Equity Futures

Dubai Financial Market’s Equity Futures provide new impetus to Dubai’s leading position as a dynamic capital markets hub, enabling investors to diversify and hedge their portfolios and access leverage.

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PRODUCT LIST

BENEFITS

HOW TO TRADE

PARTNERS

DERIVATIVES MEMBERS

FACTSHEET

Product List

Single Stock Futures

Underlying Shares	Contract Symbol	Contract Size (Shares Per Contract)	Trading Currency	Contract Expiry
Emaar Properties PJSC	EMAAR	100	AED	1, 2 and 3 months
Dubai Islamic Bank	DIB	100	AED	1, 2 and 3 months
Emirates NBD PJSC	ENBD	100	AED	1, 2 and 3 months
Emaar Development PJSC	EMRDEV	100	AED	1, 2 and 3 months
ARAMEX PJSC	ARMX	100	AED	1, 2 and 3 months
Air Arabia PJSC	AIRARB	100	AED	1, 2 and 3 months
Emirates Integrated Telecommunications Company PJSC	DU	100	AED	1, 2 and 3 months
Dubai Investments PJSC	DIC	100	AED	1, 2 and 3 months
Dubai Financial Market	DFM	100	AED	1, 2 and 3 months
Shuaa Capital PSC	SHUAA	100	AED	1, 2 and 3 months
DEWA PJSC	DEWA	100	AED	1, 2 and 3 months
GFH BSC	GFH	100	AED	1, 2 and 3 months
Deyaar Development PJSC	DEYAAR	100	AED	1, 2 and 3 months

Contract Specifications

Underlying	Security traded on UAE stocks exchanges as approved by the Dubai Financial Market and published by way of notice.
Currency	Same as trading currency of underlying security in primary market.
Contract Size	100 underlying shares. This may change in speciﬁc cases of corporate action adjustments. Any changes will be published by way of Notice
Contract Months	1, 2 and 3 months expiry
Settlement Type	Cash Settled
Last Trading Day /Expiry Day	3^rdThursday of the expiry month. In the event of the 3^rd Thursday not being a Business Day, the Last Trading Day shall normally be the Business Day prior the 3^rd Thursday.
Settlement Day	Business Day following the Expiry Day
Future Type	Daily settled with cash settlement upon expiration
Listing of new contract month	2^nd Thursday of the expiry month i.e. Thursday prior to Expiry Day
Daily price limits	20% up and 15% down from previous closing price. Dubai Financial Market reserves the right to redefine and modify the price limit safeguard ranges intraday depending on the market situation.
Minimum Price Movement (tick size)	0.001
Daily Settlement Price	Close Price of the Futures Contract or Theoretical Price derived from Underlying Security as determined by Dubai Clear from time to time
Expiration Settlement Price	Underlying Security Close Price
Trading Hours	Monday- Friday, 10:00 am - 3:00 pm. Please refer to Trading Rules published on Dubai Financial Market website for further details on trading phases
Initial Margin	As published by Dubai Clear from time to time
Daily MTM Settlement	Calculated based on the Daily Settlement Price
Expiry MTM Settlement	Calculated based on the Final Settlement Price
Negotiated Deals	Allowed as per the DFM procedure for Derivatives Block Trade

Benefits of Equity Futures

Dubai Financial Market Equity Futures offer many benefits for investors.

Leverage

Leverage is a key feature of equity futures. The initial payment (called initial margin) that an investor must make is only between 10% and 30% of the value of the contract. This magnification of the effect of the capital, called leverage, can lead to significant gains (or losses). These gains (or losses) can be much larger than the amount invested.

Trading & Arbitrage

Investors can benefit from the out-performance of one stock price over another through pair trading, by going long on one stock and short on another stock through futures. There are also opportunities for arbitrage when futures and underlying stock prices diverge.

Profit when price falls as well as rises

Selling in advance (shorting) and buying back allows an investor to profit from a stock that is going down in price. Buying and then selling later allows an investor to profit from a stock that is going up.

Hedging

Allows portfolio managers and investors to hedge their existing market exposure, either increasing or decreasing their exposure to volatility of the underlying equity.

Cost Effective

Futures fees can be lower than fees for trading equities.

Standardisation

Futures contracts are always in a standardised form.

How to trade Equity Futures

You can trade Equity Futures in DFM through the following steps:

Open an account with one of the licensed Derivatives brokers. A list of brokers is available on the DFM website.

Place an order with the broker to either buy or sell the equity Futures contract through the available channels (e.g. calling the Broker, internet trading or mobile trading).

The trade will be placed on the Matching Engine and executed if a matching price is available. The trade value will be calculated as (No. of contracts * Contract size * price).

The investor needs to deposit the minimum Initial Margin with the broker before executing any transaction.

The trade will be registered for clearing and settlement with Dubai Clear.

Any profit or loss made due to a change in the market price is settled on a daily basis as Variation Margin.

Once a position is closed, any Initial Margins related to this position, after any profit or loss, will be released.

For investors holding the contract to expiry, the contract will be automatically closed and settled by Dubai Clear with the final settlement price. Investors should educate themselves with product specifications, Equity Futures trading mechanics and understand the risk associated with it before starting Equity Futures trading. Investors can access videos and more on the DFM Equity Futures resource center.

Partners

Members

Market Makers

Technology & Data Providers

Derivatives Members

Member	Phone	Email
Al Dar Shares and Bonds : DAR	MB - Abu Dhabi : 02-6126666 Al Ain : 03-7044129	kifah.mh@aldarshares.com ayman@aldarshares.com
Al Ramz Capital L.L.C : RAMZ	MB - Abu Dhabi : 02-6262626 Abu Dhabi : 02-6262626 DFM Branch : 04-3055115 Dubai Branch : 04-3173111 Sharjah : 06-5977000	info@alramz.ae
Arqaam Securities : FFS	MB - Dubai : 04-5071756 04-5071780 04-5071752 04-5071782	operations@arqaamsecurities.com
BHM Capital Financial Services PrJSC: BHMCAPITAL	800 567 000 MB - Dubai: 04-5247555	callcenter@bhmuae.ae Compliance@bhmuae.ae
EFG Hermes (UAE) : EFGH	600500004 MB - Dubai : 04-3069449	uaebrokeragecompliance@efg-hermes.com uae-ops@efg-hermes.com kmohamed@efg-hermes.com uaebrokerage@efg-hermes.com
International Securities LLC : FGB	8003437 MB - Abu Dhabi : 02-4942777	cs@intlsecurities.ae compliance@intlsecurities.ae
SICO Financial Brokerage L.L.C. : UB	MB - Abu Dhabi : 02-6590100	info@sicouae.com

Equity Futures

Product List