Derivatives exchange framework launched

The Qatar Financial Center Regulatory Authority (QFCRA) has announced the development of a new regulatory framework for listed derivatives and the issuance of the Derivatives Markets and Exchanges Rules for 2023 after a three-month public consultation period with investors and market participants. The launch of these rules means the establishment of a regulatory framework in the QFC that allows for the establishment of a derivatives exchange as well as a central clearing house to ensure effective settlement process and manage settlement risks. In this context, Qatar Stock Exchange welcomed the announcement of the Regulatory Authority. Mr. Abdulaziz Al-Emadi, Acting CEO of Qatar Stock Exchange, commented, “The issuance of the Derivatives Markets and Exchanges Rules for the year 2023 establishes the necessary regulatory framework for the Qatar Stock Exchange to move forward with its plans to establish a derivatives exchange and the counterparty to the central clearing house. The launch of the derivatives exchange is a fundamental pillar in the development of the Qatari capital market, and the promotion of the stock market to the ranks of developed markets. Mr. Abdulaziz Nasser Al-Emadi also expressed his sincere thanks and gratitude to the Board of Directors of the Qatar Financial Center Regulatory Authority and the Executive Management for their cooperation in issuing the regulatory framework. It is noteworthy that the establishment of the derivatives exchange will give investors the opportunity to trade options and futures contracts related to the shares listed on the Qatar Exchange, in addition to contracts related to the Qatar Stock Exchange index, which will be included in the new derivatives exchange. The Qatar Stock Exchange plans to establish a derivatives exchange and a central clearing house in the Qatar Financial Center, and recently announced the conclusion of an agreement with the London Stock Exchange Group that provides for the provision of technology for new trading and clearing operations and for market monitoring. In conclusion, Mr. Michael Ryan, CEO of the Qatar Financial Center Regulatory Authority, said on this occasion, “The Regulatory Authority looks forward to working with the Qatar Stock Exchange to launch the new derivatives exchange, as this exchange will provide opportunities that allow investors to better manage and diversify their financial portfolios.