Dubai – Mubasher: Nasdaq Dubai on Tuesday announced launching futures trading on FTSE Russell, FTSE Saudi Arabia Index, which comprises 46 Saudi Arabia-listed companies.
The newly launched futures are designed as investment instruments for global and regional investors including funds using the index as a benchmark for investing in Saudi shares, the Dubai-based stock exchange said in a statement.
“Nasdaq Dubai’s futures contracts on the FTSE Saudi Arabia Index give investors around the world an attractive new route to access the important Saudi Arabian market,” Waqas Samad, chief executive of FTSE Russell, said.
The step follows the expansion of Nasdaq Dubai’s equity derivatives market covering Saudi Arabia.
However, Nasdaq Dubai launched single stock futures trading on 12 Saudi companies in January, the statement added.
“The launch of futures on FTSE Russell’s benchmark Saudi index reflects Dubai’s strategy of cooperating with internationally respected entities to promote capital markets excellence and increase synergies between regional markets,” Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, commented.
Moreover, investors can use futures to obtain leverage that magnifies the outcome of their trade and protect their investment positions.
The trading currency of the futures on the FTSE Saudi Arabia Index is Saudi riyals (SAR) and contracts are offered for two consecutive quarters, the statement added.
