Web Content Viewer
Actions
Are you interested to learn more about Derivatives? Please request a meeting NOW with one of our experienced professionals!!
Contact UsDerivatives
The Saudi Exchange launched its derivatives market in 2020 in what was a significant milestone in the development of the Saudi capital market. The first contract was MT30 Index Futures, a cash-settled index futures contract that greatly enhanced the range of investment opportunities available through the Exchange. The Saudi Exchange continues to develop the market with plans to roll out more derivatives products.
- Trading services
- Clearing services
Trading services
The Saudi Exchange offers one of the most sophisticated trading platforms that creates a seamless experience through full automation and processing. All trading activities are matched, confirmed and executed electronically following a mark to market T+0 settlement cycle. The trading engine has been designed to serve multiple types of orders to meet investors’ needs.
Clearing services
Derivatives clearing services are provided by the Securities Clearing Center Company (“Muqassa”) that acts as an intermediary between two parties to the securities trade, by becoming the buyer to each seller and the seller to each buyer. It is responsible for guaranteeing the settlement of the transaction – decreasing counterparty risk, increasing clearing efficiency and easing members’ obligations.
Frequently Asked Questions
There are two main types of derivatives products:
- Exchange traded: which include futures and options and are only trade on regulated exchanges.
- Over the Counter (OTC): which include Forwards and swaps and are not traded on a regulated exchange.
Like any other security, knowledge is key to start trading. Derivatives are perceived as more complex and sophisticated products that require deeper knowledge of uses, risks, and benefits.
Derivatives products are alternative trading instruments that offers trading and hedging opportunities for clients.
Derivatives offer embedded features in their products such as short selling and leverage.
Derivatives are contracts between two parties, whose terms & conditions are set today, to deliver a certain asset at a future date.
From its name Derivatives are contracts that derive their price from an underlying which can be stock, index, etc.
Are you interested to learn more about Derivatives? Please request a meeting NOW with one of our experienced professionals!!
Contact Us