The Gulf Investment Group (GIG), a domestic brokerage firm, yesterday launched a demo trading account for the shares listed on the Qatar Stock Exchange (QSE).
The inauguration, held in the premises of the QSE, was attended by Sheikh Saud bin Abdullah Mohamed Jabor al-Thani, GIG chairman; and Nasser Ahmed al-Shaibi, Qatar Financial Markets Authority (QFMA) chief executive.
The programme provides training and simulation experience on the real trading environment on the stock exchange by allowing potential investors to open a demo trading account on the website and trade (buy/sell) without using the real money.
During the inauguration, Rashid bin Ali al-Mansoori, the QSE chief executive, praised the initiative and called upon all member brokerage firms to take advantage of the new mechanisms introduced in the market such as the liquidity provision and margin trading.
“These services and mechanisms are very helpful to the investors, the brokers and the listed companies, and can significantly contribute to boost liquidity in the market,” he said.
At present, the QFMA has granted licence to the Group Securities and Commercial Bank Investment Services as liquidity providers, which would enable the financial service firms to submit constant quotes for the sale or purchase of a particular security to increase its liquidity as per the controls and conditions set forth in the liquidity provision agreement.
Margin trading was introduced last year to stimulate trading volumes and liquidity as well as extend new financing sources for investors.
The Group Securities, one of the 11 stock intermediaries, has been allowed to execute margin trading on the QSE after completing the preparations necessary to put the decision into practice in collaboration with the Qatar Central Securities Depository.
Through margin trading, which will be applicable only for 20 stocks in the main index, a financial services company funds a percentage of the securities’ market value purchased for its client, pursuant to the agreement governing the relation between them. Highlighting the importance of the pilot demo project, Sheikh Saud thanked both QFMA and the QSE for their support.
Stressing on the importance of providing creative services to investors, al-Shaibi said there was a need to focus on potential investors to promote investment culture and broaden the investor base in the market.
Al-Mansoori addressing the gathering at the launch of demo trading account by GIG in Doha yesterday.
