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Now you can trade Saudi Single Stock Futures on Nasdaq Dubai
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Equity Futures: An Exciting New Market
Nasdaq Dubai’s equity futures market has attracted substantial trading since its launch with UAE single stock contracts. The market has expanded by adding UAE equity index futures as well as Saudi single stock and Saudi equity index futures.
What are Equity Futures?
Marwan Shurrab
Al Ramz Capital
Al Ramz Capital
Introduction of Equity Futures Market
Ayman Hamed
Integrated Securities
Integrated Securities
What are DFM Index Futures?
Hassan Alserkal
DFM
DFM
How can investors use ADI Futures
Henri Bergstrom
ADX
ADX
Hedging in Equity Futures
Hatim Al Atabani
Brokerage House Securities
Brokerage House Securities
Market Making on Equity Futures
Magdi Shannon
Shuaa Capital
Shuaa Capital
Shorting in Equity Futures
Marwan Shurrab
Al Ramz Capital
Al Ramz Capital
Initial Margin in Equity Futures
Ma'an Al Bostami
Brokerage House Securities
Brokerage House Securities
Trading Opportunities in Equity Futures
Samir Zedan
Integrated Securities
Integrated Securities
FTSE Saudi Arabia Futures - Classification is key for investors
Gary Rynhoud
FTSE Russell
FTSE Russell
FTSE Saudi Arabia Futures - Nasdaq Dubai Futures provide access to Saudi market
Gary Rynhoud
FTSE Russell
FTSE Russell
FTSE Saudi Arabia Futures - Saudi market upgrade leads to invest inflows
Gary Rynhoud
FTSE Russell
FTSE Russell
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UAE Single
Stock FuturesUnderlying Shares Contract Symbol Contract Size
(shares per contract)Trading Currency Contract Expiry Abu Dhabi Commercial Bank ADCB 100 AED 1, 2 and 3 months Aldar Properties ALDAR 100 AED 1, 2 and 3 months Arabtec Holding ARTC 100 AED 1, 2 and 3 months ADNOC Distribution ADNCDT 100 AED 1, 2 and 3 months Damac Properties DAMAC 100 AED 1, 2 and 3 months DP World Ltd. DPW 100 USD 1, 2 and 3 months Dubai Financial Market DFM 100 AED 1, 2 and 3 months Dubai Investments DIC 100 AED 1, 2 and 3 months Dubai Islamic Bank DIB 100 AED 1, 2 and 3 months DXB Entertainments DXBE 100 AED 1, 2 and 3 months EMAAR Developments EMRDEV 100 AED 1, 2 and 3 months EMAAR Malls EMRMAL 100 AED 1, 2 and 3 months Emaar Properties EMAAR 100 AED 1, 2 and 3 months Emirates Telecommunications Group (Etisalat) ETISLT 100 AED 1, 2 and 3 months First Abu Dhabi Bank FAB 100 AED 1, 2 and 3 months Union Properties UPP 100 AED 1, 2 and 3 months GFH Financial Group GFH 100 AED 1, 2 and 3 months * Settlement currency will be in AED or USD
Underlying Security traded on a UAE stocks exchange as approved by Nasdaq Dubai and published by way of Notice Currency Contracts will be quoted in the same currency as the underlying security in the primary market. Contract Size 100 underlying shares Contract Months 1 month, 2 month and 3 months expiry Minimum Price Movement (tick size) 0.001 Daily price limits 20% up and 15% down from previous closing price Settlement Type Cash Settled Expiration Settlement Price Last 30 minutes of volume weighted average price (VWAP) of the underlying security Last Trading Day /Maturity Day 3rd Thursday of the expiry month. In the event of the 3rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior the 3rd Thursday. Final Settlement Day Business Day following the Maturity Day Listing of New Contract Month 2nd Thursday of the expiry month i.e Thursday prior to Maturity Day Trading Hours Sunday - Thursday, 10:00 am - 2:00 pm. -
DFMGI
FuturesUnderlying Index DFM General Index (DFMGI) Currency of Trading AED (UAE Dirham) Contract Size 10 Contract Value DFMGI Futures price x Contract size Example: (3500 x 10 = 35,000) Contract Series 2 consecutive quarterly contracts. Example: March 2018 and June 2018 Minimum Price Movement (Tick Size) 1 Safeguards (daily price limits) 20% up and 15% down from previous closing price. (Subject to change) Settlement Type Cash Settlement Daily Settlement Price Calculated In accordance with the Clearing, Settlement and Risk Management Procedures for Derivatives Expiration Settlement Price Last 30 minutes average of the Underlying Index value.
