The Dubai Financial Market (DFM) and Nasdaq Dubai have signed a licence agreement that will see futures contracts linked with the DFM General Index (DFMGI) traded on Nasdaq Dubai’s equity futures market.
“The diversification of products range and offering new investment opportunities to our enormous investor base is one of the main pillars of DFM’s strategy 2021,” said Essa Kazim, Chairman of DFM.
"In this context, we believe that the launch of futures on the DFMGI will be a milestone in the development of Dubai’s financial landscape, by offering versatile products that are tailored to the needs of international as well as regional investors.
“This new initiative stems from the unique links between DFM and Nasdaq Dubai that created a favorable framework for various market participants, enabling them to actively participate in Dubai’s capital market. It also further strengthens Dubai’s position as an international capital markets hub,” he added.
DFM will introduce regulated short-selling of equities in the near future, in a bid to support increased liquidity in both equities and equity futures.
All DFM and Nasdaq Dubai brokers can apply to be members of the futures market, with access to all eligible individual and institutional investors to trade.
Since opening in September 2016, Nasdaq Dubai’s equity future market has grown from seven stocks to 13, with the volume of traded contracts increasing by 80 percent from 874,000 in the first si months to 1,574,000 in the six month period ended on August 31, 2017.
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