Title: Violating Trading Conducts

As the Capital Markets Authority is keen to raise the legal awareness and protect the dealers in the securities activities from committing violations, in particular the ones resulting from conducts and practices that are considered as types of manipulation and misleading, which leads to forming a false and misleading impression, and unreal price for a certain security; the Authority hereby calls the attention to the penalties and punishments stipulated in the law; being imprisonment of not more than five years, and a fine of not less than ten thousand Kuwaiti Dinars and not exceeding one hundred thousand Kuwaiti Dinars or one of these two punishments for whoever commits any of the following:

• Entering an order or orders for purchasing a security while knowing in advance that similar orders in regard of volume, timing and price for selling such security will be entered.

• Entering an order or orders for selling a security while knowing in advance that similar orders in regard of volume, timing, and price for purchasing such security will be entered.

• Increasing or reducing the price of a security in order to encourage others to purchase or sell.

• Creating actual or fake trading to encourage others to purchase or sell.

• Entering an order or orders for a security without actual change in the security's ownership.

Thus, the Authority hereby reminds dealers in securities of the importance of abiding by the law, and anticipates at the same time their avoidance of practicing any act that shall result in committing those violations, in order for them to participate in enhancing the Authority's role in limiting such violating conducts.   

Traders and Licensed Persons can visit the Capital Markets Authority's website (www.cma.gov.kw), Kuwait Stock Exchange's website (www.kse.com.kw), and the Twitter account @cma_kwt to keep up with the Authority's awareness announcements.