Dubai Financial Market (DFM) today announced that a group of leading brokerage firms as well as technology and data providers have joined its new equity futures platform, scheduled for launch on 18 October 2020, in a significant step that enables investors and brokers alike to unlock lucrative investment opportunities through trading a new and promising asset class. The equity futures allow investors the opportunity to diversify and hedge their portfolios and access leverage.
The DFM has licensed ten brokerage firms namely; BH Mubasher Financial Services, Al Daman Securities, EFG HERMES (UAE), Arqaam Securities, Shuaa Securities, Global for Shares & Bonds, Al Dar Shares and Bonds, Al Ramz Capital, SICO Financial Brokerage and Mena Corp Financial Services, as equity futures members. Additionally, SK Advisory FZ (Zag Trader), First Information Technology, Global Market Access Holding (DIFC) and Horizon Software have joined hands with the DFM as technology and data providers.
The platform will initially introduce futures contracts on single stocks with tenure of 1, 2 and 3 months. The inaugural contacts will include five of the most liquid equities listed on DFM namely; Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls.
The DFM equity derivatives platform is supported by a robust regulatory framework in line with international best practices that creates a favorable environment for active participation from investors and licensed brokers in futures trading and market making. Investors will be able to trade equity contracts by opening an account with a DFM-licensed equity futures member.
Hassan Al Serkal, Chief Executive Officer (CEO) of DFM said:
“We are delighted to welcome this distinguished group of brokerage companies as “Launch Partners” of the platform. This initiative is part of DFM’s constant efforts to diversify its product offerings and asset classes. We are looking to cooperate with the Launch Partners as well as other brokerage firms that have showed enthusiasm to join the market as trading members in the coming period, which underlines investors’ growing demand for equity futures and other new asset classes that enable them to diversify their portfolios, manage risk and gain from the leverage facilities.”
Senior executives of leading brokerage firms, financial technology providers and data providers have welcomed the new platform as an important initiative to diversify investment opportunities and attract further investments.
The platform plans to increase the range of derivatives products including index-based futures contracts in due course.
It is noteworthy that the new platform leverages the gigantic experiences and capabilities of DFM’s Group members including; DFM, Dubai Clear and Nasdaq Dubai. These capabilities and experiences will be utilized to realize the strategic objectives and respond to market participants’ requirements.