Qatar Stock Exchange (QSE)and Qatar Financial Markets’ Authority are currently putting the final touches on market making rules activities intended to be carried out by the financial services companies, members in the market after obtaining the necessary licenses from the QFMA.
QFMA,within the framework of its efforts to develop the activities and financial services relating to Qatar's capital market, will implement the strategic targets aimed at promoting the Qatari capital market to be an ideal model of providing financial services according to the best international standards along with enhancing liquidity for support and development of the stock exchange, QNA reported.
Carrying out the market making activity by the licensed financial services firms expected in the second half of the year 2017 will help enhancing the market liquidity of eligible securities. According to the rules, the market maker (the brokerage company which is a member of the Exchange) shall, pursuant to a license obtained from the QFMA, provide quotes in one or more eligible securities to enhance its liquidity in a manner specified in the agreement signed between the exchange and the market maker setting forth the terms and conditions the market maker is entitled to comply with, a press release on Wednesday quoted a spokesman for the QSE as saying.
According to the market making rules, the market maker has to sign an agreement with the issuer setting the rules and conditions to be followed in order to enhance the liquidity of the admitted security of the issuer and should comply with all the regulations of the Exchange and the market making rules.
The market making activities could be only practiced by the Financial Services Firm, member of the Exchange, the spokesman noted.
He added that the market making rules have specified a number of criteria and conditions that should be met by the Financial Services Company for obtaining the market making license from QFMA.
Among those conditions is to have the capability, systems and controls required for market making; any additional capital adequacy requirements the Exchange may impose for market making; the systems, procedures and controls in respect of managing the risks associated with market making and some other requirements related to training, and competency of the of the firm personnel involved in market making.
QFMA has the right to suspend or terminate any Market Maker Agreement.
