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ADSS (company)

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ADS Securities
Company typePrivate
IndustryFinancial services
Founded2011; 14 years ago (2011)
Headquarters
Abu Dhabi
,
UAE
Area served
MENA region
Key people
Mahmood Ebraheem Al Mahmood (chairman)
ServicesFinancial investment and trading brokerage
Number of employees
180[1] (2014[1])
Websitewww.adss.com

ADSS (ADS Securities until 2018) is an Abu Dhabi-based financial services company providing online trading, investment, wealth, and asset management solutions to institutional, private, and retail clients globally. Established in 2011 with significant private capital, ADSS rapidly expanded its brokerage activities. The company operates through subsidiaries and representative offices in key financial hubs such as Hong Kong, Singapore, and previously London. ADSS has also drawn attention for involvement in opaque financial dealings, notably its role in a controversial fundraising effort for Etihad Airways and allegations of facilitating money laundering activities exposed in the Dubai Papers investigation.

History

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ADS Securities was founded in Abu Dhabi in March 2011 with initial private capital of $400 million. Philippe Ghanem was appointed as CEO, and Mahmood Ebraheem Al Mahmood became the executive chairman.[1][2][3]

In April 2011, shortly after its establishment, ADS Securities received recognition as the "Fastest Newcomer" at the Middle East Forex Awards due to its rapid initial growth. By May 2011, the firm had already reached daily trading volumes of approximately $2 billion, attracting prime brokers such as Goldman Sachs and BNP Paribas.[4][5] In August 2011, the company expanded by registering ADS Securities Hong Kong Limited.[6]

By 2014, ADS Securities had over 10,000 clients.[1] On 4 May 2016, it introduced OREX mobile, an Arabic language trading application.[7] By 2017, the firm had expanded its global presence with regional offices in London, Singapore, and Hong Kong, and became the first brokerage to offer Bitcoin CFDs in the MENA region.[2] [8] Also in 2017, ADSS Group launched ADS Investment Solutions, focusing on wealth and asset management.[9]

In early 2018, ADS Securities incorporated Autochartist into its trading platform and expanded its cryptocurrency offering to include Bitcoin Cash, Litecoin, and Ripple.[10][11] In June 2018, the company rebranded itself from ADS Securities to ADSS.[12]

In June 2019, ADS Investment Solutions launched a Saudi Arabian smart beta fund.[13] A month later, Philippe Ghanem resigned as CEO, with Mahmood Ebraheem Al Mahmood temporarily stepping into the CEO role.[14] Between 2021 and 2023, ADSS experienced multiple resignations from senior executives.[15][16]

In January 2024, ADSS introduced a cloud-based trading platform developed in collaboration with Adaptive Financial Consulting, positioning it as a flexible and cost-efficient alternative to MetaTrader 4. However, Matt Barrett, CEO of Adaptive Financial Consulting, noted persistent security concerns, explaining why major financial industry players still prefer traditional physical data center infrastructure.[17]

On 6 June 2024, ADSS became an official trading member of the Abu Dhabi Securities Exchange (ADX).[18]

ADSS UK

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In 2012, ADSS expanded into the UK market with the establishment of ADSS UK, securing authorization from the Financial Conduct Authority (FCA).[19][20][21] However, ADSS UK consistently faced financial challenges. In 2016, the subsidiary reported an operating loss of £3.1 million, prompting a restructuring that included team downsizing, expense reductions, and a shift toward retail business. Despite these efforts, the UK division experienced declining revenues.[22] Further declines occurred in subsequent years: 2019 saw a 44% drop in activity, partially offset by a £3.26 million capital injection from the parent company.[23] In 2020, revenues plummeted from £4.99 million to £3.09 million.[24] A notable but brief recovery in 2021, marked by a 362% profit increase, coincided with a continued 34% fall in overall revenues and client funds.[19][25] Between 2021 and 2023, several top executives, including CEO Paul Webb, departed from the UK subsidiary.[19]

Ultimately, in July 2023, ADSS withdrew entirely from the UK market, applying to cancel its FCA authorization. The parent company retained only limited support staff under ADS Technology Solutions UK Ltd, reallocating resources toward other strategic interests.[26]

Operations

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ADS Securities LLC (ADSS) is a limited liability company incorporated under the laws of the United Arab Emirates, registered with Abu Dhabi's Department of Economic Development (No. 1190047). It is authorised and regulated by the Securities and Commodities Authority (SCA) of the UAE as a trading broker for Over-the-Counter (OTC) derivatives contracts and foreign exchange spot markets.[6]

The company's subsidiary in Hong Kong, ADS Securities Hong Kong Limited, operates under licenses granted by the Securities and Futures Commission (SFC).[27][28][29]

ADSS offers brokerage and trading services powered by proprietary multi-asset trading technology.[30] The firm's business areas also encompass cross-asset investment services, an investment banking division, and wealth and asset management services.[31][32][33][4] ADSS was notably among the first firms to offer a Dubai Oil CFD, providing Middle Eastern investors access to regional commodity markets.[31]

