Kuwait Stock Exchange

Transcription

Kuwait Stock Exchange
New Changes and Implementations
May 2012
Table of Contents
1. Old and New systems
4
2. New Trading System X-stream
8
3. Sector Classification
11
4. Kuwait 15 Index
13
5. New Website
15
Appendix
A. Securities on the Main Market
19
B. KSX15
25
1. Old and New Systems
New system will be in effect on 13th May
Differences between the Current System (KATS) and the New System
(X-Stream)
The following information is general for all market participants and investors
 Quantity Units will be eliminated and the minimum tradable unit will be one share, therefore eliminating
the Odd-Lot Market.
 After eliminating the Odd-Lot Market and integrating it with the Regular Market, the minimum commission
value in the Market will become 2 KD and the commission ratios will remain as follows:
– (0.125 %) for traded values up to KD 50,000 of the total value of the client’s trades.
– (0.1 %) for traded values above KD 50,000 of the total value of the client’s trades.
 The clearing commission (500 Fils per each trade) will not be charged for trades with a value less than
KD 50.
 Similar to the current opening auction, an auction will be held at the close of trading with a pre-auction
period (without matching) of two minutes, where orders cannot be cancelled or modified.
 Auctions will use the common "Price/time" priority rather than the current "time/price" priority for matching
during the auctions.
 The current 5 minutes waiting time for order modification and cancellation during continuous trading will
be eliminated.
 Having a new feature of increasing the order quantity which will result in losing the order time priority.
4 Source: Kuwait Stock Exchange
(X-Stream) (Cont’d)
 Having a new feature of entering orders with Duration Conditions as follows:
– Good for session (Continuous Trading)
– Good till Cancel (GTC)
– Good till Date (GTD)
 After eliminating the Quantity Units, the maximum limit on order size will be 5,000,000 shares.
 In addition to the current Market by Price (MBP) order book, there will be a new Market by Order (MBO)
order book where individual orders are provided.
 In the new system, the Forward Market will be an order-driven market instead of the current behavior
where Market Makers enter quotes.
 Forward Market trades will be executed at the best price for the investor rather than being executed at the
price chosen by the broker as it is currently.
 After eliminating the Quantity Units, the minimum and maximum quantity limits on Forward trades will be
as follows:
– Min Forward trade Qty = 5,000 shares
– Max Forward trade Qty = 100,000 shares
 In the new system when there is a corporate action on a security, all pending orders (with duration
GTD/GTC) will be cancelled automatically by the system at the end of the day.
(X-Stream) (Cont’d)
 In the new system, the Previous price is changed when the Reference price is changed (due to a
corporate action for example), and there is a new price named the Unadjusted Previous price which is
fixed.
 Orders with duration “good till date” or “good till cancel” that are outside the price limits on the next day
will not be accepted into the order book and will be as “unplaced” orders. Such orders will remain
unplaced with their original priority until the reference price moves and the order price becomes within the
limits. An unplaced order can also be cancelled or modified by the broker at any time.
 In the new system the Price Index Values will be shown with 2 decimal places, however in the current
system it is shown with only one decimal place.
 In the new system the Forward Market Prices will be shown with 3 decimal places, however in the current
system it is shown with only one decimal place.
 In the new system when suspending a security, the existing orders for that security will remain in the
order book and the broker has the ability to cancel his orders, however in the current system all the
orders available for a suspended security will be cancelled by the system.
2. New Trading System X-Stream
New Trading System X-Stream
The new trading system "X-stream" is one of NASDAQ OMX's products which have been operated in more
than 15 countries worldwide.
Properties of the new trading system
 "Board Lots" and the "Odd-Lot Market" will be eliminated and the minimum tradable unit will be one share.
 The maximum limit on order size will be 5,000,000 shares.
 The minimum commission value in the Market will become 2 KD and the commission ratios will remain as follows:
– (0.125 %) for traded values up to KD 50,000 of the total value of the client’s trades.
– (0.1%) for traded values above KD 50,000 of the total value of the client’s trades.
 An auction will be held at the close of trading with a pre-auction period (without matching) of two minutes, where orders
cannot be cancelled or modified.
 Auctions will use the common "Price/time" priority for matching.
 5 minute waiting time for order modification/cancellation is eliminated.
 Introduces a new feature of increasing the order quantity (which will result in losing the order priority).
 When there is a corporate action on a security, all pending orders (with duration GTD/GTC) will be cancelled automatically
by the system at the end of the day.
 Forward Market trades will be executed at the best price for the investor rather than being executed at the price chosen by
the broker.
 After eliminating the Quantity Units, the minimum and maximum quantity limits on Forward trades will be as follows:
– Min Forward trade Qty = 5,000 shares
– Max Forward trade Qty = 100,000 shares
New Trading System X-Stream (Cont’d)
X-stream provides investors with various time spans that can be applied to orders. The below table lists the
available order duration
Order Duration
Description
The order is valid throughout the trading day on which it was entered.
Day
Session
The order is good only for the current trading session. The order is cancelled at
the end of the current session and it is only supported during the Continuous
Trading session.
Good till Cancelled (GTC)
The order is good until a cancellation is submitted or until 90 days have passed
whereupon the order is automatically deleted.
Good till Date
(GTD)
The order is good until the end of the last session on the specified date
whereupon it is automatically cancelled. The maximum duration of a GTD orders
is 90 days from when entered.
Immediate or Cancel (IOC)
The order must execute immediately and fill as much as possible or it is
cancelled.
3. Sector Classification
Sector Classification
The charts in this template have been created with the correct default settings and can be reused by
changing the datasheet. Refer to the Shape Gallery within the (Tools) menu for a list of predefined charts.
Number
Sector Name
Sector
code
Industry Name
Industry
Code
1
Oil and Gas
0500
Oil and Gas
0001
2
Basic Materials
1000
Basic Materials
1000
3
Industrials
2000
Industrials
2000
4
Consumer Goods
3000
Consumer Goods
3000
5
Health Care
4000
Health Care
4000
6
Consumer Services
5000
Consumer Services
5000
7
Telecommunications
6000
Telecommunications
6000
8
Utilities
7000
Utilities
7000
9
Banks
8300
Banks
8000
10
Insurance
8500
Insurance
8000
11
Real Estate
8600
Real Estate
8000
12
Financial Services
8700
Financial Services
8000
13
Investments
Instruments
8980
Investments
Instruments
8000
14
Technology
9500
Technology
9000
15
Parallel
9900
Parallel
9000
ICB
•
The system for classifying stocks that has been chosen by KSE is
the Industry Classification Benchmark (ICB).
• The Industry Classification Benchmark (ICB) is a definitive system
categorizing over 70,000 companies and 75,000 securities
worldwide.
• The ICB classification method allocates each company to a
classification according to the nature of its business, which is
determined by its source of revenue or where it derives the
majority of its revenue. ICB has four levels, of which KSE shall
publish the top two.
• In accordance with the launch of X-stream with a base value of
1,000 for price weighted Sector Indices and 500 for market
weighted Sector Indices.
Sector Breakdown According to Number of Companies
4. Kuwait 15 Index
Kuwait 15 Index
The KUWAIT 15 index is the KSE Flagship Index.

