In April of this year, Al-Waseet Financial Business achieved the highest ranking among brokerage firms registered on Boursa Kuwait, thanks to its superior performance compared to other firms in the same industry. It was named the top-performing brokerage firm of the month.
The Stock Exchange has released a new performance ranking of brokerage firms for the previous month based on the traded value, excluding special deals and the compulsory buying session. The ranking lists Al-Waseet at the top, followed by Al-Watani Financial Brokerage Company and EFG-Hermes IFA Brokerage Group. The remaining companies on the list, in descending order, are KFH Financial Brokerage Company, KIC Financial Brokerage Company, Middle East Financial Brokerage Company, Al-Oula Financial Brokerage Company, Al-Sharq Financial Brokerage Company, Al-Tijari Financial Brokerage Company, and KFIC Financial Brokerage Company.
According to informed sources, the brokerage industry is currently undergoing inspections, audits, and surveys of all businesses and operations. These actions are being taken in response to annual inspection campaigns conducted by the Capital Markets Authority (CMA), which has noted various developments and observations.
The sources further revealed that CMA places a high level of importance and priority on the brokerage sector. This sector is considered a fundamental pillar of the capital market system, as it interacts directly with clients. Following the current comprehensive survey process, CMA aims to achieve a major turning point in upgrading the sector to a greater level. This is particularly important because brokerage firms will be responsible for managing clients' funds during the next stage of market development.
In addition, sources have reported that various tests have been conducted in relation to the launch of the central counterparty and the qualified broker. While some tests have been completed, final and decisive tests still need to be conducted before licenses are granted. Furthermore, there will be additional tests that are related to any new financial instruments or modern derivatives that may emerge in the future.
According to the sources, the results of the 12 tests conducted by Kuwait Clearing Company and Boursa Kuwait Stock have been positive thus far. The remaining tests will be completed in the next stage, which will also involve local banks in the coming period.
It is worth noting that the final stage of financial market development will involve the improvement of the settlement and clearing system. This is intended to minimize the risks associated with securities transaction settlement and support the trading of new financial instruments, such as derivatives.