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  • MAE-2.1 MAE-2.1 General Obligations

    • Licensing Requirements

      • MAE-2.1.1

        A licensed exchange or licensed market operator shall, in respect of every market it operates:

        (a) As far as is reasonably practicable, ensure that the market is fair, orderly and transparent;
        (b) Manage any risks associated with its business and operations prudently;
        (c) Not act contrary to the interests of the public, having particular regard to the interests of the investing public;
        (d) Ensure that access for participation in its facilities is subject to criteria that are fair and objective, and that are designed to ensure the orderly functioning of the market and to protect the interests of the investing public;
        (e) Maintain business rules and, where appropriate, listing rules that make satisfactory provision for:
        (i) A fair, orderly and transparent market in securities and futures contracts that are traded through its facilities; and
        (ii) The proper regulation and supervision of its members;
        (f) Enforce compliance with its business rules and, where appropriate, its listing rules;
        (g) Have sufficient financial, human and system resources:
        (i) To operate a fair, orderly and transparent market;
        (ii) To meet contingencies or disasters; and
        (iii) To provide adequate security arrangements;
        (h) Ensure that it appoints or employs fit and proper persons as its chairman, chief executive officer, directors and key management officers;
        (i) Have a well designed Disaster Recovery Plan in place and the same shall be submitted to the CBB in accordance with Section MAE-2.10;
        (j) Have the capacity, authority, expertise and resources to enforce compliance by its members, shareholders, users and participants with laws, regulations and rules;
        (k) Ensure that the rules and regulations of the stock exchange are clearly expressed, understandable and readily available to anyone who needs to use them;
        (l) Ensure that the rules are applied equally to all participants without favour or discrimination;
        (m) Ensure that there is a system in place to record all trades and capture order entry data for surveillance purposes;
        (n) Ensure that it has a complaints and whistleblowing procedure; and
        (o) Have an operating manual, including the structure of the licensed exchange or licensed market operator;
        (p) Provide to the CBB, for its review and comment, at least 5 business days prior to publishing in the press, the draft agenda for any shareholders meetings referred to in Subparagraph MAE-2.1.1(r);
        (q) Ensure that any agenda items to be discussed or presented during the course of meetings which require the CBB's prior approval, have received the necessary approval, prior to the meeting taking place;
        (r) Invite a representative of the CBB to attend any shareholders' meeting (i.e. ordinary and extraordinary general assembly) taking place. The invitation must be provided to the CBB at least 5 business days prior to the meeting taking place; and
        (s) Within a maximum of 15 calendar days of any shareholders' meetings referred to in Subparagraph MAE-2.1.1(r), provide to the CBB a copy of the minutes of the meeting.
        Amended: July 2016
        Amended: April 2016

      • MAE-2.1.1A

        Licensed exchanges and licensed market operators must ensure that all regulated financial services are provided without any discrimination based on gender, nationality, origin, language, faith, religion, physical ability or social standing.

        Added: October 2020

    • Notification Requirements

      • MAE-2.1.2

        A licensed exchange or licensed market operator shall, as soon as practicable after the occurrence of any of the following circumstances, notify the CBB of the circumstance:

