Tadawul: Saudi Bourse Starts Options Trading on Single Stocks, Sources Say - Bloomberg
Saudi Arabia will soon introduce options trading on single stocks to further boost liquidity in the Middle East’s biggest stock market, people familiar with the matter said.
The Tadawul stock exchange plans to allow options trading in five to 10 companies initially over the next few weeks, the people said, asking not to be identified as the information is private. The bourse will start registering more stocks when they meet certain criteria, they said.
The Tadawul didn’t immediately respond to requests for comments.
The step would mark the latest move toward liberalizing Riyadh’s stock exchange and encouraging participation from foreign investors. The kingdom opened up one of the world’s most closed stock markets to increased international participation just over five years ago, and later started allowing foreign investors to buy into initial public offerings.
In September 2020, Tadawul Group Holding Co. Chief Executive Officer Khalid Al-Hussan said the bourse planned to introduce futures contracts in single stocks. Index futures started trading in Riyadh in August that year.
Exchanges in the Gulf region are increasingly introducing derivatives trading, with Dubai Financial Market and the Abu Dhabi Exchange setting up markets for equity futures contracts.
The Saudi benchmark index has jumped about 11% this year, building on a 30% gain in 2021. Riyadh has led the region in initial public offerings, and the pipeline for listings is “deeper than ever,” Al-Hussan said after Tadawul surged on its own trading debut in December.
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