Kuwait – Boursa Kuwait organized a seminar for listed companies in an effort to shed light on the mechanism and performance of Market Makers and their role in enhancing security liquidity. The seminar focused on the importance of liquidity and the overall mechanisms to enhance it as well as the requirements of market makers and key factors to consider when dealing with them. The participants also discussed the willingness of companies that qualify for upgrade into the “Premier” Market to deal with market makers and the types of agreements between the listed companies and their market makers.
The seminar was moderated by Mr. Bader Al-Nesef, Assistant Director of Institutional Investor Affairs at Boursa Kuwait who was joined by panelists Mr. Fahad Al-Rushaid, the Vice President of MENA Equities at the Kuwait Financial Center “Markaz”, and Mr. Sulaiman Al-Musallam, Assistant Director - Market Maker Department in the Asset Management Sector in the Kuwait Investment Company.
The seminar falls in line with Boursa Kuwait's commitment to raise awareness of the effective role of market makers in enhancing liquidity, which can lead to attracting more investors who wish to benefit from the investment environment of the Kuwaiti capital market.
Commenting on the seminar, which witnessed keen interaction from attendees, Mr. Bader Al-Nesef said: “We are currently witnessing an increasing interest from listed companies, specifically those that qualify for the “Premier” Market, in the market maker tool for its active role and ability to provide liquidity on securities.”
“Hosting this seminar comes within the framework of Boursa Kuwait’s efforts to raise the efficiency of the market and all its participants by raising awareness of the tools and products offered and encouraging their adoption. On behalf of Boursa Kuwait, I would like to thank the speakers and all participants for their valuable inputs, which undoubtedly enriched the seminar,” Al-Nesef added.
Market makers contribute to the enhancement of security liquidity, improving market efficiency and supporting the overall adoption of all its tools. Market makers are also considered an integral part of stock market operations in developed and emerging markets, for their ability to provide liquidity to their registered security. In effect, market makers match buyers and sellers who want to trade the same security. In the Kuwaiti capital market, market makers are investors who ensure the availability of supply and demand for one or more security, according to such controls as may be issued or approved by the Capital Markets Authority (CMA).
Mr. Fahad Al Rushaid, Assistant Manager - MENA Equities at Kuwait Financial Centre “Markaz” said “The demand on market makers is due to the role they play in providing liquidity for listed companies, due to the mechanism’s clear rules and obligations and listed companies being comfortable in dealing with them. All listed companies can utilize market makers, and market makers can trade treasury shares or shares from individual shareholders. Market makers can also work for a designated fee, or for an incentivized percentage of trades if trading volume gets to a certain point, options that undoubtedly give companies the flexibility to utilize this tool as they see fit. I would like to thank Boursa Kuwait for organizing this seminar and applaud the exchange’s overall efforts to raise awareness of the market maker tool.”
The Kuwait Financial Center “Markaz” received the license to operate as a market maker at the end of 2019 and is currently registered as a market maker for seven securities. Established in 1974, “Markaz” was listed on the Kuwaiti stock exchange in 1997.
Mr. Sulaiman Al-Musallam, Assistant Manager Market Maker Department, Asset Management Division at Kuwait Investment Company also commented on the occasion, saying: “I would like to thank Boursa Kuwait for hosting this seminar, which gave us an extraordinary opportunity to clarify several matters for market participants, sharing and exchanging viewpoints and promoting financial literacy. The market maker has become an invaluable tool for companies seeking to provide further liquidity for their shares. Investment companies that offer this service are keen to contribute to the development of the market, allowing them to record higher profits.”
The Kuwait Investment Company began operating as a market maker in 2021 and is currently registered as a market maker on three securities. The Kuwait Investment Company was established in 1961 as the first investment company in Kuwait and the region and was listed on Boursa Kuwait in 1984.
Organizing seminars and training programs forms part of Boursa Kuwait’s efforts to create a lasting meaningful impact on the communities in which it operates as part of its Corporate Sustainability strategy as well as the company’s ongoing efforts to equip all market participants with an in-depth understanding of the functioning of capital markets and various tools and techniques required to make informed investment decisions and effectively meet investors’ needs.
Since its inception, Boursa Kuwait, a self-listed company and one of the government entities to successfully undergo privatization, has implemented many steps in accordance with international practices and standards to enhance the position of the exchange regionally and globally, as well as transform Kuwait into a regional and global investment destination, by focusing on creating an attractive issuer base and broadening its investor base, increasing the depth and breadth of its products, as well as upgrading its infrastructure and business environment to international standards.
ABOUT BOURSA KUWAIT
Since it was established by the Capital Markets Authority to take over the responsibilities of the Kuwait Stock Exchange in 2014, Boursa Kuwait has worked diligently to build a progressive exchange platform based on efficiency and transparency, with a view to creating long-term value for the company’s stakeholders in the economic, social and environmental dimensions.
Guided by a mission-driven strategy that focuses on developing the market in line with international standards, Boursa Kuwait has successfully introduced innovative investment tools, reinforced transparency, and restructured the market to increase its competitiveness and liquidity. The company’s market developments and enhancements have contributed to the reclassification of the Kuwaiti capital market to “Emerging Market” status in the world’s top three indices, strengthening Kuwait’s position as a leading financial center in the region. A self-listed exchange, Boursa Kuwait is the first government entity in the country to successfully undergo privatization.
For more information about Boursa Kuwait’s initiatives and its latest developments, please visit www.boursakuwait.com.