CMA LAW: The Capital Markets Authority Restructures the Commission of Trading in the Market and Launches Additional Financial Services

Kuwait, 25 June 25, 2026 - Within the framework of the Capital Markets Authority’s (CMA) continuous efforts and pursuit to develop the capital markets and introduce investment instruments in accordance with international standards and best practices, and based on the CMA’s role stipulated in Law No.7 of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities, its Executive Bylaws, and their amendments, the CMA has issued today its Resolution No. (85) of 2026 regarding the Additional Financial Services.

The aforementioned resolution includes several amendments to the Executive Bylaws of CMA’s establishment Law aiming to enable qualified brokers to fulfill their responsibilities related to safeguarding clients' funds and assets, including providing the service of "Depositing these funds in income-generating accounts." The importance of this service became apparent with the transfer of traders' funds from the custody of Kuwait Clearing Company to qualified brokers with the implementation of the initiative of "Qualified Broker" model and the launch of the second part of the third phase of the Market Development Program in July 2025. 

It is worth noting that the aforementioned service allows depositing clients funds allocated for trading into interest or profit-generating accounts with commercial banks, which contributes to increasing the return on these funds for the benefit of the clients. This approach also enables the qualified broker to participate in a portion of or all the interests or profits generated from client funds, subject to clear regulatory controls and standards, which includes obtaining the client’s approval thereon. It should be noted that offering this service is optional— and not mandatory—for brokers interested and wishing to activate it.

Furthermore, the resolution included amendments to "Margin Trading" service, in which it enables the service provider to manage the risks using a mechanism it considers suitable, without prejudice to the client rights. The additional financial services offered by qualified brokers are considered a significant step in developing the business of brokerage firms, contributing to the expansion of their activities and supporting their growth. These services also provide tools and solutions that effectively meet client needs and deliver benefits to them. 

Prior to issuing Resolution No. (85) of 2026, the CMA conducted a survey for financial brokerage firms and investment portfolio managers regarding the two aforementioned services. The CMA perceived a consensus on the feasibility of their launch within a defined regulatory framework.

In the same context, the CMA's resolution coincides with its approval of restructuring the trading commissions to align with the recent developments and improvements implemented by the CMA in the securities market, in collaboration with related parties, specifically within the framework of the Market Development Program.

As part of the review process for the new trading fee structure as one of the most significant changes, the CMA conducted mathematical simulations and studied the trading fee structures in other markets before adopting this structure, which includes a number of changes and advantages.

Regarding the anticipated changes resulting from the restructuring of trading commissions, the most prominent of which can be summarized as follows:

- Unifying the trading commission in the premier market and main market.
- The components of trading commissions are divided as follows:
 - Exchange commission and settlement and clearing commission, estimated at 0.066% (6.6 basis points)
 - Brokerage commission, estimated at 0.084% (8.4 basis points)
- Allowing Brokerage firms to offer variable commissions by providing limited discounts with a maximum limit to be determined later by the CMA according to the actual implementation date of the new commission structure.
- Cancelling the settlement fees for custodian clients' transactions, which were KD 5 per executed transaction.
- Cancelling the settlement fees for transactions exceeding KD 50, which were KD 0.5 per executed transaction.
- Changing the minimum transaction commission from KD 0.250 to KD 0.500. 

As for the advantages of the restructuring process, they can be summarized as follows:

- Transparency and clarity in estimating trading costs by cancelling the fixed fees - KD 5.0 on each transaction executed for custodian clients and the fees of transactions exceeding KWD 50 - KD 0.5 on all traders transactions.
- Maintaining the competitive advantage of Kuwait's capital markets within the regional market, as the new structure keeps the Kuwaiti market among the lowest compared to several regional markets.
- Enhancing the principle of transparency by separating trading commissions to clarify each fee individually, in line with best international practices. Separating the commission components allows traders to view the cost of each service separately and enables them to estimate total trading costs in advance and with further accuracy. This enhances market transparency and strengthens confidence in the pricing mechanisms for services provided within the financial market system.
- Enhancing the ability of brokers to offer discounts, which supports their capacity to provide competitive prices to their clients within the regulations set by these companies, without compromising break-even levels. This will enhance competition among brokerage firms and improve the quality of services offered, while maintaining the sustainability of their operating revenues. This feature also reduces the financial impact on total trading volumes if implemented correctly.

It is worth noting that unifying the commission rate between the Premier and Main Markets at 15 basis points, along with cancelling the settlement fee of half a Dinar per executed transaction, could result in lower costs, especially by granting brokerage firms the flexibility to price their commissions through discounts or in cases of orders executed in multiple transactions, which will increase trading efficiency and market liquidity.

The target date for the trading commission structure to come into force is October 1, 2026, following the successful completion of extensive market testing by all relevant parties to the technical tests to ensure the readiness of their systems to implement the new structure.

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:
Awareness, Public Relations & Communication Office
Tel: 1888898
Email: pr-media@cma.gov.kw

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.