(Calculated in accordance with the Clearing, Settlement and Risk Management Procedures for Derivatives)Expiry Day (Last Trading Day) 3rd Thursday of the expiry month. In the event of the 3rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior the 3rd Thursday. Settlement Day Business Day following the Expiry Day Listing of New Contract Series 2nd Thursday of the expiry month i.e. Thursday prior to Expiry Day Trading Hours Sunday - Thursday, 10:00 am - 2:00 pm. (Please refer to Trading manual for further details on trading phases) DFMGI futures are not sponsored, endorsed, sold or promoted by the Dubai Financial Market (“DFM”). DFM make no representation or warranty, express or implied, to the owners of the Product(s) or any member of the public regarding the advisability of investing in or trading in the Product(s) particularly or the ability of the Product(s) to track general market performance. DFM, in its capacity as the sole owner of the DFM Indices is licensing the DFM Indices, which is determined, composed and calculated by DFM without regard to the Licensee or the Product(s). DFM has no obligation to take the needs of the Licensee or the owners of the Product(s) into consideration in connection with the foregoing. DFM is not responsible for and has not participated in the product structure or design, pricing, listing, tradability, or settlement of the Product(s)
DFM does not guarantee the quality, accuracy and/or the completeness of the DFM indices or any data included therein. DFM make no warranty, express or implied, as to results to be obtained by licensee, owners of the product(s), or any other person or entity from the use of the DFM indices or any data included therein in connection with the rights licensed hereunder or for any other use. -
ADI
FuturesUnderlying Index ADX General Index (ADI) Currency of Trading AED (UAE Dirham) Contract Size 10 Contract Value ADI Futures price x Contract size Example: (4500 x 10 = 45,000) Contract Series 2 consecutive quarterly contracts. Example: March 2018 and June 2018 Minimum Price Movement (Tick Size) 1 Safeguards (daily price limits) 20% up and 15% down from previous closing price. (Subject to change) Settlement Type Cash Settlement Expiration Settlement Price Calculated In accordance with the Clearing, Settlement and Risk Management Procedures for Derivatives Daily Settlement Price Last 30 minutes average of the Underlying Index Value.
(Calculated in accordance with the Clearing, Settlement and Risk Management Procedures for Derivatives)Expiry Day (Last Trading Day) 3rd Thursday of the expiry month. In the event of the 3rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior the 3rd Thursday. Settlement Day Business Day following the Expiry Day Listing of New Contract Series 2nd Thursday of the expiry month i.e. Thursday prior to Expiry Day Trading Hours Sunday - Thursday, 10:00 am - 2:00 pm. (Please refer to Trading manual for further details on trading phases) The ADX Indices is the property of ADX and is used under license by Nasdaq Dubai. ADX does not guarantee the quality, accuracy and/or the completeness of the ADX indices or any data included therein. ADX makes no warranty, express or implied, as to results to be obtained by licensee, owners of the product(s), or any other person or entity from the use of the ADX indices or any data included therein in connection with the rights licensed hereunder or for any other use.
