DIFX set to introduce derivatives

The Dubai International Financial Exchange (DIFX) plans to launch derivatives trading in the second half of 2008, a bourse official told a Dubai-based news channel.

Investors will have the option to trade on individual stocks or stocks representing the whole index, as well as future contracts, said senior vice-president of innovation and development Armen Papazian.

The stock exchange is also expecting more initial public offerings (IPOs), said Papazian.

Dubai-based jewellery firm Damas said this month it plans to raise as much as $355 million (Dh1.3 billion) in an IPO and list its shares on the DIFX in July.

Dubai has set up the DIFX, which is 33 per cent owned by exchange group Nasdaq OMX Group to encourage local firms to sell shares to the public and for foreign companies to tap growing regional wealth.

It is the only exchange in the Gulf open to issuers and investors from almost all nationalities and is aiming to fill a trading time gap between London and Singapore.