SHUAA Capital reinforces its position as most active Market Maker and Liquidity Provider in UAE following DEPA appointment

Following the recent appointment of SHUAA Capital International Ltd (SCIL) a subsidiary of SHUAA Capital (SHUAA) as Liquidity Provider by Depa Limited (“Depa”), the leading global interior solutions group, SHUAA further strengthens its position as UAE’s most active and experienced liquidity provider and Market Maker for listed equities and futures.

SHUAA traces its first market making activities back to 2007, and has been providing this highly specialized service in an orderly and prudent manner, strategically helping illiquid stocks gain traction. SHUAA has been actively working alongside the country’s capital markets participants including the Exchanges and the various Regulators, towards helping grow and expand the overall financial sector landscape as it seeks to evolve. In 2016, SHUAA helped Nasdaq Dubai to launch its single-stock futures market as founding Market Maker. During 2017, both the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) awarded SHUAA licenses to act as a Market Maker and Liquidity Provider in order to assist issuers in maintaining a liquid and orderly market in their respective stock listings.

Magdi Shannon, Head of Trading at SHUAA, said: “When we launched our market making business, we set a target to become the biggest Market Maker and Liquidity Provider in the Middle East in support of the expansionary plans of the region’s capital markets. I believe we are well positioned to achieve that target, having already become the major player in the UAE for this service. We now provide liquidity to all single stock futures on Nasdaq Dubai, where we look forward to seeing other market makers join the success story and help grow the market, and the majority of all main equity listings on the Exchange. We look forward to working with the ADX and the DFM listed issuers”.

Fawad Tariq Khan, Chief Executive Officer of SHUAA Capital said, “Demand for liquidity provision services is growing and at SHUAA, we have positioned ourselves as a leader in this regard. We are delighted to be the company of choice for Depa, and all other listed equities and Futures, and we look forward to playing a key role in supporting liquidity levels. We are also looking to expand this sophisticated service for other markets in the region.”

Through its market making and liquidity provision services, SHUAA helps to maintain tight spreads, increase trading volumes, reduce transaction costs and lower volatility, reducing the overall liquidity risk discount to the price of listed shares of issuers.