On Wednesday, the Iraq Stock Exchange (ISX) announced the launch of a new platform for trading shares of undisclosed joint-stock companies, set to begin on Sunday, July 3rd. This initiative follows Legislative Order No. 74 of 2004 and aligns with the rules set by the Securities Commission and ISX.
The platform aims to protect shareholders’ rights, attract potential investors, and activate trading in securities for companies that had previously been suspended for failing to provide necessary disclosures. These companies include Electronic Industries Company, Light Industries Company, Al Badia Public Transport Company, and others.
Ahmed Abdel Salam, Executive Director of the Iraq Stock Exchange, explained that the rate of change for stock prices will be capped at 5% up and down from the last closing price, with the initial session allowing for a 50% price change. Trading will only be available for companies that the Securities Commission has already decided to suspend for non-disclosure. The companies involved must also provide a report detailing the company’s current status, any legal disputes, and other material impacts on their activities.
The Securities Commission and ISX plan to evaluate the platform’s performance after three months, adjusting it based on feedback. To increase activity, they will also raise the price change rate for listed companies from 10% to 15%, starting on July 3, 2022.
Salam emphasized that investors will bear responsibility for the risks associated with trading shares of companies on the new platform, especially considering the lack of disclosure. Brokerage companies are required to inform investors of these risks in their agreements.