Riyadh — The Saudi Stock Exchange has announced its intention to launch Single Stock Futures (SSFs) contracts on July 4, 2022. The Securities Clearing Center Company will clear “Muqassa.”
SSFs are the second derivatives product to be introduced on the Saudi Exchange. This launch follows the Index Futures as part of broader efforts to develop an advanced capital market in Saudi Arabia.
SSFs enable local and international investors to hedge and manage portfolio risks more effectively. Allowing investors to diversify products available for trading and hedging in the market.
The selected underlying stocks for the SSFs launch were chosen from the largest and most liquid companies listed on the Saudi Exchange.
Recommended: How to invest in the Saudi Arabia Stock Exchange?
A specific criterion ensures liquidity to meet market demand, maintain market integrity, and enable effective portfolio management.
The first tranche of SSFs is from the following listed companies: Al Rajhi Bank, Saudi Aramco; Saudi National Bank (SNB), Alinma Bank, SABIC, stc, Saudi Kayan, Saudi Electricity, Almarai, and Maaden.
The launch of Single Stock Futures will enable the expansion of the Kingdom Exchange’s Derivatives Market to include additional derivatives products.