents up to 20% of the company’s existing equity capital without triggering the preemptive and anti-rarefaction rights of existing shareholders. Offer is included.

ADGM also proposes to strengthen requirements for ongoing disclosure obligations, preferred securities and weighted voting rights in accordance with IOSCO and equivalent jurisdictions.

Emmanuel Givanakis, CEO of FSRA, said: Economic growth and diversification across Abu Dhabi and the UAE and across the region, while offering more options to participants and investors. Growth and business cycle. Of life. ”

The amendments relate to FSRA’s financial services and market regulations (“FSMR”), as well as market rules (“MKT”), market infrastructure rules (“MIR”), general rules (“GEN”), and business behavior rules. increase. (“COBS”), Islamic financial rules (“IFR”) and rate rules (“FEES”). The proposed amendment also replaces the existing Marketplace Code of Conduct (“TMR”) with the Marketplace Code of Conduct (“MCR”).

The consultation documents have been open for two months.

Translation: Gihane Fawzi