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  • MAE-A.1 MAE-A.1 Purpose

    • Executive Summary

      • MAE-A.1.1

        Module MAE sets out the Central Bank of Bahrain's regulatory framework governing licensed exchanges and licensed market operators (other trading instruments platforms) operating in or from the Kingdom of Bahrain.

      • MAE-A.1.2

        The MAE Module seeks to introduce a consistent, effective and harmonised approach in regulation and supervision of licensed exchanges and licensed market operators in the Kingdom of Bahrain. It sets out the CBB requirements for their authorisation, the initial as well as ongoing compliance requirements.

      • MAE-A.1.3

        The key principles underlying the approach of the CBB in this Module aim:

        (a) To promote fair, orderly and transparent markets;
        (b) To facilitate efficient markets for the allocation of capital and the transfer of risks;
        (c) To reduce systemic risk;
        (d) To detect and deter manipulation and other unfair trading practices; and
        (e) To maintain integrity of trading through fair and equitable rules that strike an appropriate balance between the demands of different market participants.

      • MAE-A.1.4

        Persons or entities undertaking functions falling within the meaning of licensed exchanges and licensed market operators require prior CBB approval. MAE-B.2 provides the definitions for licensed exchanges and licensed market operators which are impacted by this Module. These include entities providing the services including those:

        (a) That provide a platform through which the exchange of securities takes place;
        (b) Which provide listings of securities for trading;
        (c) Which provide trade matching services, as these services may result in a transaction between investors; and
        (d) Which provide a service which leads an investor to the reasonable expectation that they may trade in securities.

      • MAE-A.1.4A

        [This Parapgraph was deleted in April 2022].

        Deleted: April 2022
        Added: October 2017

    • Legal Basis

      • MAE-A.1.5

        Article 4(4) and Part 2 of the CBB Law provides the power of the CBB to license and exercise regulatory control over financial institutions providing regulated services stated in Article 39, including markets and exchanges.

      • MAE-A.1.6

        As per Article 39(b) of the CBB Law, the CBB shall issue regulations specifying the regulated services. The operation of a licensed market operator or a licensed exchange is hereby specified as one of the regulated services which require licensing pursuant to Article 40 and Article 44 of the CBB Law.

      • MAE-A.1.7

        This Module contains the prior approval requirements for approved persons under Resolution No (23) of 2015.

        Added: April 2016

      • MAE-A.1.8

        This Module contains Resolution No (1) of 2007 (issued under Article 180 of the CBB Law) amended by Resolution No (26) of 2010 and further amended by Resolution No (1) of 2016 with respect to determining fees categories due for licensees and services provided by the CBB.

        Added: April 2016