Dubai - Mubasher: The Dubai Financial Market (DFM) plans to launch an equity derivatives platform, DFM Derivatives Platform, to diversify its product offerings and attract more investments.

The DFM is preparing for the new platform in cooperation with Dubai Clear, Nasdaq Dubai, and leading brokerage firms to encourage investors to diversify and hedge their portfolio, according to a press release on Tuesday.

To be launched in October 2020, the platform will offer equity futures contracts on single stocks with tenure of up to three months, including the inaugural contracts with five of the most liquid equities listed on DFM.

The DFM's most liquid equities comprise Emaar Properties, Dubai Islamic Bank (DIB), Emirates NBD, Emaar Development, and Emaar Malls.

The platform will also add a range of derivatives products including index-based futures contracts.

DFM equity futures will be cleared on the CCP of DFM’s subsidiary, Dubai Clear, by using Nasdaq Dubai Operational and IT infrastructure.

The Chairman of DFM, Essa Kazim, said: "The platform will play an essential role in broadening and deepening the market, adding new impetus to Dubai’s leading position a dynamic capital markets hub."

Meanwhile, the CEO of DFM, Hassan Al Serkal, commented: "DFM’s diverse investor base represents 207 nationalities and the derivatives platform will enable them to diversify their portfolios, manage risk and gain from the leverage."