Dubai Financial Market announces launch partners for new equity futures platform

Dubai Financial Market (DFM) on Sunday announced that 14 companies including brokerage firms as well as technology and data providers would be the launch partners of its equity futures platform slated to go live on October 18.

The 10 brokerage firms that have been licensed by DFM to participate on the platform include: 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.

Meanwhile, the four companies that will serve as technology and data providers to the platform include SK Advisory FZ (Zag Trader), First Information Technology, Global Market Access Holding (DIFC) and Horizon Software.

#Dubai Financial Market (DFM) announces 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 18 October 2020.https://t.co/TaH9u5mrAb pic.twitter.com/y8T8Af41ni

— Dubai Media Office (@DXBMediaOffice) October 11, 2020

“We are delighted to welcome this distinguished group of brokerage companies as ‘Launch Partners’ of the platform. 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, CEO of DFM.

The platform will initially introduce futures contracts on single stocks with a tenure of one, two and three months.

The inaugural contracts will include five of the most liquid equities listed on DFM including Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls.

Investors can trade equity contracts by opening an account with a DFM-licensed equity futures member.

In a statement on Dubai Media Office, DFM added that the new platform will be supported by a robust regulatory framework in line with international best practices.

The platform plans to subsequently increase the range of derivatives products including index-based futures contracts.

In July, DFM said that its net profits for the first half of this year rose 21 per cent to reach Dhs78.9m, up from Dhs65.1m during H1 2019. Revenues during the period stood at Dhs181.1m, up 10.8 per cent year-on-year.

Read: Dubai Financial Market appoints new CEO, reports 21% rise in H1 profit

During the first six months of 2020, the DFM’s trading value exceeded Dhs31bn, a 25 per cent increase compared to H1 last year.

It also said that 1,718 new investors joined it during the first half of 2020.