- Dygd: No review On the affiliated companies and no disclosure Or instructions From the "authority" and the stock exchange
- A whole year to study the reality of the new system and the identification On the negatives
- We strive to create a fully mechanized trading platform that is credible and fair
Kuwait: Kuwait stock exchange (KSE) yesterday launched the unlisted securities trading (OTC), a system that BSE has created to serve all unlisted securities customers in order to create a fully automated and credible trading platform, the first in the GCC region.
The Securities Department chief, not listed on the Kuwait Stock Exchange, Fadhlallah al-Fadala, said in a private statement to Al-Anbaa yesterday after the launch of the system that it took more than a year to study the current reality and the disadvantages that investors had suffered. But a fully-mechanized system for protecting investors and traders.
The new system facilitates the procedures for buying and selling unlisted securities, shortens the documentary cycle through complete mechanization and facilitates settlement and clearing of transactions between customers through the system.
He pointed out that the trading system on the securities of unlisted companies contains two screens, one of which is for demand and delivery. The number of companies is 88 companies, while the other screen concerns private transactions, including the unlisted companies that have a registered record of 523 Kuwait companies, the number of companies is 611 where the book value of a share or its market value is determined and the order is placed and a person is appointed as a broker to provide that quantity for sale, indicating that the number of companies can be increased and reduced as well.
Fadala added that the obligations imposed on listed companies do not apply to shares in companies in "OTC" and explain that these companies are mainly active and that profits are excellent must be opened for ownership systematically and properly as this market increases both Risk and Profit Ratio to trading on the normal market, as the investor buys the stock at the beginning and before listing so that it is committed to controlling inventory and management and profitability.
He explained that the role and the stock market and clearing of the capital market authority in this system is limited to following up the trading of unlisted securities and the settlement process and does not require the government or the stock exchange to review the financial statements or any obligation for companies to disclose requirements or specify any instructions for companies participating in this platform.
He pointed out that it is necessary to revise the rules for trade in unlisted securities issued by the Kuwait Stock Exchange and the financial guarantee issued by the Kuwait Clearing Company and approved by the Capital Markets Authority to know their rights and obligations in the trading of unlisted securities.
It should be noted that the new system has witnessed cooperation between the capital market authority, the Kuwait Stock Exchange and the Kuwait Clearing Company in order to facilitate trading of shares in unlisted companies and to allow shareholders of companies to be denied or canceled to be included in their shares by providing a clear and structured mechanism .
«Bourse» licensed to 7 business brokers with «OTC»
Kuwait Börs (KSE) announced in a press release that traders can track up trade via the OTC website on the Kuwait stock exchange at otc.borsakuwait.com.kw, through brokerage firms or an authorized distributor of the Kuwait Stock Exchange.
The stock exchange stated in its statement that it has identified seven brokerage companies licensed to the trading system securities not listed OTC, namely:
1- Central Financial Market.
2 – First Financial Broker.
3- KFIC Financial Brokerage.
4- Al-Sharq Financial Brokerage.
5- The Al Waseet Company for Financial Works is closed.
6. KFH Financial Brokerage.
7. Hermes EFA Broker.
3 thousand dinars value of transactions "OTC" in its first session
The first session of the trading system outside the platform "OTC" innovator, trade 33.32 thousand shares, by performing 3 offers worth just over 3 thousand dinars.
The transactions were made on two of the 88 companies available for trading through the supply and demand screen, that is, the future of the global communications company, where the company has two transactions of 105 per share and the volume of shares trades 23.3 thousand shares while 10 thousand shares are traded Al Manar Finance and Leasing of 63 fils per share.
On the other hand, 50.4 thousand shares were traded through special agreements on shares in two companies. The Kuwait Exchange provides a screen for these transactions and comprises shares of 523 companies with a register licensed by the Kuwait Clearing Company.
The OTC platform is traded without any price restrictions for sales or purchases, where supply, demand and orders are traded, with transactions carried out through brokers listed on the stock exchange.
In a related context, the Kuwait Exchange resumed trading after a break since last Tuesday due to weather conditions, with liquidity decreasing by 35% compared with the latest trade session, which amounted to 10.4 million dinars, a decline of approximately 16 million dinars.
The index fell by 0.3%, throwing 13 points to 5088 points. The first market index fell by 0.2%, throwing 12 points to 5,285 points. The main index also lost 0.3% to 15 points. To 4732 points.