- Futures trading to begin later this month giving investors new ways to gain exposure to dynamic Saudi stock market
- Cooperation comes amid rapid expansion of Nasdaq Dubai’s equity derivatives market
Dubai – Nasdaq Dubai and FTSE Russell have signed a license agreement for the exchange to launch derivatives on FTSE Russell’s Saudi Arabia equity indices. In its first use of the license, Nasdaq Dubai intends to launch futures on the FTSE Saudi Arabia Index later this month on a date to be announced.
The futures, together with other derivatives to be launched in coming months under the license, will be designed to attract global and regional market participants including the many funds that use FTSE Russell’s indices as benchmarks for investing in Saudi equities.
The move is part of a rapid expansion of Nasdaq Dubai’s derivatives market that is currently underway. The exchange launched single stock futures on 12 Saudi companies last month.
FTSE Russell announced in March 2018 that Saudi Arabia would be promoted to Emerging Markets status in its global equity benchmarks from March 2019.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “With FTSE Russell’s benchmark Saudi indices being widely used by investors around the world, our collaboration with FTSE Russell expands the investment opportunities available to regional and international investors, introduces new product opportunities for regional markets, and complements our product offerings on Saudi Arabia. We look forward to further developing our relationship with FTSE Russell to create attractive new investable products in the region.”
Waqas Samad, Chief Executive of FTSE Russell, said: “As investors prepare for the inclusion of Saudi Arabia into FTSE Russell’s global equity benchmarks, we are delighted to collaborate with
Nasdaq Dubai to enable the launch of Saudi index futures. Saudi equities are some of the most heavily traded of all the region’s markets, and the futures contracts are an important additional tool to give regional and international investors efficient access to this dynamic market. The Middle East region is key to our overall strategy and our collaboration with Nasdaq Dubai will play an important role in our activities across the region.”
The FTSE Saudi Arabia Index contains 46 companies listed on the Saudi Stock Exchange (Tadawul) including Saudi Basic Industries Corporation (SABIC) and Al Rajhi Bank.
Launched in September 2016, Nasdaq Dubai’s derivatives market currently offers single stock futures on 17 leading UAE-listed companies as well as Saudi single stock futures, plus futures on the DFMGI index of Dubai Financial Market (DFM), the ADI index of Abu Dhabi Securities Exchange (ADX), and the MSCI United Arab Emirates Equity Index. The launch of futures on the FTSE Saudi Arabia Index is subject to regulatory approval.
About Nasdaq Dubai
Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).
The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
About FTSE Russell
FTSE Russell is a leading global index provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $16 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by London Stock Exchange Group.
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