Abu Dhabi: The Securities and Commodities Authority (SCA) has issued the first licence for practicing of Market-Making activity to the National Bank of Abu Dhabi (NBAD) following NBAD’s fulfilment of all regulatory requirements.
The issuance of the first Market-Making licence 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 give a significant boost to corporate investment in UAE equity markets and greater in-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-Maker 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.
According to a statement released on Saturday by the Authority, “one of the significant benefits of having a licenced Market-maker is their commitment to provide bid and offer prices in all market conditions. This ensures there is always a price at which customers can buy and sell in their stocks with the involvement of a market maker.”
