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  • Executive Summary

    • CSD-A.1.1

      Module CSD sets out the Central Bank of Bahrain's regulatory framework governing licensing of clearing houses and central depositories operating in or from the Kingdom of Bahrain.

    • CSD-A.1.2

      The CSD Module seeks to introduce a consistent, effective and harmonised approach in regulation and supervision of licensed clearing houses and central depositories in the Kingdom of Bahrain. It sets out the CBB requirements for their licensing and authorisation, and the initial as well as ongoing compliance requirements.

    • CSD-A.1.3

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

      (a) To promote the safety and efficiency of clearing and settlement facilities that support systemically-important markets or form an integral part of the financial infrastructure;
      (b) To reduce systemic risk;
      (c) To reduce direct counterparty risk in securities transactions by use of contributions from depository participants' members, as well as by imposing adequate risk management techniques, including the requirement of cash cover and collateral;
      (d) To ensure finality of settlement;
      (e) To reduce cost of clearing and settlement of transactions; and
      (f) To ensure that the ownership and rights of investors are protected.