EFG Hermes UAE Enhances ADX Trading Through Market Making and Liquidity Services
The prominent investment banking firm has launched sophisticated market making capabilities on the Abu Dhabi Securities Exchange, strengthening liquidity and trading efficiency across the emirate's capital markets.
EFG Hermes UAE, a licensed financial entity regulated by the Capital Market Authority, has officially commenced its market making and liquidity provision services on the Abu Dhabi Securities Exchange. This expansion represents a significant advancement in the firm’s comprehensive brokerage offerings within the United Arab Emirates and across the broader Middle East and North Africa region.
Through these newly launched services, EFG Hermes UAE will place carefully calibrated buy and sell orders in selected exchange-listed securities, operating in full compliance with exchange regulations and capital market requirements. The initiative is fundamentally designed to enhance market transparency, deepen trading activity, and facilitate more seamless execution for investors navigating the capital markets.
Market making constitutes an essential mechanism within sophisticated financial ecosystems, functioning to maintain continuous buying and selling interest in securities. By maintaining this dual presence, the service narrows the bid-ask spread, thereby reducing trading costs and fostering more transparent pricing mechanisms throughout the market. This structural improvement benefits investors through enhanced accessibility and confidence when executing transactions.
The liquidity provision component offers particular advantages for listed companies, enabling their shares to maintain consistent trading activity following their initial public offerings. Enhanced liquidity improves corporate visibility amongst the investment community whilst rendering shares accessible to an expanded constituency of domestic, regional, and international institutional participants. For investors, heightened liquidity provides greater assurance when entering or exiting market positions.
Saker Asllan, Chief Exchange Operations Officer of the Abu Dhabi Securities Exchange, expressed welcome for the development, emphasising that market makers fulfil a vital function in supporting liquidity and facilitating investor access to listed securities. Ahmed Waly, Global Head of Brokerage at EFG Hermes, articulated the firm’s commitment to strengthening trading activity and advancing the capital market ecosystem across the region. Amr El Shamy, Head of Electronic Trading and Execution Services, highlighted the sophisticated technological infrastructure and disciplined risk management protocols supporting these services.
This expansion reflects EFG Hermes UAE’s broader strategic commitment to fostering capital market development throughout the region. By integrating market making capabilities with its established brokerage, research, execution, and investment banking services, the firm continues to facilitate meaningful connections between companies and investors whilst contributing to increasingly efficient and accessible capital markets.
Source: WAM
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