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  • MIR-2 MIR-2 Licensing

    • MIR-2.1 MIR-2.1 Licensing Requirements

      • MIR-2.1.1

        No person shall undertake any of the regulated activities under section MIR-1.1, or hold himself out as undertaking any regulated activities through a licensed exchange or licensed clearing house in or from Bahrain, unless the person is licensed by the CBB and accepted as a member of an SRO.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.1.2

        A person will be deemed to be undertaking business within or from Bahrain, if for example:

        (a) Such person is incorporated in Bahrain;
        (b) Such person uses an address situated in Bahrain for the correspondence;
        (c) Such person directly solicites clients who are resident within Bahrain; or
        (d) Such person utilises the services of a licensed exchange and/or licensed clearing house.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.1.3

        Without prejudice to the generality of Article (89) of the CBB Law, no person other than a licensed member shall use, in any language a word or expression which may reasonably be understood to mean that such person is a licensed member, or is carrying out a regulated activity unless he is a licensed person.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.1.4

        Except with the written approval of the CBB, no person other than a licensed member shall take or use, or have attached to or exhibited at any place:

        (a) The title or description "licensed member" in any language; or
        (b) Any title or description which resembles a title or description referred to in (a).
        Amended: April 2013
        Adopted January 2010

      • MIR-2.1.4A

        No person may market any financial services in the Kingdom of Bahrain unless:

        (a) Allowed to do by the terms of a license issued by the CBB;
        (b) The activities come within the terms of an exemption granted by the CBB by way of a Directive; or
        (c) Has obtained the express written permission of the CBB to offer financial services.
        Added: April 2013

      • MIR-2.1.4B

        In accordance with Resolution No.(16) for the year 2012 and for the purpose of Paragraph MIR-2.1.4A, the word 'market' refers to any promotion, offering, announcement, advertising, broadcast or any other means of communication made for the purpose of inducing recipients to purchase or otherwise acquire financial services in return for monetary payment or some other form of valuable consideration.

        Added: April 2013

      • MIR-2.1.4C

        Persons in breach of Paragraph MIR-2.1.4A are considered in breach of Resolution No.(16) for the year 2012 and could be subject to penalties under Articles 129 and 161 of the CBB Law.

        Added: April 2013

      • MIR-2.1.5

        Where a person is licensed under Volumes 1 or 2, then a separate license under Volume 6 is not required in order to undertake regulated activities of the kind specified under section MIR-1.1. Such person shall obtain the membership of the SRO before undertaking such regulated activities.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.1.6

        Where a person is licensed under Volume 4 to undertake regulated activities of the kind specified under section MIR-1.1, such license shall be regarded as being given under this Module of Volume 6 and the licensee shall abide by this Module and Volume 6 in respect of its undertaking of the above regulated activities.

        Amended: July 2016
        Adopted January 2010

      • MIR-2.1.7

        Depending on the type of regulated activities that a person wishes to undertake, an applicant must seek to be licensed under different licensing categories as stipulated under Paragraph MIR-2.2.4.

        Amended: July 2016
        Amended: April 2013
        Adopted January 2010

    • MIR-2.2 MIR-2.2 Application for License

      • MIR-2.2.1

        Persons wishing to be licensed to undertake regulated activities within or from the Kingdom of Bahrain must apply in writing to the CBB.

        Adopted January 2010

      • MIR-2.2.2

        Unless otherwise approved by the CBB, the person undertaking any regulated activities shall be established as a corporation subject to the Commercial Companies Law 2001.

