Investor Satisfaction At ADX On Positive Drive

Monday, 9 August 2010

Abu Dhabi Securities Exchange today announced that the results of the Investor Satisfaction Survey that was wrapped up last week showed a satisfaction rate of 58.64% out of a total of 801 participating investors, indicating the success of the exchange’s development and improvement efforts.

ADX has launched the survey as from June 20, 2010 for one month up to July 20, 2010, to measure the satisfaction level among its investors and to identify the services and areas that need consideration or improvement within the framework of the exchange’s strategic objectives and plans.

UAE nationals constituted 43.5 per cent of the total participants while the remaining 56.5 per cent were foreigners according to the results, reflecting a better outcome, as higher foreign participation allows for comparisons with other exchanges.

“This is one of five surveys that ADX has launched in June to identify the satisfaction levels among all our customers including listed companies, brokers, custodians and registrars, in tandem with the directives of the leadership and the objectives outlined by Abu Dhabi’s Policy Agenda and Economic Vision 2030,” commented Rashed Al Baloushi, ADX’s Deputy Chief Executive and Director of Operations.

“According to the survey, a vast majority of investors today seem to rely on private funds and savings rather than credit and loans, reflecting the realities of the tight credit policies adopted by international and local banks in reaction to the international financial crisis, in addition to a clear trend towards more diversification for investors among different markets and asset classes,” he revealed.

The survey highlighted clearly the areas of strengths for ADX including its trading services such as issuing and depositing securities’ certificates, mortgage and issuing investor numbers as well as all the other services related directly to securities transactions and the information provided by the exchange through the website.

“Nevertheless, we have noticed that many investors expressed reservations against the disclosure of company financial data and information, despite the fact that ADX passes such information promptly as soon as it is received and according to the criteria set by the Securities and Commodities Authority and the exchange’s rules and regulations. However, such concerns are mostly related to the method of retrieving and reviewing such information, a matter that will witness a revolutionary transformation soon, upon the introduction of the Extended Business Reporting Language (XBRL) platform,” Al Baloushi explained.

ADX is currently working on the introduction of XBRL to be the norm for disclosure, and hence allow for better retrieving in multiple languages and better analytical tools by allowing for comparisons between companies, sectors and economies.

“ADX management is thoroughly assessing all the remarks, complaints and proposals presented by the investors through the survey, carefully considering all the outlined weaknesses and evaluating the feasibility of objective proposals,” Al Baloushi said.

The survey also provided for invaluable information related to ADX’s efforts in the areas of investor awareness and the introduction of new investment products that will have a positive impact on the exchange’s plans and programs in this respect.

“We are carrying out these set of surveys twice a year to identify the general trend and to be able to adapt ourselves to the changing needs of the financial community through responding to necessary requirements and adjusting the mechanisms of operation in accordance with our policy of implementing the best international practices and our endeavors to become the market of choice in the region,” the Deputy Chief Executive concluded.