Title: The Capital Markets Authority Announces the Launch of the Second Batch of the Third Phase of the Market Development Project

Kuwait, June 4, 2025 - The Capital Markets Authority (CMA) announces the launch of the second batch of the third phase of the Market Development Project on 13/07/2025, after the issuance of Resolution No. (101) of 2025 Regarding Entry into Force of the Second Batch of the Third Phase of the Market Development Project. This launch fulfills ongoing efforts over the years with the relevant parties, especially Kuwait Clearing Company, and it is the result of constant work and careful planning that represent a crucial leap in the path of the development of the current infrastructure in the financial market. This phase also represents a new milestone in the development program, aiming to enhance efficiency and improve organizational and supervisory performance, in line with market aspirations.

This announcement is a continuation of all regulatory, legislative, and technical related aspects, the most prominent of the CMA’s preparations are as follows:

• Supervising 31 comprehensive market tests, including other technical tests, to ensure the readiness of the technical systems of all participants.
• Issuance of Resolution No. (92) of 2025 Regarding the Development of the Infrastructure of the Post-Trade Model.
• Approval of the required regulatory rules and documents of Kuwait Clearing Company and Kuwait Central Depository Company.
• Follow-up and organize the efforts of all relevant parties to ensure the administrative and operational readiness.

During these preparations, mutual efforts were made between all relevant parties, particularly the Kuwait Clearing Company and its subsidiaries, along with financial brokerage firms and Boursa Kuwait. These parties completed the essential preparations by developing technical and operational systems and enhancing administrative and technical readiness, ensuring the smooth and efficient implementation of the phase's outcomes.

We would like to pay tribute to the efforts of the Central Bank of Kuwait and its active role in facilitating the obstacles to allow the Kuwait Automated System for Settlement of Interbank Payments (KASSIP) to complete cash settlements for trading in securities.

This phase includes several material outputs, the most important of which are:

• The establishment of the Central Counter Party (CCP) for the securities market, achieving a qualitative shift in the structure of the financial market.
• Completing cash settlement through settlement banks and the Central Bank of Kuwait’s system.
• Upgrading the business model of financial brokerage companies to the “qualified broker” model.
• Preparing the legislative and operational environment for the offering and trading of exchange-traded funds (ETFs), Bonds, and Sukuk.
• From the supervisory aspect, this phase included the establishment of sub-account numbers within the omnibus accounts to enhance transparency and accuracy in monitoring and supervision.

This phase is a vital pillar in the development of the financial market, as it involves structural and regulatory changes that enhance performance efficiency and increase the number of existing investment instruments. This step also embodies the Capital Markets Authority's ongoing commitment to implement its vision of executing an innovative, attractive, and integrated financial market in line with best international practices.

Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA 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 CMA's Law.

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

For further information, please contact:
Public Relations & Media Office
Tel: 1888898
Email: pr-media@cma.gov.kw