        Adopted January 2010

      • MIR-2.2.3

        Any applicant must be independent of the SRO to which it wishes to become a member. For the purpose of this section, a person will not be considered independent if:

        (a) He owns an interest of 30% or more of equity securities of the SRO or any other company owned by the SRO. In the case of other securities, if he owns a significant interest in the securities of the SRO, or any other affiliated entity; or
        (b) He has a business relationship with, or financial interest in, the SRO or any other entity in the SRO's group that would give the SRO a material interest in the outcome of the application; or
        (c) He provides any service, assurance, or guidance in any event to the SRO, or to another entity in the SRO's group; or
        (d) A director, partner or employee of the applicant or another entity in the applicant's group has a material interest in the SRO or any other entity in the SRO's group.
        Added: April 2013

      • MIR-2.2.4

        Under this Module, a person may apply to the CBB to be:

        (1) A licensed discount broker;
        (2) A licensed broker;
        (3) [Deleted in April 2013];
        (4) A licensed broker-dealer;
        (5) A licensed clearing member;
        (6) [Deleted in April 2013];
        (7) [Deleted in April 2013];
        (8) An authorised external trading member; or
        (9) An authorised proprietary trading member.
        Amended: July 2016
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.4A

        In accordance with Subparagraphs MIR-2.2.4(8) and MIR-2.2.4(9), a person may apply to the licensed exchange and the CBB to be an external trading member (provided it meets the requirements of Paragraph MIR-2.2.8A) or a proprietary trading member (as defined in the Glossary and provided it meets the requirements of Paragraph MIR-2.2.8C).

        Amended: July 2016
        Added: April 2013

      • MIR-2.2.5

        The licensed discount broker may undertake only collecting of the investors or clients order which is required to be executed on the licensed exchange through a licensed broker or broker-dealer.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.6

        The licensed brokers may undertake:

        (a) Trading in securities as agent;
        (b) Arranging transactions in securities as an agent.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.7

        [This Paragraph was deleted in April 2013]

        Deleted: April 2013

      • MIR-2.2.8

        The licensed broker-dealers may undertake:

        (a) Trading in securities as principal;
        (b) Trading in securities as agent;
        (c) Arranging transactions in securities as principal and agent;
        (d) Managing securities' portfolios;
        (e) Depositing of securities;
        (f) Advising on securities businesses;
        (g) Providing market research and analysis.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.8A

        An external trading member accepted for membership by a licensed exchange and authorised by the CBB may undertake only the activities of a licensed broker or broker-dealer outside the Kingdom of Bahrain. In order to be eligible, the external member must: be a member of an exchange or otherwise licensed and supervised in its home market by a securities regulator that is a signatory to the IOSCO MMOU or acceptable bilateral agreement. An external trading member may not conduct any business within the Kingdom of Bahrain.

        Amended: July 2016
        Added: April 2013

      • MIR-2.2.8B

        In order to be authorised by the CBB, an external trading member must meet the requirements of Paragraph MIR-2.2.11A and submit the application made for membership of the licensed exchange together with the approval of membership of such exchange. An external trading member's primary regulator and supervisor is the licensed exchange, of which it is a member and it is not required to comply with the provisions of this Module unless directed to do so by the CBB.

        An external trading member is required to conclude the necessary agreements for the clearing and settlement of its transactions conducted on a licensed exchange. External trading members are not eligible to be members of a licensed clearing house or central securities depository.

        Amended: July 2016
        Added: April 2013

      • MIR-2.2.8C

        In order to be authorised by the CBB, a proprietary trading member must submit the application made for membership of the licensed exchange together with the approval of membership of such exchange. A proprietary trading member's primary regulator and supervisor is the licensed exchange, of which it is a member and it is not required to comply with the provisions of this Module unless directed to do so by the CBB.

        Amended: July 2016
        Added: April 2013

      • MIR-2.2.9

        The licensed clearing member (general) may undertake any regulated activities stipulated under Module CSD in general, and in particular:

        (a) Facilitating the deposit of securities;
        (b) Clearing and settlement of securities transactions as principal;
        (c) Clearing and settlement of securities transactions as agent;
        (d) Facilitating registration of dealings in deposited securities;
        (e) Provide custody services to deposited securities;
        (f) Facilitating netting of transactions in deposited securities;
        (g) Facilitating securities lending, including repurchase agreements and other economically equivalent transactions;
        (h) Finality of settlement;
        (i) Facilitating margin trading; or
        (j) Ensure achievement of Delivery versus Payment.

