Next month, it will start trading futures contracts on shares of 5 listed companies
Dubai Financial prepares to launch the stock derivatives trading platform
The market is currently putting the final touches in preparation for the launch of the platform.
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The Dubai Financial Market announced yesterday its readiness to launch a new platform for trading equity derivatives, in cooperation with the Dubai Clearing Company, Nasdaq Dubai and a group of brokerage firms, as part of the market’s strategy to diversify financial instruments and attract more Investments.
The market confirmed in a statement that it is currently working on finalizing the launch of the platform, which enables investors to diversify their investment portfolios and hedge, as well as benefit from leveraged facilities.
He added that the platform will be launched next October by trading futures contracts as derivatives for listed shares for different terms, ranging between one, two and three months, on individual stocks listed on the market.
The futures contracts for the new platform will include the shares of a group of active listed companies, including Emaar Properties, Emaar Development, Emaar Malls, in addition to Dubai Islamic Bank and Emirates NBD.
According to the statement, a futures contract is an agreement between two parties to sell or buy, according to a predetermined price and forward date, and one contract includes 100 individual shares of the listed company in question.
Abilities and experiences
The Chairman of the Dubai Financial Market, Issa Kazim, said that the platform is based on the tremendous balance of capabilities and expertise that the group's subsidiaries possess, including the Dubai Financial Market, Dubai Clearing Company, and Nasdaq Dubai, expressing his confidence that the derivatives platform will play a role. Pivotal in deepening and expanding the market, thus strengthening Dubai's position as a vital center for capital markets.
Diverse base
In turn, the Chief Executive Officer of Dubai Financial Market, Hassan Al Serkal, said that the market has a diverse base of Emirati and international investors, representing 207 countries, pointing out that the derivatives platform will enable these investors to diversify their investments, manage risks, and achieve profits by taking advantage of leveraged facilities.
In the same context, the CEO of "NASDAQ Dubai" and the Executive Vice President of the Dubai Financial Market, Hamid Ali, said that the derivatives market in "Nasdaq Dubai" has achieved remarkable success and great development during the past years since its launch in September 2016, by making available trading Futures contracts on individual UAE stocks and indices, as well as futures contracts on individual stocks and Saudi indices.
Global solutions
The CEO of Dubai Central Clearing and Depository Holding Company, Maryam Fikry, said: “As one of the first integrated and independent companies in the central clearing of shares in the region, (Dubai Clearing) is pleased to participate in this important initiative, by providing world-class clearing solutions in support of the strategy of Dubai Financial in the field of derivatives ».
She emphasized that the central clearing of shares allows better use of the guarantees provided for investment in shares by the clearing members.
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