Trace between openness and hedging

After the first stages of the Saudi market joining the FTSE Russell index and the Morgan Stanley Capital International (MSCI) index began, the Saudi market witnessed historic levels in cash flows, reaching levels of 20 billion riyals, which made the Saudi market a significant party in the emerging financial market. This makes it more affected by global crises than before.

I think it is time to talk about activating hedging tools and making them available to investors and licensed persons, to limit the impact of investors and try to curb the flow of hot money. Future contracts, options contracts, etc. are designed to reduce price volatility and emerge from crises with minimal damage.

It should be noted that hedging tools are legally adaptable to the nature of Saudi regulations, especially with regard to judicial delivery. Technology has helped overcome many legal obstacles.

The Authority has made a significant effort to meet the requirements for joining the FTSE and Morgan Stanley global indices, and I hope that it will make a lot of efforts towards hedging and developing oversight mechanisms to reduce market crimes, as they are often difficult to prove .

Although the Saudi market reached emerging markets late, the experiences of previous markets are available to benefit from.