Kuwait launches consultation on stock exchange rules

Draft regulations around ‘market markers’ issued as part of privatisation plans
Kuwait launches consultation on stock exchange rules
(Yasser Al-Zayyat/AFP/Getty Images)
By Sarah Townsend
Thu 06 Oct 2016 09:59 AM

Boursa Kuwait, the company in charge of Kuwait’s stock exchange since April, said it has launched a consultation on a market markers ‘rulebook’ ahead of a planned privatisation of the exchange within the next two years.

The consultation launched on Wednesday and closes on October 11. Market makers are banks or brokerages prepared to buy and sell a number of shares on a regular basis, providing liquidity.

The consultation sets out how stock exchange investment tools can improve competitiveness, boost liquidity and attract new investments, while setting out regulations for market markers.

Khaled Abdulrazzaq Al Khaled, vice-chairman and CEO of Boursa Kuwait, said: “The launch of the Market Maker Rulebook draft is a significant step towards improving market performance.

“By sharing this with our stakeholders, we are gauging the degree to which this draft addresses market needs, and more importantly, allowing space for improvement.

“It will allow us to introduce a series of successful tools and solutions in the short and long term, and ensure transparency.”

Boursa Kuwait was handed the official licence to take over the Kuwait stock market on October 3.

It is part of a strategy to prepare the exchange for privatisation, viewed as a key plank of Kuwait’s plans to strengthen its financial sector and diversify its economy away from oil.

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