Dubai stock market set to launch new platform to drive investments

Dubai stock market set to launch new platform to drive investments

Dubai Financial Market says it has reached the final stages of preparations to launch an equity derivatives platform

Dubai Financial Market (DFM) on Tuesday announced that it has reached the final stages of preparations to launch an equity derivatives platform in an effort to attract further investments.

The platform will be launched next month in cooperation with Dubai Clear and Nasdaq Dubai as well as leading brokerage firms, enabling investors to diversify and hedge their portfolios and access leverage.

It will introduce equity futures contracts on single stocks with tenure of 1-3 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.

A futures contract is an agreement between two sides to buy or sell at