The Saudi Stock Exchange (Tadawul) announced that the launch of exchange-traded derivatives will be on 30 August 2020. The first exchange-traded derivatives product is an index futures contract, the Saudi Futures 30 (SF30). This contract is based on the MSCI Tadawul 30 Index (MT30).
The launch of the Derivatives Market aims to further support the growth of the Saudi capital market by creating new opportunities for investors, providing them with hedging tools to manage risk, and to expand exposure opportunities to one of the largest and most liquid markets in the world – the Saudi Market. As the market develops, Tadawul has plans to roll out more derivatives products such as Single Stock Futures, Single Stock Options, and Index Options.
Khalid Al Hussan, CEO of Tadawul, said the launch of the Derivatives Market in Saudi Arabia is one of the Financial Sector Development Program (FSDP) key initiatives under the Saudi Vision 2030 and is a significant step in introducing sophisticated market products and creating a trading environment attractive to local as well as international hedgers and traders.
Saudi Stock Exchange (Tadawul) is the sole entity authorized in the Kingdom of Saudi Arabia to act as the Kingdom’s securities exchange (the Exchange), listing and trading in securities. Following the listing of Saudi Aramco, the largest IPO in history, Tadawul is the 9th largest stock market among the 67 members of the World Federation of Exchanges and is the dominant market in the Gulf Cooperation Council (GCC). The Exchange is the 3rd largest stock market among its emerging market peers.
Also published on Medium.
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