CRA-4.12 CRA-4.12 Additional requirements applicable to Crypto-asset Exchange Licensees
Listing and Trading of Crypto-assets
CRA-4.12.1
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-4.12.2
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-4.12.3
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019Suspension of trading and delisting
CRA-4.12.4
Where a licensed
crypto-asset exchange decides to delist or suspend the trading of one or morecrypto-assets , it must notify the CBB with the rationale for the suspension or delisting of the crypto-asset.Amended: April 2023
Added: April 2019CRA-4.12.5
Without prejudice to the right of the CBB to demand suspension or delisting of a
crypto-asset from trading, a licensedcrypto-asset exchange must suspend or delist from trading acrypto-asset which no longer complies with the Rules of the licensedcrypto-asset exchange unless such suspension or delisting would likely cause significant damage to the clients' interests or the orderly functioning of the market.Amended: April 2023
Added: April 2019CRA-4.12.6
Where a licensed
crypto-asset exchange decides to suspends or delists from trading acrypto-asset , it must by way of a public announcement inform the clients' regarding the date of suspension or delisting of thecrypto-asset .Amended: April 2023
Added: April 2019CRA-4.12.7
Where a llicensed
crypto-asset exchange has suspended or delisted acrypto-asset from trading, the CBB may require that otherlicensees , which fall under its jurisdiction and trade the same crypto-asset, also suspend or delist thatcrypto-asset from trading, where the suspension or delisting is due to suspected market abuse, a take-over bid or the non-disclosure of inside information about the issuer orcrypto-asset except where such suspension or delisting could cause significant damage to the clients' interests or the orderly functioning of the market.Amended: April 2023
Added: April 2019Order Matching
CRA-4.12.8
A licensed
crypto-asset exchange must ensure expedient and accurate verification of trades and matching settlement instructions.Added: April 2019CRA-4.12.9
A licensed
crypto-asset exchange must ensure that it has necessary systems and controls to verify the existence of funds andcrypto-assets , as applicable, of clients submitting orders.Amended: April 2023
Added: April 2019Pre-trade transparency
CRA-4.12.10
A licensed
crypto-asset exchange must disclose to its clients and the public as appropriate, on a continuous basis during normal trading, the following information relating to trading ofcrypto-assets on its platform:(a) the current bid and offer prices and volume;(b) the depth of trading interest shown at the prices and volumes advertised through its systems for thecrypto-assets ; and(c) any other information relating tocrypto-assets which would promote transparency relating to trading.Amended: April 2023
Added: April 2019CRA-4.12.11
A licensed
crypto-asset exchange must use appropriate mechanisms to enable pre-trade information to be made available to the public in an easy to access and uninterrupted manner.Added: April 2019Post-trade transparency
CRA-4.12.12
A licensed
crypto-asset exchange must disclose the price, volume and time of the transactions executed in respect ofcrypto-assets to the public as close to real-time as is technically possible on a non-discretionary basis. A licensedcrypto-asset exchange must use adequate mechanisms to enable post-trade information to be made available to the public in an easy to access and uninterrupted manner, at least during business hours.Amended: April 2023
Added: April 2019Client Record Keeping
CRA-4.12.13
A licensed
crypto-asset exchange must keep, for at least 10 years, the relevant data relating to all orders and all transactions incrypto-assets which are carried out through their systems.Amended: April 2023
Added: April 2019CRA-4.12.14
For the purposes of Paragraph CRA-4.12.10, the records must contain the relevant data that constitute the characteristics of the order, including those that link an order with the executed transaction(s) that stems from that order. This shall include:
(a) details of the names and numbers of thecrypto- assets bought or sold;(b) the quantity;(c) the dates and times of execution;(d) the transaction prices; and(e) a designation to identify the clients in relation to which that transaction has been executed;Amended: April 2023
Added: April 2019CRA-4.12.15
A licensed
crypto-asset exchange must maintain adequate resources and have back-up facilities in place in order to be capable of reporting at all times.Added: April 2019CRA-4.12.16
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-4.12.17
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019Exchange Systems
CRA-4.12.18
A licensed
crypto-asset exchange must have in place effective systems, procedures and arrangements to reject orders that exceed pre-determined volume and price thresholds or are clearly erroneous.Added: April 2019CRA-4.12.19
A licensed
crypto-asset exchange must be able to temporarily halt or constrain trading if there is a significant price movement in acrypto-asset on its platform or a related platform during a short period and, in exceptional cases, to be able to cancel, vary or correct any transaction.Amended: April 2023
Added: April 2019CRA-4.12.20
A licensed
crypto-asset exchange must report the reasons for halting trading and any material changes to those reasons to the CBB in a consistent and comparable manner.Added: April 2019CRA-4.12.21
