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CMA LAW: Circular No. (01) of 2022 Regarding the Margin Trading Service for Licensed Persons
Date Publish
31 January 2022
Pursuant to Resolution No. (53) of 2021 issued on 22/4/2021 Regarding Amending Some Provisions of Module One (Glossary) and Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010, the Capital Markets Authority (CMA) is responsible for the supervision of the margin trading service for licensed persons through monitoring and regulating such activity. The Central Bank of Kuwait determines the interest rate or profit of the financing provided by licensed persons.
The CMA also emphasizes the provision of Circular No. (08) of 2021 regarding the importance of registering with the Credit Information Network (Ci-Net) for licensed persons or those intending to offer the margin trading service. They shall provide the company with the client’s credit information (reports of the credit volume granted to clients) in accordance with the requirements of Ci-Net instead of submitting such reports to the Central Bank of Kuwait on a weekly basis pursuant to Item (8) of Article (8-16-2) of Chapter Eight of Module Eleven in Resolution (53) of 2021 mentioned above.
Prof. Ahmad A. Al-Melhem
Issued on: 31/01/2022
Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.
