DOHA: Qatar Exchange (QE) yesterday announced its decision to launch “Sponsored Action” and the “Liquidity Provider” facilities at the bourse. While the ‘sponsored action’ would allow sponsoring members to provide eligible customers or sponsored market participants to get direct access to the QE’s trading system, Liquidity Provider or LP is an action to help enhance weak stocks.
In a notice circulated to all market members, the Qatar Exchange stated that direct market access to the trading systems by eligible customers or sponsored participants will be governed by a number of regulatory controls, the most important of which being compliance with Article (44 bis) of QFMA’s Financial Services Rulebook and Article (3.2) of QE’s Rulebook, which provides for the Sponsoring Member’s undertaking of full responsibility for all business executed by the Sponsored Participant under its sponsorship, including trade execution and settlement under the Sponsoring Member’s bank guarantees.
The market note describes the application process and ongoing obligations. According to the notice circulated to the market members, the Sponsored Access will be open for domestic and non-domestic clients.
In particular, the domestic client should prove eligibility to perform the said activity and should be licensed as a financial services firm, while for non-domestic clients, the license held in the country of origin should be at least equivalent to a locally-issued license, as determined by QFMA.
As to the LP activity, QE’s market notice highlighted that the door is open to members to submit the LP applications provided that they comply with QFMA’s Liquidity Provider rules as well as the provisions of Chapter 4 of QE’s Rulebook.
The Peninsula
