CmaBoardReleases
Title: The Capital Markets Authority is set to implement the third and fourth phase of its training program on “Development of the Post Trade Model Infrastructure”
KUWAIT CITY, February 21, 2018 - The Capital Markets Authority (CMA) concluded its training program on "Developing Post Trade Model (PTM) Infrastructure" on Tuesday February 20, 2018 which started its activities on February 4, 2018. The program explained the main principles of designing the final structure of Kuwait capital market infrastructure, in addition to the licensing requirements for the implementation of the final phase of the market development project, whichis one of the main pillars of the market development project, in conjunction with the preparations for the implementation of the third phase of this project.
This program includes intensive activities which include external workshops aimed at raising awareness of the project and its phases of implementation to some of the relevant financial markets parties such as Kuwait Clearing Company, brokerage companies, banks and other licensed persons involved in the market development project, it also includes daily internal workshops aimed at employees of various departments of the CMA to identify the nature of the project and the developments in the implementation of the remaining phases to discuss the risk management principles of the post trade model and the technical requirements for the service providers of the central counterparty (CCP), the securities settlement facilities (SSF) and the central securities depository (CSD), as well as the licensing mechanisms for the providers of such services and their requirements in accordance with the Executive Bylaws of CMA Law. The workshop also explained the proposed amendments to the Executive Bylaws on the licensing requirements of these entities. In addition, the CMA aims to separate the licensing requirements of the CMA from the requirements of registration with the Exchange and the Clearing House for licensed persons registered with these entities (the market intermediaries).
The first week witnessed the implementation of the first phase of this program which included four internal awareness workshops, each of which lasted two days and targeted about 96 staff members of some departments of the CMA that are concerned with this project, in addition to an external workshop for Kuwait Clearing Company, attended by Mr. Othman Ibrahim Al-Issa, the company's chief executive officer, his deputy for the information technology sector, senior executives and directors of the departments and 28 employees concerned with the workshop. This workshop included a complete explanation of licensing requirements and the forms related to it as well as technical requirements to license (the central counterparty, securities settlement facilities, and central securities depository).
The second week of this program will be completed during the current week which includes four internal awareness workshops, each of which will last for two consecutive days to target approximately 50 employees of the CMA from departments concerned with this project, in addition to a special external workshop targeting all brokerage companies. The workshop was attended 60 persons representing twelve brokerage firms.
The third and last phase of this program was implemented during the current week and included two workshops targeting the head of the sectors of the CMA and the second to the directors of the departments involved in the project. The workshop focused on the supervisory tasks of the CMA in this project, in addition to an external workshop targeting banks and other licensed persons where around (80) people attended representing those entities, which dealt mainly with the future picture of (the structure of the post-trading system, the infrastructure of the final structure of the target entities of the Kuwait Stock Exchange infrastructure, membership, Licensing procedures, application and transitional procedures).
It should be noted that the project of developing the market (the post trade model project) consists of four phases, the first of which was executed in May 2017 under the supervision of the joint teams of the CMA, Kuwait Clearing Company and the Exchange. Phase two of this project started in mid-December with the relevant parties to ensure that they are ready for implementation. Phase three of this project is expected to be completed during the coming period to enter the testing phase within the next few months before implementing its fourth and final phase next year.
The implementation of this awareness program came from the CMA's interest to raise the level of awareness among parties participating in the requirements associated with the phases of implementation of the market development project in accordance with the practices and changes planned for implementation at each of the remaining phases.
Finally, CMA insists on implementing such programs in order to achieve the required awareness of various projects and strategic directions, especially those related to the tasks of several parties in the financial markets system, it hopes to achieve success of these activities by completing its objectives for the benefit of all parties and is one of the foundations of its success in achieving these goals.