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  • MAE-3.2 MAE-3.2 Content of Rules of Licensed Exchanges

    • MAE-3.2.1

      For the purposes of MAE-3.1.2, a licensed exchange or licensed market operator shall in its business rules or in its listing rules as the case may be, make provision to the satisfaction of the CBB for:

      (a) The criteria that it would use to determine the admission, or denial of admission, of persons to or from membership;
      (b) Continuing requirements for each member, including requirements:
      (i) That prohibit or prevent the member from engaging in improper conduct when dealing as an agent for the customers of the member on any market operated by the licensed exchange or licensed market operator;
      (ii) That prohibit or prevent the member from engaging in improper conduct when participating in any market operated by the licensed exchange or licensed market operator;
      (iii) On the financial condition of the member such as to provide reasonable assurance that all obligations arising out of the activities of the member in any market operated by the licensed exchange or licensed market operator will be met;
      (iv) That facilitate the monitoring by the licensed exchange or licensed market operator of the compliance of the member with the business rules of the licensed exchange or licensed market operator; and
      (v) That provide for the expulsion, suspension or disciplining of members for conduct inconsistent with just and equitable principles in the transaction of business, or for a contravention of the business rules of the licensed exchange or licensed market operator;
      (c) The class or classes of securities or futures contracts that may be traded on any market operated by the licensed exchange or licensed market operator;
      (d) The terms and conditions under which securities may be listed for quotation by the licensed exchange;
      (e) The terms and conditions relating to the calculation of the final settlement price, the daily price limits and the accumulation of positions of futures contracts traded on any market operated by the licensed exchange or licensed market operator;
      (f) The manner in which trades in securities or futures contracts are effected on any market operated by the licensed exchange or licensed market operator;
      (g) Where the licensed exchange or licensed market operator operates a trading floor, fair and properly supervised floor trading practices;
      (h) The measures to prevent and deal with manipulation, market rigging and artificial market conditions in any market operated by the licensed exchange or licensed market operator;
      (i) The arrangements for the safe and efficient clearing and settlement of trades concluded on any market operated by the licensed exchange or licensed market operator;
      (j) The establishment of any compensation arrangement, or any other scheme or system accepted by the CBB, which would compensate any customer who suffers pecuniary loss through the defalcation of a member, or any of its directors, officers, employees or representatives, in respect of any money or other property:
      (i) That was entrusted to or received by a member, or any of its directors, officers, employees, or representatives, for or on behalf of the customer; or
      (ii) In respect of which the member was a trustee;
      (k) The dissemination of announcements by companies listed on any market operated by the licensed exchange or licensed market operator through a single and central facility; and
      (l) The carrying on of business of the licensed exchange or licensed market operator with due regard to the interests and protection of the investing public.
      Amended: April 2016
      Amended: April 2013