Merrill Lynch has announced that it will list a new Certificate (10Y-GCC Hedge Basket Inverse Tracker Certificate) on the DIFX TraX, the structured products platform of the Dubai International Financial Exchange (DIFX).
GCC markets have been experiencing a sharp correction since August and Middle East investors are increasingly looking for a product that is easily accessible and can offer an effective hedge to their Equity portfolios. The ML GCC Hedge Basket is a selection of stocks which are representative of the GCC region, ex-Saudi Arabia.
The 10Y-GCC Hedge Basket Inverse Tracker Certificate will provide an inverse exposure to the ML GCC Hedge Basket, commonly known as short exposure. In other words, the value of this listed instrument will appreciate when the market falls, and vice versa, depreciate when the market rallies.
This will be the first product providing investors with downside protection through a fully-funded, turn-key investment solution.
In August 2007, Merrill Lynch was among the first investment banks to list structured certificates on the DIFX TraX (Tracker-10YIT-Dubai and ReverseT-1YRC-Dubai).
Karim Mathlouthi, head of Equity Derivatives Sales in the Middle East and North Africa region at Merrill Lynch, said: “The launch of this new certificate reaffirms Merrill Lynch’s commitment to driving growth in the GCC markets and our focus on leading innovation through the development of liquid and accessible innovative financial instruments.”
