Obligation to Notify CBB of Certain Matters
CSD-3.1.12
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person operating a clearing or depository facility shall (including where a clearing facility carries on business or acquires a substantial shareholding in a central depository, or vice-versa), notify the CBB in the event of the following:(a) The carrying on of any business by thelicensed clearing house orlicensed central depository other than:(i) The business of operating a clearing facility and/or depository;(ii) A business incidental to operating a clearing facility or depository; or(iii) Such business or class of businesses as the CBB may prescribe;(b) The acquisition by thelicensed clearing house orlicensed central depository of a substantial shareholding in a corporation which does not carry on:(i) The business of operating a clearing facility or central depository;(ii) A business incidental to operating a clearing facility or central depository; or(iii) Such business or class of businesses as the CBB may prescribe;(c) Thelicensed clearing house orlicensed central depository 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 or participant of thelicensed clearing house orlicensed central depository to meet its financial obligations to thelicensed clearing house orlicensed central depository ;(d) Thelicensed clearing house orlicensed central depository reprimanding, fining, suspending, expelling or otherwise taking disciplinary action against a member or depository participant of thelicensed clearing house orlicensed central depository ; and(e) Any other matter that the CBB may prescribe by regulations or specify by notice in writing to thelicensed clearing house orlicensed central depository .Amended: April 2016CSD-3.1.13
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licensed clearing house orlicensed central depository shall, immediately after becoming aware of the occurrence of any of the following circumstances, notify the CBB in writing of:(a) Any civil or criminal legal proceeding instituted against thelicensed clearing house orlicensed central depository , or any of its members ordepository participants , whether in Bahrain or elsewhere;(b) Any disciplinary action taken against thelicensed clearing house orlicensed central depository , or any of its members ordepository participants by any regulatory body, whether in Bahrain or elsewhere, other than the CBB;(c) Any significant change to the regulatory requirements imposed on thelicensed clearing house orlicensed central depository by any regulatory body, whether in Bahrain or elsewhere, other than the CBB;(d) Any admission or cessation of a bank to act as asettlement bank for thelicensed clearing house ;(e) Any failure by any party to debit or credit the relevant accounts for the purpose of thesettlement of transactions, including thesettlement of moneys,securities or physically delivered futures contracts; and(f) Any disruption of or delay in any clearing,settlement or central depository procedures of thelicensed clearing house orlicensed central depository , including those resulting from any system failure.Amended: April 2016CSD-3.1.14
Where a circumstance under Subparagraphs CSD-3.1.13 (a), (b), (e) or (f) has occurred, the
licensed clearing house orlicensed central depository shall, in addition to the notification required under Paragraph CSD-3.1.13, within 7 days of the occurrence of the circumstance, 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 thelicensed clearing house orlicensed central depository has taken, or intends to take.Amended: April 2016CSD-3.1.15
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licensed clearing house orlicensed central depository shall, within a reasonable period of time prior to entering into negotiations to establish a clearing linkage, clearing arrangement, depository arrangement or co-operative arrangement with aperson establishing or operating another clearing facility or depository, notify the CBB of such intent to enter into negotiations.Amended: April 2016CSD-3.1.16
In rule CSD-3.1.15, ''co-operative arrangement'' shall not include:
(a) Any joint development of products and services;(b) Any joint marketing efforts between thelicensed clearing house orlicensed central depository and theperson operating an overseas market, or clearing or depository facility, in promoting the services of either entity; or(c) Any memorandum of understanding for the exchange of information.Amended: April 2016CSD-3.1.17
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licensed clearing house orlicensed central depository shall seek the approval of the CBB prior to making any change to the financial resources that are available to thelicensed clearing house orlicensed central depository to support a default of its member; and(a) The CBB may grant its approval referred to above, subject to such conditions or restrictions as the CBB may deem fit.(b) For the purposes of this Paragraph, ''financial resources that are available to thelicensed clearing house to support a default of its member'' shall not include margin trading facilities held with thelicensed clearing house .Amended: April 2016CSD-3.1.18
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person operating a clearing facility or depository shall, no laterthan 7 days after the occurrence of any of the following circumstances, notify the CBB of:(b) A change of the address of the principal place of business at which it carries on the business of operating a clearing facility or depository;(c) A material change in the business of the clearing facility or depository; or(d) Such other matter as the CBB may prescribe.Amended: July 2016
CSD-3.1.19
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licensed clearing house orlicensed central depository shall seek the approval of the CBB prior to accepting any new type ofsecurities (e.g. equities or warrants) for clearing,settlement or deposit.Amended: April 2016CSD-3.1.20
The CBB may at its discretion, unless the timeframe is stipulated by law, decide on an application by the
licensed clearing house orlicensed central depository to vary the timeframe for compliance with the obligations in this Module and substitute such timeframe.Amended: April 2016CSD-3.1.21
Any application for an extension of the timeframe in which to comply with the obligations of this Chapter must be made in writing, stating the extraordinary reason for such request.
Amended: April 2016