        The licensed clearing house may restrict its members from undertaking part of the abovementioned regulated activities.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.10

        The licensed member may combine two or more regulated activities, provided these fall within the regulated activities list for their member category, and such combinations are not restricted by the CBB or SRO.

        Amended: July 2016
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.11

        With the exception of external trading members and proprietary trading members, an application for a license as a member to undertake any regulated activity under Paragraph MIR-1.1.2 shall be made in Form 1 (Application for Approval as a Licensed Member) and shall be lodged with the CBB together with:

        (a) Form 2 (Information on Shareholders and Subsidiaries) and Form 3 (Application for Approved Person Status);
        (b) Any relevant annex and information specified in those forms;
        (c) A non-refundable prescribed application fee of BD100 (One Hundred Bahraini Dinars);
        (d) A business plan setting forth the internal controlling procedures of the enterprise;
        (e) A business plan containing a budgeted accounting plan for the first three business years;
        (f) Memorandum and Articles of Association of the corporation, copies of the by-laws, its constitution and powers of management and the manner in which its business is proposed to be undertaken;
        (g) Policies and procedures for regulated activities undertaken;
        (h) The proposed organisation structure and the powers and duties of the persons performing controlled functions of the licensed member;
        (i) A copy of the application submitted to the licensed exchange or licensed clearing house, as the case may be and the qualification for membership;
        (j) A description of the proposed trading, clearing and settlement arrangements;
        (k) Arrangements for risk management, compliance and internal controls;
        (l) Where regulated activities would be outsourced, copies of contracts and arrangements for oversight of their activities; and
        (m) Arrangements for complying with business rules of the licensed exchange and/or licensed clearing house.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.11A

        Any licensed exchange, that accepts an external trading member, must together with the Final Membership and Commencement of Operation Checklist, provide the CBB with:

        (a) A copy of the application made to the licensed exchange for membership as an external trading member;
        (b) A description of the clearing and settlement arrangements including a copy of the signed contract with a licensed clearing member (general);
        (c) A copy of the external trading member's membership registration certificates with an exchange in its home and any other jurisdiction;
        (d) A copy of the external trading member's licensing or registration with its home market securities regulator (where required to be licensed or registered), which regulator must be a member of IOSCO and a signatory to the IOSCO MMOU or acceptable bilateral agreement; and
        (e) A letter of confirmation that the CBB Law and this Module are not in conflict with its market rules and legislation and where a conflict is determined, details must be provided for consideration and approval by the CBB.
        Amended: July 2016
        Added: April 2013

      • MIR-2.2.11B

        The acceptance as a member of an external trading member or proprietary trading member by a licensed exchange does not in any way remove the authority of the CBB to supervise and regulate external trading members or proprietary trading members in respect of market conduct or to require the provision of any information or records and the CBB reserves its right to compel an external trading member or proprietary trading member to comply with CBB rules and regulations at any stage should it deem it necessary.

        Added: April 2013

      • MIR-2.2.12

        The applications to be a licensed member must include evidence that:

        (a) Any trading conducted will be provided in an orderly, transparent and fair manner;
        (b) The licensed member will be subject to regulation by the CBB and the business rules of the SRO;
        (c) The licensed member has taken adequate measures to prudently manage any risks associated with its business and operations;
        (d) The licensed member, in discharging its obligations, will not act contrary to the interests of the investing public, or to the requirements of the CBB;
        (e) The licensed member will enforce compliance by its employees or representatives with the business rules of the SRO, as the case may be;
        (f) The licensed member makes satisfactory provisions for an orderly, transparent and fair conduct of its business, the adherence to rules and the supervision of its employees or representatives; and
        (g) The licensed member has sufficient financial, human, and technical resources to undertake regulated activities in a fair, orderly, transparent manner and meet contingencies or disaster criteria.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.12A

        External trading members and proprietary trading members must provide the details in Paragraph MIR-2.2.12 to the licensed exchange as part of its membership application.

