Market-making aims to create continued balance between supply, demand: ElKuwaiz

Chairman of the Capital Market Authority (CMA) Mohammed ElKuwaiz

Chairman of the Capital Market Authority (CMA), Mohammed ElKuwaiz, said that market-making does not aim to protect the market against falls, but rather to create a continued balance between supply and demand, and narrow the gap between stock buy and sell prices. Accordingly, this will shore up liquidity and enhance market efficiency.

The Saudi market regulator announced, on Dec. 4, ratifying the “Regulations of Market Making and Market Making Procedures”, previously proposed by the Saudi Exchange (Tadawul), in a bid to regulate the activities of listed securities market making, Argaam reported.

Tadawul also launched the market-making framework for equity and derivatives markets to ensure the availability of liquidity and increase price formation efficiency, in line with its efforts to advance the growth of the Saudi capital market as part of the Kingdom’s Vision 2030.