Trading on Nasdaq Dubai’s equity futures market increased rapidly in November as new investors entered the market. A total of222,829 contracts traded during the month, up 116% from 103,393 in October.
The leading contracts by volume in November were Union Properties, Arabtec and DXB Entertainments. The most active broker in November was Menacorp, followed by Al Ramz Capital and then Mubasher.
SHUAA Capital has been market making since the market opened on September 1, providing liquidity and depth with two-way prices in all contracts. National Bank of Abu Dhabi joined as a market marker in November and announced it will start to provide prices before the end of 2016.
The equity futures market offers single stock futures contracts on nine leading UAE-listed companies: Abu Dhabi Commercial Bank, Aldar Properties, Arabtec Holding, DP World, Dubai Islamic Bank, DXB Entertainments, Emaar Properties, Etisalat, and Union Properties.
The market gives unique new tools for investment and wealth protection to regional and international investors, both institutions and individuals. These include hedging, leverage, and the ability to make gains when share prices are falling as well as rising.
Nasdaq Dubai will expand its range of futures in a phased programme, including contracts on companies listed on other MENA exchanges as well as index futures and equity options. It will also increase the range of connected brokers and other market participants.