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Saudi Single
Stock FuturesUnderlyingShares Contract Symbol Contract Size
(shares per contract)Trading Currency Contract Expiry Alinma Bank ALINMA 100 SAR 1, 2 and 3 months Almarai Co. MARAI 100 SAR 1, 2 and 3 months Al Rajhi Bank RJHI 100 SAR 1, 2 and 3 months SEERA Group Holding SEERA 100 SAR 1, 2 and 3 months Dar Al Arkan Real Estate Development Co. ALARKN 100 SAR 1, 2 and 3 months Etihad Etisalat Co. EEC 100 SAR 1, 2 and 3 months Rabigh Refining And Petrochemical Co. PETROR 100 SAR 1, 2 and 3 months Saudi Arabian Mining Co. MAADEN 100 SAR 1, 2 and 3 months Saudi Basic Industries Corp. SABIC 100 SAR 1, 2 and 3 months Saudi Cement Co. SACCO 100 SAR 1, 2 and 3 months Saudi Electricity Co. SECO 100 SAR 1, 2 and 3 months Saudi Kayan Petrochemical Co. KAYAN 100 SAR 1, 2 and 3 months * Settlement currency will be in SAR.
Underlying Securities listed on Saudi Arabia’s stock exchange and as approved by Nasdaq Dubai and published by way of notice Currency Contracts will be quoted in the same currency as the underlying security in the primary market. Contract Size 100 underlying shares Contract Months 1 month, 2 month and 3 months expiry Minimum Price Movement (tick size) 0.01 Daily price limits 20% up and 15% down from previous closing price Settlement Type Cash Settled Expiration Settlement Price The final Settlement Price for cash settlement for an expiring contract shall be the market price on the last Trading Day of such Contract Last Trading Day /Maturity Day 3rd Thursday of the expiry month. In the event of the 3rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior the 3rd Thursday Final Settlement Day Business Day following the Maturity Day Listing of New Contract Month 2nd Thursday of the expiry month i.e Thursday prior to Maturity Day Trading Hours Sunday - Thursday, 11:00 am - 4:10 pm (UAE time) -
MSCI UAE
Index FuturesUnderlying Index MSCI UAE Index Currency of Trading USD (US Dollar) Contract Size 10 Contract Value MSCI UAE Index value x Contract size. Example: (500 x10 = 5,000) Contract Series 2 consecutive quarterly contracts (example: Contracts expiring in December 2018 and March 2019 will be available. On the Thursday prior to December 2018 Expiry Day, June 2019 contractwill be created) Minimum Price Movement (Tick Size) USD 0.1 Safeguards (Daily Price Limits) 20% up and 15% down from previous closing price. (Nasdaq Dubai reserves the right to redefine and modify the price limit safeguard ranges intraday depending on the market situation) Settlement Type Cash Settlement Daily Settlement Price The Closing Price will be the last traded price in the Derivative Contract during the same Business Day. If there is no last traded price on the same Business Day Nasdaq Dubai will follow the process set out in the Clearing, Settlement and Risk Management Procedures for Derivatives. Expiration Settlement Price The closing price of the MSCI UAE Index on the expiry day Expiry Day (Last Trading Day) 3rd Thursday of the expiry month. In the event of the 3rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior to the 3rd Thursday. Settlement Day Business Day following the Expiry Day Listing of New Contract Series 2nd Thursday of the expiry month i.e. Thursday prior to Expiry Day Trading Hours Sunday - Thursday, 10:00 am - 2:00 pm. -
FTSE Saudi Arabia
Index FuturesUnderlying Instrument FTSE Saudi Index (SAR) – Total Returns Currency of Trading SAR (Saudi Riyals) Contract Size 5 Contract Value FTSE Saudi Index Future value * Contract size Contract Series 2 consecutive quarterly contracts
(example: Contracts expiring in June 2019 and September 2019 will be available. On the Thursday prior to June 2019 Expiry Day, December 2019 contract will be created)Tick Size (minimum price movement) SAR 0.1 Safeguards
(daily price limits)20% up and 15% down from previous closing price.
