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Trading Guide |
Pre-opening session |
08:50 – 09:00 |
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Continuous Trading |
09:00 – 12:30 |
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Closing auction |
12:30 – 12:45 |
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Time Zone |
GMT+3 |
Trading Days |
Sunday – Thursday |
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Trading Currency |
Kuwait Dinar (KWD) |
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Market Segments |
The market is split into two segments depending on the market cap and liquidity, annually reviewed - Premier market: sees most of the foreign activity and includes most of MSCI/FTSE names - Main Market: only few are within foreign focus |
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Main Indices |
Market Cap weighted index representing the Premier Market: calculated using Price Returns. The base value of the index was 5000 and the base date was April 1st, 2018. |
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Bloomberg code |
KWSEPM |
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Market Cap weighted index representing the Main Market: calculated using Price Returns. The base value of the index was 5000 and the base date was April 1st, 2018. |
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Bloomberg code |
KWSEMM |
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Market Cap weighted index representing the Premier and Main Markets: calculated using Price Returns. The base value of the index was 5000 and the base date was April 1st, 2018. |
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Bloomberg code |
KWSEAS |
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Exchange Code |
Reuters |
KW |
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Bloomberg |
KK |
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Trading ID/ Trading Requirements |
KCC number |
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Settlement Cycle |
T+3 |
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Current Index Status |
MSCI EM - FTSE EM |
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Market Cap |
$131.07 bn |
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| Year | AVG VALUE TRADED |
|---|---|
| 2022 | $197.3mn |
| 2023 | $140.2mn |
Open Auction
10 minutes open auction from 08:50 – 09:00. Orders can only be placed at limit (market orders not allowed). Orders cannot be cancelled and prices can only be improved during first 8 mins, only new orders are accepted during last 2 mins
Closing Auction
15 minutes auction from 12:30 till 12:45.
The first 10mins is a price discovery session: any changes are possible during first 5 mins only (add, cancel or change price). followed by 3-5 mins of no amendments/cancellations as only placing new orders is allowed, last 2 mins is a random uncrossing period.
Orders can only be placed at limit (market orders not allowed).
The last 5 minutes of auction for trading at the matching price (Trading at Last).
Stock Limit
Up/Down
There is no maximum ceiling or floor a stock can reach per day. When a stock moves +10%/-5%, it goes into auction for 2 minutes and a new reference price is set once it uncrosses. The same mechanism takes place on every +10%/-5% movement.
Tick
Size
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Price Range |
Tick Size |
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From |
To |
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10 |
99 |
0.1 fils |
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100 & above |
1.0 fils |
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Crosses
Same NIN crossing: allowed upon submission and approval of an application via local broker, once approved it’s effective in perpetuity. Crossing of natural business (Intentional Crossing Mechanism): allowed. Crosses may be submitted to the exchange within the spread or at the touch during continuous trading only.
Off market
crosses
Special deals mechanism upon approval from the exchange and providing legal documents and prefunding required at 20bps fixed commission per leg at a minimum size of KD 150k per leg
Index
and Market
Suspension
* In case the Premier Index or the Main Index drop 5%, it will get suspended for 15 mins.
* If any of the above indices drop 7%, it will get suspended for 30mins.
* If any of the above indices drop 10%, it will get suspended for the rest of the day
OTC
Market
Available for trading all unlisted stocks Crossing is allowed in this market
Board
Lots
No board Lots
dynamics
Sales: subject to a buy-in if trade fails to settle by 13:00 (local time) on T+2
Sale Penalty: Buy in mechanism to take place on a different platform post market hours with a minimum of the same day's closing price, if no liquidity supplied on Buy In board till T+5, trade will go through cash close-out mechanism to
compensate the buyer.
Purchases: can settle until T+4 with fees within late confirmation mechanism. (KD20.0 per transaction fees if trade settle by T+3, KD50.0 per transaction fees if trade settles by T+4 in addition to trade financing cost). After T+4; a sell-out will take place.
Purchase rejection penalty: price difference + full commission on original
trade and trade reversal in addition to trade financing cost
Buy-in takes place on a separate screen (13:15-13:30)
| Premier Market Fees | 3.00bps |
| Main Market | 4.50bps |
| Dividend Tax | 15% (However, it was not collected since November 2015) |
| Transaction fees | 500 fils per transaction only if value of the transaction is bigger than KD50.00. |
| Legal minimum for all in commission |
Split using the same ratio of 29% market fees, 1% clearing fees and 70% brokerage fees across both market segments: Premier market: 10bps + min 250 fils per transaction Main market: 15bps + min 250 fils per transaction |
| Clearing transaction fees |
KD5.00 per transaction collected at custodian level directly from the end client on behalf of KCC; this is done on monthly basis. |