#Saudi's foray into derivatives to boost kingdom's capital market | ZAWYA MENA Edition

Saudi's foray into derivatives to boost kingdom's capital market | ZAWYA MENA Edition:

Saudi Arabia’s stock exchange (Tadawul) has officially entered the derivatives marketplace, a move that is seen to boost the kingdom’s capital market.

The Saudi Stock Exchange announced on Sunday that it has launched its first Derivatives Market and a clearing house, the Securities Clearing Centre Company (Muqassa).

In a statement, the exchange also unveiled the first exchange-traded derivatives product, which is called the MT30 Index Futures. The new product is an index futures contract based on the MSCI Tadawul 30 Index (MT30).

The exchange also plans to roll out more derivatives products, including the Single Stock Futures, Single Stock Options and Index Options.

The launch of the derivatives market is considered to be a vital move that will provide investors more exposure to the Saudi capital market. It is part of the key initiatives under the Saudi Vision 2030.