Dubai Financial Market plans to introduce new equity futures contracts

The Dubai Financial Market (DFM) has announced that it is planning to launch new equity futures contracts on individual stocks of three listed companies on September 19, 2021.

The new contracts will include stocks of Dubai Investments, DFM Company and Shuaa Capital.

The new equity futures contracts shall bring the total number of contracts to 33 on individual stocks of 11 listed companies with tenures of one, two and three months, a statement said. The move is part of its strategy to diversify investment opportunities.

Dubai Financial Market plans to introduce 3 new #equity_futures contracts on 19th September 2021, as part of its strategy to diversify #investment opportunities. The new contracts will include stocks of Dubai Investments, DFM Company and Shuaa Capital. https://t.co/TEeslsdXiV

— DubaiFinancialMarket (@DFMalerts) September 12, 2021

Since its launch on October 18, 2020, the DFM equity futures market has been witnessing active participation from investors and brokers, the statement added. Total value of trading on contracts reached Dhs119m through 336,000 traded contracts.

Hassan Al Serkal, CEO of DFM, said: “The rapid expansion of the DFM equity futures market underlines our commitment to diversify opportunities. It also caters to investors’ growing demand on this product, as they are seeking to diversify and hedge their portfolios as well as to access leverage in order to maximise their transactions and returns.”

Investors can trade DFM equity futures through eight brokerage firms including BHM Capital Financial Services, Al Ramz Capital, International Securities, EFG Hermes (UAE), Mena Corp Financial Services, SICO Financial Brokerage, Al Dar Shares and Bonds and Arqaam Securities.

DFM waived the minimum trading commission from September 1 as well as announced last month that it will extend trading time to five hours daily as of October 3.

Read: Dubai Financial Market scraps minimum trading commission from Sep 1