The KUWAIT 15 index is reviewed periodically to cater for the demands of index stability, invest ability and low transaction
costs, while maintaining a high correlation with the underlying market
 The KUWAIT 15 index is a market capitalization weighted index
 The index includes the 15 highest ranked companies according to liquidity and size
 The index constituents are reviewed and selected semi-annually to reflect the most liquid and highest market capitalization
values in the market
 The index can serve as a basis for index linked products such as index derivatives, indexed funds, exchange traded funds
(ETFs) and structured products
 The index is highly correlated with KSE all-share market capitalization index
 Selection process of the Kuwait 15 Index Constituents:
– Select the 50 most traded companies by turnover according to measured liquidity
– These companies are then ranked by market capitalization
– The 15 highest ranked companies in step 2 are selected to the index for the next coming period
– At the time of the periodic review, KSE publishes a reserve list of three to five ranked companies
General
Informati
on:
Ticker
Code:
Index
Universe:
Index Launch
Date:
Base
Value:
KSX 15
KSE Allshare Index
In accordance
with the launch
of X-stream
1,000
Currency:
Review
Dates:
Index
Rules:
Kuwaiti
Dinar
May and
November
Will be
available
shortly
5. New KSE Website
New KSE Website
The new KSE Website is a completely new platform for KSE to communicate with all market participants. It
facilitates both free and paid-for services and can support more sophisticated data exchange mechanisms
Benefits of the new KSE Website:
 Ease of saving and retrieving information and data, from anywhere in the world
 Increased data and information security
 Will support different service levels for different users and subscribers
 Greater potential for more sophisticated support for investors
 To access the new website prior to KSE going live with the new Trading System, please use the
link below:
 http://webtest.kuwaitse.com
New KSE Website- Snap Shots
New KSE Website- Snap Shots
Appendix A. Securities on the Main Market
Securities on the Main Market
Appendix B. KSX15
KSX15
Kuwait 15
30/11/2011
Ticker
Sec ID
Liquidity
KSX15
Market Capital
Market Cap
Liquidity
Rank
Rank
Weighted Cap
Weighted
Weighted to
Weighted to
Liquidity
Total Market Cap
Total Market Liquidity
NBK
101
205,550,600 4,511,806,630
1
1
23.79
18.76
16.18
9.65
ZAIN
605
146,607,500 3,919,856,542
2
2
20.67
13.38
14.06
6.88
KFIN
108
139,925,475 2,420,136,612
3
3
12.76
12.77
8.68
6.57
GBK
102
48,158,450 1,329,082,254
4
12
7.01
4.39
4.77
2.26
BOUBYAN
109
30,209,950 1,031,458,836
5
18
5.44
2.76
3.70
1.42
CBK
103
23,421,650
979,457,206
6
24
5.16
2.14
3.51
1.10
NMTC
613
15,275,700
957,662,244
7
36
5.05
1.39
3.43
0.72
ALMUTAHED
105
20,776,000
912,778,209
9
26
4.81
1.90
3.27
0.98
BURG
107
64,084,650
684,199,749
10
9
3.61
5.85
2.45
3.01
MABANEE
413
60,716,300
488,950,836
12
10
2.58
5.54
1.75
2.85
AGLTY
603
85,393,230
403,032,133
13
6
2.12
7.79
1.45
4.01
KPROJ
205
36,526,900
388,242,889
14
14
2.05
3.33
1.39
1.71
NIND
501
93,749,170
356,151,996
15
5
1.88
8.55
1.28
4.40
CABLE
505
12,759,300
310,698,339
17
46
1.64
1.16
1.11
0.60
KIB
106
112,747,860
274,891,568
18
4
1.45
10.29
0.99
5.29
100.00
100.00
68.02
51.43
Total
15 1,095,902,73518,968,406,043
BPCC
514
47,534,550
271,656,000
19
13
ALAFCO
642
67,960,200
257,324,618
20
8
ALQURAIN
526
33,910,680
239,800,000
21
15
Reserve
Companies
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Kuwait Stock Exchange

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