In-Line with Achieving Vision 2030: the Saudi Stock Exchange (Tadawul) Launches Derivatives Market in the First Half of 2019
September 04, 2018
The Saudi Stock Exchange (Tadawul) will introduce exchange-traded derivatives in the first half of 2019. Tadawul will launch an index futures contract based on the tradeable index jointly developed with MSCI. Introducing derivatives is part of the Vision 2030 Financial Sector Development Program. It also reflects Tadawul’s commitment to create new opportunities for investors, as well as, to increase institutional investors’ participation in the Saudi market. In June 2018, MSCI, as part of its annual global market classification review, announced the classification of the Kingdom's equity market as an Emerging Market. The planned launch of a derivatives market in Saudi Arabia follows this and others recent significant market developments, including facilitating clearing services and faster settlement cycles, introducing securities borrowing and lending, as well as, covered short-selling frameworks for the first time in the region. The Index will be based on the broader MSCI Saudi Arabia index series that will be part of the MSCI Emerging Markets Index. The joint tradeable index will be available in Q4 2018.