        Added: April 2013

      • MIR-2.2.12B

        A licensed member may apply to amend its licensing category by application to the CBB's Licensing Directorate by providing only the amended or additional information relevant to the change in regulated activities it intends to undertake.

        Amended: April 2020
        Added: April 2013

      • MIR-2.2.13

        The CBB will review the application and duly advise the applicant in writing when it has:

        (a) Granted the application without conditions;
        (b) Granted the application subject to conditions specified by the CBB; or
        (c) Refused the application, stating the grounds in which the application has been refused and the process for appealing against that decision, unless the licensed exchange and/or licensed clearing house refuses to grant its approval, as the case may be.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.14

        The CBB may, within 30 days from the date of submission, require an applicant to furnish it with amendments or such additional information or documents as the CBB considers necessary in relation to the application.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.15

        The CBB may refuse to accept any application if:

        (a) It is not completed in accordance with this Module;
        (b) It is not accompanied by the relevant fee;
        (c) The licensed exchange and/or licensed clearing house refuse to grant the applicant membership, as the case may be.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.16

        Where strict compliance with any form is not possible, the CBB may in its sole discretion, and upon request from the applicant to this effect, allow for the necessary modifications to be made to that form, or for the requirements of that form to be complied with in such other manner as the CBB thinks fit.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.2.17

        The applicant may, at any time before a decision has been made about the application, withdraw his application or make amendments to any errors therein or in the supporting documents.

        Amended: April 2013
        Adopted January 2010

      • Licensing of Members

        • MIR-2.2.18

          The CBB shall decide on the application within 60 days from the date of receiving the application, complete with all the required information and documents.

          Amended: April 2013
          Adopted January 2010

        • MIR-2.2.19

          The CBB may grant an in principle confirmation which does not amount to a license nor commit the CBB to issuing a license within 30 days from the date of the application, following which the applicant may take steps for employment of personnel to the company at his own risk.

          Amended: April 2013
          Adopted January 2010

        • MIR-2.2.20

          The member shall not undertake any regulated activities before the CBB grants the license to the applicant.

          Amended: April 2013
          Adopted January 2010

        • MIR-2.2.21

          The CBB may license a person as a licensed member, subject to such conditions or restrictions as the CBB may think fit to impose by notice in writing, including conditions or restrictions relating to:

          (a) The regulated activities that the person may undertake;
          (b) The securities or futures contracts or any other products or instruments that a member may undertake; and
          (c) The class or group of investors and location.
          Amended: April 2013
          Adopted January 2010

        • MIR-2.2.22

          The CBB may, at any time, in consultation with the licensed exchange and/or licensed clearing house by notice in writing to the person, vary any condition or restriction or impose such further condition or restriction as it may think fit.

          Amended: April 2013
          Adopted January 2010

        • MIR-2.2.23

          A licensed member shall, for the duration of the license, satisfy all conditions and restrictions that may be imposed on it.

          Amended: April 2013
          Adopted January 2010

        • MIR-2.2.24

          Where the CBB rejects an application, the decision and any appeal by the applicant shall be governed by Article 46 of the CBB Law.

          Amended: April 2013
          Adopted January 2010

    • MIR 2.3 MIR 2.3 Exempted Broker-Dealer and Exempted Clearing Member [This Section was deleted in April 2013]

      • MIR-2.3.1

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.2

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.3

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.4

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.5

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.6

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.7

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.8

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.3.9

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

    • MIR 2.4 MIR 2.4 Power of CBB to Revoke Exemption [This Section was deleted in April 2013].

      • MIR-2.4.1

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.4.2

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

      • MIR-2.4.3

        [This Paragraph was deleted in April 2013].

