Supermarket major Union Coop has appointed xCube to provide market maker service on its shares, the company announced, ahead of its planned listing on the Dubai Financial Market.
The market maker service provider will ensure bid and offer prices on the shares, determine volumes required for buying and selling, and find the balance of share price, the company said.
Union Coop, which operates 23 branches, earlier announced its intention to float on the Dubai bourse, which will make it the first consumer cooperative in the UAE to do so. The company will list on July 18.
Early in the year, Dubai launched xCube to organise and facilitate the activities of market maker companies in the DFM – as part of the Dubai Securities and Exchange Higher Committee strategy aimed at raising the stock market value to AED3 trillion.
Market makers are firms which actively quote two-sided markets in a particular security, providing bids and offers along with the market size of each. They provide liquidity and depth to markets and profit from the difference in the bid-ask spread.
xCube plans to develop and adopt algorithms and technology to perform market making activities and high frequency trading on both cash equities and derivatives listed on local markets.
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