Boursa Kuwait, a private entity, said that it has issued detailed regulations on market making after adoption of these rules by the Boursa Kuwait board of directors.

Established in April 2014, Boursa Kuwait aims to take over and manage the Kuwait stock market and progressively transition its operations, while delivering on three main fronts; transparency, efficiency and accessibility.

Market making is considered as a crucial tool that serves in boosting liquidity of securities listed in the stock market, as well as generally in enhancing efficiency of the market as well as in activating its tools, said a statement from Boursa Kuwait.

Market Makers must first be licensed by the Capital Markets Authority before practicing their activities, then registered and meet criteria laid down by Boursa Kuwait, it said.  

Once registration is complete Market Makers will only trade in the specific security they are registered for, earning rebates which are based on meeting their various obligations, it added.

Khaled Al Khaled, chief executive officer and vice chairman of Boursa Kuwait, said: “Market making is a crucial part of stock exchange operations across the world.”

“It serves as an important tool to boost liquidity of shares by creating specific markets, thereby helping  improve the efficiency of markets and assisting in economic growth overall,” he said.

“Applying market making principals is a major milestone towards developing the Kuwaiti capital market as a major regional trading hub, which will benefit our organisation and the Kuwaiti economy in general,” he added.– TradeArabia News Service