The Dubai Financial Market is preparing to launch a new platform for trading equity derivatives in cooperation with the Dubai Clearing Company, Nasdaq Dubai and a group of brokerage firms.
According to the Emirates News Agency, the market is currently working on finalizing the touches in preparation for the launch of the platform, which enables investors to diversify their investment portfolios and hedge as well as benefit from leverage facilities.
The prospective platform will be launched next October by trading futures contracts as derivatives for shares listed for different terms, ranging from two months to three months, on the individual stocks listed in 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 National Bank of Dubai, Emaar Development and Emaar Malls. / p>
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 relevant 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 stepping stone. On the march of the Dubai Financial Market bus.
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 dealers.
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, CEO of the 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 and manage risks. And make profits by taking advantage of the leveraged facilities.
The market has prepared a sophisticated regulatory framework in accordance with international best practices to provide an ideal working environment that allows ...
