The Qatar Stock Exchange (QSE) has chalked out plans to launch derivatives as part of enhancing the investment portfolio for investors and also make it eligible to achieve higher international classification from the present emerging market status.
In this regard, the QSE on Thursday had a "strategic session" with the Qatar Financial Market Authority (QFMA) during which the bourse presented its three-year strategic plan to align with the regulator and update it with the progress achieved.
"During the meeting, we discussed various topics such as the launch of derivatives market as well as product diversification and enhancement of SLB (securities lending and borrowing), covered short selling and listing rules," QSE chief executive Rashid bin Ali al-Mansoori said.
In a recently released Capital Market Report 2020, the Qatar Financial Centre had suggested creating a derivatives market, initially offering single-stock futures contracts, as part of the key recommendations for the country’s capital market development.
A derivatives market would add to the breadth of Qatar's capital market, offering investors risk management tool to hedge their investments and business exposure.
The QSE had recently announced that it is looking into derivatives trading, indicating that it could be hosted on the exchange, supported by a listing framework and clearing and settlement through the Qatar Central Securities Depository.
The QFC report had said the offerings on this derivatives market would likely commence with index futures, based on the three QSE indices.
On SLB, Qatar had approved it in 2012 after the bourse had put in place its delivery versus payment mechanism to support it.
SLB would aid in enhancing the liquidity in the capital market, which in turn would ensure reduced cost of capital and better valuations, market sources said.
The QSE-QFMA meeting also discussed the need to get the advanced market status from the present emerging market.
In a recent interview to Gulf Times, al-Mansoori had said the bourse has put in place an active ambitious programme to strengthen its infrastructure to enable it to secure developed market status.
"We can expect the index compilers to start their consultation and review process to asses our eligibility for an upgrade to developed market status," he had said.
The QFMA has already approved covered short selling with liquidity providers allowed to conduct short selling of the exchange traded funds or ETF units and index constituents for performing bona fide ETF liquidity provision activity.
QSE listing director Abdulaziz al-Emadi had recently said the junior bourse for the small and medium enterprises, Venture Market (VM), is expected to be up and running soon this year.
In this regard, the QSE on Thursday had a "strategic session" with the Qatar Financial Market Authority (QFMA) during which the bourse presented its three-year strategic plan to align with the regulator and update it with the progress achieved.
"During the meeting, we discussed various topics such as the launch of derivatives market as well as product diversification and enhancement of SLB (securities lending and borrowing), covered short selling and listing rules," QSE chief executive Rashid bin Ali al-Mansoori said.
In a recently released Capital Market Report 2020, the Qatar Financial Centre had suggested creating a derivatives market, initially offering single-stock futures contracts, as part of the key recommendations for the country’s capital market development.
A derivatives market would add to the breadth of Qatar's capital market, offering investors risk management tool to hedge their investments and business exposure.
The QSE had recently announced that it is looking into derivatives trading, indicating that it could be hosted on the exchange, supported by a listing framework and clearing and settlement through the Qatar Central Securities Depository.
The QFC report had said the offerings on this derivatives market would likely commence with index futures, based on the three QSE indices.
On SLB, Qatar had approved it in 2012 after the bourse had put in place its delivery versus payment mechanism to support it.
SLB would aid in enhancing the liquidity in the capital market, which in turn would ensure reduced cost of capital and better valuations, market sources said.
The QSE-QFMA meeting also discussed the need to get the advanced market status from the present emerging market.
In a recent interview to Gulf Times, al-Mansoori had said the bourse has put in place an active ambitious programme to strengthen its infrastructure to enable it to secure developed market status.
"We can expect the index compilers to start their consultation and review process to asses our eligibility for an upgrade to developed market status," he had said.
The QFMA has already approved covered short selling with liquidity providers allowed to conduct short selling of the exchange traded funds or ETF units and index constituents for performing bona fide ETF liquidity provision activity.
QSE listing director Abdulaziz al-Emadi had recently said the junior bourse for the small and medium enterprises, Venture Market (VM), is expected to be up and running soon this year.
