The Bahrain Financial Exchange (BFX), the first multi-asset exchange in the Mena region, on Wednesday began live trading of its conventional segment.

The BFX announcement comes following the successful launch of its Islamic division (Bait Al Bursa) in February.

The conventional segment launch is in line with the strategy to establish the BFX as the only multi-asset exchange in the region offering its members and their customers the opportunity to trade in various asset classes like derivatives, equities, fixed income, exchange traded funds, and structured products in both the conventional and Islamic finance vertical.

In its initial phase, the BFX is listing three derivatives products for trading, said a statement from the exchange.

These products are natural gas futures, gold futures and Euro US Dollar Futures, and are designed to provide market participants with opportunities to trade on precious metals, energy and currency asset classes to meet their investment and hedging requirements.

Following these products, the BFX will be adding additional offerings from currencies, commodities, and indices baskets.

Lauding the BFX achievement, Central Bank of Bahrain governor Rasheed Al Maraj said, 'The start of the conventional division of the BFX will greatly benefit the financial markets of the Kingdom.'

'We are confident that the BFX market will be utilised by the financial institutions based locally as well as regionally for the investment and trading requirements of their investors.'

'The establishment of such sophisticated and next-generation exchanges like the BFX will facilitate the financial markets in Bahrain to achieve a higher level of maturity and uniformity,' he added.

Shaikh Mohammed bin Essa Al-Khalifa, chief executive of the Economic Development Board (EDB), said: “We are pleased to see the establishment of the BFX and expansion of its membership base across the Mena region.'

'Sophisticated financial markets such as the BFX enable the free flow of capital which is vital in promoting economic growth and helping businesses to create jobs and opportunities for all Bahrainis. We wish the BFX the best of luck with all of its work in the future,” he stated.

Jignesh Shah, chairman & Group CEO of Financial Technologies Group (FT Group) and chairman of BFX said: “I would like to convey my appreciation for the support that we received from the Government of Bahrain, the CBB and the EDB without which setting up a true multi-asset exchange would have been impossible.'

'Bahrain being the oldest financial centre of the Gulf and a globally leading centre for Islamic finance is the ideal location for an international multi-asset exchange like the BFX which offers products in both Islamic and conventional finance accessible to the trading community across the globe,” he added.

Arshad Khan, the managing director & CEO of the BFX and BFX Clearing and Depository Corporation (BCDC) said: 'Today (November 23) is a momentous day for the BFX and the regional financial market as a whole.'

'Exchanges are considered as the barometer of an economy; therefore, the establishment of the Exchange and the successful commencement of live trading signify a landmark accomplishment for the Kingdom’s financial sector,' he added.

'We are proud to play a major part in the evolution of the multi-asset market place for the conventional and Islamic finance emanating from Bahrain,' said Khan.

'The coming days will be even more exciting as we will continuously develop our product portfolio to meet the market requirements.'

'This great achievement couldn’t have been possible without the support and assistance of the financial institutions that have joined the BFX as its members,' he added.

In line with the other international exchanges, the BFX conventional division is operating from Monday to Friday. Trading starts at 8.30am and closes at 9.30 pm (Bahrain Time) thus bridging the gap between the Tokyo and New York markets.-TradeArabia News Service