(a) A licensed exchange;

(b) A licensed market operator; or

(c) An exempt exchange or market operator.

(a) As a licensed exchange unless he is a licensed exchange; or

(b) As a licensed market operator unless he is a licensed market operator.

(a) The title or description "securities exchange", "stock exchange", "futures exchange" or "derivatives exchange" in any language; or

(b) Any title or description which resembles a title or description referred to in Subparagraph MAE-1.1.3 (a).

(a) Allowed to do by the terms of a license issued by the CBB;

(b) The activities come within the terms of an exemption granted by the CBB by way of a Directive; or

(c) Has obtained the express written permission of the CBB to offer financial services.

(a) Licensed as a licensed exchange;

(b) Licensed as a licensed market operator; or

(c) An exempt exchange or exempt market operator.

(a) Form 2 (Information on Shareholders and Subsidiaries) and Form 3 (Application for Approved Person Status);

(b) Any relevant annex and information specified in those forms;

(c) A non-refundable prescribed application fee of BD100;

(d) A business plan setting forth the internal controlling procedures of the enterprise;

(e) A business plan containing a budgeted accounting plan for the first three business years;

(f) Memorandum and Articles of Association of the corporation, copies of the by-laws, its constitution and powers of management and the manner in which its business is proposed to be transacted;

(g) Policies and procedures for all the exchange and market operations;

(h) The proposed organisation structure and the powers and duties of the officials of the exchange or market operator;

(i) The criteria for admission into the licensed exchange or the operator of various classes of members, the qualifications for membership, and the exclusion, suspension, expulsion and readmission of members therefrom or thereto;

(j) A description of the proposed trading and settlement system;

(k) Arrangements for risk management, compliance and internal controls;

(l) Where activities would be outsourced, copies of contracts and arrangements for oversight of their activities; and

(m) Business rules covering membership including capital requirements, instruments to be admitted to trading and listing, trading and execution rules, conflicts of interest requirements, professional standards, clearing and depository rules, data transmission, market conduct including avoidance of market abuse, compliance arrangements, and such other rules as may be required by the CBB.

(a) Any trading conducted will operate in an orderly, transparent and fair manner;

(b) The licensed exchange or licensed market operator will be subject to regulation by the CBB;

(c) The licensed exchange or licensed market operator has taken adequate measure to prudently manage any risks associated with its business and operations;

(d) The licensed exchange or licensed market operator, in discharging its obligations, will not act contrary to the interests of the public, the investing public, or to the requirements of the CBB;

(e) The licensed exchange or licensed market operator will enforce compliance by its members with its business rules and listing rules;

(f) The business rules and listing rules of the licensed exchange or licensed market operator make satisfactory provisions for: an orderly, transparent and fair market trading through its facilities; and the proper rules and supervision of its members; and

(g) The licensed exchange or licensed market operator has sufficient financial, human, and technical resources to establish and operate a fair and efficient system for market trading; meet contingencies or disasters criteria; and provide adequate trading instruments arrangements.

(a) It is not completed in accordance with this Module; or

(b) It is not accompanied by the relevant fee.

(a) The activities that the person may undertake;

(b) The securities or futures contracts that may be traded on any market established or operated by the person; and

(c) The nature of the investors or participants who may use, invest in or participate in the securities or futures contracts traded on any market established or operated by the person.

(a) Exempt any person operating any market from the requirement under MAE-1.1 to be a licensed exchange or a licensed market operator;

(b) Declare that person to be an exempt market operator, by order published in the Gazette; and

(c) Impose such conditions or restrictions relating to the exemption as the CBB may deem fit, by notice in writing to that person.

(a) The activities that the person may undertake;

(b) The securities or futures contracts that may be traded on any market established or operated by the person; and

(c) The nature of the investors or participants who may use, participate or invest in the securities or futures contracts traded on any market established or operated by the person.

(a) The person does not commence operating its market or, where it operates more than one market, all of its markets, within 6 months from the date on which it was granted the exemption;

(b) The person ceases to operate its market or, where it operates more than one market, all of its markets;

(c) The person contravenes:-

(d) The CBB is of the opinion that the person has operated in a manner that is contrary to the interests of the public;

(e) The person is in the course of being wound up or otherwise dissolved, whether in Bahrain or elsewhere;

(f) A receiver, a receiver and manager or an equivalent person has been appointed, whether in Bahrain or elsewhere, in relation to, or in respect of, any property of the person;

(g) The person has been convicted, whether in Bahrain or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly;

(h) The CBB is of the opinion that the person would be more appropriately regulated as a licensed exchange or a licensed market operator; or

(i) Any information or document provided by the person to the CBB is false or misleading.

