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Liquidity Provisioning Service Expands at the Abu Dhabi Securities Exchange with Appointment of SHUAA by Bank of Sharjah

23 April 2018

Abu Dhabi, 4 April 2018: As part of the strategic roadmap set by the Abu Dhabi Securities Exchange (ADX), the leading financial market in the region, towards expanding niche services to issuers and in line with its goals of attracting and activating a wider range of investors as well as increasing market capitalization and product range, the Exchange hosted today representatives from both Bank of Sharjah and SHUAA Capital to officially mark the commencement of Liquidity Provision services for Bank of Sharjah shares on the exchange by SHUAA Capital International Limited ‘SHUAA’. This is the second liquidity provision agreement hosted by ADX since last year.

As an authorized Liquidity Provider by the ADX, SHUAA will work towards enhancing liquidity levels of the traded stock and shall maintain a fair and orderly market based on the depth and continuity standards set by the exchange. SHUAA currently leads the UAE Market Making and Liquidity Provision scene both by volumes and by number of signed-up listed firms, along with carrying out the service against cash equities and futures on multiple exchanges.

Mr. Rashed Al Blooshi, Chief Executive of ADX commented, “We are witnessing growing interest in the depth of products and services which we have introduced, including Liquidity Provision mandates. We take this opportunity to welcome Bank of Sharjah’s timely decision for appointing one of the lead experts in this highly specialized field, SHUAA Capital Int’l Ltd. Key to having a well-developed market is the ability to empower listed companies and extending them the proper facilities such as Liquidity Provisioning and Market Making, and for that you need highly skilled traders who can effectively yet responsibly price markets, along with the necessary IT infrastructure in order to deliver fast, efficient pricing solutions”.

Mr. Varouj Nerguizian, General Manager of Bank of Sharjah said, “We at Bank of Sharjah are pleased to announce this new Liquidity Provisioning exercise, meant to further boost our shares’ liquidity levels. Furthermore, we always acknowledge our responsibility towards current and prospective investors, and as such we will always consider strategic avenues that would positively contribute to the bottom-line, especially in the midst of a highly volatile environment. We are confident our Liquidity Provisioning is in good hands”.

Mr. Fawad Tariq-Khan, Chief Executive of SHUAA Capital said, “A select number of listed firms always seek ways to navigate today’s complex marketplace; our established experience in Liquidity Provisioning and Market Making in UAE markets allow us to prudently provide these firms the scenarios needed to build healthy liquidity levels, and offer better pricing blended with unique market insights. We’d like to thank both the Abu Dhabi Securities Exchange and Bank of Sharjah for their vote of confidence”.

Mr. Magdi Shannon, Head of Equities Trading at SHUAA said, “As Liquidity Providers and Market Makers, we are constantly seeking innovative ways to enhance the market for investors, and are pleased to bring our expertise in the field to the ADX platform. Today, the growing number of firms assigning SHUAA is a testament to our plan to further grow this specialized service, and cements our commitment to institutional and retail investors seeking deeper liquidity with strong execution of trades”.

It is noteworthy to mention that Abu Dhabi Securities Exchange (ADX) provides integrated services in the areas of liquidity provision and market making. ADX also employs blockchain technology for eVoting during AGMs. The Exchange has recently launched a series of services, the most important of which is Technical Short Selling, which makes ADX the first market in the region to launch such service to meet the disclosure and transparency requirements, and to ensure timely and direct communication of information to stakeholders and investors within a regulated framework to serve the needs of listed companies, shareholders, and analysts.

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