Saudi Arabia's Tadawul announced its intention to launch single stock futures contracts on July 4, 2022, which will be cleared by the Securities Clearing Center Company, Muqassa, according to a statement to the stock exchange on its website. Official, today Sunday.
The single stock futures contract is the second product to be launched in the Saudi financial derivatives market, after the launch of index futures, as part of the efforts exerted to develop an advanced financial market in the Kingdom. Saudi Arabia.
Standard stock futures contracts will enable local and international investors to hedge and manage their portfolio risks more efficiently, in addition to diversifying the products available for trading in the Saudi stock market.
The shares that the single stock futures contracts as their primary asset were selected from the largest and most liquid listed companies in the Saudi Tadawul, based on a list of criteria that aims to Ensure the availability of liquidity to meet market requirements, maintain market integrity, and enable effective management of investment portfolios.
The first tranche that will be launched from the single stock futures contracts will be based on the following listed companies: Al-Rajhi Bank, Saudi Aramco, Saudi National Bank, Alinma Bank, SABIC, STC, Saudi Kayan, Saudi Electricity Company, Almarai, and Maaden.
With the introduction of single stock futures contracts, Tadawul Saudi Arabia will expand the derivatives market, covering more products.