DFM to launch three new equity futures contracts - GulfToday

DFM to launch three new equity futures contracts


Picture used for illustrative purpose.

The Dubai Financial Market (DFM) on Tuesday announced that it is planning to launch new equity futures contracts on individual stocks of three leading listed companies including; Aramex, Air Arabia and Emirates Integrated Telecommunications Company (DU), on 18th April 2021, in line with its strategy to diversify investment opportunities.

Similar to the inaugural equity futures contracts launched on 18th October 2020 on stocks of five listed companies namely; Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls, the new contracts will have tenures of 1, 2 and 3 months.

Commenting on this, Hassan Al Serkal, CEO of DFM said, “The planned new contracts are part of our plan to expand the range of contracts, creating new opportunities for investors. We are pleased with the growing interest from investors seeking to diversify and hedge their portfolios and access leverage in order to maximise their transactions and returns. The equity futures are also attracting increased number of licenced brokerage firms that are actively participating in trading activity and market making on the futures contracts.”

It is noteworthy that total value of trading on contracts of five leading listed companies reached Dhs57 million with 184,345 contracts. This activity has been strongly supported by the active participation of trading members and market makers led by Al Ramz Capital and BH Mubasher Financial Services, as both has been the most active brokers on equity futures since the introduction of this new product.

Shareholders of the Dubai Financial Market Company have approved the Balance Sheet for the financial year ending 31 December 2020, during the Company’s Annual General Meeting held recently.

The shareholders also ratified the Board of Director’s report on the Company’s performance and its financial position for the fiscal year ending 31 December 2020, the external auditor’s report as well as the Fatwa and Sharia’a Supervisory Board’s report.

In line with the Securities and Commodities Authority (SCA) instructions, the electronically-held AGM enabled Company’s shareholders to remotely participate and vote while observing the precautionary measures related to COVID-19 Pandemic. The shareholders also discharged members of the Board of Directors and the External Auditors from their liabilities for the fiscal year ending 31 December 2020 and appointed PriceWaterhouseCoopers as the external auditors for the fiscal year 2021 as well as determined their fees.

The shareholders approved the appointment of two representatives for the shareholders and determined their fees in accordance with paragraph (4) of Article (40) of the Corporate Governance Guide issued by Resolution of the Chairman of the SCA No. 3/R.M of 2020. During the meeting, the shareholders approved the appointment of the Fatwa and Shari’a Supervisory Board members for the year 2021.


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