30 Jan, 2011Bank of America Merrill Lynch joins NASDAQ Dubai's equity derivatives market

Market's first derivatives General Clearing Member will provide vital post trade clearing services promoting further growth.

Dubai, 30 January 2011 - Bank of America Merrill Lynch has joined NASDAQ Dubai's equity derivatives market as its first General Clearing Member (GCM). This enables Bank of America Merrill Lynch to clear the trades of other brokers as well as its own, injecting liquidity into the fledgling market.

Brooks Stevens, Head of EMEA Futures and Derivatives Clearing Services for Bank of America Merrill Lynch, said 'As the first GCM on the UAE's only on-exchange equity derivatives market, we look forward to playing a leading role in facilitating increased trading capacity within the region. NASDAQ Dubai's equity derivatives platform provides investors with unique tools to hedge their exposure to shares of UAE and other Middle East companies.'

NASDAQ Dubai's equity derivatives platform consists of futures listed on 21 individual UAE companies and on the FTSE NASDAQ Dubai UAE 20 share index. Companies in the index include DP World, which is listed on NASDAQ Dubai, and leading companies listed on the Dubai Financial Market and the Abu Dhabi Securities Market.

Index constituents are selected for high market capitalisation and liquidity as well as openness to foreign investment.

Dean Noble Head of Business Development of NASDAQ Dubai, said: 'Bank of America Merrill Lynch's arrival as a GCM is a landmark in the development of our equity derivatives platform. The market has huge potential for growth in a region where hedging mechanisms are in short supply and investors need to offset risk.'

'A vibrant equity derivatives market can also stimulate trading volumes in the underlying equities themselves, in times of falling as well as rising prices.'

NASDAQ Dubai's equity derivatives market won the Futures & Options World (FOW) 2009 Award for 'Best Innovation by an Exchange in Product Design, Middle East.'