Bahrain Bourse (BHB) Material: Contents

Bahrain Bourse (BHB) Material
BHB Guarantee Contribution Fund Resolution
Article (20) Liquidity Reserve
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Article (20) Liquidity Reserve

20.1 The Liquidity Reserve account should be used when the value of the transaction exceeds the Participant's Trading Cap Limit, as prescribed in Article (11) hereof, provided that the value of the said transaction should not exceed the balance of the Guarantee Fund account at the time of application.
20.2 A Participant who wishes to exceed his Trading Cap Limit specified in Article (11) hereof, must file an application with the BSE's designated staff to that effect, and the BSE shall have the right to accept or reject such application, subject to the BSE's sole discretion.
20.3 In verifying the Participant's application, the BSE should accord special consideration to the factors prescribed in Article (11.3) hereof, and shall advise the Participant of the reasons for rejecting his application, if the BSE declines to accept such application.
20.4 Following the acceptance of his application, the Participant must deposit in the Liquidity Reserve account on T+1 no later than 09:30 hours, 30% of the value of the transaction. The remaining 70% shall be deposited in the Liquidity Reserve account on T+2 no later than 09:30 hours.
20.5 It shall be deemed that a Participant has failed to pay the 30% and the remaining 70% of the Liquidity Reserve amount by 09:30 hours on T+1 and T+2 respectively, if confirmation has not been received from the Settlement Bank that the Participant has submitted the appropriate payment to the Liquidity Reserve account in the time referred to in sub-Article (20.3) above.
20.6 The BSE may disable a particular Participant who has failed to pay the 30% of the Liquidity Reserve amount on T+1 no later than 09:30 hours from entering the Trading Floor, terminate its services of trading, clearing and settlement to him, and order the shares to be sold through another Participant on T+2.
20.7 In the event that a Participant fails to pay the remaining 70% of the Liquidity Reserve amount on T+2 no later than 09:30 hours, the BSE may disable the defaulting Participant from entering the Trading Floor, terminate its services of trading, clearing and settlement to him and order the shares to be sold through another Participant on T+3.
20.8 In executing the provisions of sub-Articles (20.6) and (20.7) hereof, the BSE shall apply the procedure prescribed in Article (14) hereof with respect to the selling of securities.
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