Bahrain Bourse Approves Market Making Guidelines

Tuesday, January 31, 2017

Shaikh Khalifa bin Ebrahim Al-Khalifa, CEO of Bahrain Bourse (BHB) issued on Thursday, January 26, 2017 Resolution No. (2) for 2017 regarding the adoption of Market Making Guidelines in Bahrain Bourse, that will commence on Wednesday, March 1, 2017.

Sh. Khalifa Al Khalifa said that the issuance of these Guidelines has set a professional foundation for Market Making in Bahrain Bourse as applied in international financial markets. Shaikh Khalifa hopes that all parties involved benefit from these Guidelines that will reflect positively on the Bourse’s trading activity attracting more investors to take advantage of such initiatives and services offered by the Bourse. He also assures that these guidelines come to complement the legal framework stated in BHB’s Market Rules that aims at increasing Market Makers’ efficiency and maintain market integrity as well as investor protection.

The Guidelines include the operational and technical requirements that market makers should comply with to carry out their responsibilities aimed at making bid and offer quotation, ensuring continuous liquidity on a specified security or many securities in accordance with the conditions and requirements stated in the Guidelines. The Guidelines also include technical and price requirements in the buy and sell orders announced by the market maker during the main trading session.

The Guidelines also highlighted the mandatory procedures to be followed by a market maker to apply to the exercise of market-making in the bourse. Legal, administrative, financial, technical and accounting requirements that must be met when submitting applications, as well as the need to meet the Capital Adequacy requirements are clarified in the Guidelines.