HSBC, Saudi Fransi enter ETF deal
Riyadh, May 8, 2012
HSBC Saudi Arabia and Saudi Fransi Capital have entered into an agreement whereby both the companies will act as market makers for the HSBC Amanah Saudi 20 exchange-traded fund (ETF).
The signing ceremony was held between Walid Khoury, CEO HSBC Saudi Arabia, and Yasir Al Rumayyan, CEO Saudi Fransi Capital with representative from both sides.
ETFs are gaining popularity globally as a simple investment instrument that allows investors to obtain exposure to equity markets, said a statement.
HSBC Saudi Arabia launched its HSBC Amanah Saudi 20 ETF, listed on Tadawul, in November 2011.
Khoury said: "HSBC is very pleased with the agreement made with the Saudi Fransi as an additional market maker for its ETF, considering its expertise in financial markets. The addition of a market maker will help increase liquidity and will bring a more competitive bid offer spreads for HSBC Amanah Saudi 20 ETF, which is not only important for the fund but will also help promote the growth of ETFs as a product in the Kingdom." – TradeArabia News Service