The Qatar Exchange has launched sponsored access and will offer members the ability to become liquidity providers in its most traded stocks.
The exchange announced this week that its members can offer sponsored access – the ability for firms to directly access the market through an exchange’s member’s infrastructure – for domestic and international firms, subject to regulatory controls. The rules include the need for a sponsoring member to take responsibility for all business executed by clients from trade execution through to settlement.
The venue will also begin the process of selecting liquidity providers in constituents of QE 20 index. To be considered, firms must comply with Qatar Financial Markets Authority’s liquidity provider rules in addition to Qatar Exchange rules. These includes an obligation to provide two-sided markets for a minimum period each day, in accordance with agreed spreads and trade sizes. Liquidity providers will also be rewarded with trading fee rebates.