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  • MAM-A.4 MAM-A.4 Division of Responsibilities

    • MAM-A.4.1

      While dealing with cases relating to market abuse and manipulation, a clear division of responsibilities between CBB as the securities regulator and the licensed exchanges or the licensed market operators or licensed clearing houses or depositories as a self regulatory organisation (SRO) is required:

      (a) To maximise the regulatory effectiveness;
      (b) To permit flexibility to the licensed exchanges or the licensed market operators in their functioning
      (c) To achieve greater efficiency and transparancy in the enforcement of the laws, rules and regulations;
      (d) To minimise the regulatory cost; and
      (e) To maintain market integrity and investor confidence.
      November 2010

    • MAM-A.4.2

      As a regulator, the CBB's role is as follows:

      (a) Regulatory supervision, including the licensing, supervision, inspection, investigation and enforcement and regulatory oversight on the licensed exchanges, licensed market operators, licensed clearing houses and depositories and other SROs.
      (b) Maintaining and promoting fairness, efficiency and transparency within the capital market;
      (c) Acting as an enforcement agency with powers to investigate and take administrative, civil or criminal actions as it may deem appropriate;
      (d) Approving the rules, by-laws and internal regulations of the licensed exchanges or the licensed market operators, licensed clearing houses or depositories, whereby any change in the rules, by-laws and regulations of the SROs would need prior approval of the CBB.
      November 2010

    • MAM-A.4.3

      The licensed exchange or the licensed market operator or clearing house or depository established as an SRO must comply with the requirements laid down under the CBB Law, rules and regulations, this Module and the other applicable laws and regulations.

      November 2010

    • MAM-A.4.4

      As an SRO, the main objective of the exchange or the operator or the clearing house or depository should include steps to:

      (a) Promote fairness and investor protection;
      (b) Promote fair access to market facilities and information;
      (c) Promote the provision of timely and accessible relevant market data;
      (d) Promote the efficient regulation of its members;
      (e) Develop rules that are designed to set standards of behaviour for its members and to promote investor protection;
      (f) Take disciplinary actions for contraventions by markets and listed companies through an SRO's Disciplinary Action Committee(s);
      (g) Identify unlawful transactions and take preventative actions;
      (h) Maintain fairness of price discovery mechanism and ensure prices are determined by the genuine forces of demand and supply;
      (i) Monitor the trading and market on a continuous basis;
      (j) Report any suspected transactions or suspected market behaviour or suspected cases of market abuse or market manipulation.
      November 2010

    • Role of Other CBB Licensees

      • MAM-A.4.5

        All capital market service providers and listed companies in general, and members of the SROs in particular, must have the necessary infrastructure and systems to identify and report any irregular transactions or suspected cases of market abuse or market manipulation which they come across in the normal course of business to the CBB in the format given in paragraph MAM-A.4.6

        November 2010

    • Market Abuse Reporting Format

      • MAM-A.4.6

        Persons subject to the obligations to report irregular transactions to the CMSD shall report in the following standard format:

        Description of the transaction(s)
        Details of the securities, including the code of the security (ISIN Number); the market(s) concerned; the original order's entry date/time, price and size; the times and sizes of the transaction(s); the type and characteristics of the order, etc.
        Reasons for Suspicion
        Reasons for suspecting that the transaction(s) might constitute insider dealing/market abuse/ market manipulation
        Identities of persons carrying out transaction(s)
        Names, addresses, telephone number, location, account number, client Identification code used by the firm, etc.
        Identities of any other persons known to be involved in the transaction(s)
        Names, addresses, telephone number, location, relation to person carrying out the transaction, position held, role played, etc.
        Capacity in which the person performing the transaction(s) acts
        e.g. broker, underwriter, agent, investment/fund manager, auditor, insider.
        Any information which may be of significance (along with a list of any accompanying documents/evidence)
        Details of the person making notification
        Name of person, name of firm, position held within firm, contact details, etc.
        Signed ........... (person making report)

        Dated ........... (date of report)
        November 2010

      • MAM-A.4.8

        Where the information specified to be reported is not available at the time of reporting, the report shall include at least the reasons why the reporting persons suspect that the transactions might constitute insider dealing or market manipulation. All remaining information shall be provided to the CMSD as soon as it becomes available.

        Persons making suspicious transactions reports therefore, do not need to have all the required information before contacting the CMSD. If the case is one which (the persons subject to the reporting obligation consider) needs to be brought to the attention of the CMSD urgently, then the person(s) concerned shall make the first contact quickly. This can be done by telephone if appropriate, giving the basic details and reasons for suspicion, followed by written confirmation. The other information can be supplied subsequently.

        November 2010