Nasdaq Dubai has launched the exchange’s single stock futures market on the shares of leading UAE companies.

The new equity futures market is a groundbreaking initiative that offers unique tools for investment and wealth protection to regional and international investors, both institutions and individuals.

The seven companies on which futures are offered initially are: Aldar Properties, Arabtec Holding, DP World, Dubai Islamic Bank, Dubai Parks and Resorts, Emaar Properties and Etisalat. All the companies have a share listing on Nasdaq Dubai, DFM, or Abu Dhabi Securities Exchange (ADX). Futures on other companies listed on UAE and MENA exchanges will be added in due course, as well as index futures and equity options.

Essa Kazim, governor of DIFC and chairman of DFM, said: “The launch of this innovative market underlines Dubai’s leadership role in expanding the opportunities provided by Middle East’s capital markets infrastructure. Nasdaq Dubai’s single stock futures provide investors from the region and around the world with sophisticated new ways to protect and increase their wealth, including through hedging and leverage.”

Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, said: “Supported by the active participation of many of the UAE’s leading financial services firms, Nasdaq Dubai is the only exchange that offers futures on shares of UAE-listed companies including some of the region’s largest and most successful businesses with operations around the world. We are already taking steps to expand our futures market by adding selected products that will be attractive to investors.”

Nasdaq Dubai’s futures market opened on September 1, 2016 and in the first two days of trading 4,385 futures contracts were traded.

Investors can gain from futures when the underlying share price falls, as well as when it rises. The futures are offered with 1-month, 2-month, and 3-month expiry dates in the currency of the underlying share listing.

Nasdaq Dubai has launched a series of training courses through its Academy to help investors understand single stock futures and how to trade them, as well as a simulated trading game and other educational material. The exchange encourages informed and responsible trading by investors who understand the potential losses as well as potential gains of their positions. – TradeArabia News Service