The Qatar Exchange, which has witnessed a more than 93-fold jump in total stocks trading volume in 15 years, is gearing up to introduce exchange traded funds (ETFs) and establish a central counterparty (CCP), which will enable trading in multi currencies.
“We are looking forward to projects that we will strive to accomplish on the short and long run. The introduction of new investment instruments, such as the ETFs, is expected in the foreseeable future,” QE chief executive Andre Went told a meeting to celebrate the QE’s 15th anniversary in Doha on Sunday.
The first phase, which is currently under way, is dedicated to the reform of the cash market. The objective is to enhance the liquidity in the market by introducing the concept of liquidity providers and lending and borrowing of shares. The strategy in this phase also includes the launch of ETFs; while treasury bills have already been launched. Bonds and sukuks are also being planned.
“A more liquid cash market is a fundamental pre-requisite for a derivatives market, which will be launched in a later phase of the strategy. This phase will also see the introduction of a CCP,” he said.
It is understood that once the CCP is established, there could be expansion in the portfolio and trading, which is now in riyals, extending it to multi currencies.
Noting that the average daily QE trading volume is currently at QR300mn, Went said, “We’re the second largest exchange in the region according to some measures and for the last two years we’ve been the best performing exchange in the region. The evolution in the last 15 years has proven that the investment opportunities at the Qatar Exchange have become deeply rooted in the Qatari economy,” he said.
Highlighting that the QE index had touched an all-time high of 12,892 in September 2005 and highest daily turnover of QR2.7bn in June 2008, he said figures of which today “we can only dream”.
“Whereas current market conditions remain difficult for the exchange, for brokers and for investors, we are now creating the environment for future growth and progress by investing in our people and he infrastructure of the market,” he said.
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