RIYADH: Saudi Arabia’s stock exchange will launch single-stock futures trading in this quarter to boost liquidity, Mohammed Al-Rumaih, CEO of the bourse, told Argaam.
A single-stock future is a type of futures contract between two parties to exchange a specified number of stocks in a company for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange.
With the launch of single-stock futures trading, the Kingdom seeks to boost attractiveness of its capital markets and spur foreign investment.
Tadawul had earlier rolled out the largest enhancements in the history of the Kingdom’s capital market to develop post-trade services infrastructure.
