PR84776

RIYADH, Saudi Arabia, July 14, 2020 /PRNewswire=KYODO JBN/ --

    The Saudi Stock Exchange (Tadawul) announced today that the launch of

exchange-traded derivatives will be on 30 August 2020. The first

exchange-traded derivatives product is an index futures contract, the Saudi

Futures 30 (SF30). This contract is based on the MSCI Tadawul 30 Index (MT30).

    The launch of the Derivatives Market aims to further support the growth of

the Saudi capital market by creating new opportunities for investors, providing

them with hedging tools to manage risk, and to expand exposure opportunities to

one of the largest and most liquid markets in the world – the Saudi Market. As

the market develops, Tadawul has plans to roll out more derivatives products

such as Single Stock Futures, Single Stock Options, and Index Options.

    Eng. Khalid Al Hussan, CEO of Tadawul, said: "Today, we can proudly say

that our capital market is not only the largest in the region but also

developing faster than most exchanges in terms of both the products and the

services we offer. The introduction of derivatives trading is further evidence

of our commitment to providing our investors with diversified, innovative

products and services to meet all their needs."

    "The launch of the Derivatives Market in Saudi Arabia as one of the

Financial Sector Development Program (FSDP) key initiatives under the Saudi

Vision 2030 is a significant step in introducing sophisticated market products

and creating a trading environment attractive to local as well as international

hedgers and traders," Al Hussan added.

    About Tadawul

    Saudi Stock Exchange (Tadawul) is the sole entity authorized in the Kingdom

of Saudi Arabia to act as the Kingdom's securities exchange (the Exchange),

listing and trading in securities. Following the listing of Saudi Aramco, the

largest IPO in history, Tadawul is the 9th largest stock market among the 67

members of the World Federation of Exchanges and is the dominant market in the

Gulf Cooperation Council (GCC). The Exchange is the 3rd largest stock market

amongst its emerging market peers. For more information see: www.tadawul.com.sa

    About MSCI Tadawul 30 index (MT30)

    The MSCI Tadawul 30 Index (MT30) was launched by Tadawul and MSCI and went

live on January 30, 2019. The MT30 Index is derived from the broader MSCI Saudi

Arabia Index and is designed to reflect the performance of the approximately 30

largest and most liquid stocks listed on Tadawul based on free float

capitalization.

    Initial constituents of the Index represent approximately 87% of total

market capitalization of the wider Saudi Arabian market. The weighting of

individual securities in the index is capped at 15% to minimize concentration

risk. The index will be rebalanced quarterly (close of the last business day of

May, August, November and February coinciding with Index Reviews of the MSCI

Global Investable Market Indexes.)

    Tadawul Contact:

    Mohammed Al Abdullah

    +966 (54) 541-1133

    mohammed.abdullah@tadawul.com.sa

    Finsbury Contact:

    Ahmed Jebur

    +971 (52) 290-3518

    Ahmed.jebur@finsbury.com

    Logo: https://mma.prnewswire.com/media/827850/PIV859196_Logo.jpg

    Source:  Tadawul