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28-03-23

QFCRA Launches New Regulatory Framework for Derivatives Trading

(MENAFN) The Qatar Financial Centre Regulatory Authority (QFCRA) has announced the development and issuance of 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 new regulatory framework will allow for the establishment of a derivatives exchange and central clearing counterparty in Qatar's financial centre.

QSE's Acting Chief Executive Officer, Abdulaziz Al Emadi, has welcomed the launch of DMEX, saying that it creates the necessary regulatory framework for QSE to move forward with its plans to establish a derivatives exchange and central clearing counterparty. He added that the launch of the derivatives exchange will be an important milestone in the development of Qatar's capital markets and its ambition to move to developed market status.

The establishment of the derivatives exchange will offer investors the ability to trade cash-settled options and futures on individual stocks listed on the Qatar Stock Exchange (QSE) and the QSE equity index that will be listed on the new derivatives exchange. This 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.

QFCRA CEO Michael Ryan has expressed his enthusiasm for the launch of DMEX and looks forward to working with QSE to launch the new exchange. He added that 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 QSE plans to establish both a derivatives exchange and a central clearing counterparty in the QFC, and it recently announced that it will partner with the London Stock Exchange Group to provide the new trading, clearing, and market surveillance technology. 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 central clearing counterparty to ensure efficient settlement of trades and management of settlement risk, according to QFCRA.

The QFCRA's announcement is a significant development for Qatar's financial sector, as it paves the way for the establishment of a derivatives exchange and central clearing counterparty. The launch of DMEX will provide new opportunities for investors, financial institutions, and brokers to grow their business and better manage their portfolios. It also demonstrates Qatar's commitment to developing its capital markets and achieving its ambition of moving to developed market status. The QSE's partnership with the London Stock Exchange Group will provide the necessary technology to ensure the success of the new derivatives exchange and central clearing counterparty.
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