Nasdaq Dubai will launch futures trading in Saudi-listed companies by the end of 2018, Hamed Ali, chief executive of the international stock exchange, said in a statement.
The move will allow international investors to trade in Saudi companies via contracts to buy or sell shares at a set price in the future.
It will be the first time Saudi stocks can be traded in derivative form.
Nasdaq Dubai has been involved in talks about the initiative for a while with market players in Saudi Arabia, it was reported.
“The framework we have built for trading and clearing Saudi futures is based on intensive consultations with regional and international market participants, including brokers and potential investors. Our futures will provide further impetus to invest in Saudi Arabian capital markets and help develop new links with market participants,” said Ali.
Nasdaq Dubai’s Saudi futures market will start in the third quarter of 2018, offering contracts on some of the Kingdom’s largest stocks by market capitalization and liquidity.
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