Kuwait Capital Markets Authority launches Qualified Broker model and grants first license for Central Broker CCP clearing service

The Kuwait Capital Markets Authority (CMA) has launched the “Qualified Broker” model phase and issued the first license for a clearing agency activity to provide a Central Clearing Counterparty (CCP) service through a new “Central Broker” activity. Alongside this, the CMA granted preliminary approvals to nine brokerage firms to conduct “Qualified Broker” activity. The CMA set the regulatory and legislative framework for both activities and processed applications under the executive regulations of Law No. 7 of 2010 and its amendments. The new central broker CCP service is positioned as a post-trade infrastructure change intended to improve settlement and collateral management and reduce counterparty risk, with preparatory coordination spanning the Central Bank of Kuwait, local banks, Boursa Kuwait, brokerage and investment companies, and the clearing agency. Banking-sector work included activating a mechanism for trading-linked accounts via local banks to support fund movements and order execution. The CMA framed these authorisations as preparatory steps for launching the second part of the third phase of the Capital Market System Development Program, and encouraged market participants to follow further official announcements and regulatory updates.