Saudi Exchange Introduces Single Stock Options Tied to Maaden

The Saudi Exchange Company has introduced a new financial instrument known as single stock options (SSOs), which are futures trading contracts linked to Saudi Arabian Mining Co (Maaden).

These SSOs, enabling investors to buy or sell a stock at a predetermined price on a future date, will be accessible starting April 21, 2024.

Clearance of these contracts will be managed by the Securities Clearing Center Co. (Muqassa), as announced by the exchange on Thursday.

This development follows Tadawul's initiation of SSO contracts in November 2023, with Aramco, Al Rajhi Bank, Saudi Telecommunication Company (STC), and SABIC being the first batch of stocks offered as underlying assets.

The introduction of single-stock futures trading aligns with Saudi Arabia's broader economic reform agenda, aimed at attracting foreign investors and issuers to diversify the nation's oil-dependent economy.

Source: Brinda Darasha / Zawya