The chief executive of the Qatar Stock Exchange has said it plans to introduce margin trading and securities lending for institutional investors in a bid to boost liquidity.
“Currently securities lending and borrowing is allowed only for delivery verses payment (DVP) processing and liquidity provision,” says Rashid Bin Ali Al Mansoori, CEO, Qatar Stock Exchange. “We are working with the regulators to further expand availability to professional investors allowing them to gain additional income through lending their shares.”
In order to do so, it is in talks with index compiler FTSE to upgrade the country’s status, which still classifies Qatar as a frontier market.
Margin trading involves borrowing money to buy stocks, which increases the size of bets an investor can make.
“This will also improve market liquidity,” Mansoori added. However he did not specify when the reforms might take place.
Qatar Exchange To Expand into Securities Lending
The chief executive of the Qatar Stock Exchange has said it plans to introduce margin trading and securities lending for institutional investors in a bid to boost liquidity.