According to the European Business Review, ADSS provides customer support services during weekdays only (24/5).[34]

Controversy

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Etihad fundraising scandal

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Between 2014 and 2016, ADS Securities became involved in a controversial $1.2 billion fundraising deal that ultimately resulted in financial turmoil and multiple lawsuits. In September 2015, ADS Securities collaborated with Goldman Sachs, which replaced HSBC Holdings at the last moment, and Anoa Capital, a lesser-known brokerage firm owned by the controversial German financier Lars Windhorst, to issue a $700 million bond with a 6.875% interest rate. This was followed shortly afterward by an additional $500 million issuance. The funds were directed toward airlines affiliated with Etihad, including Airberlin, Alitalia, Jet Airways, Air Serbia, and Air Seychelles.[35][36]

Within two years, several airlines declared bankruptcy, leading the bonds collapsed in value. It emerged that the bond documents did not explicitly guarantee financial backing from Etihad, exacerbating investor losses.[37] In 2016, ADS Securities failed to complete a transaction involving $85 million worth of RNTS Media shares, shifting the financial burden onto Goldman Sachs. Prominent investors such as H2O Asset Management incurred substantial losses totaling approximately $1.4 billion after the risks associated with these illiquid bonds became publicly known. Private investigations commissioned by creditors subsequently identified Lars Windhorst as the principal architect behind these controversial deals.[37][38][39][40] ADS Securities initiated legal action against Windhorst in 2016, initially claiming $776 million, but later agreed to settle the dispute for $645 million.[41]

Regulatory penalties

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In June 2022, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) imposed a penalty of AED 30,000 on ADS Investment Solutions Limited for breaching the Common Reporting Standard Regulations of 2017. The regulator additionally required the firm to implement corrective actions to address compliance shortcomings.[42][43]

Dubai Papers money laundering

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According to an Africa Intelligence investigation into the Dubai Papers, ADS Securities was implicated as an intermediary in a complex money laundering operation orchestrated by Helin International. This scheme facilitated tax avoidance for numerous influential ultra-high-net-worth individuals, including European aristocrats, Russian oligarchs, and former president of Angola José Eduardo dos Santos, among more than 200 clients.[44][45][46][47]

