CMA LAW: Resolution No. (95) for 2016 Regarding Implementing the Collateral System for Licensed Persons to Practice the Activity of a Securities Broker Registered in an Exchange and a Qualified Securities Broker Registered in an Exchange

Having Perused:

- Law No. (7) of 2010 on the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws, and their amendments; and
- Resolution No. (72) of 2015 the Issuance of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments; and
- Resolution No. (60) of 2016 Regarding Amending the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Amendments by Adding the Activity of a Qualified Securities Broker       Registered with an Exchange; and
- Kuwait Stock Exchange Committee’s Decision No. (1) of 2002 on the Brokers Collateral System, as amended by Decision No. (2) of 2004; and 
- Resolution No. (92) of 2016 on Amending the Brokers Collateral System; and
- CMA Board of Commissioners Resolution passed in its meeting No. (34) of 2016 held on 13/10/2016;

The Following Was Resolved:

Article (1)
The collateral System shall be implemented on licensed persons to practice the activity of a Securities Broker Registered in an Exchange and a Qualified Securities Broker Registered in an Exchange according to the Policies and Procedures Guide prepared by the Clearing Agency which shall be approved by the Authority On 1/1/2017.
Any default or delay in the results of the securities exchange’s transactions shall be fulfilled starting from the date mentioned in the previous paragraph onwards pursuant to the provisions of this system. 

Article (2)
In case the Collateral System fails to fulfill any obligation or delays the results of the transactions in the securities exchange for any reason from 1/1/2017 until 31/3/2017, it shall be fulfilled by the Brokers Collateral System issued by Kuwait Stock Exchange’s Decision No. (1) of 2002 and its amendments. 

Article (3)
The Decision of Kuwait Stock Exchange Committee No. (1) of 2002 on the Brokers Collateral System and its Amendments, shall be nulled from 1/4/2017.

Article (4)
The Committee of the Brokers Collateral System shall liquidate and distribute assets of the Brokers Collateral System starting from 1/4/2017 according to the shares of the participants pursuant to article (1) of Resolution (92) of 2016 regarding the Amendments of the Brokers Collateral System. After the settlement of all financial obligations of the participants in this system before1/4/2017 as provided for in the Articles of Association of the Brokers Collateral System.

Article (5)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of issuance.

Dr. Nayef Falah Al-Hajraf
Chairman, CMA Board of Commissioners
Issued on: 23/10/2016

Copy of the Official Document

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