The Qatar Financial Centre Regulatory Authority (QFCRA) announced Monday that it has developed and issued a new regulatory framework for listed derivatives.
The Derivatives Markets and Exchanges Rules 2023 (DMEX) was launched following an extensive three-month public consultation with investors and market participants.
The launch of DMEX means that the regulatory framework is now in place in the Qatar Financial Centre to allow for the establishment of a derivatives exchange and also a Central Clearing Counterparty to ensure efficient settlement of trades and management of settlement risk, QFCRA said in a press release.
Qatar Stock Exchange (QSE) welcomed the QFCRA's announcement.
QSE's Acting Chief Executive Officer Abdulaziz Al Emadi commented that "the launch of DMEX creates the necessary regulatory framework for QSE to move forward with its plans to establish a derivatives exchange and central clearing counterparty. The launch of the derivatives exchange will be an important milestone in the development of the Qatar capital markets and Qatar's ambition to move to developed market status."
QFCRA's Chief Executive Officer Michael Ryan noted that "the QFCRA looks forward to working with the QSE to launch the new exchange. The derivatives exchange will provide opportunities for investors to better manage and diversify their portfolios, and it will also provide local and regional financial institutions and brokers new opportunities to grow and expand their business with clients."
The establishment of the derivatives exchange will offer investors the ability to trade cash-settled options and futures on individual stocks listed on the QSE and the QSE equity index that will be listed on the new derivatives exchange.
QSE plans to establish both a derivatives exchange and a central clearing counterparty in the QFC, and recently announced that it will partner with the London Stock Exchange Group to provide the new trading, clearing, and market surveillance technology.