Abu Dhabi Securities Exchange (ADX) announced yesterday that National Bank of Abu Dhabi (NBAD) will operate in the exchange as the UAE’s first market maker. NBAD will be the market maker for 4 companies listed on ADX; Abu Dhabi Commercial Bank, Al Dar Properties, Waha Capital, and First Gulf Bank.
Market makers are intermediaries that keep trade flowing by providing bid and offer prices in all market conditions.
. In 2012, the Emirates Securities and Commodities Authority (SCA) approved market making activity and issued the first license for practicing of Market-Making activity to NBAD in April 2014.
On the appointment of a Market Maker, ADX Chief Executive, Mr. Rashed Al Balooshi, said: “one of the significant benefits of having a market-maker in stock exchanges is their commitment to provide bid and offer prices in all market conditions, which ensures there is always a price at which investors can buy and sell in their stocks with the involvement of a market maker.”
Mr. Al Balooshi reiterated “Having a market maker will further strengthen ADX’s unique listing and trading experience where liquidity providers and market participants meet to trade in ADX listed companies in an open, transparent and fair marketplace.”
“At ADX, our top priority is continued high-quality service for the issuers as well as our investors and we will work closely with NBAD towards a seamless transition in the system. A designated Market Maker enhances our longstanding commitment to transparent and efficient market for the benefit of issuers and investors alike. “ADX Chief Executive added.
“NBAD is proud to be the first Marker in the UAE, a matter which reconfirms our leading role in in local and regional capital markets,” said Galen Moore, the Head of Equity Market Making at NBAD. ”It is a very important step in the growth and development of the UAE’s equity markets. The introduction of market makers should give greater depth and narrower spreads in listed equities”.