Dubai Financial Market (DFM) and Nasdaq Dubai have signed a licence agreement under which futures contracts linked with the DFM General Index (DFMGI) will be traded on Nasdaq Dubai's equity futures market. The launch of the index futures is part of the exchanges' joint strategy to offer institutional and retail investors new investment opportunities and a wider range of products.
The DFMGI tracks a basket of DFM-listed companies, providing exposure to the UAE economy in sectors including property, banking, telecoms, insurance and transport.
Nasdaq Dubai will issue the DFMGI futures and they will be traded on the futures market launched by Nasdaq Dubai in September 2016 which currently comprises single stock futures on 13 companies including eight that are listed on DFM.
DFM will introduce regulated short-selling of equities in coming period. This move will support increased liquidity in both equities and equity futures.
All DFM and Nasdaq Dubai brokers can apply to be Members of the futures market, with access to all eligible individual and institutional investors to trade.
Subject to regulatory approval, trading of DFMGI futures is expected to begin later this year with the support of leading UAE brokers, targeted at professional and institutional investors to enable them to take a macro view on the DFM market.