Tharwa Investment Company revealed that during the third quarter of 2022, it signed two new agreements to provide market maker services, with Future Kid Company and Ali Al-Ghanim & Sons Group.

The Company stated that its share as a market maker stood at 33% of aggregate market's trading activities in 3Q2022, with 22 companies receiving market maker services from Tharwa, including 17 listed on the Main Market, and 5 companies listed on the Premier Market.

The Company stated that in August, the monthly trading activities were the highest in the last three months during which the company provided market maker services, reaching KWD 31.2 million, whereas it stood at KWD 23.2 million in July, and KWD 24.65 million in September, pointing out that it seeks expand its business through executing new agreements with a number of companies in various sectors in the third quarter, that should reflect positively on the market and traders.

Currently, 7 investment companies are licensed by the Capital Markets Authority (CMA) to provide market makers services for shares listed on Boursa Kuwait, with only 20% of the total listed companies, noting that further development of the market maker activities in Kuwait may be achieved through providing and prioritizing other products including Exchange Traded Funds (ETF) and derivatives.

Currently, there is a growing interest of market makers by listed companies, due to the benefits they provide including liquidity, and establishing buying and selling mechanism for traders, by matching buyers and sellers who wish to trade the same security, thus boosting liquidity, and improving market efficiency.

The market maker is an integral part of the stock market operations in the developed and emerging markets, as it provides forces of supply and demand for one or more listed securities, in accordance with the regulations issued by or approved by the Capital Markets Authority.

Market makers play a major role in qualifying companies to be included in global indices, upgrading companies from the Main Market to the Premier Market, in addition to further establishing their inclusion in the Premier Market. Moreover, the market maker assisted several companies to increase their liquidity.