Saudi Stock Exchange (Tadawul) Launches New Derivatives Market and Clearinghouse Leveraging Nasdaq Market Technology
August 30 2020 - 3:11AM
The Saudi Stock Exchange (Tadawul) announced today it has
officially launched its first Derivatives Market and a
clearinghouse, The Securities Clearing Centre Company (Muqassa),
both of which are running on Nasdaq’s (Nasdaq: NDAQ) market
technology. The first exchange-traded derivatives product is MT30
Index Futures, an index futures contract based on the MSCI Tadawul
30 Index (MT30), which will benefit from central counterparty
clearing by Muqassa.
This new market offering provides regional and international
investors the necessary 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
infrastructure develops, Tadawul plans to roll out more derivatives
products such as Single Stock Futures, Single Stock Options and
Index Options.
Eng. Khalid Alhussan, Tadawul’s CEO said: “This is a significant
step in introducing sophisticated market products and creating a
trading environment that is attractive to local as well as
international investors.” He added: “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.”
Lars Ottersgård, Executive Vice President and Head of Market
Technology, Nasdaq: “Tadawul has been resolute in its ambitions to
transform its market infrastructure in order to have world-class
technology that meets and exceeds today’s demands and the new
challenges of tomorrow.” He added: “We are pleased to celebrate the
launch of Tadawul’s new derivatives market and CCP, as well as
further extending our technology relationship. Nasdaq is fully
committed to supporting Tadawul through this important
transformation.”
The launch of the derivatives market in Saudi Arabia is one of
the Financial Sector Development Program’s (FSDP) key initiatives
under the Saudi Vision 2030. It marks a significant step in
introducing sophisticated market products and creating a trading
environment attractive to local as well as international hedgers
and traders.
Nasdaq's market technology powers more than 250 of the world's
market infrastructure organizations and market participants,
including broker-dealers, exchanges, clearinghouses, central
securities depositories and regulators, in over 50 countries with
end-to-end, mission-critical technology solutions.
About Saudi Stock Exchange (Tadawul)
Saudi Stock Exchange (Tadawul) is the authorized
entity in the Kingdom of Saudi Arabia to act as the Kingdom’s
securities exchange (the Exchange), listing and trading in
securities. As of 2020 The Saudi stock market 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 amongst
its emerging market peers. For more information see:
www.tadawul.com.sa.
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Media Contacts
TadawulAsma AlghamdiMobile: +966 55 225 4223
asma.ghamdi@tadawul.com.sa
Nasdaq
Ryan Wells Mobile: +1 646 648 3887 ryan.wells@nasdaq.com
Yan-yan Tong Mobile: +46 (0)73 449 66 83
yan-yan.tong@nasdaq.com
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