Boursa Kuwait Extends Trading Hours to Enhance Market Efficiency
Introduction to Extended Trading Hours
In a significant move aimed at boosting investor confidence and participation, Boursa Kuwait has announced an extension of its trading session by 30 minutes. Effective October 12, 2025, the trading day will now run from 9:00 a.m. to 1:00 p.m., with the closing auction session taking place from 1:00 p.m. to 1:10 p.m. and the final trade session concluding at 1:15 p.m. This initiative is part of Boursa Kuwait’s ongoing strategy to develop a more attractive investment environment for local and international investors.
Potential Benefits for Investors
The decision to elongate trading hours is expected to significantly enhance market efficiency. By giving investors additional time to react to market developments, trading volumes are likely to increase, fostering a deeper market with improved price transparency. This move also aims to fortify liquidity within the capital market by aligning trading hours with global standards, which can broaden the potential investor base and increase the market’s overall competitiveness on an international scale.
Changes to Closing Auction Mechanism
Alongside the trading hour extension, Boursa Kuwait has also revised its closing auction process, following approval from the Capital Markets Authority (CMA). The updated framework allows investors greater flexibility by enabling them to modify buy and sell orders throughout the ten-minute auction period. Notably, the random closing period has been shortened from two minutes to just 30 seconds. These adjustments are intended to enhance the efficiency of the auction system and make the market more appealing to institutional investors.
Collaboration and Testing
The enhancements in trading hours and auction processes are the result of extensive collaboration among various capital market entities, including Boursa Kuwait, the Kuwait Clearing Company, banks, and brokerage firms. Comprehensive technical tests were conducted to ensure that the capital market infrastructure could manage the new changes effectively, without compromising execution speed or operational efficiency.
Commitment to Development
Mr. Mohammad Saud Al-Osaimi, the Chief Executive Officer of Boursa Kuwait, highlighted the importance of these developments, emphasizing the continuous commitment of the capital market framework to cultivate a credible marketplace that draws in both local and global investors. He stated that these efforts aim to align the Kuwaiti market with global investment expectations and showcase its status as a financial hub.
Strategic Market Development Program
The updated trading hours and auction mechanisms fit within a broader strategy spearheaded by the CMA to bolster the efficiency and attractiveness of the Kuwaiti capital market. This overarching Market Development Program includes the implementation of the Central Counterparty Clearing (CCP) framework, which was launched last July, as well as the introduction of new financial instruments like Exchange-Traded Funds (ETFs) and fixed-income products, including bonds and sukuk.
About Boursa Kuwait
Since its founding in 2014, Boursa Kuwait has evolved from the Kuwait Stock Exchange, which was established in 1977 as the first exchange in the Gulf Cooperation Council (GCC) region. Following a successful transition in 2016, Boursa Kuwait has adopted international best practices and worked tirelessly to enhance its infrastructure and trading framework. This adaptability has not only attracted investments but also led to the reclassification of the Kuwaiti market as an "emerging market" by key global index providers, bolstering its standing as a regional financial center.
Conclusion
Boursa Kuwait’s proactive steps in extending trading hours and updating auction processes reflect its dedication to creating a robust and appealing investment environment. By continuously enhancing its market offerings and operational frameworks, Boursa Kuwait is poised to attract a broader spectrum of investors while reinforcing its competitive edge in the global financial landscape.
For more information, please contact Ahmad Rashed Alowaish at Boursa Kuwait via email at aalowaish@boursakuwait.com.kw.
