Kuwait – Boursa Kuwait organized a seminar for listed companies to shed light on the mechanism and performance of Market Makers and their role in improving securities liquidity. The seminar focused on the importance of liquidity and general mechanisms to improve it as well as the requirements of market makers and key factors to consider when dealing with them. Participants also discussed the willingness of companies eligible for the Premier upgrade to deal with market makers and the types of agreements between listed companies and their market makers.
The seminar was moderated by Mr. Bader Al-Nesef, Deputy Director of Institutional Investor Affairs at Boursa Kuwait, who was joined by panelists Mr. Fahad Al-Rushaid, Vice President of MENA Equities at Kuwait Financial Center “Markaz “, and Mr. Sulaiman Al-Musallam, Deputy Director – Market Maker Department in the Asset Management Sector of Kuwait Investment Company.
The seminar is part of Boursa Kuwait’s commitment to raise awareness of the effective role of market makers in improving liquidity, which can lead to attracting more investors wishing to benefit from the market’s investment environment. Kuwaiti capital.
Commenting on the seminar, which witnessed a lively interaction from the participants, Mr. Bader Al-Nesef said: “We are currently seeing growing interest from listed companies, especially those that qualify for the “Premier” market, for the market maker tool for its active role and ability to provide liquidity on securities.
“Hosting this seminar is part of Boursa Kuwait’s efforts to increase the efficiency of the market and all its players by raising awareness of the tools and products offered and promoting their adoption. On behalf of Boursa Kuwait, I would like to thank the speakers and all the participants for their valuable contributions, which undoubtedly enriched the seminar,” added Al-Nesef.
Market makers help improve the liquidity of securities, improve the efficiency of the market and support the global adoption of all its tools. Market makers are also considered an integral part of trading in developed and emerging markets, for their ability to provide liquidity to their registered securities. Indeed, market makers connect buyers and sellers who wish 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 securities, in accordance with controls which may be issued or approved by the Capital Markets Authority ( CMA).
Mr. Fahad Al Rushaid, Assistant Manager – MENA Equities at Kuwait Financial Center “Markaz” said: “The demand on market makers is due to the role they play in providing liquidity to listed companies, due to the rules and clear obligations of the mechanism and listed companies. be comfortable with them. All listed companies can use market makers, and market makers can trade in treasury stock or stock of individual shareholders. Market makers can also work for a designated fee or for an incentive percentage of trades if the volume of trades reaches a certain point, options that undoubtedly give businesses the flexibility to use this tool as they see fit. I would like to thank Boursa Kuwait for organizing this seminar and to salute the stock exchange’s overall efforts to publicize the market maker tool.
Kuwaiti 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 Kuwait Stock Exchange in 1997.
Mr. Sulaiman Al-Musallam, Assistant Manager Market Maker Department, Asset Management Division at Kuwait Investment Company also commented on this occasion: “I would like to thank Boursa Kuwait for hosting this seminar, which gave us an extraordinary opportunity to clarify several important for market players, the sharing and exchange of views and the promotion of financial literacy. The market maker has become an invaluable tool for companies looking to provide more liquidity for their stocks. Investment companies that offer this service want to contribute to the development of the market, allowing them to record higher profits.
The Kuwait Investment Company started operating as a market maker in 2021 and is currently registered as a market maker in 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.
The organization of seminars and training programs is part of Boursa Kuwait’s efforts to create a significant and lasting impact on the communities in which it operates as part of its sustainability strategy, as well as the company’s ongoing efforts. to equip all market participants with a thorough understanding of how capital markets work and various tools and techniques needed to make informed investment decisions and respond effectively to investors’ needs.
Since its inception, Boursa Kuwait, a self-listed company and one of the government entities to be successfully privatized, has implemented numerous measures in line with international practices and standards to improve the position of the stock exchange regionally and world, as well as transforming Kuwait. in a regional and global investment destination, focusing on building an attractive issuer base and broadening its investor base, increasing the depth and breadth of its products, as well as putting upgrade its infrastructure and business environment to international standards.
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ABOUT BOURSA KUWAIT
Since its establishment 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 create long-term value for the company’s stakeholders in the economic, social and environmental dimensions.
Guided by a mission-driven strategy focused on market development in line with international standards, Boursa Kuwait has successfully introduced innovative investment tools, enhanced transparency and restructured the market to increase its competitiveness and liquidity. The company’s market developments and improvements have contributed to the reclassification of the Kuwaiti capital market to “emerging market” status in all three major global indices, strengthening Kuwait’s position as a leading financial center in the region. . A self-listed stock exchange, Boursa Kuwait is the first government entity in the country to be successfully privatized.
For more information on Boursa Kuwait’s initiatives and latest developments, visit www.boursakuwait.com.
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