Arab Finance: EFG Hermes UAE, a unit of EFG Holding, has officially launched its Market Making and Liquidity Provision services on the Abu Dhabi Securities Exchange (ADX) to boost trading efficiency, according to a press release.
This aligns with the group’s broader strategy to back the growth and development of capital markets across the region. Leveraging its brokerage platform, market access, research capabilities, and execution services, EFG Hermes UAE seeks to connect companies with investors and contribute to more efficient capital markets.
Through the new services, EFG Hermes UAE will place buy and sell orders in selected ADX-listed securities in accordance with exchange rules and regulatory requirements. The initiative aims to improve price availability, support trading activity, and make it easier for investors to buy and sell shares.
Market making plays a vital role in well-functioning capital markets by securing more consistent buying and selling interest in securities. This can help reduce the bid-ask spread between the price at which investors are willing to buy and the price at which others are willing to sell, potentially lowering transaction costs and supporting more transparent pricing.
Additionally, liquidity provision supports listed companies by helping their shares trade more regularly after listing. For companies, better liquidity can improve visibility among investors and make their shares more accessible to a wider base of local, regional, and international institutions. For investors, a more liquid market can provide greater confidence when entering or exiting positions.
Saker Asllan, Chief Exchange Operations Officer of ADX, said: “We welcome EFG Hermes UAE to ADX’s market maker network. Market makers play an important role in supporting liquidity, improving trading activity, and helping investors access listed securities more efficiently.”
Ahmed Waly, Global Head of Brokerage at EFG Hermes, commented on the launch: “Through these services, we aim to help strengthen trading activity, enhance market access for investors, and provide listed companies with continued support beyond the listing stage. Our role is to contribute to a more efficient and liquid market while supporting ADX’s ongoing efforts to advance Abu Dhabi’s capital market ecosystem.”
In September, EFG Hermes UAE LLC introduced digital onboarding for Dubai Financial Market (DFM) investors through its EFG Hermes ONE app.
