The Dubai Financial Market (DFM) recently announced the launch of new equity futures contracts on individual stocks of three leading listed companies including; Dubai Investments, DFM Company and Shuaa Capital on 19th September 2021, as a part of its strategy to diversify investment opportunities, according to media reports.
The DFM mentioned that it has observed growing investor interest in its equity futures products with the total value of trading contracts reaching $32.4 million since they launched in October 2020.
Hassan Al Serkal, CEO of DFM told the media, “The rapid expansion of the DFM equity futures market underlines our commitment to diversify opportunities. It also caters to investors’ growing demand… as they are seeking to diversify and hedge their portfolios, as well as to access leverage in order to maximise their transaction returns.”
After the launch, investors will be able to 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.
The new product and its service are all set to be rolled out later this month and it will bring the total number of contracts to 33 on individual stocks of 11 listed companies that will have tenures of one, two, and three months.
Since its launch last year, the DFM equity futures market has seen rapid growth and active participation from investors and brokers alike. total value of trading on contracts reached to Dh 119 million through 336,000 traded contracts.