Morgan Stanley Saudi Arabia has received approval to serve as a market maker for 52 companies on the Saudi stock exchange. This role, starting July 1, will span both the main and parallel markets.
As a market maker, Morgan Stanley will help maintain liquidity by consistently placing buy and sell orders for selected securities. The firm must meet specific requirements set by Tadawul, such as limits on price spreads, minimum order sizes, and regular market presence.
For major companies like Riyad Bank and Saudi Awwal Bank, Morgan Stanley will ensure at least 80% order presence, a minimum order size of SR250,000, and a maximum spread of 0.65%. Similar standards apply to firms like Saudi Arabian Mining Co., Astra Industrial Group, and others. Some companies, including ACWA Power and Saudi Electricity Co., will have slightly lower minimum order sizes but the same maximum spread.
On the parallel market, known as Nomu, the firm will maintain at least 50% order presence, with minimum order sizes of SR50,000 and a maximum spread of 5% for various companies.
This expansion is expected to enhance liquidity and efficiency in the Saudi capital market. Morgan Stanley previously held a market-making role for a smaller number of securities and has been active in the Kingdom since 2007, establishing its regional headquarters in Riyadh to benefit from government incentives.