NASDAQ Dubai Lists Derivatives on UAE Share Index and 21 Individual Shares
NASDAQ Dubai today listed equity derivatives for the first time. The instruments, created by the exchange itself, consist of futures contracts on an index of UAE shares created by FTSE International, and futures contracts on 21 individual shares listed on UAE exchanges.
Jeff Singer, Chief Executive of NASDAQ Dubai, said: "Equity derivatives play a beneficial role in international markets around the world and we are delighted to bring them to the UAE.
"They enable investors to hedge risk, and can increase trading volumes in the underlying stock as well as reduce volatility in its price."
Susquehanna International Securities, Ltd. (SIS), a member of the Susquehanna International Group of Companies (SIG), is expected to be a market maker in the derivative products. Arqaam Capital is a derivatives trading Member of the exchange.
Mr. Singer said: "NASDAQ Dubai's equity derivatives platform has great potential to develop into a substantial market. It will cater initially for institutional investors and in due course also for individual investors. We intend to introduce further equity futures contracts as well as options."
John Keogh, Director and Co-Chair of SIS's Management Committee, said: "The launch of these products cements NASDAQ Dubai's reputation as one of the most progressive exchanges in the region. We are honored to have been chosen by NASDAQ Dubai to be the leading market maker in these products. SIG has led innovation in the financial markets for over twenty years and our pioneering involvement with these products is in keeping with this track record."
NASDAQ Dubai derivatives that are available to be traded from today:
Index Futures (cash settled) on the FTSE DIFX UAE 20 Index
The index is based on the shares of 20 companies listed on NASDAQ Dubai, the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX).
(The FTSE DIFX UAE 20 Index is to be renamed the FTSE NASDAQ Dubai UAE 20 index.)
Single Stock Futures:
The exchange on which the underlying share is listed is given in brackets
- Physical Delivery
- DP World (NASDAQ Dubai)
- DP World (NASDAQ Dubai)
- Cash Settled
- Abu Dhabi Commercial Bank (Abu Dhabi Securities Exchange - ADX)
- Air Arabia (Dubai Financial Market - DFM)
- Aldar Properties (ADX)
- AMLAK (DFM)
- Arabtec Holdings (DFM)
- Dana Gas (ADX)
- DFM (DFM)
- Dubai Investment (DFM)
- Dubai Islamic Bank (DFM)
- EMAAR Properties (DFM)
- du (DFM)
- First Gulf Bank/UAE (ADX)
- Gulf Cement Company (ADX)
- National Bank of Abu Dhabi (ADX)
- RAK Properties (ADX)
- Shuaa Capital (DFM)
- Sorouh Real Estate (ADX)
- Tamweel (DFM)
- Union Properties (DFM)
- Waha Capital (Ocean International Leasing) (ADX)