| 27 Jul 2010 |
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BFX Announces Key Index Products
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Region's first multi-asset exchange licensed by FTSE Group to list and trade a range of derivatives based on its indices
Manama, Bahrain - 27th July, 2010: The Bahrain Financial ExchangeBahrain Financial Exchange
(BFXBFX), the first multi-asset exchange in the Middle East and North Africa (MENA) region, today announced a new licensing agreement with FTSE Group, the award-winning global index provider, to list, trade and market a number of derivatives products based on a range of FTSE's regional and international indices. The derivatives, which are part of the BFXBFX's first phase product launch in October this year will be listed and traded through the BFXBFX's internationally-accessible trading platform. They will be based on the following indices: FTSE Emerging, FTSE Europe, FTSE BRIC 50, and FTSE Coast Kuwait 40.
By using FTSE indices, the BFXBFX offers regional investors the advantage of gaining exposure and diversifying their portfolios with products based on international indices from developed and emerging economies which are traded and settled in US dollars on the same integrated platform.
Commenting on the announcement, Arshad Khan, Managing Director & Chief Executive Officer of the BFXBFX and BCDC, said, "This is a significant addition to the BFXBFX product portfolio and further enhances the BFXBFX's position as the preferred choice for the financial services sector by providing liquid futures contracts based on these regional and international indices."
FTSE indices provide ready access to investors in the region to profit from the growing markets of the Emerging Nations, Middle East and Europe. As well as allowing participants to take exposure in multiple geographies through a single currency, the indices not only enable investors to diversify their portfolios but to also include some of the best performing stocks in the underlying market. More importantly, as each index covers a wide range of underlying markets, investors have the opportunity to reduce volatile conditions often experienced in the underlying cash markets without compromising on returns.
The BFXBFX agreement with FTSE creates an innovative value proposition in the region, which has generated a lot of interest during the BFXBFX's ongoing MENA-wide membership campaign since its inception in June. To date, the BFXBFX has received interest from over 50 leading financial institutions and brokerage houses.
Jonathan Cooper Managing Director, Middle East & Africa, FTSE Group said of the launch "We are delighted to work with the BFXBFX
, one of the key financial institutions in the region. By extending the range of our innovative and transparent index solutions in the region, we can give investors new opportunities to access local and international markets." This new development will go a long way in widening and deepening the capital markets in the GCC. The BFXBFX and FTSE have worked hard to provide investors in the region with access to some of the best performing stock markets globally. The product line-up has been selected as a result of a robust research process covering the value chain of investors in the region.
Retail participation is also expected to account for a considerable proportion of trade volume due to low margin payments and as the indices enable individuals who have limited funds to participate and trade in the Index market - be it locally or internationally.
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About BFXBFX:
Bahrain Financial ExchangeBahrain Financial Exchange (BFXBFX) is a pioneering cross border and multi product exchange in the Middle East and North Africa, and will be internationally accessible, to trade cash instruments, derivatives, structured products and shariah-compliant financial instruments. The BFXBFX is regulated by the Central Bank of Bahrain (CBB) and has an in-principal approval.
is a wholly owned initiative of Financial Technologies Group (FT Group), which currently owns one of the world's largest networks of 10 exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia.The BFXBFX has set up its Clearing and Depository Corporation (BCDC) to clear and settle the contracts it trades.
The BFXBFX Training Institute is an international standard in - house training facility, providing world class conventional and Islamic financial training and education courses.
The BFXBFX is a member of the Futures and Options Association (FOA), the International Islamic Financial Market (IIFM), the Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI), and a member of the Associations of Futures Markets (AFM).
About FTSE Group:
FTSE Group ("FTSE") is a world-leader in the creation and management of indexes. With offices in Boston, Beijing, London, Frankfurt, Hong Kong, Madrid, Milan, New York, Paris, San Francisco, Sydney, Shanghai and Tokyo, FTSE works with investors in 77 countries globally. It calculates and manages a comprehensive range of equity, fixed income, real estate and investment strategy indices, on both a standard and custom basis. The company has collaborative arrangements with a number of stock exchanges, trade bodies and asset class specialists around the world.
FTSE indices are used extensively by investors world-wide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds.
www.ftse.com
For more media enquiries, please contact:Afrah Faraj
Hill & Knowlton
Phone: +973 17533532
Email afrah.faraj@hillandknowlton.com
Narjes Yousif
Press & PR Executive
Bahrain Financial Exchange
Phone: +973 1651 1511
Mobile: +973 39339430
Email: narjes.yousif@bfx.bh
Mittal Shah
PR Officer - EMEA
FTSE Group
Phone: +44 207 866 1821
Mobile: +44 7969 129 544
Email: mittal.shah@ftse.com
© Press Release 2010
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