As part of preparations to launch the platform on 18 October:
- Hassan Al Serkal: “Brokerage firms’ enthusiasm to join the market underlines investors’ growing demand for new asset classes”
Dubai: Dubai Financial Market (DFM) today announced that a group of leading brokerage firms as well as technology and data providers have joined its new equity futures platform, scheduled for launch on 18 October 2020, in a significant step that enables investors and brokers alike to unlock lucrative investment opportunities through trading a new and promising asset class. The equity futures allow investors the opportunity to diversify and hedge their portfolios and access leverage.
The DFM has licensed ten brokerage firms namely; BH Mubasher Financial Services, Al Daman Securities, EFG HERMES (UAE), Arqaam Securities, Shuaa Securities, Global for Shares & Bonds, Al Dar Shares and Bonds, Al Ramz Capital, SICO Financial Brokerage and Mena Corp Financial Services, as equity futures members. Additionally, SK Advisory FZ (Zag Trader), First Information Technology, Global Market Access Holding (DIFC) and Horizon Software have joined hands with the DFM as technology and data providers.
The platform will initially introduce futures contracts on single stocks with tenure of 1, 2 and 3 months. The inaugural contacts will include five of the most liquid equities listed on DFM namely; Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls.
The DFM equity derivatives platform is supported by a robust regulatory framework in line with international best practices that creates a favorable environment for active participation from investors and licensed brokers in futures trading and market making. Investors will be able to trade equity contracts by opening an account with a DFM-licensed equity futures member.
Hassan Al Serkal, Chief Executive Officer (CEO) of DFM said: “We are delighted to welcome this distinguished group of brokerage companies as “Launch Partners” of the platform. This initiative is part of DFM’s constant efforts to diversify its product offerings and asset classes. We are looking to cooperate with the Launch Partners as well as other brokerage firms that have showed enthusiasm to join the market as trading members in the coming period, which underlines investors’ growing demand for equity futures and other new asset classes that enable them to diversify their portfolios, manage risk and gain from the leverage facilities.”
Senior executives of leading brokerage firms, financial technology providers and data providers have welcomed the new platform as an important initiative to diversify investment opportunities and attract further investments.
The platform plans to increase the range of derivatives products including index-based futures contracts in due course.
It is noteworthy that the new platform leverages the gigantic experiences and capabilities of DFM’s Group members including; DFM, Dubai Clear and Nasdaq Dubai. These capabilities and experiences will be utilized to realize the strategic objectives and respond to market participants’ requirements.
About Dubai Financial Market: Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company and its shares were listed on 7 March 2007 with the trading symbol (DFM). . Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited. www.dfm.ae
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