BSE-ADX Strategic Partnership and Collaboration

The Abu Dhabi Securities Exchange (ADX), one of the fastest-growing and leading exchanges in the Middle East, and the Budapest Stock Exchange (BSE), the second largest exchange in Central and Eastern Europe, signed a Memorandum of Understanding (MOU) to collaborate on a number of key initiatives, BSE announced in a press release.

The MOU sets out to deepen relations between the two countries' capital markets and share best practices. The agreement also marks another important step in the BSE's efforts to build international relations, including in the Middle East. The development dovetails well with ADX's ongoing efforts and initiatives to strengthen relationships with leading global financial institutions.

Within the framework of the agreement, the two parties will seek, among other things, to promote the visibility of the Hungarian and UAE capital markets by organizing joint events such as investor roadshows, seminars and educational programs. The parties are also exploring the possibility of cooperation in the development and promotion of ETF products in order to provide investors in both markets with more diversified and modern instruments. The BSE and ADX will also analyse the possibilities of dual listings and cross-border trading. The two exchanges are also planning closer professional cooperation in the field of ESG.

A key part of the agreement is the sharing and exchange of best practices, including on market developments, regulatory practices, product development and IT capacity building. The two parties will explore and evaluate appropriate pathways for the BSE to become part of the Tabadul Hub, a pioneering platform launched by ADX in 2022. As the region’s first digital exchange based on a mutual market access model, Tabadul facilitates seamless cross-border trading by connecting exchanges through a digital network and enabling brokerage firms to provide remote access to international markets.