Title: Press Release: "Violative and Unlawful Trading Behaviours and Practices” the Subject of a University Awareness Workshop by the CMA

Kuwait, April 29, 2024 – As part of the initiatives of CMA's national project to enhance financial inclusion and investment awareness, targeting students in higher education, the CMA headquarters hosted an awareness workshop for the students of the American International University (AIU) on Monday, April 29, 2024.

The workshop, in line with the collaborative efforts between the AIU and CMA represented by Markets Surveillance Department and the Awareness Office, was presented by CMA staff, as follows:

• Mr. Soud Bin Ghaith: Specialist at Market Surveillance Department
• Mr. Naser Al-Tarkait: Senior Analyst at Market Surveillance Department
• Mrs. Basma Akbar: Chief Financial Analyst at Awareness Office

The workshop commenced with a comprehensive overview of the CMA’s establishment and its objectives specified in its establishment law, presented by Mrs. Basma Akbar, especially in terms of regulating securities activities, developing capital markets, diversifying and developing investment instruments, providing protection for market participants, reducing expected systemic risks, in addition to educating the public about these activities and the resulting benefits, risks and obligations.

The workshop then moved on to discuss its main topic of “Violative and Unlawful Trading Behaviours and Practices” through several discussions. It started with a comprehensive review of the concept of securities exchanges, the types of securities traded in them, and the mechanisms of such trading in general. It then detailed Boursa Kuwait Securities Exchange and its “Primary and Main” markets. ", its indices, and the trading mechanisms and schedules, including electronic trading.

The definition of violative and unlawful trading behaviors and practices, their forms, types, manifestations, and methods received the most attention in the the workshop discussions, where the speakers presented these behaviours, as mentioned in the CMA's Law and its Executive Bylaws. Emphasis was placed on key misconduct such as trading while in possession of or exploiting inside information, fraud, trading manipulation, as well as the negative consequences of deceptive trading, particularly the misleading and false impressions given to the trading public about the nature of the security’s activity, whether negative or positive, which may lead them to make wrong investment decisions. The speakers provided practical examples in this regard to highlight the main differences between natural and deceptive trading activities.

The workshop concluded with a presentation of the CMA's measures in monitoring both improper trading behaviours and violations, as well as adopting an advanced automated supervisory system (SMARTS) to monitor and analyze suspicious transactions and refer those violations to legal authorities. The workshop ended after addressing participants' inquiries.

Ends-
Notes to Editors:
The Capital Markets Authority (CMA) of Kuwait was established pursuant to Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, and its amendments, approved by the Kuwaiti Parliament in February 2010. Under this Law, the CMA regulates and supervises securities activities, ensures transparency, fairness, efficiency, and observes listed companies’ implementation of Corporate Governance regulations. The CMA also protects investors from unfair practices and violations of the CMA's Law.
Furthermore, the Law stipulates the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs pertaining to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 22903062
Fax: 22903505
Email: pr-media@cma.gov.kw