Nasdaq Dubai is set to launch futures on Abu Dhabi National Oil Company for Distribution (ADNOC Distribution) and Emaar Malls, to enable investors to take positions on movements in the share price of the two companies in coming months.
ADNOC Distribution, an operator of retail fuel service stations, is scheduled to list on Wednesday on Abu Dhabi Securities Exchange (ADX) following an initial public offering that raised AED3.1 billion. Emaar Malls listed on Dubai Financial Market (DFM) in October 2014 after raising AED5.8 billion in its IPO.
The addition of the two prominent companies is the latest expansion of Nasdaq Dubai’s derivatives market, which from Wednesday will comprise single stock futures on 16 leading UAE-listed companies after opening with seven in September 2016.
The derivatives market is attracting significant activity from investors, who make use of leverage to magnify the financial outcome of their trades, a statement said.
Shuaa Capital will provide market-making services on ADNOC Distribution and Emaar Malls to facilitate liquidity, as it does on all Nasdaq Dubai single stock futures, the statement added.
Hamed Ali, chief executive of Nasdaq Dubai, said: “With businesses in different industry sectors and listings on different exchanges, ADNOC Distribution and Emaar Malls further diversify the opportunities for investors to hedge or take a position on our equity futures market, including making gains whether the value of the underlying share is falling or rising. We will maintain the expansion of our derivatives platform by adding further products based on UAE and other regional markets in coming months and years.”
In October, Nasdaq Dubai announced agreements with MSCI, DFM and ADX under which the exchange will create futures on their equity indices. Launch dates will be announced soon. The index derivatives will be a first in the region and will attract further international and regional participation in Dubai’s capital markets.
More than 2.9 million futures contracts have traded on Nasdaq Dubai’s derivatives market since it opened.
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