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Law 2533/97, provided the necessary legal framework for the establishment of the formal and organized derivatives market in Greece. The Athens Derivatives Exchange S.A. (ADEX) and the Athens Derivatives Exchange Clearing House S.A (ADECH) have been established for the organisation, operation, and development of the market.
The main purpose of ADEX was the organization and support of trading in the derivatives market, the organization of the trading system as well as any similar activity.
At the same time, ADECH is to organize the clearing and settlement of transactions concluded on derivative products, and support such procedures in general. The Capital Market Commission, exercises control and supervision on ADEX' s and ADECH' s operation, in respect to the adherence to the rules and regulations of the capital market.
ADEX, with an initial series of products such as Futures on the FTSE/ASE-20 and FTSE/ASE Mid 40 indices, Futures on the 10-year Hellenic Republic Bond, Options based on the FTSE/ASE-20 and FTSE/ASE Mid 40 indices, Stock Options, Stock Lending, covered an investment need that existed, and became imperative during latest years.
The General Assemblies of the Athens Stock Exchange S.A. and the Athens Derivatives Exchange S.A. that were held on July 17th 2002 approved the Draft Merger Agreement of the two companies and the modifications in the Articles of Association of A.E. S.A. The corporate name of the new company is Athens Exchange S.A.
The merger of the two companies was approved by the respective General Assemblies within the framework of further rationalization of the parent company Hellenic Exchanges S.A. (HELEX) that owns directly and indirectly 100% of the stocks in both companies. In addition, the merger of ASE and ADEX is in line with the global trend for mergers between stock and derivatives exchanges and is aiming to achieve synergies in the activities of the two, to lower the operating costs and to improve the overall coordination of the two markets.
The purpose of the new company will be the organization, support and monitoring of transactions related to stocks, derivatives and other financial products, the smooth operation of the market, the protection of investors and other related activities. The qualified personnel of the new company will continue to offer the same high level of services regarding market support as in the past.
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In general, investors through the use of derivatives can :
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Quickly materialize their investment policies with only one decision, the trading of futures derivatives on the index. This is very important to a global market which exhibits high volatility. |
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Participate in bullish markets through the use of margins, where the investor needs to have only a fraction of the initial capital and consequently achieve a higher percentage return. |
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Protect their underlying investment in stocks of A.E. S.A., without having to liquidate their position, through the use of static or dynamic hedging strategies. |
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