QSE amends list of securities eligible for margin trading, market making and liquidity provision

Qatar Stock Exchange (QSE) has amended the list of securities eligible for the margin trading, market making and liquidity provision.
This has been done according to the QSE indices semiannual review and will be effective from April 2, 2023.
The eligible securities are those included in main barometer QE Index and in Al Rayan Islamic Index.
Stocks with all four quarterly turnovers exceeding 10% and all four quarterly frequency of trading exceeding 80% from the trading days in each quarter as well as units of QE Index ETF and Al Rayan Qatar ETF, the exchange traded funds sponsored by Doha Bank and Masraf Al Rayan respectively, are also eligible.
The list of securities eligible for market making and margin trading are QNB, Masraf Al Rayan, Qatar Islamic Bank, Industries Qatar, Commercial Bank, Mesaieed Petrochemical Holding, Nakilat, Woqod, Qamco, Milaha, QIIB, Gulf International Services, Ooredoo, Estithmar Holding, Qatar Electricity and Water, Barwa, Baladna, Doha Bank, Ezdan, and Al Rayan Qatar ETF.
The list also includes Salam International Investment, Vodafone Qatar, United Development Company, Qatari Investors Group, Qatar National Cement, Al Meera, Mazaya Qatar, Qatar German Company for Medical Devices, Lesha Bank, Medicare Group, Inma Holding, Mannai Corporation, QE Index ETF, Alijarah Holding, Dlala, Qatar Oman Investment, Widam Food, Al Khaleej Takaful and Mekdam Holding.
However, the communique said Qatar Insurance, Qatar Industrial Manufacturing and Qatar Islamic Insurance are not eligible anymore for both activities.
All listed companies in the main market and in the venture market at the QSE and all ETFs units listed are eligible for liquidity provision.
Through margin trading, a financial services company funds a percentage of the securities’ market value purchased for its client, pursuant to the agreement governing the relation between them.
Margin trading will allow investors to purchase securities that are partially financed by a loan or credit facility made available by a margin lender, a member licensed to provide such services.
It is understood that Qatar has adopted a 60:40 method wherein a financial services company funds 40% of the securities’ market value purchased for its client pursuant to the agreement governing the relation between them.
Market makers play a key role in providing liquidity to facilitate market efficiency and in the absence of them, it usually takes longer for buyers and sellers to match, translating as lower liquidity and higher trading costs owing to difficulties in entry and exit.
Liquidity provision is an important development and one of the key components in the overall market development strategy of the QSE and liquidity providers would enable them to submit constant quotes for the sale or purchase of a particular security to increase its liquidity as per the controls and conditions set forth in the liquidity provision agreement.