Capital Markets Authority (CMA) granted final approval to KFH Capital Investment Company, the investment arm of Kuwait Finance House (KFH) group, to license the market maker’s activity, after the company met the standards, requirements and controls set by the authority.
Chief Asset Management Officer at KFH Capital Abdullah Essa Al-Ali said that the special operating system of the market maker at KFH Capital is ready for operation, and it has been tested and confirmed as ready with Kuwait Boursa.
He added that KFH Capital has completed the technical and legal obligations in preparing for the launch of the ideal model for the market maker, in line with international best practices, and size and nature of the Kuwaiti market.
Al-Ali pointed out that the "market maker" is an important tool to enhance the liquidity of stocks by creating liquidity that helps in increasing the effectiveness of trading in the market. The role of the "market maker" lies in finding sound transactions instead of relying on hot liquidity that only goes to the rapid speculation of shares, which do not have a clear business model. It is also an important investment tool that achieves added value to the Boursa, which is considered to diversify investment tools and increase the level of liquidity traded in Boursa.