Tadawul to roll out single stock futures on July 4

Logo of The Saudi Exchange (Tadawul)

The Saudi Exchange (Tadawul) will launch single stock futures (SSFs) contracts on July 4, which will be cleared by the Securities Clearing Center Co. (Muqassa). 

The SSFs are the second derivatives product to be introduced on Tadawul, after the launch of Index Futures, as part of the wider efforts to develop an advanced capital market in Saudi Arabia.

The SSFs will enable local and international investors to hedge and manage portfolio risks more effectively as well as diversify products available for trading in the market.

The selected underlying stocks for the SSFs were chosen from the largest and most liquid companies listed on Tadawul. They are based on criteria that aim to ensure liquidity in an effort to meet market demand, maintain market integrity, and enable effective portfolio management.

The first tranche of SSFs will be based on the following listed companies: Al Rajhi Bank, Saudi Aramco, Saudi National Bank (SNB), Alinma Bank, SABIC, stc, Saudi Kayan, Saudi Electricity Co. (SEC), Almarai and Saudi Arabian Mining Co. (Maaden).

The SSF launch will enable the expansion of Tadawul’s derivatives market to include additional derivatives products.