RIYADH: Morgan Stanley Saudi Arabia has been approved to conduct market-making activities for 52 companies listed on the Kingdom’s stock exchange, according to Tadawul.

The US-based multinational investment banking company’s applications are set to cover securities on the main and parallel markets, commencing on July 1.

Market makers are exchange members responsible for maintaining liquidity in listed securities by continuously posting buy and sell quotes during the market open session. They must adhere to market-making obligations set by Tadawul, which include requirements such as maximum spread, minimum order size, presence time, and daily traded value.

Among the securities listed on the main index, Morgan Stanley Saudi Arabia will act as a market maker for Riyad Bank, where it will ensure a minimum presence of orders at 80 percent, maintain a size of SR250,000 ($66,660), and adhere to a maximum spread of 0.65 percent, with the lowest value traded of 5 percent.

It will also provide services for Saudi Awwal Bank, ensuring a minimum presence of orders of 80 percent, a minimum order size of SR250,000, a maximum spread of 0.65 percent, and a value traded of at least 5 percent.

Saudi Arabian Mining Co., Astra Industrial Group, and Etihad Etisalat Co. are also among the companies where those requirements will be met, along with Al Rajhi Bank, Saudi Arabian Oil Co., and Saudi Telecom Co.

Additionally, a range of firms will be subject to a minimum order presence of 80 percent, a minimum order size of SR150,000, and a maximum bid-ask spread of 0.65 percent, without any minimum value traded requirement. These include ACWA Power Co., Saudi Electricity Co., and Ades Holding Co.

Morgan Stanley Saudi Arabia will also cover several other securities on the main market, ensuring a minimum presence of orders at 50 percent, maintaining a minimum size of SR75,000, and a maximum spread of 2 percent.

On Nomu, the firm is responsible for guaranteeing a minimum presence of orders at 50 percent, maintaining a minimum size of SR50,000, and adhering to a maximum spread of 5 percent, with no minimum value traded requirements for a range of companies, including, Waja Co., Jana Medical Co., and Purity for Information Technology Co.

Morgan Stanley Saudi Arabia’s participation in market making is expected to contribute to greater liquidity and a more efficient trading environment, reinforcing the development of the country’s capital market.

Tadawul approved a similar move for the investment bank in March, where it served as a market maker for eight separate securities listed on both Saudi indices.

Morgan Stanley entered the Saudi market in 2007 and has since set up its regional headquarters in Riyadh in November as part of a program launched by the Kingdom to provide businesses with a range of incentives, such as a 30-year exemption from corporate income tax, withholding tax on headquarters operations, and access to discounts and support services.