(a) The person is in the course of being wound up or otherwise dissolved, whether in Bahrain or elsewhere;

(b) A receiver, a receiver and manager or an equivalent person has been appointed, whether in Bahrain or elsewhere, in relation to, or in respect of any property of the person; or

(c) The person has been convicted, whether in Bahrain or elsewhere, of an offence involving fraud and dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly.

(a) It has ceased to operate the market for more than 30 days, unless it has obtained the prior approval of the CBB to do so; or

(b) It has ceased to operate the market under a direction issued by the CBB.

(a) Avoid or affect any agreement, transaction or arrangement entered into on a market operated by the person, whether the agreement, transaction or arrangement was entered into before or after the revocation of the exemption; or

(b) Affect any right, obligation or liability arising under such agreement, transaction or arrangement.

(a) The CBB is satisfied that the establishment of a market or exchange to be operated by a person will;

(b) The CBB is satisfied that the person, having applied to be a licensed exchange or licensed market operator under this Module, is able to comply with the obligations or requirements imposed on licensed exchanges or licensed market operators.

(a) The size and structure, or proposed size and structure, of the market to be operated by the applicant;

(b) The nature of the services provided, or to be provided, by the market to be operated by the applicant;

(c) The nature of the securities or futures contracts traded, or to be traded, on the market to be operated by the applicant;

(d) The nature of the investors or participants, or proposed investors or participants, who may use or have an interest in the market to be operated by the applicant;

(e) Whether the applicant is regulated by the CBB under this Module or any other law;

(f) That the rules and by-laws of an applicant are in conformity with such conditions as may be prescribed with a view to ensure fair dealing and to protect investors;

(g) That the applicant is willing to comply with any other conditions (including conditions as to the number of members) which the CBB, having regard to the the nature of the securities dealt with by it, may impose;

(h) The proposed trading and settlement systems comply with up-to-date industry standards;

(i) The persons who may be affected in the event that the applicant, or the market to be operated by the applicant, runs into difficulties;

(j) Where the head office or principal place of business of the applicant is outside Bahrain, whether the applicant in the country or territory in which the head office or principal place of business of the applicant is situated, is subject to requirements and supervision comparable to those in the Kingdom of Bahrain;

(k) The interests of the public; and

(l) Any other circumstances that the CBB may consider relevant.

(a) The financial resources, and the management and human resources with appropriate experience, necessary for the operation of a market or exchange;

(b) Made arrangements for the proper supervision of all transactions effected through the market or exchange so as to ensure compliance with its rules;

(c) Taken sufficient steps to maintain security and back-up procedures to ensure the integrity of the records of transactions effected through the market or exchange;

(d) Insurance, a guarantee or compensation fund or other warranty plans in place to enable it to provide compensation, subject to the business rules, to clients; and

(e) Made provisions, to the satisfaction of the CBB, for the clearing and settlement of transactions effected through the market or exchange and for the management of trade and settlement risk.

(a) The relevant laws and practices of the country or territory in which the head office or principal place of business of the operator is situated; and

(b) The rules and practices of the operator.

(a) There exists criteria under MAE-1.2 that the licensed exchange or licensed market operator does not meet and on which grounds the CBB would refuse an application;

(b) The licensed exchange or licensed market operator does not commence operating its market or, where it operates more than one market, all of its markets within 6 months from the date on which it was granted the license.

(c) The licensed exchange or licensed market operator ceases to operate its market or, where it operates more than one market, all of its markets.

(d) The licensed exchange or licensed market operator contravenes:

(e) The licensed exchange or licensed market operator operates in a manner that is in the opinion of the CBB, contrary to the interests of the public or user; and

(f) Any information or document knowingly or willingly provided by the licensed exchange or licensed market operator to the CBB is false or misleading.

(a) The licensed exchange or licensed market operator is in the course of being wound up or otherwise dissolved, whether in Bahrain or elsewhere;

(b) A receiver, a receiver and manager, or an equivalent person has been appointed, whether in Bahrain or elsewhere, in relation to or in respect of any property of the licensed exchange or licensed market operator; and

(c) The licensed exchange or licensed market operator has been convicted, whether in Bahrain or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly.

(a) It has ceased to operate the market for more than 30 days, unless it has obtained the prior approval of the CBB to do so; or

(b) It has ceased to operate the market under a direction issued by the CBB.

(a) Avoid or affect any agreement, transaction or arrangement entered into a market operated by the corporation, whether the agreement, transaction or arrangement was entered into before or after the revocation of the license; or

(b) Affect any right, obligation or liability arising under such agreement, transaction or arrangement.

(a) Open a new place of business in the Kingdom;

(b) Close or change an existing place of business in the Kingdom;

(c) Open a new place of business abroad if the licensed exchange or licensed market operator is not an overseas exchange; and

(d) The CBB may restrict its approval stipulated in MAE-1.6.1, subject to any other conditions, as it may deem necessary.