Today, Tuesday, the Palestine Capital Market Authority (PCMA) published a regulation governing the operations of financial securities companies with foreign stock markets. This regulation was approved by the Palestinian Cabinet to regulate and control transactions, reduce risks, and consequently contribute to the stability of the non-banking financial securities sector in Palestine. The regulation was enacted based on Law No. (17) of 2009 regarding transactions in foreign stock markets, allowing licensed financial securities companies authorized by the PCMA to engage in brokerage activities and operations in foreign and global stock markets.
By the same intimation, Murad Jadbah, the Director of the Securities Directorate, affirmed that the PCMA has not yet granted any entity a license to engage in foreign stock market transactions involving foreign currencies, precious metals, commodities, and indices. He mentioned that the PCMA will announce the list of licensed entities to conduct such activities once they fulfill the licensing requirements, conditions, and technical regulations set by the PCMA to ensure compliance with its licensing policy for companies wishing to engage in these activities.
Jadbah explained that the PCMA aims to transform the activity of trading in foreign stock markets, currency markets, indices, and commodities into a regulated formal sector. This move is intended to enhance the ability to measure the impact of this activity on the national economy and financial inclusion indicators, and to establish regulations to regulate and mitigate risks in this sector.
It is worth noting that the regulation includes licensing requirements, such as capital requirements, fund segregation procedures, financial guarantees, internal control procedures including data preservation, enhancing information security, technical infrastructure, electronic applications, and software. Requirements for central linkage procedures with the PCMA’s regulatory systems will be announced once the technical systems are ready.
You can access the provisions of the regulation through the following link: [Regulation Link]
