Nasdaq Dubai launches equity futures market

Nasdaq Dubai has on Thursday launched a new equity futuresmarket with 21 contracts on seven of the most actively traded stocks in theUnited Arab Emirates.

Hamed Ali, chief executive officer of Nasdaq Dubai, toldFOW; “This is a pioneering platform in the GCC whose unique advantages ofhedging, investment and leverage have the potential to attract a wide range ofregional and international participants. Activity is likely to build steadilyover time, as more investors and brokers become familiar with equity futuresand their utility.”

Nasdaq Dubai Futures has launched with 21 contracts on sevenUAE stocks; Aldar Properties, Arabtec Holding, DP World Ltd., Dubai IslamicBank, Dubai Parks and Resprts, Emaar Properties, and Emirates TelecommunicationsGroup.

The single stock futures - which trade on the X-Streamtrading platform - are settled through cash, instead of physical delivery ofthe underlying equity, and each equity futures contract gives exposure to 100underlying shares. The settlement of price differences takes place in cash.

Following the launch, Nasdaq Dubai will now turn itsattention to building geographical growth, both regionally and internationally,as well as product expansion.

The new exchange is supported by a raft of brokers andmarket makers, including Al Ramz Capital, Arqaam Capital, EFG Hermes,Integrated Securities, MenaCorp, Mubasher Financial Services and Shuaa Capital.

Nasdaq has also worked with vendors FIS, DirectFN,ZagTrader, and First Information Technology as its technology partners for theexchange.

“The launch of the market is a result of partnership andcollaboration between the exchange and the launch partners. This partnershipwith the market leaders has enabled us to tune the market and its productstoward the demand that currently exists for new products, and to extend itsreach to the right investors who now have a new investment tool,” aspokesperson told FOW.

Nasdaq Dubai is not the first exchange in the Middle East tolook to equity futures for product diversification.

As reported by FOW earlier this year the Dubai Gold andCommodities Exchange (DGCX) launched a suite of single stock futures contracts –its first equity futures – to provide access to Indian and US stocks, includingFacebook, Google, JP Morgan, Apple, Ifosys and Tata Motors.

The Dubai exchange said in June that it plans to treble the number of single stock futures contracts it offers by the end of 2016 to 45.

In November FOW is hosting its Trading GCC event at theSheraton Grand Hotel in Dubai, in partnership with Nasdaq Dubai.

The event will bring together more than 200 delegates fromDubai and across the GCC region to showcase derivatives trading opportunitiesfor local market participants, look at how to increase participation from bothdomestic and international players and discuss how developments in marketinfrastructure and technology can encourage growth.

For more information, go to: http://www.fow.com/events/details/9081/trading-gcc/details.html