CmaBoardReleases
Title: Trading Agreement
As the Capital Markets Authority draws the attention of traders in Kuwait Stock Exchange to the importance of relying on the Trading Agreement with their brokerage companies as it provides protection for both parties thereto and have clear identification of rights and responsibilities as per the forms approved by the Authority, which represent the legal framework for governing the relationship between the trader and the brokerage company.
The Trading Agreement is a tool adopted by the Authority to strengthen transparency in securities business through reorganizing the relationship between both parties of the trading contract, i.e. “broker and trader” based on clear legal criteria overriding randomness and ambiguity that have been surrounding such relationship and leading to many problems causing damages to both parties’ interests; all in the course of applying the provisions of Law No. (7) of 2010 and the Executive Bylaw thereof.
The Trading Agreement shall serve as the basis of dealing in securities upon trading the same, after being reviewed by the traders who should understand all its provisions and terms as the said agreement is intended to protect the parties thereto, particularly the traders, and create balance in the contractual relationship between traders and brokerage companies.
- Traders and interested parties can follow up the form of the Trading Agreement on the Authority's website.