The Dubai International Financial Exchange (DIFX) will soon list a new range of Structured Products. These will provide investment opportunities that are completely new to the region.
Structured Products are based on underlying assets, such as share indexes or commodities. Some planned for the DIFX will track specially created indexes of regional stock exchanges. Some will be capital-protected.
The DIFX’s Structured Products platform – the only one created by an exchange in the Gulf Cooperation Council (GCC) region – will be called DIFX TraX.
Many DIFX TraX products will be issued by international investment banks. Retail and wholesale investors will be able to trade them on the DIFX.
DIFX TraX products that are based on a share index will move in line with that index, so they are easy to understand.
Other planned DIFX TraX products will be based on oil, sugar and cotton.
Some DIFX TraX products will be designed to suit a cautious investment style. Others will suit investors who are more aggressive.
Thousands of Structured Products already exist around the world and billions of dollars worth trade every year on other exchanges.
Now the DIFX is building a substantial Structured Products platform in its region for the first time.
