(a) The activities that the licensed clearing house or licensed central depository may undertake;

(b) The products that may be cleared by the clearing facility;

(c) The securities that may be accepted for deposit by the depository; or

(d) The nature of investors, members or participants who may use or participate in the licensed clearing house facility and licensed central depository.

(a) For ensuring the safe and efficient clearing and settlement of transactions through review of system mechanisms and establishment of operating standards;

(b) For ensuring the integrity and stability of the capital markets or the financial system;

(c) In the interests of the public or a section of the public, or for the protection of investors;

(d) For the effective administration of the CBB Law and regulations; or

(e) For ensuring compliance with any condition or restriction as may be imposed by the CBB.

(a) Ordering the liquidation of all positions or part thereof, or the reduction of such positions;

(b) Altering conditions of delivery of transactions cleared or settled, or to be cleared or settled through the clearing facility;

(c) Fixing the settlement price at which transactions are to be liquidated;

(d) Requiring margins or additional margins for transactions cleared or settled, or to be cleared or settled through the clearing facility; and

(e) Modifying or suspending any of the business rules of the licensed clearing house or licensed central depository.

(a) Set margin levels for transactions cleared or settled, or to be cleared or settled through the clearing facility to cater for the emergency;

(b) Set limits that may apply to market positions acquired in good faith prior to the date of the notice issued by the CBB; or

(c) Take such other action as the CBB considers necessary to maintain or restore safe and efficient operations of the clearing facilities operated by the licensed clearing house and the services offered by the licensed central depository.

(a) Any threatened or actual market manipulation or cornering;

(b) Any major market disturbance which prevents the market from accurately reflecting the forces of supply and demand for such commodity or securities;

(c) Any act of any government affecting a commodity or securities; or

(d) Any undesirable situation or practice which, in the opinion of the CBB, constitutes an emergency.

(a) Has wilfully contravened or wilfully caused that licensed clearing house or licensed central depository to contravene this Module or its business rules;

(b) Has, without reasonable excuse, failed to ensure compliance with this Module or the business rules of that licensed clearing house or licensed central depository, by that licensed clearing house or licensed central depository, or a member of that licensed clearing house or licensed central depository or a person associated with that member;

(c) Has failed to discharge the duties or functions of his office or employment;

(d) Is an undischarged bankrupt, whether in Bahrain or elsewhere;

(e) Has had execution against him in respect of a judgment debt returned unsatisfied in whole or in part;

(f) Has, whether in Bahrain or elsewhere, made a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation; or

(g) Has been convicted, whether in Bahrain or elsewhere, of an offence involving fraud or dishonesty, or the conviction for which involved a finding that he had acted fraudulently or dishonestly.

(a) The officer is an undischarged bankrupt, whether in Bahrain or elsewhere;

(b) The officer has been convicted, whether in Bahrain or elsewhere, of an offence:

(a) Ensure the proper functioning of the licensed clearing house or licensed central depository;

(b) Ensure the compliance of the licensed clearing house or licensed central depository with any relevant laws or regulations of any jurisdication in which it is incorporated, or in which it operates;

(c) Set out and ensure compliance with written policies on all operational areas of the licensed clearing house or licensed central depository, including its financial policies, accounting and internal controls, internal auditing and compliance with all laws and rules governing the operations of the licensed clearing house or licensed central depository;

(d) Identify, monitor and address the risks associated with the business activities of the licensed clearing house or licensed central depository on an on-going basis;

(e) Ensure that the business activities of the licensed clearing house or licensed central depository are subject to adequate internal audit;

(f) Oversee the financial undertakings or exposure of the licensed clearing house or licensed central depository to risks of any nature, by setting out proper delegation limits and risk management controls; and

(g) Ensure:

(a) Any matter which, in his opinion, adversely affects or may adversely affect the financial position of the licensed clearing house or licensed central depository to a material extent;

(b) Any matter which, in his opinion, constitutes or may constitute a breach of any provision of this Module or an offence involving fraud or dishonesty; or

(c) Any irregularity that has or may have a material effect upon the accounts of the licensed clearing house or licensed central depository, including any irregularity that affects or jeopardises, or may affect or jeopardise, the funds or property of investors.

(a) A duty to submit such additional information and reports in relation to his audit, as the CBB considers necessary;

(b) A duty to enlarge, extend or alter the scope of his audit of the business and affairs of the licensed clearing house or licensed central depository;

(c) A duty to carry out any other examination or establish any procedure in any particular case.

(a) A licensed clearing house;

(b) A licensed central depository; or

(c) Any person acting on behalf of a licensed clearing house or licensed central depository, including any member of the board of directors of the licensed clearing house or licensed central depository.

(a) Any person performing, by virtue of a delegation under the business rules of a licensed clearing house or licensed central depository, a function of the licensed clearing house or licensed central depository;

(b) Any person acting on behalf of a person referred to hereinabove including a member of the board of directors of that person.