Dubai Financial prepares to launch stock derivatives trading platform

Dubai Financial prepares to launch stock derivatives trading platform
Dubai Financial prepares to launch stock derivatives trading platform
(MENAFN – Al-Bayan) Source: Date: September 30, 2020 The Financial Market announced yesterday its readiness to launch a new platform for trading stock derivatives in cooperation with the Dubai Clearing Company, Nasdaq Dubai, and a group of brokerage firms.

This is part of the market’s strategy to diversify financial instruments and attract more investments. The market is working on putting the final touches in preparation for the launch of the platform, which enables investors to diversify their investment portfolios and hedge in addition to benefiting from leveraged facilities.

The prospective platform will be launched in October by trading futures contracts as derivatives of listed shares for different terms, ranging from one month to two months and three months, on individual stocks listed on the market. The shares will include a group of active listed companies including: Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls.

Integrated platform

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 will represent an important step in the dynamic march of the market. The platform is based on the tremendous balance of capabilities and expertise possessed by the group’s subsidiaries, including the Dubai Financial Market, the Dubai Clearing Company, and the Nasdaq Dubai Stock Exchange.

Where we are keen to employ these capabilities in the best way to achieve strategic goals and keep pace with the aspirations of customers. We are confident that the derivatives platform will play a pivotal role in deepening and expanding the market, thus strengthening Dubai’s position as a vital center for capital markets.

Hassan Al Serkal, CEO of Dubai Financial Market, said: “The market has a diverse 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 the leveraged facilities.

The market has prepared a sophisticated regulatory framework in accordance with international best practices, providing an ideal work environment that allows active participation by investors and brokers, whether in terms of futures contract trading or providing market-making service. A leading group of approved brokerage firms in the market expressed great interest in joining us as partners to launch the platform.

Investors will be able to trade futures contracts by opening a trading account with a brokerage firm approved as a member for market derivatives trading.


Hamed Ali, CEO of Nasdaq Dubai and Deputy CEO of the Dubai Financial Market, said: The derivatives market at Nasdaq Dubai has achieved remarkable success and great development since its launch in September 2016, by allowing futures contracts to be traded on Emirati individual stocks and indices, in addition to futures contracts on individual stocks. And Saudi indicators.

This success demonstrates 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 new financial instruments and investment opportunities.

Dubai Clearing

The Dubai Clearing Company, a subsidiary of DFM, will provide effective clearing services for futures contract trades by utilizing the technical and operational infrastructure of Nasdaq Dubai.

Maryam Fikry, CEO of Dubai Clearing and Central Depository Holding, said:

As one of the first integrated and independent companies in the central clearing of shares in the region, Dubai Clearing House is pleased to participate in the important initiative by providing global clearing solutions in support of the Dubai Financial Market’s strategy in the field of derivatives.

The central clearing of shares allows better use of the guarantees provided to invest in shares by the clearing members, in a way that contributes to making use of the available liquidity in an optimal, more effective and safe manner, in accordance with international best practices.


The market will organize introductory sessions via network technologies for brokerage firms and investors, to review all details related to future contracts, trading rules and clearing arrangements for the new platform.

Future contract

A futures contract is an agreement between two parties to sell or buy at a predetermined price and forward 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.


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