Title: CMA Launches the first stage of the third phase of the Market Development Project

KUWAIT CITY, April 28, 2019 - The Capital Markets Authority (CMA) held a press conference today on the launch of the first stage of the third phase of the market development project at the Boursa Kuwait building, in the presence of Boursa Kuwait and Kuwait Clearing Company. CMA was represented by Mr. Muthanna Abdulwahab Al Saleh / Head of the Markets Sector, Boursa Kuwait was represented by Mr. Mohammed Soud Al-Osaimi/ Acting Managing Director, and the KCC was represented by Mr. Khaldoun Shaker Al-Tabtabaei/ Managing Director.

On Thursday, the CMA issued Resolution No. (60) of 2019, announcing the launch of the first stage of the third phase of the market development project. This was followed by comprehensive amendments to the Executive Bylaws of Law No. 7 of 2010 through the issuance of Resolution No. (59) of 2019. The market development project is one of the pillars of the objectives of the CMA in the development of the capital markets and the diversification of investment instruments, taking into account the compatibility with best practices and global standards, the most important principles of infrastructure in the financial market.

Throughout the press conference, Mr. Muthanna Al Saleh presented the changes made in the first stage of the third phase and its objectives. He explained that the activation of the short sale, lending and borrowing of shares would take place after additional examinations for the parties in the market. As part of the market development project, it has received worldwide praises through its visits; he stated that MSCI does not have any pending comments on the Kuwait’s promoting file according to their recent consultation document.

It should be noted that phase three is an additional step in the market development, which completed the first phase in May 2017 and the second phase in April 2018. The most important results of the previous stages were the promotion of Kuwait to the ranks of emerging markets by the world's top rating institutions (FTSE Russell ) And (S & P Dow Jones), as well as placing Kuwait on the watch list for a promotion by Morgan Stanley (MSCI).

The changes were implemented after a series of extensive examinations with all the participating parties in order to ensure their readiness while ensuring the ability of their systems to accommodate all the variables related to this stage. The list of participating parties includes the Capital Markets Authority, Boursa Kuwait, Kuwait Clearing Company, brokerage companies and investment companies. The most important changes of this stage are:

- Developing a platform for trading investment fund units and income-generating real estate funds (traded).

- Purchase Offer.

-Trading Transactions.

- Introducing the trading session on the closing price (Trade at Last).

- Improve the mechanism of transactions agreed upon.

- Developing some rules and regulations.

The launch of the short sale and the lending and borrowing of securities have been postponed to a later date for further testing to ensure that all parties are ready to provide this product.

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: 22903062
Fax: 22903505