QSE launches initiative to enhance market liquidity

QSE launches initiative to enhance market liquidity

Qatar Stock Exchange (QSE) has launched Covered Short Selling and Securities Lending & Borrowing activities in the market.

This move comes as part of the initiatives aimed at developing market mechanisms and enhancing liquidity, and through fruitful cooperation between the Qatar Financial Markets Authority (QFMA), Qatar Stock Exchange (QSE), and the Qatar Depository Company (Edaa).

Under the regulatory framework, Covered Short Selling operations will be subject to the Covered Short Selling Rules issued by the QFMA under Board Resolution No. (5) of 2022.

Covered Short Selling will be allowed solely for market makers, liquidity providers, and qualified investors, including members, and any other cases approved by the QFMA. Meanwhile, Securities Lending & Borrowing transactions will be executed in the post-trading system of the Edaa by its members or custodians licensed by the QFMA to conduct this activity under the designation “Securities Lending & Borrowing Agents.”

Mr. Abdulaziz Nasser Al Emadi, the Acting CEO of the Qatar Stock Exchange, highlighted the significance of launching this initiative and its role in enhancing market liquidity and introducing new investment tools that will offer investors improved options for optimal investment in the market. Such initiatives are essential for launching the derivatives market and adopting tradable investment instruments.

Mr. Al