MSX launches new ‘Liquidity Provider’ services

Muscat: The Muscat Stock Exchange (MSX) celebrated today the opening of a new “Liquidity Provider” service, which constitutes part of the Market Making Initiative. The service was introduced in cooperation with the National Financial Sustainability Programme.

Haitham Salim Al Salmi, CEO of the Muscat Stock Exchange, said that the Liquidity Provider Service seeks to provide a liquidity portfolio from approved stocks.

Al Salmi pointed out that, in this context, two agreements began to be implemented today under the auspices of Oman Telecommunications Company (Omantel), which appointed United Securities Company as a liquidity service provider for Omantel shares, and Sohar International Bank (SIB), which appointed Ubar Capital as a liquidity service provider for the SIB shares listed on MSX.

Through the new service, the Muscat Stock Exchange aims to enhance the liquidity of stocks to maintain the availability of shares for purchase and shares for sale in the selected securities. The stock exchange also seeks to furnish the criteria needed to upgrade the standards of MSX through abundant liquidity.

For his part, Mustafa Ahmed Salman, Chairman of the Board of Directors of the United Securities Company, said that the liquidity provider is a mechanism for stock trading that offers opportunities to purchase and sell shares daily at an estimated ratio of 2 per cent between supply and demand. This, he observed, would contribute to the development of a good trading volume for the listed shares.