        Deleted: April 2013

    • MIR 2.5 MIR 2.5 Criteria for Granting License

      • MIR-2.5.1

        The CBB may license a person as a member if:

        (a) The CBB is satisfied that the undertaking of regulated activities by the person will;
        1. Develop the capital market and enhance confidence therein;
        2. Develop the securities businesses or services and enhance the market liquidity; and
        3. Protect the interests of investors or users of the SRO (licensed exchange and/or licensed clearing house) and enhance the Kingdom's credibility as an international financial centre; and
        (b) The CBB is satisfied that the person, having applied to be a member under this Module, is able to comply with the obligations and requirements imposed on such member.
        Adopted January 2010

      • MIR-2.5.2

        The CBB may have regard to the following matters in determining whether a member has satisfied the criteria referred to in paragraph MIR-2.5.1 (a) or (b):

        (a) The size and structure, or proposed size and structure, of the regulated activities to be undertaken by the applicant;
        (b) The nature of the regulated activities undertaking, or to be undertaken, by the applicant;
        (c) The nature of the securities, futures contracts, products or instruments that the applicant will be involved in;
        (d) The nature of the investors, clients or participants, or proposed investors, clients or participants, who may use regulated activities or services undertaken by the applicant;
        (e) Whether the applicant has been licensed by the CBB or any other regulator;
        (f) That the rules and by-laws of an applicant are in conformity with such conditions as may be prescribed with a view to ensure fair conduct of business and to protect investors;
        (g) That the applicant is willing to comply with any other conditions which the CBB, having regard to the nature of the securities, futures contracts, products or instruments dealt with by it, may impose;
        (h) The proposed securities businesses or services comply with up-to-date securities industry standards;
        (i) The persons who may be affected in the event that the applicant runs into difficulties;
        (j) Where the head office or principal place of business of the applicant is outside Bahrain, whether the applicant in the country or territory in which the head office or principal place of business of the applicant is situated, is subject to requirements and supervision comparable to those in the Kingdom of Bahrain;
        (k) The interests of the public;
        (l) Any other circumstances that the CBB may consider relevant;
        (m) Whether the applicant is satisfied or will satisfy the SRO's (licensed exchange and/or clearing house) business rules and related requirements.
        Adopted January 2010

      • MIR-2.5.3

        The applicant must additionally be able to demonstrate to the CBB and the CBB must be satisfied that it has:

        (a) The financial resources, the management and human resources with appropriate experience necessary for undertaking regulated activities;
        (b) Made arrangements for the proper supervision of all transactions effected through the SRO, so as to ensure compliance with the rules of the SRO;
        (c) Taken sufficient steps to maintain security and back-up procedures to ensure the integrity of the records of transactions effected through the SRO;
        (d) Insurance, a guarantee, or compensation fund, or other warranty plans placed by the SRO in respect of providing compensation, subject to the business rules of the SRO, to its clients; and
        (e) Made provisions, to the satisfaction of the CBB, for the clearing and settlement of transactions effected through a licensed clearing house and for the management of trade and settlement risk.
        Adopted January 2010

      • MIR-2.5.4

        [This Paragraph was deleted in July 2014.]

        Deleted: July 2014
        Adopted January 2010

      • MIR-2.5.5

        [This Paragraph was deleted in July 2014.]

        Deleted: July 2014
        Adopted January 2010

    • MIR 2.6 MIR 2.6 Surrender of License or Cessation of Activities or Services

      • MIR-2.6.1

        Without prejudice to the CBB Law, a member which intends to cease to undertake its regulated activities may apply to the CBB to surrender its approval as a member.

        Adopted January 2010

      • MIR-2.6.2

        The CBB, after considering the requirement of the CBB Law Articles 108, 109 & 110, may, subject to paragraph MIR-2.6.1, cancel the license if it is satisfied that the member referred to in paragraph MIR-2.6.1 has ceased undertaking its regulated activities and that there are no pending obligations of the member or securities, contracts, products or instruments traded, cleared or settled.

