The Board of Directors of the Palestinian Capital Market Authority, in its session convened on 28/11/2022, adopted the draft of regulations dealing with foreign stock exchanges in accordance with the provisions of Article (3/2) of the Presidential Decree No. (17) of 2009 regarding dealing in foreign stock exchanges. This is in line with the provisions of the Securities Law No. (12) of 2004, the Capital Market Authority Law No. (13) of 2004, and the recommendation to the Palestinian Council of Ministers for ratification.
The General Director of the PCMA, Barraq Al-Nablusi, stated that the activity of trading in foreign global markets will be allowed to be conducted by licensed securities companies approved by the Capital Market Authority, subject to specific controls and regulations. This will occur after the ratification of the regulation by the Palestinian Council of Ministers. The regulation for dealing with foreign stock exchanges allows licensed companies to provide brokerage services for trading in foreign stock exchanges, including securities listed on foreign financial markets, as well as the trading of foreign currencies, precious metals, and more. This service is offered to individual and institutional investors and traders.
He emphasized that the PCMA’s adoption of the regulation is in line with the implementation of its strategic plan for the years 2021-2025. It aims to regulate the non-official financial sector, protect participants from dealing with numerous unlicensed entities and individuals, measure the impact of this activity on financial inclusion indicators in Palestine, and enrich the Palestinian market with professional regional companies with strong financial capabilities and a good reputation. This is achieved by requiring companies to provide professional staff who work to raise awareness in the field of foreign stock market investments.
Al-Nablusi also stated that the PCMA has initiated the preparation of plans and procedures to ensure the enforcement of regulatory tools on entities operating in this sector and qualified individuals, as it is a sector characterized by high liquidity, high-frequency trading, and associated risks.