Saudi Stock Exchange Launches First Derivatives Market on Nasdaq


Saudi Stock Exchange (Tadawul) has launched the country’s first exchange-traded derivatives market and clearing house on August 30.

01 September, 2020 | AtoZ Markets – Saudi Stock Exchange (Tadawul) is the only authorized entity to operate as a Securities exchange in Saudi Arabia. Its main act is listing and trading securities, deposit, transfer, clearing, settlement, and register ownership of securities. Moreover, it is the largest exchange in the Middle East and North Africa and the world’s ninth-largest exchange.

Tadawul Launches New Index Futures Contract on Nasdaq Market Technology

Saudi Stock Exchange announced on August 30 that it has officially launched its first derivative market, the Saudi Futures 30 Index (SF30), and the clearinghouse, the Securities Clearing Centre Company (Muqassa).

SF30 is an index futures contract trading based on the MSCI Tadawul 30 Index (MT30). Muqassa aims to handle the settlement of equity trades and is also working to improve its settlement and clearing systems, including custody and depository functions.

Both index futures and Muqassa uses NASDAQ market technology. Eng. Khalid Alhussan, Tadawul’s CEO, said:

“The launch of Derivatives Market will provide investors with hedging tools to more effectively manage risk and gives expanded opportunities to gain exposure to the Saudi capital market, the largest and most liquid market in the region.”

The exchange will continuously monitor and supervises margin requirements, especially for small retail investors. Further refinement of these mechanisms will introduce later this year, he said. Lars Ottersgård, Executive Vice President and Head of Market Technology, Nasdaq:

“Tadawul has been resolute in its ambitions to transform its market infrastructure to have world-class technology that meets and exceeds today’s demands and the new challenges of tomorrow.”

Launching the derivatives market in Saudi Arabia is one of the critical initiatives of Saudi Arabia’s Vision 2030. However, it is an essential step in introducing new market products. It is also creating an attractive trading environment for domestic and international hedging and traders.

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