Abu Dhabi's stock exchange launched a derivatives market on Thursday which allows trading in single equity futures of some of the bourse's companies.
"With the launch of single equity futures, the new market will give investors and traders the opportunity to benefit from increased leverage, two-way market exposure, and hedging capabilities," the Abu Dhabi Securities Exchange (ADX) said in a statement.
ADX has seen a string of new listings this year, including its largest ever, ADNOC Drilling, owned by state-owned oil heavyweight Abu Dhabi National Oil Company.
Single equity futures trading began on Thursday for Etisalat, First Abu Dhabi Bank, International Holding Company, ADNOC Distribution and Aldar Properties. More securities will be added this year and next year, ADX said.
"Index futures will be introduced in the first quarter of 2022, ahead of the expansion into a wider range of derivative products," ADX said, adding it was using technology from Nasdaq for the derivatives market.
"Three market makers including (state investor) ADQ's Q Market Makers, BHM Capital, and Al Ramz Capital join the ADX Derivatives market to provide liquidity on the new platform, facilitating an efficient and orderly market."
Short-term margin trading licenses will be given to more brokerages, ADX added.
