Securities Settlement System (KSE)

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Securities Settlement System (KSE) is a payment system used in Kuwait Securities Exchange

  • The Kuwait Stock Exchange enjoys an independent judicial personality with the right of litigation in a mode facilitating the performance of its functions for the purpose of realizing the objectives of its organization in the best manner within the scope of regulations and laws governing the Stock Exchange operations.
  • The Stock Exchange within its activity act to direct and rationalize dealing in stocks and securities, within the scope of its powers in order to develop and stabilize dealing in securities in a manner securing safe, easy and accurate transactions so as to avoid any confusion in dealings.
  • The Stock Exchange, in pursuance of the research and the studies concluded by it and its follow up of the security dealing process shall render appropriate advice and opinion to the competent government authorities regarding the financial status of the Stock Exchange member companies and means of promoting their efficiency for realization of their relevant objectives.
  • The Stock Exchange shall participate with the competent authorities in order to realize coordination and integration among the financial and the economic activities and the capital movement so as to assist in achieving the economic and the financial development and stability of the state.
  • The Stock Exchange staff shall continue to develop the systems and the methods of dealing in securities, besides introducing modern techniques such as those applied in advanced stock markets for the purpose of achieving a sound financial position for the Kuwait Stock Exchange on both, regional and international levels.
  • The Stock Exchange acts to encourage saving, promote investment awareness among citizens, protect depositors and create means for investment of funds in securities, in a manner beneficial to the economy.
  • The central clearing, settlement and depository entity for the Kuwait stock exchange is Kuwait Clearing Company.

www.kuwaitse.com

Kuwait Clearing Company

KCC is the central clearing, settlement and depository entity for the Kuwaiti securities market. KCC provides clearing, settlement; depository services to all KSE traded securities, and derivatives. It also provides depository services for unlisted equity securities and debt instruments. KCC provides registrar and trustee services to the companies and investment funds, and performs local and regional custody services for both local and foreign investors.

Kuwait Clearing Company (KCC) S.A.K. was established in 1982 by the authorities, to manage and resolve issues related to the collapse of the unofficial stock market, commonly known as the 1982 Souk Al-Manakh crisis. The project required close cooperation with numerous financial and governmental institutions and a few years of diligent work. Successful completion of the project helped KCC to gain respect from all parties involved.

On August 14, 1983, an Amiri Decree was issued to officially establish the Kuwait Stock Exchange (KSE) as an independent financial institution, supervised by an executive committee. This was a significant milestone for the Kuwaiti market and played an important role in the organization of the Kuwaiti stock market. It provided the foundation for market regulations and the legal structure of clearing and settlement.

In 1986, the KSE authorities appointed KCC to act as the clearing, and settlement agent for all security transactions at the KSE. In the same year, in consultation with the KSE, KCC formulated and implemented the necessary mechanisms and procedures for clearing and settlement processes. Since then, KCC has made significant progress in many aspects of its businesses and system developments.

Products and services

  1. Service Accounts.
  2. Clearing and Settlement Services .
  3. Derivatives Market Dematerialization/Re-materialization.
  4. Mortgage/Pledge Account Services.
  5. Registrar Services.
  6. Trustee Services and Managing bids.
  7. Custody Services.
  8. Depository for Corporate Debt Instruments.
  9. Initial Public Offer (IPO) or Subscription Management.
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