The Saudi Stock Exchange (Tadawul) announced today 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.
Eng. Khalid Al Hussan, CEO of Tadawul, said: "Today, we can proudly say that our capital market is not only the largest in the region but also developing faster than most exchanges in terms of both the products and the services we offer. The introduction of derivatives trading is further evidence of our commitment to providing our investors with diversified, innovative products and services to meet all their needs."
"The launch of the Derivatives Market in Saudi Arabia as one of the Financial Sector Development Program (FSDP) key initiatives under the Saudi Vision 2030 is a significant step in introducing sophisticated market products and creating a trading environment attractive to local as well as international hedgers and traders," Al Hussan added.