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  • Sec. 2 Sec. 2 General Conditions

    • Article (2)

      • Trading Sessions

        1- Trading Sessions shall be held on such days as the Exchange shall determine by written notice. BATS is accessible from 10:00 am to 12:00 noon on each business day (five days a week from Sunday to Thursday) including a Pre-Opening period of 10 minutes, starting from 9:50 a.m.
        2- Market opening and closing times are established by the Exchange. No transactions may be effected before the opening bell or after the closing bell.

    • Article (3)

      • Trading Restricted to Trading Sessions

        Subject to the exceptions set out in Article (2) of the Bahrain Stock Exchange's Law No. (4) for the year 1986, all purchases and sales of listed securities must take place at the Exchange during a trading session. Unless otherwise prescribed by the Exchange, all securities shall be traded using BATS, subject to this Resolution.

    • Article (4)

      • Access to the Trading Floor

        Access to the Trading Floor is limited to:

        (i) Members of the Exchange and their accredited representatives;
        (ii) Exchange personnel; and
        (iii) Any other person duly authorized by the Exchange.

    • Article (5)

      • Financial Market

        Financial market orders shall be traded on the following markets:

        1- Regular Market: this market consists of a hybrid and does not allow unique trades such as odd lot or negotiated trades deal.
        2- Whole or Non Market:
        (i) The value of the order shall not be less than BD50,000;
        (ii) It shall be in favour of one person only;
        (iii) A whole or non deal shall not be connected with any deal in the regular market, except for the determination of the tick sizes and trade range;
        (iv) The broker can improve his prices and execute the deal with himself, after notifying the Market Controller, if no other broker offers a bid.
        3- Mutual Funds market.
        4- Bond Market.
        5- Odd-Lot Auction Market: All odd-lot share certificates shall be traded in the odd-lot auction market, subject to the following rules:
        a) All sell and buy orders are whole or non because the odd-lot certificate cannot be broken up.
        b) Special settlement terms and market orders are not allowed in this market.
        c) Brokers may combine odd-lots, whether related or not.
        d) Sell and buy orders shall be traded on the regular market, if the combined odd-lots exceed one board lot.
        e) Sell and buy orders shall be traded on the odd-lot auction market, if the combined odd-lots do not exceed one board lot.

    • Article (6)

      • Instructions From Clients

        1- It is the responsibility of members of the Exchange to ensure that they receive bona fide instructions from clients, and that they have effective procedures for identifying the persons from whom they take instructions to effect transactions.
        2- Instructions may be received from clients:
        a) directly on completion of the appropriate instruction form; or
        b) by completing the appropriate instruction form, but utilizing financial intermediaries; or
        c) through their appointed attorney, and in accordance with the terms set out in the power of attorney; or
        d) in accordance with a client's agreement letter.
        e) In the case of (b) and (c) the Exchange has to be informed of the person authorized to act on behalf of the client.
        3- At no stage shall a stockbroker make an offer or bid for shares, unless he has a genuine request by a client, in accordance with the Exchange's Internal Regulations. The Market Controller can ask any stockbroker to prove that a genuine request exists and the stockbroker is required to comply accordingly. This rule does not apply in the case where a stockbroker, acting on behalf of his firm, takes a position as principal by acquiring holdings of securities, including equities, for long-term investment purposes on behalf of his firm.

    • Article (7)

      • Order Log Book

        All buying and selling orders shall be listed in an "Order Log Book" which must contain the following information:

        1- a sequential order number;
        2- the date and time of receipt of the order;
        3- the type of order (i.e. bid or offer);
        4- the name or symbol of the listed security;
        5- the number of shares or stock to be traded;
        6- the trading price and any conditions;
        7- the expiry condition of the order, if any;
        8- the client's/clients' name/s;
        9- the Exchange Account Number; and
        10- the financial intermediary code, if applicable.

    • Article (8)

      • Ownership of Securities

        Following the close of the trading session, the Exchange shall pass the necessary entries in the "Registers of Holders" of the relevant securities, to reflect the transactions effected during the trading session. The ownership of a security, together with all its rights and interests in respect of which the transaction was effected passes from the seller(s) to the buyers(s), with effect from the moment of entry into the Registers of Holders.

    • Article (9)

      • Functions of the Stockbroker

        1- The selling stockbroker will use his best endeavours to sell the listed securities on the first trading day, following the receipt of instructions from his client.
        2- The selling stockbroker shall be responsible for ensuring that his client is the registered holder of the security. He must ascertain that there is enough available holdings to be sold, and that there is no charge registered against these holdings in the "Central Securities Depository", or the "Register of Shares". If it transpires that the holdings are not sufficient to meet the order, or that there is a charge against the holdings, the order will be rejected by BATS.
        3- The buying stockbroker shall use his best endeavours to buy the listed securities on the first trading day following the receipt of instructions from his clients.
        4- Both the selling and buying stockbrokers shall be responsible for supplying the Exchange with sufficient details of their clients, to enable the Exchange to produce the "Client Contract Notes" on behalf of the stock broking firms. This information must be supplied before the trade execution. In the event that sufficient details of the client are not available at the Exchange, the order will not be validated by BATS.

    • Article (10)

      • Disputes and Irregular Deals

        1- The settlement of disputes arising on the Trading Floor concerning the terms of transactions shall be decided by the Market Controller and his decision is final.
        2- Any deal which in the opinion of the Director is irregular, or is in contravention of the Exchange Law, Internal Regulations, or these Rules and Procedures, shall be reported immediately to the Chairman.
        3- Any deal determined by BATS is binding with both parties, unless an appeal is lodged with the Director. If after an investigation an error is detected, the Director may take such action as he deems fit, including the cancellation of the trade.

    • Article (11)

      • Trading Delays and Interruptions

        The Director has the authority to take such decisions as may be required to delay the opening or to interrupt trading in any security, in order to assist in the orderly opening or trading of such security.

    • Article (12)

      • Systems Failure

        Failure in any of the systems installed at the Exchange for trading purposes shall be immediately reported to the Market Controller, who shall take the necessary action to suspend or close trading or to operate under a manual trading system, as directed by the Director. Every effort shall be made in order to resume the orderly conduct of trading as soon as possible. Under no circumstances shall the Exchange be responsible for damages which arise from any such failure, error or defect in the equipment, either directly or indirectly.