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  • MIR — MIR — Market Intermediaries and Representatives License

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

      • MIR-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 governs 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.
        Adopted January 2010

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

        "Broker" means person who acts as an intermediary between the buyer and seller, usually charging a commission. A broker who specializes in stocks, debt securities, commodities or options acts as agent and must be licensed by the CBB and registered with the licensed exchange as a member.

        Adopted January 2010

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

        "Chief Executive" or "General Manager" means a person who is responsible for the conduct of the licensee (regardless of actual title). The Chief Executive or General Manager must be resident in Bahrain. This person is responsible, alone or jointly, for the conduct of the whole of the firm, or, in the case of an Overseas Investment Firm Licensee, for all of the activities of the branch.

        Adopted January 2010

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

        "Client" means a person with or for whom a licensed member conducts or intends to conduct regulated activities.

        Amended: April 2013
        Adopted January 2010

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

        "Client Information" means transaction information relating to:

        (a) A named client of a licensed member; or
        (b) A group of clients, from which the name of a client can be directly inferred from a licensed member.
        Amended: April 2013
        Adopted January 2010

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

        "Dealer" means a person acting as a principal in a securities transaction. Principals trade for their own account and risk. When buying from a broker acting as a dealer, the customer receives securities from the member's inventory; the confirmation must disclose this when dealers trade for their own account as part of their responsibility for maintaining an orderly market. Since most brokerage firms operate as both brokers and principals (dealers) the term "broker-dealer" is commonly used.

        Amended: April 2013
        Adopted January 2010

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

        "Discount Broker" means a person who arranges orders to buy and sell securities and who supplies these orders to a licensed broker for execution.

        Amended: April 2013
        Adopted January 2010

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

        "Director" is any person who occupies the position of a Director, as defined in Article 173 of the Commercial Companies Law (Legislative Decree No. 21 of 2001).

        Adopted January 2010

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

        "External trading member" means an eligible foreign institution who is a member of a licensed exchange and licensed by the CBB but who conducts their regulated activity (including trading on behalf of their clients) exclusively outside the jurisdiction of the Kingdom of Bahrain.

        Added: April 2013

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

        "Head of Function" means a person who exercises major managerial responsibilities, is responsible for a significant business or operating unit, or has senior managerial responsibility for maintaining accounts or other records of the licensee.

        Adopted January 2010

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

        "Licensed Exchange" means an exchange licensed by the CBB under the Markets & Exchange Module (MAE) of Rulebook Volume 6.

        Amended: April 2013
        Adopted January 2010

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

        "Licensed Clearing House" means a clearing house and/or depository licensed by the CBB under the Clearing, Settlement and Central Depository Module (CSD) of Rulebook Volume 6.

        Adopted January 2010

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

        "Licensed Market Operator" means a market operator licensed by the CBB under the Markets and Exchanges Module (MAE) of Rulebook Volume 6.

        Adopted January 2010

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

        "Licensed Member" for the purpose of this Module means a member who is licensed by the CBB under this Module.

        Adopted January 2010

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

        "Listing Rules" in relation to a licensed exchange 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.
        Adopted January 2010

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

        "Market Analysis" means research aimed at predicting or anticipating the direction of stock, debt securities, or commodity markets based on technical data about the movement of market prices or on fundamental data such as corporate earnings prospect or supply and demand.

        Adopted January 2010

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

        "Market Contract or Contracts" means:

        (a) A contract subject to the business rules of a licensed clearing house or central depository that is entered into between the licensed clearing house and a member pursuant to a novation (however described), whether before or after default proceedings have commenced, which is in accordance with those business rules and for the purposes of the clearing or settlement of transactions using the clearing facility of the licensed clearing house; or
        (b) A transaction which is being cleared or settled using the clearing facility of a licensed clearing house and in accordance with the business rules of the licensed clearing house, whether or not a novation referred to in paragraph (a) is to take place.
        Adopted January 2010

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

        "Market Intermediary and Representative" means a person falling within a category referred to in MIR-2.2.3 which undertakes regulated activities.

        Adopted January 2010

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

        "Market Maker" means a licensed member authorised by a licensed exchange to provide buy and sell quotes as a principal in a security on a regular and continuous basis at fair market value.

        Added: April 2013

      • MIR-B.2.18 [Version up to 30 June 2016]

        "Member" in relation to an SRO means a person who holds membership of any class or description in the SRO, whether or not he holds any share in the share capital of the SRO, as the case may be, and who has been approved by a licensed exchange to effect transactions on the trading system of the licensed exchange and/or approved by a licensed clearing house to effect the clearing, settlement or depositing of securities thereof.

        Adopted January 2010

      • MIR-B.2.19 [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.

        Adopted January 2010

      • MIR-B.2.20 [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 contracts, as the case may be; or
        (d) By substituting the futures contract for a cash commodity.
        Adopted January 2010

      • MIR-B.2.20A [Version up to 30 June 2016]

        "Proprietary trading member" means a locally incorporated entity accepted as a member by a licensed exchange and licensed by the CBB, and who conducts trading only for its own account or funds and who does not trade or accept instructions on behalf of clients or other third parties.

        Added: April 2013

      • MIR-B.2.21 [Version up to 30 June 2016]

        "Registered representative" means an employee of a broker-dealer who acts as an account executive for clients. As such, the registered representative gives advice on which securities to buy and sell and he collects a percentage of the commission income he generates as compensation. To qualify as a registered representative, a person must acquire a background in the securities business and pass a series of tests and other qualifications imposed by the CBB and/or licensed exchange. "Registered" means licensed or authorised by the CBB and the licensed exchange.

        Amended: April 2013
        Adopted January 2010

      • MIR-B.2.22 [Version up to 30 June 2016]

        "Regulated Activities" for the purpose of this Module means any activity stipulated under the CBB Law Article (80).

        Adopted January 2010

      • MIR-B.2.23 [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 depository receipts in respect of shares;
        (b) Bonds or other forms of debt, including depository 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 settled 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 in 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.
        Adopted January 2010

      • MIR-B.2.24 [Version up to 30 June 2016]

        "SRO" means a self-regulatory organization, being a licensed exchange or market operator, a licensed clearing house or depository under Module MAE and/or Module CSD respectively.

        Adopted January 2010

      • MIR-B.2.25 [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 2014
        Adopted January 2010