EFG Hermes UAE LLC, part of the Cairo-based investment bank EFG Hermes, has announced the initiation of market making and liquidity provision services on the Dubai Financial Market (DFM). This strategic move aims to enhance trading conditions and improve overall market efficiency.
Enhancing Market Liquidity
The newly launched services are geared towards providing continuous two-way quotations for securities listed on the DFM. This initiative is intended to deepen the order book, narrow the bid-ask spreads, and create more transparent price discovery throughout the exchange. By implementing these services, EFG Hermes aims to bolster the trading ecosystem in Dubai, making it an even more attractive destination for investors.
Khalifa Rabba, Chief Operating Officer of the Dubai Financial Market, expressed enthusiasm about the addition of EFG Hermes as a market maker. He emphasized that the firm’s involvement signifies the ongoing evolution of the market and the integral role of institutional liquidity in promoting efficient trading. By supporting continuous pricing for DFM-listed securities, EFG Hermes is not only enhancing liquidity but also improving execution quality—further solidifying Dubai’s status as a leading capital markets hub.
Strategic Expansion of Capital Markets Operations
Regulated by the Capital Market Authority (CMA) in the United Arab Emirates, EFG Hermes UAE’s latest initiative extends its existing suite of capital markets services. This includes offerings in securities brokerage, research, corporate access, and investment banking. Ahmed Waly, Global Head of Brokerage at EFG Hermes, highlighted that the core mission remains to enhance execution quality and market efficiency for both regional and international clients. He views the launch of market making and liquidity provision services as a critical step in evolving the firm’s platform.
The firm combines advanced execution technology with a strong regional presence to enhance market depth and efficiency. This comprehensive approach not only supports price discovery but also strengthens the UAE’s position on the global capital markets landscape.
State-of-the-Art Electronic Trading Infrastructure
Amr ElShamy, Head of Electronic Trading and Execution Services at EFG Hermes, emphasized the importance of reliable electronic trading infrastructure in achieving the speed and efficiency required for two-sided pricing. This infrastructure is crucial for catering to both institutional and retail clients. By adopting a technology-focused strategy, EFG Hermes aims to deliver a seamless trading experience.
Raymond Wasef, Head of Market Making & Liquidity Provision, noted that the launch of these services complements EFG Hermes’s broader brokerage and investment banking capabilities. By leveraging the firm’s global reach and extensive service offerings, they aim to create a robust link between UAE markets and international investors, bolstering liquidity, enhancing market depth, and facilitating efficient price discovery.
EFG Hermes’s Broader Financial Ecosystem
EFG Hermes UAE operates under the umbrella of EFG Holding, an Egyptian financial institution with diverse operations across three primary business lines. These include EFG Hermes itself, the non-bank financial institution platform EFG Finance, and the commercial lender Bank NXT. This multifaceted business structure enables EFG Hermes to provide a wide array of financial services, making it one of the leading financial institutions in the region.
Through its innovative approach and commitment to market efficiency, EFG Hermes is poised to make significant contributions to the development of the capital markets in Dubai and the broader UAE region.