Market of Markets - Structured Products MarketThe DIFX launched the DIFX TraX, its structured products platform, on August the 28th, 2007. Following the successful launch of DIFX TraX, the platform is growing to include more Shariah Compliant structured products and more conventional products.
With 23 diverse products currently listed, DIFX TraX has the ambition to become a ‘supermarket’ that offers retail and wholesale investors a wide range of conventional and Islamic structured products. DIFX TraX is the region’s only platform that provides regional and international investors access to high level financial engineering. The currently listed products are issued by three international investment banks – Deutsche Bank, Merrill Lynch and Morgan Stanley.
DIFX TraX currently lists capital protected notes and index trackers (certificates). The products are based on specially created indices relating to the Dubai Financial Market, the Abu Dhabi Stock Market and other GCC stock markets. Other DIFX TraX products are based on US, European and East Asian share indices. Others are based on commodities such as oil, soy, corn, wheat, sugar and cotton.
The structured products listed on TraX go through an extensive review process and are listed only after relevant approvals and no objections are received from the DIFX Listing Authority and the DIFX’s regulator, the Dubai Financial Services Authority (DFSA).
Structured products have been described as providing investors with a dimmer switch, offering different shades of risk from high to low. Indeed, the TraX listed products are unique opportunities for regional investors – they provide new tools for portfolio diversification. With a diverse set of products that can be used to gain exposure to a diverse set of underlyings, DIFX TraX is set to become the region’s gateway to a whole new asset class.
Click here for more on Structured Products market
Click here for TraX: Product Guide (English)Click here for TraX: Product Guide (Arabic)
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