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  • MAE — Markets and Exchanges

    • MAE-B.2 MAE-B.2 Definitions [Version up to 30 June 2016]

      • MAE-B.2.1 [Version up to 30 June 2016]

        "Business Rules" in relation to a licensed exchange, a futures exchange or a licensed market operator, means the rules, regulations, by-laws or such similar body of statements, by whatever name called, that govern the activities and conduct of:

        (a) The licensed exchange or licensed market operator or;
        (b) Members of the respective licensed exchange or licensed market operator; and
        (c) Other persons in relation to it.

      • MAE-B.2.2 [Version up to 30 June 2016]

        This Paragraph has been left blank.

        Added: April 2013

      • MAE-B.2.3 [Version up to 30 June 2016]

        "Licensed Exchange" means an exchange licensed in respect of the operation of its market in and from the Kingdom of Bahrain.

      • MAE-B.2.4 [Version up to 30 June 2016]

        "Licensed Market Operator" means an overseas exchange that is licensed by the CBB to operate a market in the Kingdom of Bahrain.

      • MAE-B.2.5 [Version up to 30 June 2016]

        "Listing Rules" in relation to a licensed exchange or a licensed market operator that establishes or operates or proposes to establish or operate a licensed market means rules governing or relating to:

        (a) The admission to the official list of the licensed exchange or licensed market operator of the securities of corporations, governments, bodies unincorporated or other persons for the purpose of the quotation on the securities market of the licensed exchange of securities issued, or made available by such corporations, governments, bodies unincorporated or other persons, or the removal from that official list and for other purposes; or
        (b) The activities or conduct of corporations governments, bodies unincorporated and other persons who are admitted to that list.

      • MAE-B.2.6 [Version up to 30 June 2016]

        "Market" means a place at which, or a facility (whether electronic or otherwise) by means of which, offers or invitations to sell, purchase or exchange securities or futures contracts (including options and derivatives) regularly made on a centralised basis, being offers or invitations that are intended or may reasonably be expected to result, whether directly or indirectly, in the acceptance or making, respectively, of offers to sell, purchase or exchange securities or futures contracts (whether through that place or facility or otherwise).

        Amended: April 2016

      • MAE-B.2.7 [Version up to 30 June 2016]

        An "exempt exchange" or "exempt market operator" for the purpose of this module means an exchange or a market operator who has been exempted from the requirement of licensing by the CBB.

      • MAE-B.2.8 [Version up to 30 June 2016]

        "Member" in relation to a licensed exchange or a licensed market operator, means a person who holds membership of any class or description in the licensed exchange or licensed market operator, whether or not he holds any share in the share capital of the licensed exchange, licensed market operator or designated clearing house, as the case may be and who has been approved by the licensed exchange or the licensed market operator to effect transactions on the floor of the Exchange or under any facility thereof

      • MAE-B.2.9 [Version up to 30 June 2016]

        "Overseas Exchange" means an exchange licensed or recognized by a financial services authority in a jurisdiction outside of the Kingdom of Bahrain to operate a licensed market in that jurisdiction

      • MAE-B.2.10 [Version up to 30 June 2016]

        "Participant" means a person who may participate in one or more of the services provided by a licensed exchange or a licensed market operator in its capacity as a licensed exchange or licensed market operator respectively.

      • MAE-B.2.11 [Version up to 30 June 2016]

        "Person", for the purpose of this Module, shall mean a natural person, corporation, limited liability company, joint stock company, partnership, association, trust, fund or any organized group of persons whether incorporated or not.

      • MAE-B.2.12 [Version up to 30 June 2016]

        "Position" in relation to a securities or futures contract, means a securities or futures contract which is outstanding and which has not been liquidated:

        (a) By an off-setting transaction;
        (b) By delivery of the securities or the commodity (or any other asset class) underlying the futures contract;
        (c) Through settlement of the securities or futures contract in accordance with the business rules or practices of a securities or futures market, as the case may be; or
        (d) By substituting the futures contract for a cash commodity.

      • MAE-B.2.13 [Version up to 30 June 2016]

        "Quote" in relation to securities and a securities market of a licensed exchange or of a licensed market operator, means to display or provide, on the securities market of the licensed exchange or licensed market operator, information concerning the particular prices or particular consideration at which offers or invitations to sell, purchase or exchange issued or prescribed securities are made on that securities market, being offers or invitations that are intended or may reasonably be expected to result, directly or indirectly, in the making or acceptance of offers to sell, purchase or exchange issued or prescribed securities.

