Boursa Kuwait has put a new trading, clearing and settlement commission structure into effect from October 4, 2026, changing the economics of trading just as Kuwait moves from building an ETF framework to preparing for actual listings.
The exchange confirmed that the revised structure implements Kuwait Capital Markets Authority Resolution No. 85 of 2026 and related circulars. The CMA had initially targeted October 1, but Boursa Kuwait said the new structure would take effect on Sunday, October 4.
Under the revised framework, commissions in Kuwait’s Premier and Main Markets are unified at 15 basis points, while the previous KWD0.5 settlement fee per executed transaction has been removed. The CMA said the changes were designed to improve trading efficiency and give brokers more flexibility in pricing commissions, including through discounts.
That matters for ordinary equity trading, but the timing is particularly relevant for Kuwait’s developing ETF market.
ETFs Move From Regulation to Implementation
The CMA approved Kuwait’s formal ETF framework on June 18, 2026 under Resolution No. 80, amending collective-investment, listing and securities rules and approving related changes to Boursa Kuwait and central securities depository regulations.
Boursa Kuwait says the framework can accommodate ETFs tracking Kuwaiti securities, foreign-market benchmarks, commodity indices or combinations of underlying assets. The model also sets out roles for fund managers, authorized participants and market makers, with ETF trades settling on T+3.
Nukoud examined those mechanics in its recent discussion on building Kuwait’s ETF ecosystem, where liquidity, creation and redemption, market making and the scope for Shariah-compliant products were central themes.
The exchange has yet to publicly confirm a named first ETF listing in the official material reviewed by Nukoud, but interest appears to be building. Boursa Kuwait said during its first-half 2026 analyst conference that it had seen increased interest from local and international asset managers in potentially listing ETFs.
That leaves several possible directions for the first products. A Kuwait equity ETF could track a broad domestic benchmark or the Premier Market, while Shariah-compliant equity exposure would fit naturally with the local fund industry. The rules also allow commodity and international benchmarks, creating scope for gold products or overseas-market exposure.
Why Trading Costs Matter for ETF Liquidity
For ETFs, trading commissions and settlement costs feed directly into market-maker economics. Liquidity providers continuously buy and sell ETF units, hedge underlying exposure and, where applicable, create or redeem shares through authorized participants.
Nukoud has already highlighted how important this infrastructure can be in Saudi Arabia, where the Tadawul ETF market-making framework introduced fee rebates and formal quoting obligations to support tighter spreads and stronger secondary-market liquidity.
The issue is especially relevant in Kuwait because liquidity has been uneven. Nukoud reported that Boursa Kuwait’s active trading accounts more than doubled in Q1 2026 even as traded value fell sharply, showing that broader participation does not automatically translate into deeper turnover.
Removing fixed settlement charges should therefore help at the margin, particularly for market makers executing many smaller trades. A more predictable commission structure also makes it easier for prospective liquidity providers to model spreads, hedging costs and inventory risk.
Kuwait now has the regulatory framework, trading infrastructure and revised fee schedule in place. The next stage will depend on whether issuers bring products to market and whether market makers can support spreads tight enough to attract sustained investor activity.
