Market-making, liquidity fund initiatives to propel stock market development in Oman
Published: 02:06 PM,Jun 24,2023 | EDITED : 06:06 PM,Jun 24,2023
MUSCAT, JUNE 24
A number of ground-breaking measures announced recently by Muscat Stock Exchange (MSX) have the potential to ignite the growth of the capital market in the Sultanate of Oman, notably by fortifying the bourse’s positioning as a thriving hub for investment.
The Observer looks at the six initiatives unveiled last week by the MSX with the support of the National Program for Financial Sustainability and Financial Sector Development:
• Market-making initiative paves the way for dynamic growth: At the forefront of this strategic push lies the Market Making Initiative, a game-changing manoeuver that guarantees a seamless and active trading environment. By facilitating continuous buy and sell orders for listed securities throughout the trading session, this initiative has far-reaching objectives. Foremost among them is the provision of ample liquidity, allowing securities to flow freely and ensuring investors have a stable foundation for their transactions. Additionally, the Market Making Initiative seeks to strike a balance between the supply and demand of securities, while responding to any unwarranted fluctuations in stock prices.
• Securities Lending and Borrowing Initiative: This initiative opens new avenues for investors and heralds the growth of diversified financial instruments. It seeks to bolster liquidity, enhance market efficiency, and reduce stock market volatility. Investors can now explore a broader spectrum of opportunities based on a seamless access to an array of securities listed on the exchange.
• Pooled Trading Accounts Initiative: Essentially an inclusive framework, it is designed to facilitate seamless management and trading of securities for multiple investors. By consolidating accounts under a single investor number, this initiative streamlines operations and adheres to global requirements for emerging market status. Moreover, it lays the foundation for establishing connections with international depository centers.
• Promising Companies Initiative: Recognizing the potential and dynamism of small and medium enterprises (SMEs), the MSX has unveiled the Promising Companies Initiative – a platform that revolutionize the listing process, offering SMEs more flexible terms. By facilitating financing and nurturing the expansion of these enterprises, the bourse aims to enhance their contribution to the nation's gross domestic product.
• Tripartite Governance Initiative: This measure champions responsible investment through the Tripartite Governance Initiative. By meticulously evaluating investments based on their environmental, social, and financial impact, this initiative ensures that companies align with sustainable practices.
• Liquidity Fund: This is a vital instrument designed to fortify liquidity and enable efficient cash management. This tool fosters stability and equips market participants with the means to navigate challenging financial landscapes.
A number of ground-breaking measures announced recently by Muscat Stock Exchange (MSX) have the potential to ignite the growth of the capital market in the Sultanate of Oman, notably by fortifying the bourse’s positioning as a thriving hub for investment.
The Observer looks at the six initiatives unveiled last week by the MSX with the support of the National Program for Financial Sustainability and Financial Sector Development:
• Market-making initiative paves the way for dynamic growth: At the forefront of this strategic push lies the Market Making Initiative, a game-changing manoeuver that guarantees a seamless and active trading environment. By facilitating continuous buy and sell orders for listed securities throughout the trading session, this initiative has far-reaching objectives. Foremost among them is the provision of ample liquidity, allowing securities to flow freely and ensuring investors have a stable foundation for their transactions. Additionally, the Market Making Initiative seeks to strike a balance between the supply and demand of securities, while responding to any unwarranted fluctuations in stock prices.
• Securities Lending and Borrowing Initiative: This initiative opens new avenues for investors and heralds the growth of diversified financial instruments. It seeks to bolster liquidity, enhance market efficiency, and reduce stock market volatility. Investors can now explore a broader spectrum of opportunities based on a seamless access to an array of securities listed on the exchange.
• Pooled Trading Accounts Initiative: Essentially an inclusive framework, it is designed to facilitate seamless management and trading of securities for multiple investors. By consolidating accounts under a single investor number, this initiative streamlines operations and adheres to global requirements for emerging market status. Moreover, it lays the foundation for establishing connections with international depository centers.
• Promising Companies Initiative: Recognizing the potential and dynamism of small and medium enterprises (SMEs), the MSX has unveiled the Promising Companies Initiative – a platform that revolutionize the listing process, offering SMEs more flexible terms. By facilitating financing and nurturing the expansion of these enterprises, the bourse aims to enhance their contribution to the nation's gross domestic product.
• Tripartite Governance Initiative: This measure champions responsible investment through the Tripartite Governance Initiative. By meticulously evaluating investments based on their environmental, social, and financial impact, this initiative ensures that companies align with sustainable practices.
• Liquidity Fund: This is a vital instrument designed to fortify liquidity and enable efficient cash management. This tool fosters stability and equips market participants with the means to navigate challenging financial landscapes.