References

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  1. ^ a b c d "Abu Dhabi's ADS Securities Eyes Investment Banking, Asset Management". Gulf Business. 2014-10-07. Retrieved 2025-03-27.
  2. ^ a b Golovtchenko, Victor (2017-10-05). "Exclusive: Andreas Lazarou to Leave ADS Securities". Finance Magnates. Retrieved 2025-03-30.
  3. ^ "ADS Securities begins operations". Emirates247. 2011-03-07. Retrieved 2025-03-27.
  4. ^ a b "ADS Securities Named 'Fastest Newcomer' At Middle East Forex Awards 2011". Mondo Visione. 2011-04-21. Retrieved 2025-03-27.
  5. ^ "Goldman Sachs and BNP Paribas Join ADS Securities Platform as Prime Brokers". WAM AE. 2011-05-31. Retrieved 2025-03-27.
  6. ^ a b Hatzakis, Steven (2013-12-16). "ADS Securities Opens Hong Kong Office, MD Desmond Yeo to Oversee Asian Business". Finance Magnates. Retrieved 2025-03-30.
  7. ^ "ADS Securities Arabic Language Trading App launch". AtoZForex. 2016-05-04.
  8. ^ Patterson, Jeff (2017-09-04). "Exclusive: ADS Securities Launches Bitcoin CFD Trading to MENA Clients". Finance Magnates. Retrieved 2025-03-30.
  9. ^ Golovtchenko, Victor (2018-02-05). "ADS Securities Establishes Asset Management Subsidiary with Abu Dhabi License". Finance Magnates. Retrieved 2025-03-30.
  10. ^ "ADS Securities Integrates Autochartist Tools". Finance Magnates. 2018-02-15. Retrieved 2025-03-30.
  11. ^ Abdel-Qader, Aziz (2018-04-04). "ADS Securities Expands Cryptocurrency Offering with Three New Altcoins". Finance Magnates. Retrieved 2025-03-30.
  12. ^ Patterson, Jeff (2018-06-27). "ADSS Unveils New Branding Amidst Global Expansion". Finance Magnates. Retrieved 2025-03-30.
  13. ^ "ADS Investment Solutions launches Saudi Arabian smart beta fund". Zawya. 2019-06-19. Retrieved 2025-03-27.
  14. ^ "ADSS CEO Philippe Ghanem Leaves Firm". Finance Magnates. Retrieved 2 April 2025.
  15. ^ Segal, Gerald (2022-02-23). "Exclusive: ADSS exec departures continue – Jo Page (CFO) and Kevin Ball (HR head)". FX News Group. Retrieved 2025-03-29.
  16. ^ Segal, Gerald (2021-08-04). "Exclusive: More senior management turnover at ADSS". FX News Group. Retrieved 2025-03-29.
  17. ^ Shome, Arnab (2024-01-12). "Exclusive: ADSS Taps Adaptive to Launch the "First Ever Cloud-Based Trading Platform"". Finance Magnates. Retrieved 2025-03-29.
  18. ^ Sikder, Tareq (2024-06-06). "ADSS Opens Up Trading for Abu Dhabi Exchange Listed Companies". Finance Magnates. Retrieved 2025-03-29.
  19. ^ a b c Segal, Gerald (2023-07-14). "Exclusive: ADSS withdrawing from UK market". FX News Group. Retrieved 2025-03-29.
  20. ^ "The Financial Services Register". Financial Conduct Authority. July 24, 2012. Retrieved October 2, 2018.
  21. ^ Ruth Lynch (January 16, 2015). "ADS Securities opens new London Office". Devono. Retrieved October 2, 2018.
  22. ^ Golovtchenko, Victor (2018-04-30). "ADS Securities London Pivots to Retail, Posts a Profit for 2017". Finance Magnates. Retrieved 2025-03-29.
  23. ^ Segal, Gerald (2020-08-24). "Exclusive: ADSS UK sees 44% drop in Revenue in 2019". FX News Group. Retrieved 2025-03-29.
  24. ^ Shome, Arnab (2021-10-26). "ADSS UK Posts Revenue Decline for FY2020". Finance Magnates. Retrieved 2025-03-29.
  25. ^ Oladipupo, Solomon (2023-07-14). "ADSS Quits UK Market to 'Refocus' on Other Entities". Finance Magnates. Retrieved 2025-03-29.
  26. ^ "Exclusive: ADSS withdrawing from UK market". FX News Group. Retrieved 2 April 2025.
  27. ^ Hatzakis, Steven (2016-06-08). "ADS Securities Adds Two Additional Regulatory Licenses from Hong Kong SFC". Finance Magnates. Retrieved 2025-03-30.
  28. ^ "Public Register of Licensed Persons and Registered Institutions". Securities and Futures Commission. August 9, 2011. Retrieved October 2, 2018.
  29. ^ Steven Hatzakis (December 16, 2013). "ADS Securities Opens Hong Kong Office, MD Desmond Yeo to Oversee Asian Business". Finance Magnates. Retrieved October 2, 2018.
  30. ^ ""إي دي إس" تُطلق أول منصة تداول متعددة الأصول في الشرق الأوسط" (in Arabic). AlKhaleej. 25 November 2013. Retrieved 10 March 2015.
  31. ^ a b "ADS Securities is launched". E-Forex. Retrieved 14 November 2013.
  32. ^ "Company Overview of ADS Securities L.L.C." Bloomberg Businessweek. Archived from the original on 2011-07-14. Retrieved 14 November 2013.
  33. ^ "ADS Securities Strengthens its Retail Offering – Launches First Call a News and Analysis Portal". Forex Magnates. Retrieved 14 November 2013.
  34. ^ "Our Take on GCC Broker ADSS". European Business Review. 2024-01-21. Retrieved 2025-03-27.
  35. ^ "Etihad Airways Partners raises $500 mln in debut bond". Reuters. 2015-09-16. Retrieved 2025-03-30.
  36. ^ "Abu Dhabi corporate stock in demand: ADS Securities". Emirates business agency WAM. 2015-09-27. Retrieved 2025-03-30.
  37. ^ a b "A busted Goldman airline deal is investigated by private detectives". Pensions&Investment. 2019-07-22. Retrieved 2025-03-30.
  38. ^ Smith, Robert; O’murchu, Cynthia (2017-09-07). "Little-known broker emerges as having outsized role in Etihad bonds". Financial Times. Retrieved 2025-03-30.
  39. ^ "Top Goldman Traders Caught Up in Tango With Flamboyant Financier". Bloomberg. 2018-08-13. Retrieved 2025-03-30.
  40. ^ Smith, Robert; O’murchu, Cynthia (2022-09-15). "Behind Lars Windhorst's scramble to repay H2O". The Financial Times. Retrieved 2025-03-30.
  41. ^ Bradley, Hope (2019-09-11). "Disputed Debt Hangs Over European Maestro of Private Bonds". The Wall Street Journal. Retrieved 2025-03-30.
  42. ^ "UAE wealth firms fined for regulatory breaches". International Adviser. Retrieved 2 April 2025.
  43. ^ Lawther, Robbie (2022-09-01). "UAE wealth firms fined for regulatory breaches". International Adviser. Retrieved 2025-03-30.
  44. ^ Loore, Frederick (2024-06-19). "Dubai Papers: 28 million suspicious euros landed at ING Belgium... in Dubai". DH Net. Retrieved 2025-03-28.
  45. ^ "Plot thickens in Helin International money laundering investigation". Africa Intelligence. 2023-02-20. Retrieved 2025-03-28.
  46. ^ Tilouine, Joan (2023-05-08). "The African secrets of wealth management firm Helin International". Africa Intelligence. Retrieved 2025-03-28.
  47. ^ Michel-Aguirre, Caroline (2024-06-03). "Dubaï Papers : les millions évaporés d'Helin ont-ils atterri sur un compte en Belgique ?". The Nouvel Obs. Retrieved 2025-03-28.
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