Nasdaq Dubai expands equity futures market with three more leading companies
© Press Release 2017
Nasdaq Dubai has added National Bank of Abu Dhabi (NBAD), Dubai Financial Market (DFM) and Dubai Investments (DIC) to its equity futures market, raising the number of leading UAE companies on which futures can be traded to 12.
Market making services on futures contracts on the three additional companies are provided by SHUAA Capital, which has been market making on all futures since the market opened on September 1, 2016.NBAD, DFM and DIC were added to the market on April 2, 2017. NBAD is the largest banking entity in the UAE following its merger with First Gulf Bank. The merged entity will be known as First Abu Dhabi Bank.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “The addition of three more prominent UAE companies, whose equities are widely traded, adds further depth and breadth to our futures market as a growing range of investors make use of the opportunities it provides for hedging and investment. As the market expands further in coming weeks and months, including the addition of equity indices, investors will be able to make increasing use of the benefits of leverage, and the capacity to make gains when underlying shares are falling as well as rising.”More than 1,140,000 contracts have traded on the market since inception, with one contract representing 100 shares. Trading rose to 184,000 contracts in March, 14% higher than 162,000 contracts in February. The most active brokers by value on the market in March were Almena Financial Brokers followed by Al Safwa Mubasher and then Integrated Securities.
Jassim Alseddiqi, Chairman of SHUAA Capital, said: “SHUAA Capital is proud to see the UAE’s burgeoning futures market enter the second phase of its development. Our provision of market making services for three more blue chip corporate entities will provide a significant boost to Nasdaq Dubai’s futures offering, enabling investors to benefit from an increasingly broad range of opportunities. SHUAA Capital’s expertise, experience and resources are playing a key role in the ongoing development of the UAE’s capital markets, and we look forward to working with Nasdaq Dubai and its constituent companies over the coming months to continue enhancing and expanding the emirate’s and the UAE’s investment landscape.”
NBAD, DFM and DIC join nine other leading UAE-listed companies on which futures are traded on the market: Abu Dhabi Commercial Bank, Aldar Properties, Arabtec Holding, DP World, Dubai Islamic Bank, DXB Entertainments, Emaar Properties, Etisalat and Union Properties.
Nasdaq Dubai plans a phased expansion of its futures market, including futures and options on shares of other companies listed on MENA exchanges, as well as futures on equity indices. A range of regional and international financial institutions are in discussions with the exchange to become market participants.
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 SHUAA Capital
Established in 1979, and often considered to be the oldest financial advisory and investment firm in the Middle East, SHUAA Capital psc (‘SHUAA’) is an integrated financial services firm headquartered in the United Arab Emirates. The firm services corporate and institutional clients, Governments, family businesses and high-net-worth-individuals with expertise in the areas of asset management, investment banking advisory services, capital markets and credit. SHUAA is a public shareholding company with its shares listed on the Dubai Financial Market. The firm is regulated as a financial investment company by the UAE Central Bank. www.shuaa.com