The Largest FX Broker in the Abu Dhabi Moves to the UK

by on December 15, 2013 10:10 am BST

Abu Dhabi-based ADX Securities is the largest commodities and forex brokerage in the United Arab Eremites (U.A.E). The company plans on opening a branch in the United Kingdom. The purpose of the new location is to offer a new wealth and asset management hub after receiving the proper licencing, according Philippe Ghanem, vice chairman and managing director at ADX securities.

He said “we at ADS are looking at launching an asset management and wealth management business next year. We now have a fixed-income trading and capital markets brokerage business,” during a Reuters interview in Abu Dhabi. A London location will not only be beneficial to expanding their clientele, but London is also the number one location for forex trading and the largest site for Islamic finance outside the Middle Eastern region.

 ADX Securities first began servcing the Middle East demand for pricing Chinese renminbi, or yuan, as interest in the region grows substantially. Over recent months, ADX has seen a 300 percent increase in yuan based trades. Granem said that the yuan is “in everybody’s basket,” and he expects the Chinese currency to be in everyone’s portfolio of the next few years. “We have seen a steady strengthening of the yuan against the dollar, as the Peoples Bank of China allows the gradual liberalization of the currency,” he said.
This is true. The People’s Bank of China is looking for a way to allow the yuan exchange-rate to be determined by the open market, but the central bank still controls daily price movements limited to one percent in either direction per day. The yuan will be widely used in the coming years as China is beginning to use direct, local currencies transactions during international trade and by passing the dollar. The yuan recently became the number two currency, side-stepping the euro, in international trade.
ADX Securities, also located in Hong Kong and Singapore, trades roughly $5 billion per day in spot precious metals, forex and CFD contracts. The brokerage currently has a market capitalization of $400 million.