05 Apr, 2010Middle East Equity Derivatives Market Set to Expand - NASDAQ Dubai Survey

The Middle East equity derivatives market is likely to expand in 2010 comparedto last year's levels, according to 79 per cent of fund managers and brokerspolled by NASDAQ Dubai.

A total of 87 per cent described equity derivatives as useful tools for managingrisk, while 72 per cent said their organisation was interested in learning moreabout the uses and benefits of equity derivatives.
The survey received responses from representatives of 40 fund managers andbrokerage firms who attended the FOW Derivatives World Middle East conference inDubai on March 16.

Jeff Singer, Chief Executive of NASDAQ Dubai, said: "The survey shows thatinvestors are poised to make increasing use of the Middle East equityderivatives market, which is still in its infancy and has potential for rapidgrowth.
"NASDAQ Dubai will continue to drive the development of the market forward, byexpanding its product range and by educating finance professionals and thepublic about the advantages that equity derivatives offer."

NASDAQ Dubai launched the UAE's only equity derivatives platform in November2008. Trading volumes have expanded from 90 in January 2009 to several thousandevery week by the end of the year.
The market currently consists of futures over 21 individual UAE stocks and overthe FTSE NASDAQ Dubai UAE 20 index, which is well correlated with equity marketsacross the MENA region and offers significant hedging and investmentpossibilities.
Useful additions to NASDAQ Dubai's equity derivatives market would includefutures listed on other GCC individual stocks and equity indices, as well asequity options, respondents to the survey said.

A total of 93% of respondents said that NASDAQ Dubai's trading model providesuseful protection against the risk of default by a counterparty, which canaffect over-the-counter trades. NASDAQ Dubai operates a central clearing housewhich eliminates such risk.
NASDAQ Dubai Academy, the exchange's training arm, will run two one-day trainingcourses that explain the benefits of equity derivatives and how to trade them.The first course, on April 13, is suitable for the general public and thesecond, on April 14, is aimed at finance professionals. More information isavailable at www.nasdaqdubai.com/services/academy