The Qatar Stock Exchange (QSE) has started initiatives to help brokers reduce their IT operational, licensing and maintenance costs, a move that could drastically improve the bottom lines of the brokerage houses.
This was disclosed by QSE chief executive officer Rashid bin Ali al-Mansoori at a private dinner meeting where the brokers highlighted the high cost incurred by them and the relatively low return on investments.
The QSE has taken initiatives to help brokers reduce IT operational costs through hosting brokers’ network systems at the QSE as a back end in order to reduce licensing and maintenance costs paid by brokerage firms, al-Mansoori said.
At the working dinner meeting with brokerage firms, the managers and representatives exchanged views on market developments, challenges facing the brokerage firms and the means to reduce their costs, as well as the methods to develop the market and brokerage business through expansion of investors-oriented services, such as liquidity provision, margin trading, research activities and market sponsored access.
Stressing that the listing of new companies in the stock market enhances liquidity, trading activity and investor confidence in the market; the attendees said those are vital in deepening the market and attracting more capital and investors, especially in view of the fact that the bourse is the mirror of all economic sectors such as hydrocarbon, industrial, financial, transportation and tourism sectors.
The brokerage houses touched upon the importance of diversifying through exchange-traded funds and corporate bonds to provide more investment solutions in order to suit investors’ needs.
Highlighting the importance of creativity and innovation in the Qatari capital market as a means to achieve economic diversification; al-Mansoori said “the fear of innovation and new initiatives will not go ahead with the stock exchange, but will be a factor of rigidity that will lead to lack of competitiveness with developed markets.”