Thursday, Jun 23, 2016

Abu Dhabi: The head of the Abu Dhabi Securities Exchange (ADX) said that “several banks” are in negotiations with the market to start market-making activities.

Rashid Al Baloushi, chief executive officer of ADX, did not disclose more details but said the market is still carrying on with the negotiations, without elaborating on a timeline or other details.

His comment comes after a Reuters story earlier this month cited unnamed sources saying that three institutions, including the National Bank of Abu Dhabi, will offer ‘bid’ and ‘ask’ prices to increase trade volumes on ADX.

Such market-making is important for traders, especially when there is limited or volatile trading, the Reuters story said.

In February 2015, NBAD launched market-making activities but shut them down less than a year later. A Reuters story said sources said the business was unprofitable, but ADX’s Al Baloushi said on Wednesday there were technical difficulties behind that.

By Sarah Diaa Staff Reporter

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