Riyadh – Mubasher: The Saudi Exchange (Tadawul) approved an application from Morgan Stanley Saudi Arabia to commence market-making activities for Hamad Mohammed Bin Saedan Real Estate Company on the Parallel Market (Nomu) on 17 June.
The commencement of these activities marks a strategic effort to enhance the liquidity and trading efficiency of the real estate firm’s shares within the kingdom’s secondary equity tier.
The approval granted to Morgan Stanley Saudi Arabia follows a comprehensive application process and aligns with the established market-making regulations and market-making procedures set forth by Tadawul.
As a designated market maker for Hamad Mohammed Bin Saedan Real Estate, which trades under the ticker symbol 9648, Morgan Stanley Saudi Arabia will be responsible for maintaining specific liquidity standards to facilitate a more orderly and efficient trading environment.
The regulatory framework for this mandate includes several key performance obligations that the firm must satisfy. Morgan Stanley Saudi Arabia is required to maintain a minimum presence of orders for at least 50% of the trading session.
This presence ensures that buy and sell quotes are consistently available to market participants, reducing the likelihood of significant price gaps during periods of low organic activity. This requirement is particularly significant for the Nomu , which often features securities with lower daily turnover than those listed on the Main Market.
Furthermore, the market maker must adhere to a minimum order size of 50,000. This requirement is intended to provide sufficient depth to the order book, allowing for larger transactions to be executed with minimal price impact.
The maximum spread allowed for these activities is capped at 5%. By limiting the spread, the exchange ensures that the cost of entering or exiting a position remains within a defined range, thereby encouraging greater participation and confidence in the security.
Tadawul noted that there is currently no minimum value traded requirement associated with this specific market-making mandate.
By operating within these parameters, Morgan Stanley Saudi Arabia aims to support the stability of the security’s performance on the Nomu market.
Nomu serves as an alternative equity platform for small and medium-sized enterprises and is restricted to qualified investors who are equipped to navigate the different risk profiles associated with these listings.
The participation of a major international financial institution like Morgan Stanley in market-making activities on the Nomu market reflects the ongoing development and internationalization of the Saudi financial ecosystem.
Such arrangements are vital for secondary markets, where liquidity provision helps to bridge the gap between buyers and sellers, ensuring that the market remains functional even during periods of lower trading volume.
In March 2025, the Capital Market Authority (CMA) approved the company’s request to list 4.23 million shares, equivalent to 15% of its total shares.
