Dubai, 29th September, WAM – The Dubai Financial Market announced its willingness to launch a new platform for trading equity derivatives in cooperation with the Dubai Clearing Company, Nasdaq Dubai and a group of leading brokerage firms, as part of the market’s strategy to diversify financial instruments and attract more investments.
The market is currently working on finalizing the platform in preparation for the launch of the platform, which enables investors to diversify their investment portfolios and hedge as well as benefit from leveraged facilities.
The prospective platform will be launched next October by trading futures contracts as derivatives for listed shares for different terms, ranging from one month to two months and three months, on the individual stocks listed on the market. The futures contracts for the new platform will include shares of a group of active listed companies including Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls.
A futures contract is an agreement between two parties to sell or buy at a predetermined price and future date. One contract includes 100 individual shares of the respective listed company. The platform aims to enhance and diversify the list of derivatives traded through it later, by adding futures contracts linked to indices.
His Excellency Issa Kazim, Chairman of the Dubai Financial Market, said: “As part of our tireless efforts to diversify the products and asset classes traded in the market, this integrated platform for derivatives trading will represent an important step in the busy march of the Dubai Financial Market. It is owned by the group’s affiliated institutions, including the Dubai Financial Market, the Dubai Clearing Company, and the Nasdaq Dubai Stock Exchange.
We are confident that the derivatives platform will play a pivotal role in deepening the market and expanding its scope, thus strengthening Dubai’s position as a vital center for capital markets. ”
In turn, Hassan Al Serkal, Chief Executive Officer of Dubai Financial Market, said: “The market has a diversified base of Emirati and international investors representing 207 countries, and the derivatives platform will enable these investors to diversify their investments, manage risks and achieve profits by taking advantage of leveraged facilities. According to international best practices, in order to provide an ideal working environment that allows active participation by investors and brokers, whether in terms of trading futures contracts or providing market-making service. A leading group of approved brokerage firms in the market have shown great interest in joining us as partners to launch the platform. It should be noted that investors will be able to trade futures contracts by opening a trading account with one of the brokerage firms approved as a member for trading derivatives in the market.
For his part, Hamid Ali, CEO of Nasdaq Dubai and Deputy CEO of the Dubai Financial Market, said: “The derivatives market in Nasdaq Dubai has achieved remarkable success and great development over the past years since its launch in September 2016, by making it possible to trade futures contracts on individual UAE stocks and indices. In addition to futures contracts on individual stocks and Saudi indices. This success proves the increasing demand from investors in the UAE and abroad for futures contracts. We are confident that this class of assets will gain more momentum in the coming stage by launching the platform that provides investors with financial tools and opportunities. New investment. ” .
Maryam Fikry, CEO of Dubai Central Clearing and Depository Holding Company, said: “As one of the first integrated and independent CCP companies in the region, Dubai Clearing House is pleased to participate in this important initiative by providing world-class clearing solutions that support the strategy of the Dubai market. In the field of derivatives, the CCP allows better use of the guarantees provided for investment in shares by the clearing members, in order to make use of the available liquidity in an optimal, more effective and safer manner, in accordance with international best practices.
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