Islamic Finance 

Brokerage House Securities leads Nasdaq Dubai equity futures market activity 

| 11 February, 2019
  • BHS overall market share by value in last 6 months is 50%
  • BHS is most active brokerage for Saudi futures
  • Success comes amid investor awareness campaign conducted jointly with Nasdaq Dubai

Dubai, February 11, 2019Nasdaq Dubai today announced that Brokerage House Securities (BHS) has been the most active broker by value on the exchange’s equity futures market over the last 6 months, with a 50% share of trading excluding market makers.

BHS has also been the most active broker in trading Saudi single stock equity futures since the exchange launched these one month ago on January 9, 2019, with a share of more than 90% by value excluding liquidity provision. 

BHS’ successful activity comes amid an investor awareness campaign launched jointly by Nasdaq Dubai and BHS last year aimed at expanding public understanding of the benefits of equity futures.

Abdul Hadi Al Sadi, Managing Director of BHS, said: “Interest in trading Nasdaq Dubai’s equity futures market is increasing rapidly among our GCC and overseas clients, many of which now include the futures contracts as a key component of their investment portfolio. The futures provide them with unique tools to gain exposure to the UAE and Saudi equity markets and we look forward to working on behalf of a growing number of institutional and individual investors who appreciate the flexibility that the exchange’s futures provide.”

Advantages of futures trading include leverage, which magnifies the financial outcome of an investment, and the ability to make gains in both a rising and falling market. Futures can also be used to hedge existing investments and manage cash flow.

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “As one of the UAE’s most prominent  brokers, BHS’s contribution is key to driving the growth of futures trading for the benefit of investors by raising awareness of the market across the capital markets community. We will increase our collaboration with BHS as we expand our derivatives market further in coming

months and years to include more single stock and index futures products as well as options covering a range of GCC and regional markets.”

Launched in September 2016, Nasdaq Dubai’s derivatives market currently offers single stock futures on 17 leading UAE-listed companies including Emaar Properties and First Abu Dhabi Bank, as well as 12 Saudi single stock futures including Saudi Basic Industries Corporation (SABIC) and Al Rajhi Bank. The market also includes futures on the DFMGI index of Dubai Financial Market (DFM), the ADI index of Abu Dhabi Securities Exchange (ADX), and the MSCI United Arab Emirates Equity Index. Futures on the FTSE Saudi Arabia Index will be launched later this month subject to regulatory approval.

BHS is active across the UAE capital markets and is part of the Abu Dhabi-based KBBO investment group, which has a diverse portfolio of interests and operates across the Middle East.

 

About BHS

Originally formed in 2005, Brokerage House Securities (BHS) is a financial brokerage company and one of the most respected financial institutions in the United Arab Emirates. BHS is one of the top ranked brokerage firms, that enjoys solid capitalization, with a high emphasis on proper risk management and disciplined corporate governance.

BHS is regulated in the UAE by the Securities & Commodities Authority (SCA) and is a trading & clearing member in the Dubai Financial Market (DFM), Abu Dhabi Securities Exchange (ADX), and Nasdaq Dubai.

 

About Nasdaq Dubai

Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).

The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).

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