Boursa Kuwait un­veils mar­ket mak­ing model Mar­ket mak­ing tool to boost liq­uid­ity of shares

Kuwait Times - - BUSINESS -

Boursa Kuwait yes­ter­day an­nounced that it has is­sued de­tailed reg­u­la­tions on mar­ket mak­ing af­ter the adop­tion of th­ese reg­u­la­tions by the Boursa Kuwait Board of Di­rec­tors. Mar­ket mak­ing is con­sid­ered as a cru­cial tool that serves in boost­ing liq­uid­ity of se­cu­ri­ties listed in the stock mar­ket, as well as gen­er­ally in en­hanc­ing ef­fi­ciency of the mar­ket as well as in ac­ti­vat­ing its tools.

Khaled Al-Khaled, Chief Ex­ec­u­tive Of­fi­cer and Vice Chair­man of Boursa Kuwait said: “Mar­ket mak­ing is a cru­cial part of stock ex­change op­er­a­tions across the world. It serves as an im­por­tant tool to boost liq­uid­ity of shares by cre­at­ing spe­cific mar­kets, thereby help­ing im­prove the ef­fi­ciency of mar­kets and as­sist­ing in eco­nomic growth over­all. Ap­ply­ing mar­ket mak­ing prin­ci­pals to Boursa Kuwait is a ma­jor mile­stone to­wards de­vel­op­ing the Kuwaiti cap­i­tal mar­ket as a ma­jor re­gional trad­ing hub, which will ben­e­fit Boursa Kuwait and the Kuwaiti econ­omy in gen­eral.

“I would like to thank the CMA for con­di­tions in or­der to pre­pare for the launch of mar­ket mak­ing op­er­a­tions in Kuwait. A com­par­a­tive and thor­ough case study was pre­pared in or­der to reach to the best model that fits in­ter­na­tional stan­dards as well as the na­ture of Kuwaiti mar­ket,” he said.

Mar­ket Mak­ers must first be li­censed by the Cap­i­tal Mar­kets Author­ity be­fore prac­tic­ing their ac­tiv­i­ties, then reg­is­tered and meet cri­te­ria laid down by Boursa Kuwait. Once reg­is­tra­tion is com­plete Mar­ket Mak­ers will only trade in the spe­cific se­cu­rity they are reg­is­tered for, earn­ing re­bates which are based on meet­ing their var­i­ous obli­ga­tions.

Boursa Kuwait is a pri­vate en­tity that was es­tab­lished in April 2014, with the aim to take over and man­age the Kuwait stock mar­ket and pro­gres­sively tran­si­tion its op­er­a­tions, while de­liv­er­ing on three main fronts; trans­parency, ef­fi­ciency and ac­ces­si­bil­ity.

Of­fi­cially li­censed on 3 Oc­to­ber, 2016, Boursa Kuwait’s mis­sion is to up­grade the ex­change in­fra­struc­ture and busi­ness en­vi­ron­ment to in­ter­na­tional stan­dards and cre­ate a ro­bust, trans­par­ent and fair cap­i­tal mar­ket plat­form that ser­vices all rel­e­vant as­set classes, whilst fo­cus­ing on clients’ in­ter­ests. Its mis­sion driven strat­egy fo­cuses on de­vel­op­ing the over­all mar­ket sta­tus and ad­dress­ing mar­ket needs through the pro­vi­sion of in­vest­ment tools, re­struc­tur­ing the mar­ket to in­crease its com­pet­i­tive­ness and liq­uid­ity, and at­tract­ing in­vest­ments with a view to is­sue an IPO to Kuwaiti cit­i­zens.

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