Securities & Investment Company UAE (SICO UAE), a subsidiary of Bahrain-based wholesale bank SICO, has obtained membership to Nasdaq Dubai’s derivatives market. The collaboration allows SICO UAE to provide its clients in the GCC and beyond with access to the exchange, which lists regional and international shares in the Middle East.
As an individual member of Nasdaq Dubai, SICO will be able to clear its own trades and those of its clients, adding to its successful list of services which includes brokerage, market making, asset management, investment banking and custody and fund administration. The agreement will also further strengthen liquidity, pricing, and trading services offered to the bourse’s investors.
As an expanding and liquid exchange with a broad international investor base, Nasdaq Dubai provides attractive opportunities to make markets in a variety of securities. The market currently consists of single stock futures on contracts of 17 leading UAE-listed companies. The exchange plans to increase its range of equities including listing further initial public offerings (IPOs).
SICO UAE serves mainly institutional and high net worth individuals. The company deepens its relationship with Nasdaq Dubai as the bourse develops new asset classes and expands as the region’s international listing centre for high quality companies.
Najla Al Shirawi, Chairperson of SICO UAE, commented: “Nasdaq Dubai’s expanding equity derivatives market offers attractive investment opportunities to our growing range of mainly institutional and high net worth individual clients and paves the way for us to introduce new investment products which our markets until recently were lacking the tools to make such products feasible. Benefits to investors include the ability to hedge and take a position on the expected movement of UAE share prices, both up and down, using leverage to magnify the financial outcome of their futures trades.”
Hamed Ali, Chief Executive of Nasdaq Dubai, added: “SICO UAE provides a significant new investor channel into our equity derivatives market as we prepare for further growth, which will in due course include the addition of a variety of futures products on regional share markets. Our cooperation with SICO, backed by its substantial brokerage and other expertise and experience around the GCC, will support the continuing expansion of the region’s capital markets framework.”