- The Market Maker is responsible for providing liquidity to the company on which the service is rendered by providing buy orders and sell offers.
- The share of Boursa Kuwait Securities Company was chosen to be the first company on which the Market Maker service will be provided.
The Senior Vice President of Financial Instruments Management in the MENA Quoted Investments Sector, Mr. Ghassan Al-Waqayan, announced in a press release that National Investments Company (NIC) launched the “Market Maker” service, starting from Sunday, August 22, 2021.
The market maker is responsible for providing liquidity to the company on which the service is rendered by providing buy orders and sell offers. The share of Boursa Kuwait Securities Company was chosen to be the first company on which the Market Maker service will be provided, and it is expected that more other companies will be added in the next few weeks.
The Capital Markets Authority (CMA) had given NIC a final approval for a three-year period effective from the date of granting the license in March 2021, which is renewable, and that NIC was one of the first companies to obtain a Market Maker’s license on Boursa Kuwait, after passing the final tests of the Boursa Company following signing the activity practice agreement with the Boursa Company.
Al-Waqayan added, that the Market Maker system has become a cornerstone that contributes to diversifying investment options, and addresses the defects that dominated the market as for the past individual trades based on rumors and unjustified speculation. It also contributes to attracting more local and foreign institutional investments. It also restores the ability to quickly liquidate, which is one of the most important functions of financial markets.
Al-Waqayan stated that the Market Maker is a licensed entity that aims to provide liquidity for a share or several shares (supply and demand), but it is not a broker. The Market Maker aims to find an incessant balance between supply and demand and to reduce the gap between the bid and ask prices of buy and sell prices to provide constant and real prices, and also to provide the necessary quantities, whether in the case of buy or sell, as well as exploring the equilibrium price of the share by entering requests and offers
The market maker also provides smooth buy and sell orders without changing the trend of the stock, by providing quantities at different prices. NIC is a leading asset management company and one of the largest and most prestigious investment houses in Kuwait, which had and still has a prominent role in the Boursa Kuwait, where it manages assets of more than KDW 1 billion.
Al-Waqayan confirmed that NIC has accomplished dozens of huge mandates during the last period with the efforts of a specialized team at the highest level, pointing out that the company has provided various advisory roles during the recent period, including the advisor for listing Boursa Kuwait Securities Company in the official market, while it is currently exploring available promising investment opportunities that are in line with its purposes.
Al-Waqayan expressed appreciation for the efforts made to constantly achieve this outstanding performance and growth, which is always in line with the strategic plan of National Investments Company that spares no effort to retain its place among the best advanced and developed investment companies locally and regionally.