Move is part of rapid expansion of exchange’s equity futures market
Dubai – Nasdaq Dubai announced today that it will launch trading in futures on the MSCI United Arab Emirates (UAE) equity index on January 15th, 2019. This opens a new route for investors to gain exposure to the performance of UAE companies.
The index is a benchmark that is widely watched by investors around the world. It currently comprises 11 constituent companies that are among the largest and most liquid in the UAE including DP World, Emaar Properties and First Abu Dhabi Bank.
By trading the index futures investors can hedge their positions, make use of leverage to magnify the outcome of their trades, and make gains whether the index is rising or falling.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “Launching contracts on MSCI’s highly respected United Arab Emirates (UAE) equity index is an important step in the rapid expansion of Nasdaq Dubai’s equity derivatives market. It will encourage further participation from international and regional funds and other investors, including individuals, who are looking for new and attractive opportunities to increase their exposure to the UAE’s investment landscape.”
Robert Ansari, Executive Director - Head of the Middle East of MSCI said: “We are delighted to continue our partnership with the Nasdaq Dubai through the launch of futures trading on the MSCI UAE equity index. The index is designed and maintained with a transparent methodology which seeks to strike the balance between representation of the UAE equity opportunity set whilst remaining faithful to need for investablity. The ability for local and global institutional investors to access the equity markets through financial instruments continues to grow and we look forward to working with Nasdaq Dubai as these needs evolve.”
The futures on the UAE index will be launched under a licence agreement agreed in 2017. The licence also enables Nasdaq Dubai to launch futures and options in due course on MSCI indices of a number of GCC and regional equity markets. More than 11 trillion US dollars in assets under management is estimated to be benchmarked to MSCI’s indexes worldwide.
Nasdaq Dubai’s derivatives market opened in 2016 and currently comprises single stock futures on 17 leading UAE-listed companies, as well as futures on Dubai Financial Market’s DFMGI share index and the ADI index of Abu Dhabi Securities Exchange. Nasdaq Dubai is also preparing to launch single stock futures on companies listed on the Saudi Stock Exchange (Tadawul).
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 MSCI
For more than 45 years, MSCI’s research-based indexes and analytics have helped the world’s leading investors build and manage better portfolios. Clients rely on MSCI’s offerings for deeper insights into the drivers of performance and risk in their portfolios, broad asset class coverage and innovative research.
MSCI’s line of products and services includes indexes, analytical models, data, real estate benchmarks and ESG research.
MSCI serves 99 of the top 100 largest money managers, according to the most recent P&I ranking. For more information, visit the MSCI website at www.msci.com.
© Press Release 2018Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
