Qatar Exchange has launched liquidity providers (LP) scheme, in what could pave way for enhanced liquidity and greater price stability of admitted stocks.
Besides, the bourse has also launched securities and lending borrowing (SLB) scheme, enabling settlement of securities sold short, as well as “sponsored access”, allowing sponsoring members to provide eligible customers (sponsored participants) with direct access to the trading system of the bourse.
The LP scheme, which has been launched for the QE 20 Index constituents, is now open for members. An LP is an underwriter or a market maker that is a sizable holder of a given security or that facilitates the trading of the security, providing greater price stability and distribution of the securities to both retail and institutional investors.
Under the scheme, LPs will have an obligation to provide double-sided (bid/offer) orders in the relevant security (or securities) subject to minimum presence requirements and in accordance with agreed spreads and sizes.
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