Dubai: Al Ramz Capital said it has been appointed as a liquidity provider for Union Properties’ shares after obtaining the necessary approvals from Dubai Financial Market (DFM) and signing the agreement in June, 2017.
A liquidity provider is appointed by a company with the sole objective of enhancing the liquidity of the underlying shares and increasing the frequency of transactions. The liquidity provider is independent of the company and has complete autonomy over trading.
The liquidity provider will transact within pre-defined parameters that are agreed with the company. Some of the potential benefits to the issuer are an increase in price stability, lower trading costs, a reduction in the bid/offer spread and the potential to increase the valuation metrics.
Al Ramz Capital will perform its duties as a liquidity provider through a specialised department, which is made up of equity professionals with over 30 years equity market experience between them.
