QSE announces implementation of new amendments to Liquidity Provider activity

Doha: On the occasion of the commencement of the new amendments to the Liquidity Provider (LP) Scheme, particularly concerning the performance evaluat...

Doha: 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, Qatar Stock Exchange (QSE) announces the inclusion of all these amendments and new criteria in the standardised and approved contracts for this activity, effective from yesterday, September 1, 2024.

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 part of the ongoing efforts of the Qatar Financial Markets Authority and Qatar Stock Exchange to improve market efficiency and increase its appeal to both local and international investors, thereby contributing to the sustainable growth of the Qatari market.

It is worth noting that 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.

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.

As part of the aforementioned incentive package, the Qatar Financial Markets Authority 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.