Extended trading hours and amended closing auction mechanism to increase the Kuwaiti capital market’s appeal to investors

As part of its ongoing efforts to develop the investment environment and enhance the attractiveness of the Kuwaiti capital market, Boursa Kuwait extended its continuous trading session by 30 minutes starting Sunday, October 12, 2025, with the session now running from 9:00 a.m. to 1:00 p.m. Accordingly, the closing auction session will now run from 1:00 p.m. to 1:10 p.m., while the trade at last session, which will now run from 1:10 p.m. to 1:15 p.m., will end trading for the day.

Extending trading hours enhances efficiency by granting investors more time to respond to market developments and execute their orders, thereby increasing trading volumes, deepening the market, and contributing to greater price transparency and stability.

It also strengthens liquidity by aligning the Kuwaiti capital market’s trading hours with those of global peers, broadening the investor base, reinforcing its appeal, and supporting its regional and international competitiveness.

Closing auction amendments to boost institutional investor participation

Additionally, the closing auction mechanism was amended following the Capital Markets Authority’s (CMA) approval of the relevant updates to the Boursa Kuwait Rulebook. This will help align the Kuwaiti capital market with emerging markets in the region.

Under the new framework, investors can amend buy and sell orders throughout the ten-minute auction, while the random closing period has been reduced to the last 30 seconds instead of the last two minutes. The amendment also provides investors greater flexibility and freedom in executing trades, enhancing the efficiency of the auction process and increasing the market’s overall appeal.

Close collaboration within the capital market apparatus

The decision to extend trading hours and modify the closing auction mechanism followed a series of extensive technical tests conducted among the capital market entities, including Boursa Kuwait, Kuwait Clearing Company, and brokerage firms. These tests were carried out to ensure that the market’s infrastructure was ready to handle the extension without impacting execution speed or efficiency.

“Led by the Capital Markets Authority, and with the support of Boursa Kuwait, Kuwait Clearing Company, banks, and brokers, the capital market apparatus remains committed to developing an efficient, credible market that attracts both local and global investors,” said Mr. Mohammad Saud Al-Osaimi, the Chief Executive Officer of Boursa Kuwait.

“The decision to extend trading hours and amend the closing auction mechanism reflects this commitment, as it provides investors with a more flexible environment and enables them to effectively implement their investment strategies. This step also highlights the apparatus’s commitment to aligning the Kuwaiti market with global index requirements and investor expectations, reinforcing its standing as a leading financial hub regionally and internationally,” he added.

Al-Osaimi concluded his statement by extending his sincere gratitude and appreciation to the Capital Markets Authority and Boursa Kuwait’s partners for their cooperation and dedicated efforts, which underscore the commitment of the capital market apparatus to continue working as one team to enhance the appeal of the Kuwaiti market and strengthen its competitiveness.

“This supports the national economy and strengthens the country’s standing as an attractive regional financial hub, while also directly bolstering investor confidence and encouraging their active participation in the market,” he said.

Ongoing efforts to build a strong capital market

As part of its strategy to build a more efficient and attractive capital market that meets the aspirations of both local and international investors and aligns with global best practices, the Kuwaiti capital market apparatus, led by the CMA, launched the second part of Phase Three of the Market Development Program last July.

This phase included the implementation of the Central Counterparty Clearing (CCP) framework, the completion of cash settlements through local banks and the Central Bank of Kuwait’s “KASSIP” system, the upgrade of brokerage firms’ operating model to that of “Qualified Broker,” and the introduction of sub-account structures within omnibus accounts. Additional products and services related to Exchange-Traded Funds (ETFs) and fixed-income instruments, including bonds and sukuk, are expected to be launched later this year.