        (a) Any material change to the information provided by the licensed exchange or licensed market operator in its application under MAE-1.2;
        (b) The carrying on of any business by the licensed exchange or licensed market operator other than:
        (i) The business of operating a market;
        (ii) A business incidental to operating a market; or
        (iii) Such business or class of businesses as the CBB may prescribe;
        (c) The acquisition by the licensed exchange or licensed market operator of a substantial shareholding in a corporation which does not carry on:
        (i) The business of operating a market;
        (ii) A business incidental to operating a market; or
        (iii) Such business or class of businesses as the CBB may prescribe;
        (d) The licensed exchange or licensed market operator becoming aware of a financial irregularity or other matter which in its opinion:
        (i) May affect its ability to discharge its financial obligations; or
        (ii) May affect the ability of a member of the licensed exchange or licensed market operator to meet its financial obligations to the licensed exchange or licensed market operator;
        (e) The licensed exchange or licensed market operator reprimanding, fining, suspending, expelling or otherwise taking disciplinary action against a member of the licensed exchange or licensed market operator;
        (f) The licensed exchange or licensed market operator reprimands, suspends, dismisses or otherwise takes disciplinary action against any of its directors, or key management officers or if any director or key management officer is subject to an order or petition of bankruptcy or criminal prosecution;
        (g) Any civil or criminal legal proceeding instituted against the licensed exchange or licensed market operator, whether in Bahrain or elsewhere;
        (h) Any disciplinary action taken against the licensed exchange or licensed market operator by any regulatory body, whether in Bahrain or elsewhere, other than the CBB;
        (i) Any significant change to the regulatory requirements imposed on the licensed exchange or licensed market operator by any regulatory body, whether in Bahrain or elsewhere, other than the CBB;
        (j) A failure by the licensed exchange or licensed market operator to adhere to the trading days, hours or sessions of the licensed exchange or licensed market operator;
        (k) Any disruption of, delay in, suspension of, or termination in any trading procedure or trading practice of the licensed exchange or licensed market operator including those resulting from any system failure;
        (l) Any other matter that the CBB may specify by notice in writing to the licensed exchange or licensed market operator.
        Amended: April 2013

      • MAE-2.1.3

        The CBB may, at any time after receiving a notification referred to in Paragraph MAE-2.1.2 and after providing the licensed exchange and licensed market operator an opportunity to be heard, issue directions to the licensed exchange or licensed market operator:

        (a) Where the notification relates to a matter referred to in Subparagraph MAE-2.1.1 (b):
        (i) To cease carrying on the first-mentioned business referred to in Subparagraph MAE-2.1.1 (b); or
        (ii) To carry on the first-mentioned business referred to in Subparagraph MAE-2.1.1 (b) subject to such conditions or restrictions as the CBB may impose; or
        (b) Where the notification relates to a matter referred to in Subparagraph MAE-2.1.1 (c):
        (i) To dispose of the shareholding referred to in Subparagraph MAE-2.1.1 (c); or
        (ii) To exercise its rights relating to such shareholding subject to such conditions or restrictions as the CBB may impose, and the licensed exchange or licensed market operator shall comply with such directions.
        Amended: April 2016
        Amended: April 2013

      • MAE-2.1.4

        Where a circumstance referred to in MAE-2.1.2 has occurred, the licensed exchange or licensed market operator shall, in addition to the notification required under Paragraph MAE-2.1.2, within 14 days of the occurrence of the circumstance or such longer period as the CBB may permit, submit a report to the CBB of the circumstances relating to the occurrence, the remedial actions taken at the time of the occurrence, and the subsequent follow-up actions that the licensed exchange or licensed market operator has taken or intends to take.

        Amended: April 2016

      • MAE-2.1.5

        An exchange may levy on its members, participants and users such fees as it may deem necessary in the form of:

        (a) Membership fees; and/or
        (b) Listing fees
        Amended: April 2013

      • MAE-2.1.6

        The fees shall be paid quarterly, semi-annually or annually at the discretion of the exchange.

      • MAE-2.1.7

        A licensed exchange or licensed market operator shall, within a reasonable period of time prior to entering into negotiations to establish a trading linkage, clearing arrangement or cooperative arrangement with the person establishing or operating an overseas market or clearing facility, notify the CBB of such intent to enter into negotiations.

      • MAE-2.1.8

        In Paragraph MAE-2.1.7, "cooperative arrangement" shall not include:

        (a) Any joint development of products and services;
        (b) Any joint marketing efforts between the licensed exchange and the person operating an overseas market or clearing facility in promoting the services of either entity; or
        (c) Any memoranda of understanding for the exchange of information.