(Nasdaq Dubai reserves the right to redefine and modify the price limit safeguard ranges intraday depending on the market situation)Settlement Type Cash Settled Daily Settlement Price The Closing Price will be the last traded price in the Derivative Contract during the same Business Day. (If there is no last traded price on the same Business Day, Nasdaq Dubai will follow the process set out in the Clearing, Settlement and Risk Management Procedures for Derivatives.) Expiration Settlement Price Last 30 minutes (before 4:10:30 pm) average of the Underlying Instrument calculated using Index values at each 1 minute interval. (In the event that this price does not adequately reflect the actual market conditions, Nasdaq Dubai may re-determine the settlement price at its sole discretion and may use theoretical fair value for the same. For details, refer to the Clearing, Settlement and Risk Management Procedures for Derivatives) Expiry Day
(Last Trading Day)3rd Thursday of the expiry month. In the event of the 3rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior to the 3rd Thursday. Settlement Day Business Day following the Expiry Day Listing of New Contract Series 2nd Thursday of the expiry month i.e. Thursday prior to Expiry Day Trading Hours Sunday - Thursday, 11:00 am - 4:10 pm. Please refer to Trading manual published on Nasdaq Dubai website for further details on trading phases.
Benefits of Equity Futures
Nasdaq Dubai Equity Futures offer many benefits for investors.
Leverage
Leverage is a key feature of equity futures. The initial payment (called initial margin) that an investor must make is only between 10% and 30% of the value of the contract. This magnification of the effect of the capital, called leverage, can lead to significant gains (or losses). These gains (or losses) can be much larger than the amount invested.
Trading & Arbitrage
Investors can benefit from the out-performance of one stock price over another through pair trading, by going long on one stock and short on another stock through futures. There are also opportunities for arbitrage when futures and underlying stock prices diverge.
Profit when price falls as well as rises
Selling in advance (shorting) and buying back allows an investor to profit from a stock that is going down in price. Buying and then selling later allows an investor to profit from a stock that is going up.
Hedging
Allows portfolio managers and investors to hedge their existing market exposure, either increasing or decreasing their exposure to volatility of the underlying equity.
Cost Effective
Futures fees can be lower than fees for trading equities.
Standardisation
Futures contracts are always in a standardised form.
Potential
Movements of a share price or an index creates significant opportunities for investors in futures, whether they rise or fall.
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Emaar Properties
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Etisalat
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Almarai
How to trade Equity Futures
An investor opens an account for futures trading with an approved Nasdaq Dubai
broker. They can then place orders in the same way as for stock trades.
The initial payment for the futures is the initial margin. Profit and losses
will be settled on a daily basis (known as variation margin). Investors must keep
sufficient cash balance with their broker to meet
their initial margin and daily variation margin requirement. If an investor fails
to meet their margin requirement within the time specified by the broker, the
broker may close the investor’s positions.
Futures Members
| Broker | Contact | Phone | |
|---|---|---|---|
| SHUAA Securities LLC | Samir Zedan Azza Swaidan |
szedan@shuaasecurities.ae
aswaidan@shuaasecurities.ae |
+971 2 494 2606 +971 2 494 2603 |
| Al Ramz Capital | Osama Mohrat | osama.Mohrat@alramz.ae | +971 2 611 8816 |
| BH Mubasher | Call Centre | callcenter@bhmuae.ae | +971 800 567 000 |
| Global for Shares & Bonds Co L.L.C | Customer Services | Info@globalsb.ae | +971 2 410 8888 |
| SICO Financial Brokerage L.L.C. | Zaher Al Affouri | Brokerage@sicouae.com | +971 2 6590112 |
| EFG Hermes UAE | Khaled Mohamed |
kmohamed@efg-hermes.com
EFG-HermesCallCenter@EFG-HERMES.com |
+971 4 3069406
+971 600 50 0004 |
| Menacorp Financial Services | Call Center | info@menacorpfinance.com | +971 50 376 8647 |
| Daman Securities | Customer Service | Ops@daman.ae | +971 4 305 5779 |
Partners
What are Derivatives?
Watch the video