MSCI Inc. (NYSE:MSCI), a leading provider of research-based indexes and analytics, announced today that it will reclassify the MSCI Kuwait Indexes to Emerging Markets status as part of the May 2020 Semi-Annual Index Review in one step as the Kuwaiti equity market now meets all the necessary requirements.
“We welcome the latest market accessibility enhancements introduced by the Kuwaiti authorities that now allow international institutional investor to benefit from omnibus account structures and same NIN cross trade capabilities,” said Sebastien Lieblich, Global Head of Index Solutions and Chairman of the MSCI Equity Index Committee. “Kuwait’s addition adds further diversification to the MSCI Emerging Markets Index with an estimated weight of 0.69%,” added Mr. Lieblich.
On October 26, 2019, the Kuwait Capital Market Authority (CMA) announced that it issued resolutions, amending some provisions of the executive bylaws and rules related to the implementation of omnibus accounts and same National Investor Number (NIN) cross trades. International institutional investors confirmed subsequently that these two enhancements were implemented in practice.
As a reminder, MSCI announced on June 25, 2019 that it would reclassify the MSCI Kuwait Index to Emerging Markets status, subject to omnibus account structures and same National Investor Number (NIN) cross trades being made available for international institutional investors before the end of November 2019.
MSCI will provide further implementation details, including a Q&A as well as a set of provisional indexes no later than January 31, 2020.
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