Title: Press Release – The Amendments on Some Provisions of The Executive Bylaws Regarding the “Development of the Post Trade Model Infrastructure”

Kuwait, May 15, 2025 -  As part of the Capital Markets Authority’s continued efforts to enhance the efficiency and development of the market through the implementation of the final targeted structure of the capital market infrastructure entities in the State of Kuwait, and by diversifying its investment instruments in order to create an attractive investment environment aligned with the international best practice - and in preparation for the implementation of the second part of the third phase of the Capital Market Development Program, the Capital Markets Authority issued Resolution No. (92) of 2025 on Monday 12/05/2025 regarding the amendment of certain provisions of the Executive Bylaws of Law No. 7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments, related to the development of the post-trade model infrastructure.

The Capital Market Development Program (formerly the Post-Trade Model Plan) is a strategic initiative with a comprehensive scope aimed at upgrading the infrastructure of the capital markets in the State of Kuwait. It introduces infrastructure entities such as the Central Counterparty (CCP) and enhances the function of existing entities in accordance with the best international standards and practices. The program seeks to improve trading mechanisms, and settlement and clearing procedures, in a way that boosts market efficiency and effectiveness, reduces systematic risks, and establishes the legislative and operational environment needed to offer diversified investment products.

Given the volume and scope of the program’s outcomes, the resolution includes amendments to several modules as outlined below:

The resolution aims to achieve the following:

• Structuring and regulating the operation of post-trade infrastructure entities (CCP, SSF, and CSD) in alignment with the international best practice, particularly the Principles for Financial Market Infrastructures (PFMI).
• Adding general regulatory frameworks for Clearing Agency Members (Clearing Members and Depository Members).
• Establishing the regulatory foundations and principles for the risk management of all post-trade infrastructure entities and market participants.
• Determine the detailed requirements for the Clearing House and Central Securities Depository.
• Implementing the Risk Waterfall. 
• Implementing a cash settlement system through the Clearing Agency’s account and for clients of brokerage firms via settlement banks.
• Adding requirements for rules and procedures related to the recovery plans of the Clearing House and the Central Securities Depository.
• Adding provisions regarding settlement finality to organize and protect the securities settlement system.

This resolution is part of a series of ongoing resolutions aimed at developing the capital market and diversifying investment tools in line with the international best practice and standards, as part of the broader strategy to enhance and develop the capital market in the State of Kuwait. The Capital Markets Authority reaffirms its commitment to fulfilling its intended role in supporting the local economy and contributing to the goals of the "New Kuwait 2035" vision, which aims to transform Kuwait into a regional financial and commercial center.

Ends-
Notes to Editors:
The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010. Pursuant to the Law, the CMA shall regulate and supervise the securities activities, achieve transparency and fairness, observe listed companies’ execution of Corporate Governance regulations, and protect investors from unfair practices which violate the CMA's Law.
Furthermore, the Law's provisions stipulate the supervision of mergers, acquisitions, and disclosure operations. The CMA also aims to provide awareness programs related to securities activities.
For further information, please contact:
Public Relations & Media Office
Tel: 1888898
Email: pr-media@cma.gov.kw