A licensed
crypto-asset exchange must ensure that its fee structures are transparent, fair and non-discriminatory and that they do not create incentives to place, modify or cancel orders or to execute transactions in a way which contributes to disorderly trading conditions or market abuse.Added: April 2019CRA-4.12.22
A licensed
crypto-asset exchange must ensure that its Rules on co-location services are transparent, fair and non-discriminatory.Added: April 2019CRA-4.12.23
A licensed
crypto-asset exchange must be able to identify, by means of flagging from its clients, orders generated by algorithmic trading, the different algorithms used for the creation of orders and the relevant persons initiating those orders.Amended: April 2023
Added: April 2019CRA-4.12.24
A licensed
crypto-asset exchange must, upon request by the CBB, make available to the CBB, data relating to the order book or give the CBB access to the order book so that it is able to monitor trading.Added: April 2019Settlement
CRA-4.12.25
A licensed
crypto-asset exchange must establish procedures that enable the confirmation of relevant details of transactions incrypto-assets .Amended: April 2023
Added: April 2019CRA-4.12.26
A licensed
crypto-asset exchange's settlement procedures must clearly define the point at which settlement is final.Added: April 2019CRA-4.12.27
A licensed
crypto-asset exchange must complete final settlement no later than the end of the trade date, and preferably intraday or in real time, to reduce settlement risk.Added: April 2019CRA-4.12.28
A licensed
crypto-asset exchange must clearly define the point after which unsettled payments, transfer instructions, or other obligations may not be revoked by a client.Added: April 2019CRA-4.12.29
A licensed
crypto-asset exchange must minimize and strictly control the credit and liquidity risk arising from money settlements.Added: April 2019CRA-4.12.30
A licensed
crypto-asset exchange must clearly state its obligations with respect to the delivery ofcrypto-assets and should identify, monitor, and manage the risks associated with such delivery.Amended: April 2023
Added: April 2019CRA-4.12.31
A licensed
crypto-asset exchange must have in place adequate systems to safeguard against settlement failures as well as resolution systems which cater for such failures. Such systems should be clearly documented in the licensed crypto-asset exchange's policies, procedures and rules.Amended: April 2023
Added: April 2019CRA-4.12.32
A licensed
crypto-asset exchange must establish a system that monitors settlement failures of transactions incrypto-assets . Upon occurrence of such events, thelicensed crypto-asset exchange must immediately report to the CBB, details of the settlement failure and any other relevant information.Amended: April 2023
Added: April 2019Rules of a Licensed Crypto-asset Exchange
CRA-4.12.33
A licensed
crypto-asset exchange must issue clear and transparent Rules in order to ensure that anycrypto-assets being traded on its platform is being traded in a fair, orderly and efficient manner. Such rules, and any changes or amendments thereto are to be approved by the CBB.Amended: April 2023
Added: April 2019CRA 4.12.34
The CBB may require a licensed
crypto-asset exchange to effect any changes to its Rules, as it may deem necessary.Added: April 2019CRA-4.12.35
The Rules must, inter alia, include Sections on:
(a) the administration of the licensedcrypto-asset exchange , including but not limited to governance, compliance and risk management;(b) how the licensedcrypto-asset exchange operates, including the client on boarding procedure, the procedure for the listing ofcrypto-assets , trading procedures, pre- and post-trade transparency, market monitoring, custody and safekeeping arrangements, record keeping, and fees;(c) the reporting of suspicious transactions;(d) settlement and resolution mechanisms in the event of settlement failure;(e) suspension and removal from trading;(f) business continuity; and(g) Actions or measures which the licensedcrypto-asset exchange can take against itsclients .Amended: April 2023
Added: April 2019Inability to Discharge Functions
CRA-4.12.36
Where, due to the occurrence of any event or circumstances, a licensed
crypto-asset exchange is unable to discharge any of its functions whatsoever, it must on the day of such occurrence immediately notify the CBB of its inability to discharge that function, specifying:(a) the event or circumstance causing it to become unable to discharge any of its functions;(b) the functions which the licensed crypto-asset exchange is unable to discharge; and(c) what action, if any, is being taken or is being proposed by the licensed crypto-asset exchange in order to deal with the situation and, in particular, to be able to recommence discharging that function.Added: April 2019Actions or Measures
CRA-4.12.37
Where a licensed
crypto-asset exchange has taken any action against any of itsclients , including the suspension of theclient from trading, the blacklisting or expelling of aclient or any other action, in respect of a breach of its rules, that licensedcrypto-asset exchange must immediately notify the CBB of that event, providing:(a) The name of the person concerned;(b) Brief description of the breach;(c) Details of the action or measure taken by the licensedcrypto-asset exchange ; and(d) The reasons for taking that action or measure.Amended: April 2023
Added: April 2019
