- Virtue: There is no examination At affiliated companies and no disclosures Or instruction From "Authority" and the stock exchange
- A full year to learn about system reality and new identification On the negative
- We aim to create a fully mechanical, credible and fair trading platform
KUWAIT: Kuwait Stock Exchange (KSE) yesterday launched an unregistered securities trading system (OTC), a system that BSE has created to service all unregistered securities clients with the aim of creating a fully automated and credible trading platform, the first in the GCC region.
The head of the Securities Department, which is not listed on the Kuwait Stock Exchange, Fadhlallah al-Fadala, said in a personal statement to Al-Anbaa yesterday after the launch of the system that the company took more than a year to study the current reality and losses suffered by investors. But the system is fully mechanized to protect investors and traders.
This new system facilitates procedures for buying and selling unregistered securities, shortening documentary cycles through full mechanization and facilitating settlement and clearing transactions between customers through the system.
He pointed out that the trading system on non-registered company securities includes two screens, one of which is demand and supply. The number of companies is 88 companies, while the other screens are for private transactions, including unregistered companies that have registered records of 523 Kuwaiti companies, Amount the company is 611, where the book value of a stock or its market value is determined and the order is placed and someone is appointed as a broker to provide the quantity for sale, indicating that the number of companies can be increased and decreased as well.
Fadala added that the obligations imposed on listed companies do not apply to company shares in «OTC», explaining that most of these companies are operational and that very good profits must be opened for ownership systematically and regularly, because the market is increasing well. Risks and profits are compared to trading in the normal market because investors buy shares at the beginning and before the list so that they are committed to controlling stock and management and profitability.
The role of the Commission
He explained that the role of the Capital Market Authority and the stock exchange and clearing in this system was limited to following up on unregistered securities trading and settlement processes and did not require the Authority or Stock Exchange to audit financial statements or company obligations for disclosure requirements or impose instructions on companies that participate in this platform.
He pointed out that it is necessary to review the rules for trading unregistered securities issued by the Kuwait Stock Exchange and financial guarantees issued by the Kuwait Clearing Company and approved by the Capital Market Authority to determine their rights and obligations when trading unregistered securities.
It should be noted that the new system has witnessed collaboration between the Capital Market Authority, the Kuwait Stock Exchange and the Kuwait Clearing Company to facilitate the trading of unregistered company shares and to allow company shareholders to be deleted or canceled to be included in their shares by providing clear and structured mechanisms .
«Bourse» is licensed to 7 brokerage companies with «OTC»
The Kuwait Stock Exchange (KSE) announced in a press release that traders can follow up on spot trading through the OTC Kuwait Stock Exchange website at otc.borsakuwait.com.kw, through a brokerage company or an official Distributor of the Kuwait Stock Exchange.
The Stock Exchange said in a statement that it had identified seven brokerage companies licensed to trading securities systems that were not registered with OTC, namely:
1- Middle East Financial Brokers.
2- First Financial Broker.
3- KFIC Financial Brokers.
4- Al-Sharq Financial Broker.
5- The Al Waseet company for Financial Work is closed.
6. KFH Financial Brokerage.
7. Hermes EFA Broker.
3,000 dinars of «OTC» transaction value in the first session
The first session of the trading system outside the «OTC» innovator platform, traded 33.32 thousand shares, executing 3 transactions worth more than 3 thousand dinars.
The agreement was made on two of the 88 companies available for trading through supply and demand screens, namely the future of global communications companies, where the company has two transactions at 105 philosophs per share and the volume of shares traded 23.3 thousand shares, while 10 thousand shares company traded. Al Manar Finance and Leasing on 63 philosophs per share.
On the other hand, 50.4 thousand shares traded through special offers on the shares of two companies, the Kuwait Stock Exchange provided a screen for this transaction and included shares from 523 companies with a list licensed by the Kuwait Clearing Company.
The OTC platform is traded without restrictions on prices for sales or purchases, where supply, demand and orders are traded, with transactions made through brokers listed on the stock exchange.
In a related context, the Kuwait Stock Exchange resumed trading after a pause since last Tuesday due to weather conditions, where liquidity decreased by 35% compared to the last trading session, amounting to 10.4 million dinars, a decrease of around 16 million dinars.
The index fell 0.3%, down 13 points to 5088 points, the first market index fell 0.2%, fell 12 points to 5,285 points, the main index also fell 0.3% to 15 points. To 4732 points.