Title: Press Release: The Capital Markets Authority Launches the “Qualified Broker” Form and Grants the First License of the “Central Counterparty” Service in a Quantum Leap in the Kuwaiti Capital Market

Kuwait, July 9, 2025 - In a step that aims to enhance the infrastructure of the Kuwaiti capital market and achieve further efficiency and transparency, the Capital Markets Authority (CMA) announces inaugurating the stage of the “Qualified Broker” form and grants the first license for the Clearing Agency’s activity to provide the service of Central Counterparty “CCP”  as part of the largest legislative and regulatory quantum leap since the regulation of financial market in the State of Kuwait early 1980s.

This initiative is part of the CMA’s continuous efforts to develop the regulatory and supervisory framework and enhance the market’s competitiveness regionally and internationally. The CMA has granted preliminary approvals for nine brokerage companies to practice the activity of “Qualified Broker”, in addition to the issuance of the first license to practice the activity of “Central Counterparty”, which is a new unprecedented activity in the market.

This transformation is a result of a precise and comprehensive coordination between the CMA and various related parties, represented by the Central Bank of Kuwait, local banks, Boursa Kuwait, brokerage companies, investment companies, and the Clearing Agency, in preparation for the launch of the second batch of the third phase of the Market Development Project that aims to develop market infrastructure, raise governance level, reduce risks, and enhance investors’ confidence.

The regulatory framework and the new activities license
The CMA has prepared the regulatory and legislative framework of the “Qualified Broker” and “Central Counterparty” activities, and received and reviewed the licensing applications according to accurate requirements approved in the Executive Bylaws of Law No. 7 of 2010 and its amendments.  It has also coordinated with concerned parties to ensure smooth transition, facilitate the technical and technology requirements, and issue the licensing resolutions at the specified dates to ensure gradual and smooth development of the system.

“Central Counterparty”: Quantum leap in the Post-Trade System
The CMA confirmed that issuance of the first license for the Clearing Agency’s activity to provide the service of Central Counterparty forms a quantum leap in the post-trade system, as it enhances the efficiency of the settlement operations and guarantees management and reduces the risks of the counterparty, which is positively reflected on the market’s liquidity and stability. This activity also provides opportunities to expand the scope of financial products and services and offers a more secure and stable environment for the local and international investors.

Broad banking cooperation
The preparatory stage witnessed an intensive coordination between the CMA and the banking sector to ensure the integration of the technical systems and achieve the technology readiness required for funds transactions and execution of orders. This cooperation resulted in activating the mechanism of accounts concerned with trading through local banks, which introduces a new stage of transparency and effectiveness in the market.

Enhancing the investment environment and increasing the investors’ confidence
These initiatives are part of CMA’s vision to enhance the market’s readiness, enable it to be in line with the international standards, and ensure a smooth transition towards a more mature and open financial market. This regulatory transition reflects the CMA’s commitment to offer an investment environment that is safe, fair, and of high operational efficiency, keeps pace with the global developments, and meets the investors aspirations, from individuals and institutions. It is expected that this step contributes to enhancing the traders’ confidence and reinforcing the Kuwaiti market’s status as a trusted regional financial destination.

Moreover, this initiative contributes to achieving CMA’s strategic objectives, which focus on growing the capital markets and diversifying and developing investment instruments thereof in accordance with best international practice, attracting investments, enhancing transparency, and protecting the investors’ rights, which supports the State of Kuwait vision 2035 that aims to transfer Kuwait into a financial and commercial center, attractive to investment and contributes to sustainable economic development.

The CMA confirms its ongoing efforts to enhance the regulatory business environment and simplify procedures to attract more local and international investments and ensure full compliance with the international standards and best practices.

Finally, the CMA confirms its central role in enhancing confidence in the financial market, achieving balance between facilitating investment and maintaining fairness and transparency, which enhances the financial sector’s position as one of the key drivers for economic growth in the State of Kuwait. In addition, the launch of this system represents the beginning of a new stage of the investment and digital instruments that enhance the investors’ confidence and dedicate the role of Kuwait as a regional financial center. The CMA values the efforts for enabling this ambitious initiative that forms as a key pillar in the market development strategy.

The CMA invites all market participants to follow-up the official announcements and view the regulatory updates on its website.

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: 1888898
Email: pr-media@cma.gov.kw