The Securities and Commodities Authority (SCA) has issued the first license for practicing of Market-Making activity to the National Bank of Abu Dhabi (NBAD) following NBAD’s fulfillment of all regulatory requirements.
Issuance of the first Market-Making license came at a time UAE equity markets are witnessing recovery and growth and weeks before the actual upgrade of UAE markets to “Emerging Market” status by the Morgan Stanley Capital International (MSCI) Index, a move which will be an important boost to the level of corporates’ investments in UAE equity markets as well as giving greater depth and balance to local stock markets.
NBAD is expected to start practicing this activity during the third quarter of this year after finalising some technical requirements in collaboration with UAE markets.
The SCA Board Resolution concerning Market-Making was issued in August 2012, following in-depth and thorough study of all the various aspects of the Resolution and the outlining of the role of the various parties involved. The preparing and issuance of the Market-maker Regulation was done in stages and according to best international practices.
One of the significant benefits of having a licensed Market-maker is their commitment to provide bid and offer prices in all market conditions. This ensures that there is always a price at which customers can buy and sell in the stocks that there is a market maker in.
“NBAD is proud to have been granted the first Market Making Licence by the Securities and Commodities Authority. This, once again, underlines NBAD’s leadership in the UAE 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. Coming ahead of the upgrade to Emerging Market status by the MSCI, the introduction of market makers should give greater depth and narrower spreads in listed equities”.
