e-stock market cleared for licensing

SMEs will be the main beneficiaries

The Capital Markets Authority (CMA) is taking the necessary measures to license an electronic stock market, according to the Central Bank (BDL).

“The main purpose of this market will be to provide liquidity to Small and Medium Enterprises (SMEs) and find the right exit for emerging companies, if these companies would like to be sold to the public,” said Riad Salameh, Governor of the BDL. “We look also to reduce the private sector debt, which may free funds for investment and create job opportunities,” said Salameh.

“This market will allow e-trading in stocks, currencies, goods, and securities with the participation of banks, financial institutions, and brokerage companies,” said Salameh. “Settlements and clearance issues will be supervised by Midclear,” he said. Midclear is the custodian and clearing center of financial instruments.

The e-stock market, whose launch date has not been announced, may be managed by the Beirut Stock Market (BSE), if the Government privatizes the BSE, if stipulated by law, according to Salameh. “If not, the e-stock market will be independent and owned by the private sector,” he said.