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SHUAA joins NASDAQ Dubai's Equity Derivatives Market

PUBLISHED ON 15-Feb-2010
SHUAA joins NASDAQ Dubai's Equity Derivatives Market

SHUAA Capital International, based in the Dubai International Financial Centre, announces today that it has become a trading member on NASDAQ Dubai's equity derivatives platform.

Mohammed Ali Yasin, Chief Executive of SHUAA Securities, the brokerage arm of SHUAA Capital, said: "The growth of NASDAQ Dubai's equity derivatives market over the past year marks an exciting new phase in the development of the Middle East's capital markets. We are delighted to be able to offer these sophisticated products to our regional and international clients. We believe that by adding this product offering we will be able to cater to the increased requirements of our clients as part of the continuous development of the financial markets in the region."

NASDAQ Dubai opened the UAE's only on-exchange equity derivatives market in November 2008. Trading volumes totalled 125,000 in 2009, with 73% of trades taking place in the second half of the year.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: "As one of the region's leading brokers, the arrival of SHUAA Capital on our derivatives platform will drive further expansion of our market in 2010. Equity derivatives play a major risk management role in capital markets around the world and there is enormous potential for growth in the Middle East, where the sector is in its infancy.

"NASDAQ Dubai provides investors with the security of a well regulated on-exchange environment, in which trading volumes are transparent and clearing is conducted through the exchange, which acts as a central counterparty to all trades." Equity derivatives can increase trading volumes in the underlying stocks as well as reduce volatility in their price.

Mohammed Ali Yasin continued: "NASDAQ Dubai's equity derivatives provide excellent hedging tools for our clients. These will enable them to manage their exposure to movements in equity prices in the UAE and the wider Middle East in an entirely new way. NASDAQ Dubai's derivatives are also useful investment tools in their own right."

NASDAQ Dubai's equity derivatives platform consists of futures on 21 individual UAE companies, listed on NASDAQ Dubai, the Dubai Financial Market and (DFM) and the Abu Dhabi Securities Exchange (ADX), as well as futures on the FTSE NASDAQ Dubai UAE 20 share index. The index, based on stocks on the three exchanges, rose 48% in 2009 to 1,851. It is well correlated to equity markets across the Middle East. Index constituents are selected for high market capitalisation and liquidity as well as openness to foreign investment.

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