Title: Awareness Workshop of Market Readiness Group Regarding Implementing the Project of “Post Trade Model (PTM)”

Kuwait, May 9, 2017 – In line with CMA’s pursuit to implement one of its strategic approaches regarding the project of Post Trade Model (PTM), with the contribution of Boursa Kuwait Securities Company and Kuwait Clearing Company; the CMA has launched on Tuesday 9/5/2017 at 1:00 pm the events of the workshops program dedicated to discussing the project of implementing the first phase of the model.

It is worth mentioning that this three-day workshop (9-11/5/2017) will be executed by the Market Readiness Group (MRG). The workshops of the second and third days will be organized at Khaled Al-Karafi Hall in the Market Building by Boursa Kuwait Securities Company and Kuwait Clearing Company, with the participation of the CMA.

The attendance of the second and third workshop will be exclusively for the listed companies, where the share maturity (institutional procedures) and their impact on listed companies will be discussed.

The first day discussions covered the topic of “implementation of the First Transitional Phase of Post Trade Model” by speakers who represent the MRG as follows:

1. CMA representatives:

• Mr. Abdulrahman Al-Failakawi – Senior Specialist - Vice Chairman Office
• Mr. Khaled Alsahli – Specialist – Markets Regulation Department

2. Boursa Kuwait representatives:

• Saad Almonaifi – Quality Control Director – Boursa Kuwait Securities Company
• Ms. Nora Al-Abdulkareem – Products Development Director – Boursa Kuwait Securities Company

3. Kuwait Clearing Company

• Mr. Duaij Al-Saleh – IT Director

The workshop aimed to give a brief introduction on the first transitional phase of PTM. The first aspect covered the following:

1. Mitigate post-trade risks
2. Support market infrastructure for future developments
3. Comply with international best practice, and bring the market closer to be upgrade to emerging market status
4. Provide the appropriate environment for market makers
5. Prepare the market for implementing subsequent phases of the project

Through the in the second aspect, the speakers covered the details of the changes occurring in the first transitional phase of the PTM, which are as follows:

1. Unifying the settlement cycle to be T+3
2. New corporate actions mechanism, in line with international practice
3. Introduction of collateral system to mitigate risk of defaults
4. New ticks size
5. New price limit up/down
6. Randomized Closing Auction
7. Introduction of trade rejection feature to Custodians
8. Provide environment for market maker operations

CMA hopes that the program will be of benefit to the representatives the companies concerned with implementing the PTM. It is worth mentioning that this workshop is a complementary procedure of CMA’s awareness efforts in implementing the PTM.

Clarification to Editors

The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance Regulations, and protect investors from unfair practices which violate the Authority's Law.

Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The Authority also aims to provide awareness programs related to securities activities.

For more information, kindly contact:

Public Relations & Media Office

Tel: 22903062

Fax: 22903505

Email: pr-media@cma.gov.kw