Dubai – Mubasher: Al Ramz Capital has been appointed as a liquidity provider (LP) for Union Properties’ (UP) shares after obtaining approvals from the Dubai Financial Market (DFM) and signing the agreement in June 2017.

Al Ramz Capital was appointed to enhance the liquidity of the underlying shares and to grow the number of transactions.

“The liquidity provider is independent of the company and [has] complete autonomy over the trading,” Al Ramz Capital, a subsidiary of Al Ramz Corporation Investments and Developments, said in a filing to the DFM.

“The LP will transact within pre-defined parameters” which have been agreed upon with UP, and will be responsible for maintaining a tight spread between bids and offers that will provide investors with optimal entry and exit price levels to enhance their portfolio management, according to the statement.

Under the agreement, UP will enjoy an increase in price stability, lower trading costs and offer spread, in addition to the possibility of increasing valuation metrics.

“We are pleased to collaborate with Al Ramz Capital as a liquidity provider to the company’s stock and we are very confident that this cooperation will help to enhance the optimal liquidity level of the company's shares and increasing the frequency of transactions,” UP general manager Ahmad Al Marri said.

Meanwhile, head of market making and liquidity provision at Al Ramz Corporation Galen Moore said that by appointing Al Ramz as an LP, UP highlights its commitment to its investors “to ensure consistent and transparent pricing at all times.”

Moore revealed that his company has also appointed a new client to its portfolio but did not unveil the name of that client, noting that further details will be announced in the coming weeks.