QSE Announces Implementation of New Amendments to Liquidity Provider Activity

Qatar Stock Exchange (QSE) announced the start of implementing the new amendments and standards in the standardized and approved contracts for the liquidity provider activity, starting Sunday. In a statement, QSE said: "On the occasion of the commencement of the new amendments to the Liquidity Provider (LP) Scheme, particularly concerning the performance evaluation criteria for liquidity providers, QSE announces the inclusion of all these amendments and new criteria in the standardized and approved contracts for this activity, effective from today, Sunday, September 1, 2024." These criteria will be reviewed on a semi-annual basis to ensure their alignment with international best practices and market needs. These amendments are part of a package of incentives offered by Qatar Stock Exchange to develop the liquidity provider activity in the Qatari market, contributing to increased liquidity and trading, attracting more investors, and enhancing the competitiveness of the Qatari market. This development is par t of the ongoing efforts of the Qatar Financial Markets Authority (QFMA) and QSE to improve market efficiency and increase its appeal to both local and international investors, thereby contributing to the sustainable growth of the Qatari market. The introduction of the revised Liquidity Provider scheme is set to significantly lower liquidity costs and provide more depth in the order book, ensuring a more efficient, stable, and transparent trading environment. A liquidity provider is a licensed financial services company authorized to engage in liquidity provision activities, which enhance the liquidity of listed securities by continuously offering buy or sell prices for a specific security, in accordance with the terms and conditions outlined in the agreement between the liquidity provider and the listed company. As part of the aforementioned incentive package, the QFMA recently introduced regulations for dividend distribution for listed joint-stock companies, allowing them to distribute interim dividends. In light of this step, some listed companies distributed semi-annual dividends in 2024. This important step enhances the attractiveness of the Qatari market by providing shareholders with more frequent returns on their investments, thereby increasing investor confidence and boosting trading activity in the market. Interim dividends provide a steady return on investment before the companys final year-end dividend, offering investors regular income and a more predictable cash flow. This approach not only boosts investor confidence but also encourages long-term commitment to the market, fostering greater market participation and liquidity. QSE is continuously working on developing investment tools by launching various initiatives that align with market needs and international best practices. As part of its strategy, the exchange is committed to enhancing market efficiency, transparency, accessibility, and ensuring a better trading experience for all market participants Source: Qatar News Agency