HE Abdullah Salim Al Salmi, Executive President of the Capital Market Authority said market maker activity is available, however no one applied for the business so far citing weak liquidity and limited number of active securities available for trading.

He told Oman daily, in response to demands by analysts and brokers in MSM to activate the role of investment funds to play the role of market makers, that such funds were established for specific objects and purposes provided for in their prospectuses and their articles of association and have nothing to do with the role of market maker, however, he emphasized the importance of such funds in stimulating the movement, creating liquidity and stabilization of the market.

Analysts and brokers have earlier stressed to Oman that investment funds can play a role in MSM and act as market makers through certain procedures such as developing the laws and regulations in line with international and regional standards to pave the way, not only for local funds, but also for international funds to invest in the market in a flexible and transparent environment, and through easing investment processes.

They requested to diversify the types and objects of the funds to target the shares of specific sectors of importance to the local economy which would boost the companies in such sectors and enhance investors’ confidence further to supporting the funds through direct participation and upgrading their investment capacities to increase their participation in the market.

HE the Executive President of CMA said there are 15 funds with a total capital of RO 244 million with various forms and objectives. They achieved good performance last year as their net profits soared by 359% compared to 2012 with a net profit of RO 43 million compared to RO 9.4 million in 2012.

Total assets increased by RO 58.2 million at 30.6% compared to 20112. Total assets last year  were RO 244 million compared to RO 190 million in 2012.

He added market making activity is different from investment funds in that they hold a certain number of listed securities  in order to facilitate trading in the security quoting bid and offer prices. They are similar to the foreign exchanges who quote buy and sell prices. Determining the prices depends on the analysis of the market maker.

HE the Executive President reiterated that the activity of market maker is available for interested parties, however, no application is made so far. He attributed the same to the scarcity of liquidity and lack of securities available for trading which is unfavoruable condition for the market maker who needs to easily buy and sell securities without significant changes in prices.