Tadawul expects to launch single-stock futures in Q2 2022: Al-Rumaih

Mohammed Al-Rumaih, CEO, Saudi Exchange

The Saudi Exchange (Tadawul) is in the final stage of launching single-stock futures (SSF) by the second quarter of 2022, CEO Mohammed Al-Rumaih told Argaam.

Tadawul is improving a bundle of products such as the debt market to achieve the desired goal of financing firms seeking long-term finance as an essential source for listed companies, he said on the sidelines of the Saudi Capital Market Forum held recently.

Exchange-traded funds (ETFs) are being developed, which is one of the objectives of the post-trading development program to facilitate internal transactions.

In addition, Tadawul is studying option contracts and other products for developed and emerging capital markets.

Al-Rumaih pointed out that Tadawul aims to look for development and introduce new products that serve the economy and companies, as well as diversify investment tools for both institutional and retail investors of different categories.

There are 100 applications for listing on Tadawul, but studying these applications differs from approval, as the exchange must ensure that the companies have completed their documentation. Accordingly, some will obtain consent after fulfilling the conditions following the subscription's closing.

The CEO highlighted many encouraging factors for listing, including liquidity at its highest levels, excellent coverage by retail and institutional investors, as well as diversity in companies and sectors.