Products - Derivatives

NASDAQ Dubai is the only authorized Equity derivative exchange in the Dubai International Financial Centre backed by the Dubai Financial Market and powered by NASDAQ OMX technology.

Equity Derivatives

NASDAQ Dubai launched its equity derivatives platform in November 2008 making a unique addition to the international and regional derivatives landscape. For the first time in the UAE, it enables equity derivatives based on UAE stocks to be traded on exchange.

This new exchange based service is a response to the continuing growth of the UAE Capital markets.

This resulted in growing demand for an exchange based derivatives service that can offer the high levels of governance, efficiency and liquidity that investors have come to expect.

In collaboration with key market participants and global index provider FTSE Group, it has created a new service that delivers the market infrastructure to allow investors the ability to successfully manage their exposure to the UAE’s ever expanding market.

The Key Benefits

Wider participation

As well as offering transparency and regulation NASDAQ Dubai’s derivative service provides ease of access to a centralized marketplace. Together, these features allow for wider market participation.

All NASDAQ Dubai members are able to apply to become derivative members.

Increased liquidity

The existing UAE derivatives market is dominated by OTC trades between a limited number of major investment banks. The presence of dedicated market makers providing on screen liquidity will boost overall trading volumes.

Reduced Counterparty Risk

By providing central counterparty clearing, NASDAQ Dubai will act as counterparty to all trades thereby reducing credit risk exposure for market participants.

Products

NASDAQ DUBAI lists futures on the FTSE NASDAQ Dubai UAE 20 index and on 20 individual UAE stocks listed on NASDAQ Dubai, the Dubai Financial Market and the Abu Dhabi Securities Market.

In April 2009 NASDAQ Dubai introduced a UAE equity options service. Members are able to report, trade and clear user-defined option contracts on NASDAQ Dubai, with the price and expiry date agreed by the parties to the contracts.

For full details of the product offering please read the Derivatives Service Description.

Product Range

Index Futures (Cash settled, US $)

FTSE NASDAQ Dubai UAE 20 Index

Single Stock Futures (Cash Settled, US$)

Of the 20 stocks below, 10 are listed on the Dubai Financial Market and 9 on the Abu Dhabi Securities Exchange:

DP World
Abu Dhabi Commercial Bank (ADX)
Air Arabia (DFM)
Aldar Properties (ADX)
Arabtec Holdings (DFM)
Aramex (DFM)
Dana Gas (ADX)
DFM (DFM)
Drake & Skull International (DFM)
Dubai Investments (DFM)
Dubai Islamic Bank (DFM)
EMAAR Properties (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)
Union Properties (DFM)
Waha Capital (Ocean International Leasing) (ADX)

The dollar value of each index future contract is 10 times the index. The value of each individual share future contract is 100 times the value of the share (in USD). Contracts in each future are offered for six periods – 1,2, 3, 6, 9 and 12 months.