Tuesday, Apr 18, 2017

Dubai:

The Dubai Financial Market said on Tuesday it has registered Shuaa Capital International and Al Ramz Capital to become market makers and liquidity providers.

“As part of its efforts to reinforce its business framework for the benefit of various participants including; issuers, investors and brokerage firms, the DFM announced the introduction of liquidity provision service,” the DFM said in a statement.

“There are more companies to follow during the coming period, which will play an integral role in realising the benefits of this service for listed companies, investors and brokerage firms alike,” Hassan Al Serkal, chief operating officer (COO) and head of operations division of DFM said in a statement.

Jassim Al Seddiqi, chairman of Shuaa Capital, said: “The shares of a significant number of fundamentally strong public companies often experience low trading volumes and an illiquidity discount. As a market maker, Shuaa Capital will help to attract more liquidity for these firms and give them more visibility.”

It is noteworthy that the (Securities and Commodities Authority) SCA’s regulations pertaining to liquidity provision stipulates that the ownership of a liquidity provider cannot exceed 5 per cent of the listed company’s shares and the issuers has the right to assign multiple liquidity providers.

Staff Report

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