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Tadawul to launch Single Stock Futures in July; 10 listed firms chosen

Tadawul to launch Single Stock Futures in July; 10 listed firms chosen
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Riyadh – Mubasher: The Saudi Exchange (Tadawul) will launch Single Stock Futures (SSFs) contracts on 4 July this year to enable the expansion of its Derivatives Market and products.

The first tranche of the SSFs will be based on 10 listed companies to ensure market interest and liquidity, including Al Rajhi Bank, Saudi National Bank (SNB), and Alinma Bank.

The other firms are Saudi Arabian Oil Company (Aramco), Saudi Basic Industries Corporation (SABIC), Saudi Telecom Company (stc), Saudi Kayan Petrochemical Company, Saudi Electricity Company (SEC), Almarai Company, and Saudi Arabian Mining Company (Maaden).

The launch of the SSFs contracts is the second in a series of derivatives products to be introduced in Tadawul in order, according to a disclosure on Sunday.

All related contracts will be cleared and settled by the Securities Clearing Centre Company (Muqassa) in line with international best practices.

Local and international investors will be able to hedge and manage portfolio risks more effectively through the new SSFs.

CEO of Tadawul, Mohammed Al Rumaih, said: “The launch of the SSFs contracts further supports the advancement of the Saudi Capital Market [CMA] by creating diversified offerings, complemented by hedging tools to manage risk and limit losses in adverse market conditions.”

It is worth noting that Tadawul launched the Derivatives Market in August 2020, where it welcomed five derivatives exchange members. The Saudi stock market had a plan to introduce additional derivatives products such as Single Stock Options.