Nasdaq Dubai set to reinforce equity futures after robust progress

28/03/2017 05:50 AST

Nasdaq Dubai wants to reinforce equity futures after it witnessed strong growth, its chief executive officer said on Sunday.

Nasdaq Dubai plans to introduce futures in two names by the beginning of April, taking the total number of shares to 11 from the current nine.

“We are looking at Dubai Investment Company, and Dubai Financial Market contracts to go live in the first week of April,” Hamed Ali, chief executive officer of the bourse told Gulf News in an interview.

The bourse also plans to launch index futures in the second quarter, before expanding it regionally.

“We would look at regional products to expand. We would be copying the template for the UAE to other regions,” Ali added.

The performance has been impressive so far. “We have seen good levels of trading. The average value of trading is double or triple what we saw on Day 1,” Ali said.

Open interest has jumped ten-folds from what it was in the first month to 51,000 contracts in January.

“The participation is very good. We see good interest from brokers coming on board. We started with one market maker and now we have three market makers,” Ali said. “Our performance is in line with India and Turkey during early stages. The start is somewhat slow, but as you get the critical mass of market participation, we would see faster growth,” he added.

Multi-assets, currencies:

The exchange offers a multi-assets and currencies platform, to fit in the needs of the issuer. “If you are a listed company here, then you are simultaneously listed on the local as well as international market. That keeps you closer to local market and also at the same gives you credibility. If you list on Nasdaq Dubai, then you can even hedge your position on Nasdaq Dubai, which is very unique position,” Ali said.

Nasdaq Dubai offers a platform for equities, sukuk and bonds, along with alternatives like Real Estate Investment Trust and Murabaha platform.

“We are properly diversified. We are not dependent on shares or fixed income. We have a very good mix of products that gives investors a very good choice,” he added. In all, Nasdaq Dubai wants to look beyond conventional capital market participants. “We would also end up looking at how we can connect the business and other aspect of the market into the market and create a network. We need to be the pivotal point where different stakeholders connect,” Ali said.

Gulfnews