MSX’s New Securities List for Market Making: What Investors and Entrepreneurs Need to Know
MUSCAT: The Muscat Stock Exchange (MSX) has released its updated annual list of securities eligible for market making activities. This list specifies the securities on which continuous buy and sell orders will be maintained to enhance liquidity, boost trading efficiency, and narrow bid-ask spreads.
The current list marks a significant increase in eligible securities, rising from 13 last year to 22 this year. This expansion reflects improved liquidity, greater trading activity, and a wider range of securities meeting the regulatory and technical criteria for market making.
The eligible securities span several sectors: 11 companies from the Services sector, 9 from the Financial sector, one from the Industrial sector, and one investment fund. This broader sectoral representation supports enhanced market depth and more balanced trading activity.
Market making plays a vital role in capital market efficiency. Market makers maintain continuous buy and sell orders for designated securities, thereby improving liquidity, facilitating accurate price discovery, ensuring orderly trading, and reducing unwarranted price volatility. This function also improves the market’s capacity to absorb investor orders and execute trades effectively, especially for securities needing additional liquidity support.
Over the past year, market making at MSX has seen considerable progress, with ten liquidity provision agreements signed with listed companies. These agreements are part of ongoing initiatives to deepen trading activity and raise liquidity across eligible securities. Furthermore, six licensed and registered companies are now authorized to manage market making activities. This growth signals rising institutional interest and reinforces the market’s operational structure and efficiency, aligning with international best practices.
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The expansion of market making eligibility on the Muscat Stock Exchange from 13 to 22 securities, spanning multiple sectors, signals a maturing market with improved liquidity and trading efficiency. For businesses, this creates an opportunity to attract more investor interest and capital through enhanced market confidence, while smart investors should consider the growing sectoral diversification as a sign of reduced volatility and better price discovery. Entrepreneurs and institutional players must now focus on leveraging this improved market infrastructure to optimize fundraising and portfolio management strategies.
