Kuwait CMA Launches CCP Model, Issues First CCP License

(MENAFN- Kuwait News Agency (KUNA)) KUWAIT, July 9 (KUNA) - The Capital Markets Authority (CMA) of Kuwait announced in a statement on Wednesday the launch of the Central Clearing Counterparty (CCP) model and the issuance of the country's first-ever license for a central clearing agency.
It is a major regulatory milestone in the development of Kuwait's capital market since its initial regulation in the early 1980s.
In the statement, the CMA said this step is part of its ongoing efforts to enhance regulatory frameworks and boost Kuwait's market competitiveness regionally and internationally, and that initial approvals have been granted to nine brokerage firms to operate under the new intermediary model.
The Central Counterparty (CCP) model introduces significant post-trade infrastructure changes aimed at improving settlement efficiency, managing collateral, and reducing counterparty risk - all of which are expected to strengthen market liquidity, stability, and investor confidence.
The move is aligned with the second part of phase three of the CMA's market development program, coordinated closely with key stakeholders including the Central Bank of Kuwait, local banks, Boursa Kuwait, investment firms, and the Kuwait Clearing Company.
The CMA highlighted that integrating CCP services will help diversify financial products, improve transparency, and align the Kuwaiti market with global standards - all key elements of Kuwait Vision 2035, which aims to transform the country into a leading regional financial and commercial hub.
The authority reaffirmed its commitment to simplifying procedures, attracting investment, and providing a safe, efficient, and transparent investment environment that supports long-term economic growth. (end)
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