Derayah Financial rolls out derivatives trading services

Derayah Financial launched derivatives trading services for investors via Derayah platform.

Derayah has successfully completed the required technical and regulatory procedures to become a member of Muqassa. Derayah obtained the direct Muqassa membership.

On August 30, the derivatives market was launched by the Saudi Stock Exchange (Tadawul) and the Securities Clearing Center Company (Muqassa) commenced operations.

The launch of the derivatives market is one of the Financial Sector Development Program (FSDP) key initiatives under the Kingdom’s Vision 2030. It also coincides with the upgrade of Tadawul to global market indices.

Derivatives are contracts between two parties, whose terms and conditions are set today, to deliver a certain asset at a future date. Derivatives are contracts that derive their price from an underlying which can be stock, index, etc.

Derivatives are perceived as more complex and sophisticated products that require deeper knowledge of uses, risks, and benefits.

The MT30 Index futures was traded as the first exchange-traded derivatives product.

The first exchange-traded derivatives product is an index futures contract, the Saudi Futures 30 (SF30), and is based on the MSCI Tadawul 30 Index (MT30). The contract size is SF30 multiplied by 100.

Derayah Financial is a leading provider of investment and mutual fund solutions. The financial services firm has recently bagged the Best Trading Platform in the Middle East 2020 award. Derayah is backed by a professional team in brokerage, asset management and financial analysis in the Saudi, GCC and foreign markets.