NAEEM Shares & Bonds brokerage announced on Wednesday that it joined Nasdaq Dubai’s equity futures platform as a member, in a move aiming to connect its Emirati, Egyptian, and international clients to the fast-growing market.
Nasdaq Dubai’s equity futures is considered a tool for hedging client portfolios, as well as indicating share prices’ direction. NAEEM hopes to bring in new clients from the MENA region, in addition to Europe and the US to trade on the futures market, as part of their expansion plan to develop brokerage activities, according to Youssef El Far, chairperson of NAEEM Shares & Bonds.
The addition of NAEEM Shares and Bonds as a member of the exchange will further strengthen the capital market ties between Egypt and the United Arab Emirates (UAE), according to Hamed Ali, chief executive of Nasdaq Dubai.
Since its opening on September 2016, a total of 653,471 contracts have been traded on Nasdaq Dubai’s equity futures market, with traded value increasing every month. The market currently consists of single stock futures on contracts of UAE’s top nine listed companies which are Emaar Properties, DXB Entertainments, Abu Dhabi Commercial Bank, Aldar Properties, Arabtec Holding, DP World, Dubai Islamic Bank, Etisalat, and Union Properties.
Expansion to the range of offered contract is planned, aiming to include futures on stocks listed on other MENA exchanges, in addition to equity index futures and equity options.
NAEEM Shares and Bonds was established in the UAE in 2005 as a subsidiary of NAEEM Holding investment bank. In Egypt, NAEEM Brokerage’s total combined market share in 2016 stood at 4.9%.