Bahrain Bourse (BHB) Material: Contents

Bahrain Bourse (BHB) Material
BHB Clearing, Settlement & Central Depository & Registry Rules
Resolution No. (3) for the Year 2000 with Respect to the Clearing, Settlement, Depository and Registry Rules
Article 35 Trading Cap Limit
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Article 35 Trading Cap Limit

35.1 The BSE may limit the Participants trading services (bid orders) subject to the Trading Cap limit fixed by the BSE, in accordance with the following formula:

Cap Limit = Collateral + (Capital x Risk Factor)
(Number of Settlement Days + Reserve Settlement Days) X Maximum Risk
35.2 The 'Risk Factor' referred to in sub-Article (35.1) above shall be 1/3, 'Settlement Days' shall be 3 working days, 'Reserve Settlement Days' shall be 3 working days, and the 'Maximum Risk' shall be 10% per day.
35.3 The BSE may increase or decrease the Participant's Trading Cap Limit, depending on relevant factors such as the Participant's frequency and volume of his trading activities, his financial position, solvency, ability to increase his contribution to the Guarantee Fund, his past experience in the settlement of transactions executed, the client's financial position, liquidity of securities and volume of the transactions intended to be executed.
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