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Merrill Lynch Appointed as Market Maker for 20 Securities on Saudi Exchange
Approval aims to enhance liquidity and efficiency in Saudi capital markets.
The Saudi Exchange has granted approval to Merrill Lynch Kingdom of Saudi Arabia to act as a market maker for 20 listed securities across its primary trading platform as well as the parallel market.
This approval is anticipated to increase market liquidity and enhance price efficiency in line with the applicable regulations and procedures.
Merrill Lynch's market-making role is expected to stimulate trading activity and contribute to the development of Saudi Arabia’s capital markets, which have been focused on attracting global financial institutions and enhancing overall market transparency, efficiency, and investor confidence.
The Saudi Exchange has introduced several initiatives recently, including the Fixed Income Market Making Framework, aimed at strengthening market liquidity and operational efficiency, thereby appealing to domestic and international investors.
Merrill Lynch will act as a market maker for Naseej International Trading Co., ensuring a minimum order presence of 70 percent, maintaining a minimum order size of SR75,000 (approximately $19,995), enforcing a maximum spread of 0.75 percent, and ensuring a minimum traded value of 5 percent.
Similarly structured obligations apply for the National Co. for Glass Industries.
The National Co. for Learning and Education will also be subject to a minimum order presence of 70 percent, a minimum size of SR50,000, a maximum spread of 0.75 percent, and a minimum traded value of 5 percent.
Al Hassan Ghazi Ibrahim Shaker Co. will operate under identical conditions as Naseej International and the National Co. for Glass Industries.
Sustained Infrastructure Holding Co. and Theeb Rent a Car Co. will similarly adhere to the requirements of a 70 percent order presence, a minimum size of SR75,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent.
Saudia Dairy and Foodstuff Co. will feature a slightly more stringent order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent.
Dallah Healthcare Co. will also follow the conditions set for Naseej International Trading Co., while Gulf Insurance Group will have a minimum order presence of 60 percent, a minimum size of SR50,000, a maximum spread of 1 percent, and a minimum traded value of 5 percent.
Aldawaa Medical Services Co. will have an order presence requirement of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum traded value of 5 percent.
Tourism Enterprise Co. will maintain a minimum order presence of 50 percent, with a minimum size of SR250,000, a maximum spread of 3 percent, and no specified minimum traded value.
In the Nomu market, Merrill Lynch Kingdom of Saudi Arabia has been approved as a market maker for various companies, including Atlas Elevators General Trading and Contracting Co., Riyadh Steel Co., Sure Global Tech Co., and Ladun Investment Co. The firm will also provide market-making services for MOBI Industry Co., Molan Steel Co., Fesh Fash Snack Food Production, Yaqeen Capital Co., and Lana Medical Co. Each of these securities will require a minimum order presence of 50 percent, a maintained minimum size of SR50,000, and adherence to a maximum spread of 5 percent, with no specified minimum value traded requirement.
This approval is anticipated to increase market liquidity and enhance price efficiency in line with the applicable regulations and procedures.
Merrill Lynch's market-making role is expected to stimulate trading activity and contribute to the development of Saudi Arabia’s capital markets, which have been focused on attracting global financial institutions and enhancing overall market transparency, efficiency, and investor confidence.
The Saudi Exchange has introduced several initiatives recently, including the Fixed Income Market Making Framework, aimed at strengthening market liquidity and operational efficiency, thereby appealing to domestic and international investors.
Merrill Lynch will act as a market maker for Naseej International Trading Co., ensuring a minimum order presence of 70 percent, maintaining a minimum order size of SR75,000 (approximately $19,995), enforcing a maximum spread of 0.75 percent, and ensuring a minimum traded value of 5 percent.
Similarly structured obligations apply for the National Co. for Glass Industries.
The National Co. for Learning and Education will also be subject to a minimum order presence of 70 percent, a minimum size of SR50,000, a maximum spread of 0.75 percent, and a minimum traded value of 5 percent.
Al Hassan Ghazi Ibrahim Shaker Co. will operate under identical conditions as Naseej International and the National Co. for Glass Industries.
Sustained Infrastructure Holding Co. and Theeb Rent a Car Co. will similarly adhere to the requirements of a 70 percent order presence, a minimum size of SR75,000, a maximum spread of 0.75 percent, and a minimum value traded of 5 percent.
Saudia Dairy and Foodstuff Co. will feature a slightly more stringent order presence of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent.
Dallah Healthcare Co. will also follow the conditions set for Naseej International Trading Co., while Gulf Insurance Group will have a minimum order presence of 60 percent, a minimum size of SR50,000, a maximum spread of 1 percent, and a minimum traded value of 5 percent.
Aldawaa Medical Services Co. will have an order presence requirement of 80 percent, a minimum size of SR75,000, a maximum spread of 0.65 percent, and a minimum traded value of 5 percent.
Tourism Enterprise Co. will maintain a minimum order presence of 50 percent, with a minimum size of SR250,000, a maximum spread of 3 percent, and no specified minimum traded value.
In the Nomu market, Merrill Lynch Kingdom of Saudi Arabia has been approved as a market maker for various companies, including Atlas Elevators General Trading and Contracting Co., Riyadh Steel Co., Sure Global Tech Co., and Ladun Investment Co. The firm will also provide market-making services for MOBI Industry Co., Molan Steel Co., Fesh Fash Snack Food Production, Yaqeen Capital Co., and Lana Medical Co. Each of these securities will require a minimum order presence of 50 percent, a maintained minimum size of SR50,000, and adherence to a maximum spread of 5 percent, with no specified minimum value traded requirement.
