• KUW CMA issued resolution to amend the regulations of Kuwait Clearing Company regulating the lending and borrowing of securities to develop the capital markets.

Overview

• Marks launching new type of investment instrument, in addition to central lending and borrowing service currently provided via lending pool and lending, borrowing service.
• Comes in response to investor expectations and feedback received by the KUW CMA.
• Increase market efficiency, operations, can be used to cover short selling transactions.
• Can be executed in line with regulations governing it in chapter 9 of exchange rules.
• Also be used in risk management to address failures related to securities settlement.
• Enables launching products such as derivatives, hedge funds, investment products.
• This service aims to facilitate reaching agreement between two parties to participate in lending and borrowing securities (as it relates with short selling), in coordination with the Kuwait Clearing Company.
• Provides greater flexibility for completing process of financing shares as agreed upon.