Wafrah International Investment Company announced that it has received the final approval for a period of 3 years from the date of granting the license by the Capital Markets Authority (CMA), to launch Market Maker services. The company will officially start providing this product to listed companies and capital market traders in Kuwait.
Wafra is a leading company in the field of market making due to the nature of its work in the capital market, as it has qualified professionals with the highest expertise in the latest investment products.
Qutaiba Al-Kharafi, Senior Vice President of Equity Investment Management – Asset Management Sector at Wafrah International Investments, said that the company’s management provided all support needed to establish this service, starting with appointing a global advisor to develop a comprehensive system and an operational framework for the market maker, in line with the leading regional and global practices. He pointed out to the preparation of development plans to raise the skills of the company’s employees, through their access to applied courses and specialized workshops presented by global experts in the market maker industry, so that the work team would be knowledgeable and technically skilled in terms of trading on the latest types of electronic platforms and modern technologies that were selected to provide This service.
Meanwhile, Director of the Market Maker Unit – Asset Management Sector, Yousef Al-Hanaif, stated that the market-making unit aims to provide bid and ask prices for listed companies’ shares, to create consistency in stock price movements and reach their fair values. He pointed out that the unit works as a liquidity provider for listed companies to help them increase the turnover of their shares, support their market value, enhance the confidence of traders on the stock and attract consulting firms to cover them in their periodic reports and evaluations, which will contribute significantly to attracting new investors to the stock, indicating that through the market making, Wafra will assist in promoting those companies to be listed in the premier market or keep its status if it was already part of it, in addition to upgrading those stocks to be listed in global indices.
Al-Hanaif stated that the general framework of the market maker consists of various types of products, which are designed to suit the individual nature and unique needs of each stock and link it to a strategy designed specifically at the stock level and the volume of liquidity associated with it.