Dubai: Dubai Financial Market (DFM) on Sunday 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 October 18, 2020.
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.
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,” said Hassan Al Serkal, Chief Executive Officer (CEO) of DFM.
The platform plans to increase the range of derivatives products including index-based futures contracts in due course.