ADX, Virtu Financial launch new block trade mechanism

Abu Dhabi Securities Exchange logo

Virtu Financial, Inc., listed on the New York Stock Exchange and a multi-asset financial services provider, together with Abu Dhabi Securities Exchange (ADX), announced the launch of the POSIT® network for the exchange of indications of interest in executing block trades on listed shares, WAM reported.
 
The network launch follows recent enhancements made by ADX to the block and negotiated trades mechanism, offering market members greater flexibility to execute large transactions via the platform.
 
Virtu POSIT is the first platform to utilize the upgraded mechanism to execute large trades electronically, leveraging the trading opportunities provided by the POSIT system.
 
Abu Dhabi Securities Depository will handle settlement of all block trades on the second business day following transaction (T+2), the same settlement cycle adopted for standard trades on ADX.
 
For companies that do not have direct membership in the exchange, Arqaam Capital, Virtu's regional partner, will offer connectivity and brokerage services in addition to post-trade services.
 
This launch marks the first phase of Virtu's POSIT system availability in the Middle East and North Africa for block trade indication-of-interest exchange on shares.
 
Under this mechanism, ADX members and their institutional clients can benefit from the Virtu network to access the necessary liquidity for executing large block trades in listed securities, while minimizing market impact and reducing the potential for information leakage.