Move to improve system
KUWAIT CITY, Dec 17: The Kuwait Stock Exchange has made an amendment to the rules of the mandatory buying session to cover failures of the trading accounts of some dealers in the market, reports Al-Rai daily.
The amendment included a reduction in the price increase on which the purchase of the amount of shares to be covered by the broker would be reduced to 10 percent instead of 20 percent. Sources told the daily that international institutions discussed the matter with the stock exchange management during the last period, after monitoring observations related to the percentage increase from the previous closing price of the share, indicating that it is large, which was met with the understanding of the stock exchange, which coordinated with the Capital Markets Authority to do the necessary.
Sources pointed out that the amendment came into force as of yesterday, as the concerned parties informed the brokerage companies operating in the stock exchange about these developments and the required improvements to the systems to free them from any problems.
Sources pointed out that the compulsory buying session was held after the daily trading hours, starting at 01:10 pm and closing at 01:25 pm, as it is trading during the “Buy-in Board” auction. The execution of the transaction is carried out by intermediaries who fail to deliver the securities on the date of the settlement. The sale of the shares is available to all traders who wish to trade for an increase of up to 10% from the closing price as a minimum.