      • MAE-B.2.14 [Version up to 30 June 2016]

        "Securities" means shares or bonds issued by shareholding companies, government debt instruments and the following financial instruments:

        (a) Shares in companies and other securities equivalent to shares in companies or other entities, and depositary receipts in respect of shares;
        (b) Bonds or other forms of debt, including depositary receipts in respect of such securities;
        (c) Warrants;
        (d) Units, rights or interests (however described) of the participants in a collective investment scheme;
        (e) Options, futures and any other derivative contracts relating to commodities that must be settled in cash or may be settlted in cash at the option of one of the parties (otherwise than by reason of a default or other termination event);
        (f) Options, futures and any other derivative contract relating to commodities that can be physically settled;
        (g) Units to Real Estate Investment Trusts (REITs);
        (h) Index tracking products including Islamic indices;
        (i) Any other financial instrument approved as a financial instrument by the CBB for the purpose of trading such instrument on an exchange; and
        (j) Islamic securities, being those financial instruments that are Shari'a compliant.
        Amended: April 2016

      • MAE-B.2.15 [Version up to 30 June 2016]

        "Transaction Information" means information relating to:

        (a) Offers or invitations to purchase, sell, or exchange securities or futures contracts ;
        (b) Executed transactions in securities or futures contracts; and
        (c) Transactions cleared or settled by a designated clearing house.
        Amended: April 2016

      • MAE-B.2.16 [Version up to 30 June 2016]

        "User" in relation to a licensed exchange or a designated clearing house, means a person who is:

        (a) A member of a licensed exchange or designated clearing house; or
        (b) A customer of a member of a licensed exchange or designated clearing house.

      • MAE-B.2.17 [Version up to 30 June 2016]

        "User Information" means transaction information that is referable to:

        (a) A named user of a licensed exchange or designated clearing house; or
        (b) A group of users, from which the name of a user can be directly inferred of a licensed exchange or designated clearing house.

    • MAE-5 MAE-5 Matters Requiring Approval of CBB

      • MAE-5.3 MAE-5.3 Approval of Chairman, Chief Executive Officer, Director [Version from 1 October 2008 to 31 March 2016]

        • MAE-5.3.1 [Version from 1 October 2008 to 31 March 2016]

          No licensed exchange shall appoint a person as its chairman, chief executive officer or director unless the licensed exchange has obtained the approval of the CBB.

        • MAE-5.3.2 [Version from 1 October 2008 to 31 March 2016]

          The CBB may, by notice in writing, require a licensed exchange to obtain the approval of the CBB for the appointment of any person to any key management position or committee of the licensed exchange and the licensed exchange shall comply with the notice.

        • MAE-5.3.3 [Version from 1 October 2008 to 31 March 2016]

          An application for approval under Paragraph MAE-5.3.1 or MAE-5.3.2 shall be made in such form and manner as the CBB may prescribe and the CBB may require the licensed exchange to furnish it with such information or documents as the CBB considers necessary in relation to the application referred to in Paragraph MAE-5.3.1 and the licensed exchange shall furnish such information or documents as required by the CBB.

        • MAE-5.3.4 [Version from 1 October 2008 to 31 March 2016]

          The CBB may have regard to the following matters in determining whether to approve or refuse to approve the appointment of a person under Paragraph MAE-5.3.1 or MAE-5.3.2:

          (a) Whether the person is fit and proper to be so appointed;
          (b) Whether the appointment of the person would be consistent with any applicable law relating to the qualifications for the position or the requirements for the composition of the board of directors or any committee of the licensed exchange; and
          (c) Whether it would be contrary to the interests of the public to approve the appointment of the person.

        • MAE-5.3.5 [Version from 1 October 2008 to 31 March 2016]

          Subject to Paragraph MAE-5.3.6, the CBB shall not refuse an application for approval under this section without giving the licensed exchange an opportunity to be heard.

        • MAE-5.3.6 [Version from 1 October 2008 to 31 March 2016]

          The CBB may refuse an application for approval on any of the following rounds without giving the licensed exchange an opportunity to be heard:

          (a) The person is an undischarged bankrupt, whether in Bahrain or elsewhere;
          (b) The person has been convicted, whether in Bahrain or elsewhere, of an offence:
          1. Involving fraud or dishonesty or the conviction for which involved a finding that he had acted fraudulently or dishonestly; and
          2. Punishable with imprisonment for a term of 3 months or more.

        • MAE-5.3.7 [Version from 1 October 2008 to 31 March 2016]

          Where the CBB refuses an application for approval under this section, the CBB need not give the person who was proposed to be appointed an opportunity to be heard.

        • MAE-5.3.8 [Version from 1 October 2008 to 31 March 2016]

          A licensed exchange shall as soon as practicable, give written notice to the CBB of the resignation or removal of its chairman, chief executive officer, director or person referred to in the notice issued by the CBB under Paragraph MAE-5.3.2.

        • MAE-5.3.9 [Version from 1 October 2008 to 31 March 2016]

          The licensed exchange shall provide for the composition and duties of the board of directors or any committee of a licensed exchange after obtaining CBB approval.

        • MAE-5.3.10 [Version from 1 October 2008 to 31 March 2016]

          In this section "committee" includes any committee of directors, disciplinary committee, appeals committee or any body responsible for disciplinary action against a member of a licensed exchange.