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  • CRA-15.4 CRA-15.4 Trading and Settlement of Digital Tokens

    • CRA-15.4.1

      Trading of digital tokens can be conducted either by:

      (a) Operating an automated order matching system (exchange type order matching engine) by a category-4 crypto-asset exchange licensee, wherein buyer and seller orders are automatically matched by the matching engine and the crypto-asset exchange does not buy or sell digital tokens over-the-counter (acting as a dealer); or
      (b) Over-the-counter trading, wherein a category-3 or a category-4 crypto-asset licensee acts as a dealer and provides price quotes, on its trading platform, with its clients for the digital tokens issued and listed on its platform.
      Added: April 2023

    • CRA-15.4.2

      A digital token must not be simultaneously listed on the same platform for both types of trading i.e. order matching type market (buyer and seller orders are matched automatically by a matching engine) and over-the-counter trading market.

      Added: April 2023

    • Over-the-counter Trading

      • CRA-15.4.3

        Category-3 and category-4 crypto-asset licensees must establish written rules for over-the-counter trading of digital tokens and publish them on its trading platform.

        Added: April 2023

      • CRA-15.4.4

        The over-the-counter trading rules referred to in Paragraph CRA-15.4.3 must include the trading platform's business days and trading hours, price quote method, trade execution principles, price stabilization mechanism, trading procedures, method for the advance collection of purchase prices and digital tokens to be sold, upper and lower price limit for trading, conditions under which trading halt (circuit breaker) shall be imposed, and the handling of settlement and default.

        Added: April 2023

      • CRA-15.4.5

        Category-3 and category-4 crypto-asset licensees engaging in over-the-counter trading of digital tokens with clients on its trading platform must collect in advance from a client the full amount of the purchase price or the digital tokens to be sold.

        Added: April 2023

      • CRA-15.4.6

        Category-3 and category-4 crypto-asset licensees undertaking over-the-counter trading of digital tokens must open a dedicated account at a licensed bank in Kingdom of Bahrain for the collection and payment of funds.

        Added: April 2023

      • CRA-15.4.7

        Category-3 and category-4 crypto-asset licensees engaging in over-the-counter trading of digital tokens must provide two-way, buy and sell, quotes.

        Added: April 2023

      • CRA-15.4.8

        Category-3, and category-4 crypto-asset licensees, undertaking over-the-counter trading of digital tokens, must provide reasonable price quotes based on its professional judgment and must efficiently adjust demand and supply in the market depending on the market situation and must not give a quote that deviates from a reasonable price, thereby impairing the formation of fair prices.

        Added: April 2023

      • CRA-15.4.9

        Where a category-3, category-4 crypto-asset licensee engages in over-the-counter trading of digital tokens with its clients on its trading platform, the aggregate trading volume of the purchases and sales of any single digital token on any single business day must not exceed 50 percent of the issued quantity of that digital token.

        Added: April 2023

      • CRA-15.4.10

        Category-3 and category-4 crypto-asset licensees undertaking over-the-counter trading of a digital token with its clients on its trading platform, must disclose on the trading platform relevant information to take informed trading decision including price, quantities and other trade information.

        Added: April 2023

      • CRA-15.4.11

        The trade information referred to in Paragraph CRA-15.4.10 must, at a minimum, include the price and quantity of the most recent trade, the cumulative trading volume, and highest, lowest, and weighted average trading price, of the digital token during the trading hours.

        Added: April 2023

      • CRA-15.4.12

        After the close of daily trading hours, category 3 and category-4 crypto-asset licensees must prepare and disclose the trading volume and weighted average trading price of each digital token on that day.

        Added: April 2023

      • CRA-15.4.13

        The CBB may, at any time, by notice in writing to a category-3, category-4, vary any condition or restriction or impose such further condition or restriction as it may deem fit including but not limited to suspension of trading or termination of trading of a digital token.

        Added: April 2023

      • CRA-15.4.14

        Category-3 and category-4 crypto-asset licensee undertaking over-the-counter trading must adhere to conduct of business obligations as stipulated in Section CRA-12 of this Module.

        Added: April 2023