        Adopted January 2010

      • MIR-2.6.3

        The licensed member shall publish a notice of its intention to cease to provide its regulated activities in an SRO and in 2 daily newspapers, one in Arabic and the other in English, in Bahrain at least 30 days before ceasing its operations.

        Amended: April 2013
        Adopted January 2010

      • MIR-2.6.4

        Any objections received from the SRO, investors or clients of the member shall be considered by the CBB prior to issuing its consent for the surrender of license or cessation of business of the related member.

        Adopted January 2010

      • MIR-2.6.5

        The notice referred to in rule MIR-2.6.3 shall be subject to the approval of the CBB and shall be published at least 30 days prior to the cessation taking effect, after obtaining clearance from the relevant SRO, as the case may be.

        Adopted January 2010

    • MIR 2.7 MIR 2.7 Cancellation or Amendment of License

      • MIR-2.7.1

        Without prejudice to the CBB Law Articles 108, 109 & 110, the CBB may cancel any license of a person as a licensed member, if:

        (a) There exists criteria under section MIR-2.5 that the member does not meet and on which grounds the CBB would refuse an application;
        (b) The member does not commence undertaking its regulated activities within 6 months from the date on which it was granted the license;
        (c) The member ceases to undertake its regulated activities;
        (d) The member contravenes:
        1. Any CBB Law, rules or regulations;
        2. Any condition or restriction applicable in respect of its license;
        3. Any direction issued to it by the CBB;
        4. Any provision in this Module; or
        5. Any provision or requirements of the business rules and requirements of an SRO.
        (e) The licensed member undertaking regulated activities in a manner that is in the opinion of the CBB contrary to the market integrity and the interests of the public or clients;
        (f) Any information or document that is submitted to the CBB that the member knows is false or misleading; and
        (g) Any false or misleading information or document knowingly or willingly disseminated by the member to the market or its clients.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.7.2

        The CBB may not, subject to paragraph MIR-2.7.3, cancel any license that was granted to a member without giving the opportunity to be heard.

        Adopted January 2010

      • MIR-2.7.3

        The CBB may cancel a license that was granted to a member on any of the following grounds without giving an opportunity to be heard:

        (a) The member is in the course of being wound up or otherwise dissolved, whether in Bahrain or elsewhere;
        (b) A receiver, a receiver and manager, or an equivalent person has been appointed, whether in Bahrain or elsewhere, in relation to or in respect of any property of the member;
        (c) The member has been convicted, whether in Bahrain or elsewhere, of an offence involving fraud or dishonesty or the conviction for which involved a finding that it had acted fraudulently or dishonestly; and
        (d) The implementation of a decision or an appeal of the Disciplinary Committee resolution, whether in Bahrain or elsewhere, for the cancellation of membership of the member.
        Adopted January 2010

      • MIR-2.7.4

        For the purposes of paragraph MIR-2.7.1 (c), a member shall be deemed to have ceased to undertake its regulated activities if:

        (a) It has ceased to undertake its regulated activities for more than 30 days, unless it has obtained the prior approval of the CBB, or SRO to do so; or
        (b) It has ceased to undertake the regulated activities under a direction issued by the CBB, or SRO.
        Adopted January 2010

      • MIR-2.7.5

        In accordance with the CBB Law Articles 108, 109 & 110, any cancellation of a license of a member referred to in paragraph MIR-2.7.1 shall not operate so as to:

        (a) Avoid or affect any agreement, transaction or arrangement entered into a market contract undertaken by the member, whether the agreement, transaction or arrangement was entered into before or after the revocation of the license; or
        (b) Affect any right, obligation or liability arising under such market contracts, agreements, transactions or arrangements.
        Adopted January 2010

      • MIR-2.7.6

        Where the CBB cancels or amends a license of a member, notification to the member and an appeal against such a decision shall be governed by Article 48 of the CBB Law.

        Adopted January 2010

    • MIR 2.8 MIR 2.8 Annual Fees Payable by a Licensed Member

      • MIR-2.8.1

        Every member must pay to the CBB an annual fee on the 1st December of the preceding year for which the fee is due.

