CmaBoardReleases
Title: Resolution No. (49) of 2021 Regarding Financial Derivatives Transactions
Having Perused:
- Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws, and their amendments; and
- CMA Board of Commissioners Resolution passed in its meeting No. (13) of 2021 held on 14/04/2021.
The Following Was Resolved
Article (1)
Module One (Glossary) and Module Eight (Conduct of Business) and Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments are hereby amended pursuant to Annex (1) attached to this Resolution.
Article (2)
Companies whose objectives include brokerage in financial derivatives transactions, or those companies that market services related to financial derivative trading, shall apply to adjust their situation pursuant to Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its Executive Bylaws and their amendments, and the Authority’s regulations issued in this regard. This shall be through the submission of an application for a license during a transitional period of one year maximum from the issuance date of this Resolution.
Article (3)
The Authority is responsible for supervising financial derivatives transactions according to the definition of the security and financial derivative, which are transacted in the State of Kuwait, starting from the issuance of this Resolution and according to the provisions of Article Two above.
Article (4)
The services provided in relation to financial derivative brokerage and its marketing services are limited to professional clients only.
Article (5)
It is prohibited to offer or issue financial derivatives in the State of Kuwait, unless the Authority decides otherwise.
Article (6)
The concerned bodies shall execute this Resolution, each within its jurisdiction. This Resolution shall come into force from the date of issuance, and it shall be published in the Official Gazette.
Prof. Ahmad A. Al-Melhem
Issued on: 19/04/2021