- Single Stock Futures (SSFs) is the second in a series of Derivatives products to be introduced in the Saudi Exchange
- 10 underlying stocks were selected for SSFs contracts based on certain criteria to ensure market interest and liquidity
- The launch of Single Stock Futures will enable the expansion of the Saudi Exchange’s Derivatives Market to include additional derivatives products.
- SSFs contracts will be cleared and settled by Muqassa in line with international best practices.
- SSFs contracts will be live on the 4th of July 2022
RIYADH, Saudi Arabia, June 27, 2022 /PRNewswire/ — The Saudi Exchange today announced its intention to launch Single Stock Futures (SSFs) contracts, the second derivatives product to be introduced in the Saudi Exchange. From the 4th of July 2022, the new contracts will be available to trade, that will commence on enabling local and international investors to hedge and manage portfolio risks more effectively as well as diversify products available for trading in the market.
SSFs contracts are standard futures contracts with an individual stock as its underlying asset. The underlying stocks have been selected from the largest and most liquid companies listed on the Saudi Exchange. SSFs are traded on the Exchange, similar to other cash market products. SSFs contracts will be cleared and settled by Securities Clearing Center Company "Muqassa" in line with international best practices.
Speaking on the occasion, Mohammed Al Rumaih, CEO of Saudi Exchange, said: "We are excited to introduce the second derivatives product to the Saudi Exchange, as we continue to deliver on our commitment to providing a sophisticated and innovative range of products and services to local and international investors. The launch of SSFs contracts further supports the advancement of the Saudi Capital Market by creating diversified offerings, complemented by hedging tools to manage risk and limit losses in adverse market conditions."
All investors can trade SSFs through a registered Derivatives member. The 10 underlying assets of the SSFs contracts include: Al Rajhi Bank, Saudi Aramco, Saudi National Bank, Alinma Bank, SABIC, stc, Saudi Kayan, Saudi Electricity, Almarai and Ma’aden. The stocks are selected based on a list of criteria that aims to ensure liquidity to meet market demand, maintain market integrity, and enable effective portfolio management, trading, and hedging opportunities.
The Saudi Exchange launched the Derivatives Market in 2020 and seeks to introduce additional derivatives products such as Single Stock Options.
Learn more about trading Single Stock Futures on the Saudi Exchange here: https://www.saudiexchange.sa/wps/portal/tadawul/knowledge-center/about/derivatives?locale=en
About Saudi Exchange
The Saudi Exchange is the authorized entity in the Kingdom of Saudi Arabia to act as the Kingdom’s securities exchange (the Exchange), listing and trading in securities. The Saudi stock market is the 9th largest stock market among the 67 members of the World Federation of Exchanges and is the dominant market in the Gulf Cooperation Council (GCC). The Exchange is the 3rd largest stock market amongst its emerging market peers. For more information see: www.saudiexchange.sa