NASDAQ Dubai on Wednesday listed equity derivatives for the first time. The instruments, created by the exchange itself, consist of futures contracts on an index of UAE shares created by FTSE International, and futures contracts on 21 individual shares listed on UAE exchanges. Jeff Singer, chief executive of NASDAQ Dubai, said: “Equity derivatives play a beneficial role in international markets around the world and we are delighted to bring them to the UAE. They enable investors to hedge risk, and can increase trading volumes in the underlying stock as well as reduce volatility in its price.” Susquehanna International Securities, Ltd. (SIS), a member of the Susquehanna International Group of Companies (SIG), is expected to be a market maker in the derivative products. Arqaam Capital is a derivatives trading Member of the exchange. Singer said: “NASDAQ Dubai's equity derivatives platform has great potential to develop into a substantial market. It will cater initially for institutional investors and in due course also for individual investors. We intend to introduce further equity futures contracts as well as options.” John Keogh, director and co-chair of SIS's Management Committee, said: “The launch of these products cements NASDAQ Dubai's reputation as one of the most progressive exchanges in the region. We are honored to have been chosen by NASDAQ Dubai to be the leading market maker in these products. SIG has led innovation in the financial markets for over twenty years and our pioneering involvement with these products is in keeping with this track record.” NASDAQ Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, structured products, Sukuk (Islamic bonds) and conventional bonds. The majority shareholder of NASDAQ Dubai is Borse Dubai with a two-thirds stake. NASDAQ OMX Group owns one third of the shares. The regulator of NASDAQ Dubai is the Dubai Financial Services Authority (DFSA). NASDAQ Dubai is located in the Dubai International Financial Centre (DIFC).