        Amended: July 2016
        Amended: April 2014
        Amended: April 2013
        Adopted January 2010

      • MIR-2.8.1A

        Depending on the type of license, some licensees pay only a fixed annual fee while other licensees pay a fixed and a variable fee.

        Amended: July 2016
        Added: April 2013

      • MIR-2.8.1B

        The following fixed annual fees are applicable for licensed discount brokers and licensed clearing members:

        Licensed discount broker (fixed) BD100
        Licensed clearing member (fixed) BD300
        Added: July 2016

      • MIR-2.8.1C

        Licensed brokers and licensed broker-dealers pay the following fixed and variable annual fees:

        License Type Annual Licensing Fee
        Fixed (BD) (Minimum) Variable Fee Total Fee (BD)
          Securities Market Transactions Derivatives Market Transactions  
        Licensed broker BD200 BD5/ for each BD 100,000 of trade value BD 0.004/lot BD 0.008 for every one lot Buy+Sell Fixed (Minimum) fee + Variable fee
        Licensed broker-dealer BD300 BD5/ for each BD 100,000 of trade value BD 0.004/lot BD 0.008 for every one lot Buy+Sell Fixed (Minimum) fee + Variable fee
        Added: July 2016

      • MIR-2.8.1D

        The variable fees due on 1st December are those due for the following calendar year, and are calculated on the basis of the firm's latest (full calendar year) value of securities market transactions and/or volume of derivatives market transactions for the previous calendar year: i.e. the fee payable on 1st December 2013 for the 2014 year (for example) is calculated using the total value of securities market transactions and/or total volume of derivatives market transactions for 2012.

        Added: July 2016

      • MIR-2.8.1E

        A licensed broker or a licensed broker-dealer must submit the Annual Licensing Fee Form (Form ALF) duly certified by the licensed exchange or the licensed market operator. The Form ALF includes a declaration by the licensed member confirming that the amount of fees and the total transaction value and/or volume as reported in the Form ALF are accurate. Licensed brokers and licensed broker-dealers must complete and submit the Form ALF to the CBB, no later than 15th October of the preceding year for which the fees are due.

        Added: July 2016

      • MIR-2.8.2

        Where a license is cancelled (whether at the initiative of the firm or the CBB), no refund is paid for any months remaining in the calendar year in question, should a fee have been paid for that year.

        Amended: April 2014
        Adopted January 2010

      • MIR-2.8.3

        A licensed member failing to comply with Paragraph MIR-2.8.1 may be subject to financial penalties as prescribed by the CBB.

        Added: July 2016

    • MIR 2.9 MIR 2.9 Publication of the Decision to Grant, Cancel or Amend a License

      • MIR-2.9.1

        In accordance with Articles 47 and 49 of the CBB Law, the CBB will publish its decision to grant, cancel or amend a license in the Official Gazette and in two local newspapers, one in Arabic and the other in English, and such decision shall also be disseminated to the relevant SRO.

        Amended: October 2019
        Adopted January 2010

      • MIR-2.9.2

        For the purpose of Paragraph MIR-2.9.1, the cost of publication of this notice must be borne by the Licensee.

        Added: July 2017

      • MIR-2.9.3

        The CBB may also publish its decision on such cancellation or amendment using any other means it considers appropriate, including electronic means.

        Added: July 2017

    • MIR 2.10 MIR 2.10 Place of Business

      • MIR-2.10.1

        All licensed members must have a designated place of business in Bahrain. A licensed member may not, without prior written approval of the CBB:

        (a) Open a new place of business in Bahrain;
        (b) Close or change an existing place of business in Bahrain; or
        (c) Open a new place of business in a foreign jurisdiction.
        Amended: April 2013
        Adopted January 2010

      • MIR-2.10.2

        The CBB may restrict its approval stipulated in rule MIR-2.10.1, subject to any other conditions, as it may deem necessary.

        Adopted January 2010