EFG Hermes UAE LLC, licensed by the Securities and Market Authority of the United Arab Emirates and a subsidiary of EFG Hermes, the leading investment bank in the Middle East and North Africa, announced today the official launch of market making and liquidity provision services on the Abu Dhabi Securities Exchange (ADX).
This step comes as part of the company's ongoing commitment to developing the brokerage services ecosystem in the UAE and the region, supporting the efficiency of financial markets by enhancing liquidity levels, stimulating trading activity, and improving securities pricing mechanisms. Through these services, EFG Hermes UAE will introduce buy and sell orders for a number of securities listed on the Abu Dhabi Securities Exchange, in accordance with the rules in force in the market and relevant regulatory requirements, thereby contributing to enhancing price availability and facilitating the execution of trades for investors.
Market making is considered one of the key pillars of developed financial markets, as the market maker contributes to providing continuous buy and sell orders on the security, which helps narrow the bid-ask spread, reduce trading costs for investors, and support higher levels of transparency and pricing efficiency.
Liquidity provision services also play an important role in supporting listed companies by enhancing the regularity of trading in their shares post-listing, which contributes to increasing their visibility among investors and expanding the base of potential shareholders from local, regional, and international institutions. As for investors, high liquidity levels enhance confidence and the ability to enter or exit investment positions with greater efficiency.
The launch of these services comes at a time when the capital market in Abu Dhabi continues to achieve remarkable growth, supported by an increase in the number of listings, an expanding investor base, and rising interest from global institutional investors in the market. By expanding the scope of its services on the Abu Dhabi Securities Exchange, EFG Hermes UAE aims to support the efforts to develop financial markets in the UAE and contribute to building a more active, deep, and accessible trading environment.
Saqr Aslan, Head of Market Operations at the Abu Dhabi Securities Exchange, stated: “We welcome the joining of EFG Hermes UAE to the network of market makers on the Abu Dhabi Securities Exchange. Market makers play an important role in supporting liquidity, enhancing trading activity, and facilitating investors' access to listed securities with greater efficiency. We look forward to the active support from EFG Hermes UAE in deepening the Abu Dhabi Securities Exchange and empowering more investors to achieve their investment ambitions and goals.”
For his part, Ahmed Waly, Head of Securities Brokerage at EFG Hermes, said: “The launch of market making and liquidity provision services on the Abu Dhabi Securities Exchange represents an important step within our efforts to expand the scope of brokerage services in the UAE and support one of the most dynamic and developed capital markets in the region. Through these services, we seek to contribute to enhancing trading activity, facilitating investor access to the market, and providing continuous support to listed companies that extends beyond the listing phase. Our role is to support the building of a more efficient and liquid market, in parallel with the continuous efforts of the Abu Dhabi Securities Exchange to develop the capital market ecosystem in Abu Dhabi.”
Amr El-Shamy, Head of Electronic Trading and Execution Services at EFG Hermes, added: “Market making and liquidity provision services require an advanced technological infrastructure, a robust risk management framework, and the ability to provide buy and sell orders on a regular basis during trading hours. Our electronic trading platform has been developed to support the efficient execution of operations on the Abu Dhabi Securities Exchange and contribute to improving the trading experience for both institutional and retail investors.”
Raymond Wassef, Head of Market Making and Liquidity Provision at EFG Hermes, stated: “Good liquidity positively reflects on all market participants. It helps listed companies maintain the trading activity of their shares post-listing, and grants investors greater confidence in their ability to buy or sell when needed. Our role on the Abu Dhabi Securities Exchange is to provide a continuous presence on both sides of the market, contributing to supporting trading stability and providing better execution opportunities for investors.”
The launch of market making and liquidity provision services by EFG Hermes UAE on the Abu Dhabi Securities Exchange comes within the company's broader strategy aimed at supporting the growth and development of capital markets in the region. Through its integrated brokerage platform, market access capabilities, research capacities, and advanced execution services, EFG Hermes continues to play an active role in connecting companies with investors and contributing to the development of more efficient and deep financial markets.
EFG Holding (EGX: HRHO.CA – LSE: EFGD) has a direct presence in 6 countries across two continents. Having originated in the Egyptian market, the company has expanded over more than four decades of continuous achievement. Its three business lines—the investment bank (EFG Hermes), the non-banking finance platform (EFG Finance), and the commercial bank (NXT Bank)—have contributed to solidifying the group's unique leading position and enhancing its ability to launch further financial products and services, thereby contributing to providing a comprehensive suite of services to meet the needs of its retail and corporate clients of all sizes and reaching new clients.
