Saudi Stock Exchange launches new markets on Nasdaq technology
The Saudi Stock Exchange (Tadawul) has launched its first derivatives markets and a clearing house on Nasdaq’s market technology.
Tadawul says its new market offering provides regional and international investors “the necessary hedging tools to manage risk”.
The exchange plans to roll out more derivatives products including single stock futures, single stock options, and index options.
The stock exchange has an existing relationship with Nasdaq, having selected the tech firm to overhaul its post-trade operations back in 2017.
Khalid Alhussan, Tadawul CEO, says the move is “a significant step” in introducing sophisticated market products.
He adds that the launch gives “expanded opportunities” for Saudi capital markets to gain exposure. This is a boon as it is “the largest and most liquid market in the region.”
The launch of the derivatives market in Saudi Arabia is one of the Financial Sector Development Program’s (FSDP) key initiatives under the Saudi Vision 2030.
Vision 2030 is a strategic framework to reduce Saudi Arabia’s dependence on oil, and diversify its economy.
“Tadawul has been resolute in its ambitions to transform its market infrastructure in order to have world-class technology,” says Lars Ottersgård, executive vice president and head of market technology at Nasdaq.
“We are pleased to celebrate the launch of Tadawul’s new derivatives market, as well as further extending our technology relationship.”