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Boursa Kuwait: Al-Mowazi developed this system ... and showed flexibility and discounts for special deals
OTC investors have to place their trades through a registered broker and it is not required that both parties deal with the same broker.
OTC shares traded through “almowazi.com”

Informed sources told Al-Jarida Newspaper that the OTC trading system, which the Capital Markets Authority (CMA) scheduled its launch on Sunday, November 18, 2018, will be conducted through “almowazi.com”.  
Sources said that the buy and sell order records and stock prices of 88 unlisted companies will be traded in the OTC market through almowazi.com, adding that these companies have met the set criteria, including Board of Directors’ approval  and the update of their records with Kuwait Clearing Company (KCC) as part of the actual preparation to launch the trading platform.
The sources explained that Boursa Kuwait introduced the OTC platform for trading unlisted securities and made amendments that included the full automation of the system, the development of its working mechanism, controls and systems, and filling the legal gaps that persisted in the previous mechanism. The rules stipulate that trading should be executed through brokers, same as the official market and that  all companies have to register their shareholder with a registered clearing company.
According to the sources, investors have to place their trades through a registered broker, noting that it is not required for both parties to deal with the same broker. The broker shall submit official transition documents received from the clients to the trading department at Boursa Kuwait, which in turn shall issue a memo to each broker working on the transaction, allowing the transfer of ownership, which was previously done by a manual system. The is followed by a submitting  to Kuwait Clearing Company or any other clearing  company that keeps the shareholders register to complete the transaction.
The sources said that a number of brokerage firms has already started lately  to provide OTC trading solutions in cooperation with "almowzi.com” website to provide special screens to display unlisted shares and prices as requested by clients who are interested in display their companies. Such shares remain on display until a trade is executed. 
The OTC trading fee is 0.5% of the transaction value, providing that the minimum commission value is KWD 3. Trading commission for commercial, not governmental,  bonds and sukuk, which will be traded through this system is 0.01%, with a minimum of KWD 10.
OTC trading fees are split as 50% to brokers, 48% to Boursa Kuwait and 2% to the clearing company, whereas, commissions and fees of the clearing company is set at  500 fils for each transaction, KD1 for the transfer of shares between  accounts and change of records. Meanwhile, shareholders ownership transfer commissions with Boursa Kuwait’s approval is  calculated as 0.05%, based on the nominal value of the share or the last closing price through the system, whichever is lower.
The sources pointed out that Bourse Kuwait has shown flexibility in special transaction fees where the company’s shareholders exceeded 50, with fees amounting to about 0.5% of the deal value worth KWD 500,000, 0.4% for transactions ranging between KWD 50,000 and KWD 249,000, 0.3% for transactions ranging between KWD 250,000 and KWD 999,900, 0.1% for transactions between KWD 1 million and KWD 4.99 million, and finally 0.05% for transactions worth more than KWD 5 million.

مصدر الخبر: Aljarida

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