Liquidity Provision
Continuous two-sided quoting in selected listed instruments, maintaining a tradeable presence in the order book through the session so investors can enter and exit positions with less friction.
Market Making
Liquidity provision and continuous pricing across selected listed instruments, supporting market efficiency, orderly trading, and execution quality.
What Market Making Is
A market maker stands ready to buy and to sell a listed instrument throughout the trading session, quoting both sides of the order book within agreed limits. That continuous presence narrows the gap between bid and offer, shortens the time an investor waits for a counterparty, and keeps prices moving in an orderly way even when natural buying and selling interest is thin.
For issuers, an active market maker supports visible, tradeable pricing in their listed security. For investors, it means a more dependable route in and out of a position. For the market as a whole, it supports depth, price discovery, and execution quality.
Market making sits within KFH Capital's Asset Management platform, alongside equity and commodity trading, investment funds, and portfolio management, and is delivered within our Shariah governance framework.
Our Market Making Services
Continuous Pricing and Price Discovery
Regular, visible pricing that supports orderly trading and fairer price formation, particularly in instruments where natural buying and selling interest is intermittent.
Issuer Liquidity Support
Working with listed issuers to support tradeability in their securities under a defined mandate, with agreed parameters covering presence, spread, and size.
Execution Quality
Disciplined quoting and risk management aimed at tighter spreads and reliable fills, coordinated with our institutional trading desk and the wider markets and execution platform.
How a Market Making Mandate Works
How is a market making mandate set up?
A mandate begins by agreeing its scope with the issuer or client: the instruments covered, the quoting obligations, and the parameters for presence, spread, and order size. Those terms are documented, reviewed against our risk framework, and approved before quoting begins.
What obligations does a market maker take on?
The market maker commits to being present on both sides of the order book for the agreed instruments during the trading session, within the agreed maximum spread and minimum size. Those commitments are monitored continuously and reported against.
How is the risk of holding inventory managed?
Quoting creates positions, so market making runs inside defined position, exposure, and loss limits set under KFH Capital's risk management framework and overseen through our governance structure, including independent risk and compliance monitoring.
Is market making Shariah-compliant?
Market making at KFH Capital is conducted within our Shariah governance framework, under the oversight of the Fatwa and Sharia'a Supervisory Board, and is limited to instruments and structures that framework permits.
Related Solutions
Institutional Solutions
Our full institutional platform, spanning capital markets, portfolio management, markets and execution, and alternatives.
Portfolio Management
Discretionary and advisory portfolio solutions tailored to each client's objectives, risk profile, and investment horizon.
Debt Capital Markets
Shariah-compliant debt structuring and capital market solutions for institutional issuers.