BHB signs key accord with Kuwait company
Manama, May 6, 2014
Bahrain Bourse (BHB) said it has signed a joint agreement with Kuwait Clearing Company to facilitate transfer of shares by linking their systems.
The agreement was signed by BHB deputy chief executive and chief operating officer Shaikh Khalifa bin Ibrahim Al Khalifa and Kuwait Clearing Company CEO Othman Ibrahim Al Issa, at the latter's premises in Kuwait City.
The agreement sets new technical arrangements and procedures that implement an electronic mechanism to promptly transfer the shares of Bahraini companies listed on Kuwait Stock Exchange as well as the shares of Kuwaiti companies listed on BHB once they are settled, reported the Gulf Daily News, our sister publication.
"The agreement comes in line with the joint efforts to strengthen the link between systems and institutions in the financial sector in the GCC countries," stated Shaikh Khalifa.
"The agreement will greatly facilitate investors' procedures of transferring shares they trade in on both exchanges with a high level of confidentiality, security, and precision," he noted.
"The agreement will reflect positively on the Bahraini and Kuwaiti markets, given that Kuwaiti investors comprise 30 per cent of the shares of Bahraini companies," he added.
Al Issa said Kuwait Clearing Company developed this system to facilitate all procedures for investors that will, in return, reflect positively on the economy of Bahrain and Kuwait.
"The same link has been provided to Dubai Financial Market and Abu Dhabi Securities Exchange," he added.
"This agreement is important in various aspects as it will help in organising work and facilitating technical procedures for cross-listed companies in Bahrain and Kuwait. This will result in setting a clear way for both parties to develop the joint co-operation between them," he added.
"According to the agreement, the electronic transfer of shares listed on both exchanges will take place once settled, thereby facilitating the transfer of shares to investors," he said.
"Kuwait Clearing Company and BHB are keen to keep information confidential, and ensure the exchange of information between the two parties safely and accurately," he added.-TradeArabia News Service