NASDAQ Dubai Monthly | April 2010 If the newsletter is not displaying correctly, click here to read it online 

Welcome to the latest issue of NASDAQ Dubai Monthly, our online newsletter that updates market participants about developments at the exchange.


  • Equities volumes highest since 2007: Q1 2010 is 40% above Q4 2009
  • NASDAQ Dubai finalising consolidation with DFM
  • Derivatives market set to expand - NASDAQ Dubai survey
  • Most active Members in March: Citigroup, Deutsche, HSBC
Equities volumes in Q1 2010 highest for two years

Equities trading volumes on NASDAQ Dubai rose to 1.09 billion in the first quarter of 2010, their highest quarterly level since 2007, before the start of the global economic crisis.

The traded value of 480 million dollars was the highest since the first quarter of 2008.

The share price DP World, NASDAQ Dubai’s most heavily traded company, rose by 20% over the first quarter of 2010 to 51.5 cents.

The 2010 first quarter volumes were 40% higher than the fourth quarter of 2009 and 5% up on the first quarter of 2009 level of 1.04 billion.

March trading
Equities volumes in March 2010 reached 567 million, the highest monthly figure since 2007.

The total was 76% higher than the 322 million shares traded in February 2010, and 90% up on the March 2009 figure of 298 million.

Derivatives market set to expand in 2010 – survey

The Middle East equity derivatives market is likely to expand in 2010 compared to last year's levels, according to 79 per cent of fund managers and brokers polled by NASDAQ Dubai.

The survey was completed by representatives of 40 firms that attended the FOW Derivatives World Middle East conference in Dubai in March.

A total of 87 per cent described equity derivatives as useful tools for managing investment risk, while 93% said NASDAQ Dubai's trading model provides useful protection against the risk of default by a counterparty.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: “The survey shows that investors are poised to make increasing use of the Middle East equity derivatives market, which is still in its infancy.

"NASDAQ Dubai will continue to drive the development of the market forward, by expanding its product range and by educating finance professionals and the public about the advantages that equity derivatives offer. "

Useful additions to NASDAQ Dubai's equity derivatives market would include futures listed on other GCC individual stocks and equity indices, as well as equity options, respondents to the survey said.

Derivatives volumes reach 17,110

A total of 17,110 equity derivatives contracts traded on NASDAQ Dubai in the first quarter of 2010, up 135% from 7,292 traded in the first quarter of 2009.

In March 2010 trading reached 2,700 contracts, down 67% from 8,120 traded in February 2010 and down 60% from 6,816 traded in March 2009.

A total of 140,037 contracts traded up to end-March 2010 since NASDAQ Dubai launched its equity derivatives market in November 2008.

Equity futures are listed on 21 individual UAE companies and on the FTSE Nasdaq Dubai UAE 20 share index, which was designed as a hedging and investment mechanism for GCC and international investors.

By both value and volume, Sorouh was the most heavily traded futures contract in March, followed by Waha Capital.

Consolidation with DFM

NASDAQ Dubai is finalising the details of its market operations consolidation with Dubai Financial Market (DFM), which is expected to be implemented in Q2 2010 (subject to regulatory approval). Further information will be made available shortly. Latest details of the consolidation can be viewed here including five explanatory documents sent to market participants since March 1.

Under the project, NASDAQ Dubai will outsource its trading, clearing, settlement and custody functions for equities to DFM. These moves are designed to make it easier for UAE retail investors to trade NASDAQ Dubai equities, improving their liquidity.

Questions can be sent to the NASDAQ Dubai Consolidation Web Desk here.

FTSE NASDAQ Dubai UAE 20 share index rises 22% in March

The UAE 20 index rose 22% in March to 1,970, following two consecutive monthly falls. The increase pushed the index 5% higher than at the start of the year. The index comprises DP World as well as 10 stocks on the DFM and 9 on the ADX. Its stocks are chosen for large market capitalisation and investability and are free float weighted. Futures contracts listed on the index by NASDAQ Dubai have been designed as a hedging and investment mechanism for GCC and international investors.

Read more about the constituents of the index here >

Equity futures trading – March 2010
UAE Dirham Futures Contracts Value (AED)  
DIB 80 19,130  
SOROUH 2,100 563,378  
WAHA 520 47,300  
Members Market Share

Citigroup Global Markets was the most active Member of the exchange by value of all traded instruments in March 2010, followed by Deutsche Bank and then HSBC. EFG Hermes was the most active regional Member, followed by Emirates NBD Capital and then SHUAA Capital.

Market share, by value of all traded securities – March 2010
Member Market Share %
Citigroup Global Markets 39.9
Deutsche Bank 210
HSBC 8.30
EFG Hermes 6.60
Morgan Stanley & Co International 4.80
Merrill Lynch International 3.80
Credit Suisse Securities (Europe) 3.50
Emirates NBD Capital 2.90
JP Morgan 1.80
SHUAA Capital 1.50
UBS 1.50
Mashreq Securities 1.40
Arqaam Capital 0.80
Goldman Sachs 0.70
MAC Capital 0.60
DFBS (Mubasher) 0.60
Emirates NBD Securities 0.30
Al Ramz 0.04
Union Brokerage 0.02
Susquehanna International Securities 0.01
Woods & Co                                0.01
NASDAQ Dubai Academy

NASDAQ Dubai Academy to run courses in Bahrain

NASDAQ Dubai Academy provides training courses in English and Arabic for market participants including issuers, Members, investors and the general public.

Training in May 2010 will include two one-day sessions in Bahrain on best practices in financial services communications. Courses in coming weeks will also take place on financial results and the debt markets.

 Scheduled courses (in English and in Dubai unless otherwise stated):

  • Introduction to Financial Markets, Financial Public Relations and Investor Relations (Bahrain)
    May 19, 2010 (in conjunction with FinanceTalking)
  • Best Practice and Compliance in Financial Communications (Bahrain)
    May 20, 2010 (in conjunction with FinanceTalking)
  • Introduction to Financial Markets, Financial Public Relations and Investor Relations
    May 23, 2010 (in conjunction with FinanceTalking)
  • Introduction to Financial Results and Annual Reports
    May 24, 2010 (in conjunction with FinanceTalking)
  • Best Practice and Compliance in Financial Communications
    May 25, 2010 (in conjunction with FinanceTalking)
  • Understanding Debt Markets and Debt IR
    May 26, 2010 (in conjunction with FinanceTalking)

Sign up for NASDAQ Dubai Academy courses here.