Qatar set to launch derivatives exchange after new rules issued

Qatar Stock Exchange (QSE) will move ahead with the plans to establish a derivatives exchange and central clearing counterparty after the country’s financial regulator issued a new regulatory framework for listed derivatives.

The Qatar Financial Centre Regulatory Authority (QFCRA) issued the derivatives markets and exchanges rules (DMEX) 2023 after a three-month consultation with investors and market participants, it said in a statement on Monday.

QSE’s acting CEO Abdulaziz Al-Emadi said the launch of the regulatory framework will allow for the establishing of a derivatives exchange and central clearing counterparty.

“The launch of the derivatives exchange will be an important milestone in developing the Qatar capital markets and Qatar’s ambition to move to developed market status,” he added.

The statement said that establishing the derivatives exchange will allow investors 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 Qatar Financial Centre. It will partner with the London Stock Exchange Group to provide new trading, clearing, and market surveillance technology.

QFCRA’s chief executive officer Michael Ryan noted that the derivatives exchange will allow investors to better manage and diversify their portfolios.