Boursa Kuwait to brokerage firms: Cancellations of trading orders will not take effect
Boursa Kuwait has taken measures to avoid any confusion among local and foreign investors including individuals, companies, portfolio managers and funds, as per the instructions issued by the Capital Markets Authority (CMA) regarding the cancelation of yesterday’s trading session due to bad weather.
As for the buy and sell trading orders, which were already logged on to X-stream trading systems, informed sources told «Al Rai Newspaper» that the Bourse’s regulatory authorities informed brokerage firms that any order cancellations shall not take effect.
"Brokers should, if necessary, re-enter trading orders when the stock exchange reopens," the sources added, pointing out that yesterday’s trading would be deducted from the usual settlement cycle, as happens on public holidays.
In related news, sources revealed that the regulatory authorities informed brokerage firms of the developments that accompanies CMA’s adoption of the new Over the Counter (OTC) rules, pointing out that each individual brokerage firm shall seek to prepare the required technological aspects to keep up with such developments.
Sources also stated that brokerage firms would stop using the foreign exchange system they have been operating for many years, noting that the trading of unlisted shares will be transparently displayed on the screens effective 18 November 2018, amid expectations that these controls will limit asset smuggling and price manipulation of dozens of shares which belong to suspicious groups
CMA Board of Commissioners has adopted the final amendments to the rules governing Over the Counter transactions (“OTC”), as it adopted these developments in the context of implementing further amendments to Law No. (7 of 2010), including the addition of OTC regulations.
Sources said that "CMA" has been interested in following up on the OTC project, which it has already approved, however, some additional controls and amendments led to the postponement of its official launch.
The stock exchange has a comprehensive plan to regulate OTC shares. It is expected that the market shall start organizing the trading of about 100 companies upon the launch of OTC, pointing out that the trading commissions will be divided as per CMA’s stipulations (between Boursa Kuwait, Kuwait Clearing Company and brokers).
The sources added that Boursa Kuwait’s management has worked hard to activate the OTC rules, as it extensively cooperated in dealing with all the comments made by the concerned authorities to implement OTC shares through the market screens, which reduces manipulation and overcharging attempts.
"Listed stock transactions will be carried out in the light after being traded for decades through external orders and brokerage firms without any involvement in any of the trades, but the new rules guarantee confidentiality and carry out transactions off the screen if required," the sources said.
مصدر الخبر: Alraimedia