CBB Volume 6: Contents
MAE-1.2 Application for License
A personG may apply to the CBB to be:(a) Licensed as a licensed exchangeG ;(b) Licensed as a licensed market operatorG ; or
Unless otherwise approved by the CBB, the exchange shall be established as a joint stock company subject to the Commercial Company Law 2001.
Where the entity is not a joint stock company, the CBB may impose other structural and disclosure requirements.
An application for approval as a licensed exchangeG or licensed market operatorG under Article 39 of the CBB Law shall be made in Form 1 (Application for Approval as a licensed exchangeG or licensed market operatorG ) and shall be lodged with the CBB together with:(a) Form 2 (Information on Shareholders and Subsidiaries) and Form 3 (Application for Approved Person Status);(b) Any relevant annex and information specified in those forms;(c) A non-refundable prescribed application fee of BD100;(d) A business plan setting forth the internal controlling procedures of the enterprise;(e) A business plan containing a budgeted accounting plan for the first three business years;(f) Memorandum and Articles of Association of the corporation, copies of the by-laws, its constitution and powers of management and the manner in which its business is proposed to be transacted;(g) Policies and procedures for all the exchange and marketG operations;(h) The proposed organisation structure and the powers and duties of the officials of the exchange or marketG operator;(i) The criteria for admission into the licensed exchangeG or the operator of various classes of membersG , the qualifications for membership, and the exclusion, suspension, expulsion and readmission of membersG therefrom or thereto;(j) A description of the proposed trading and settlement system;(k) Arrangements for risk management, compliance and internal controls;(l) Where activities would be outsourced, copies of contracts and arrangements for oversight of their activities; and(m) Business rulesG covering membership including capital requirements, instruments to be admitted to trading and listing, trading and execution rules, conflicts of interest requirements, professional standards, clearing and depository rulesG , data transmission, marketG conduct including avoidance of marketG abuse, compliance arrangements, and such other rules as may be required by the CBB.Amended: April 2013
The applications must include evidence that:(a) Any trading conducted will operate in an orderly, transparent and fair manner;(c) The licensed exchangeG or licensed market operatorG has taken adequate measure to prudently manage any risks associated with its business and operations;(d) The licensed exchangeG or licensed market operatorG , in discharging its obligations, will not act contrary to the interests of the public, the investing public, or to the requirements of the CBB;(e) The licensed exchangeG or licensed market operatorG will enforce compliance by its membersG with its business rulesG and listing rulesG ;(f) The business rulesG and listing rulesG of the licensed exchangeG or licensed market operatorG make satisfactory provisions for: an orderly, transparent and fair marketG trading through its facilities; and the proper rules and supervision of its membersG ; and
The CBB may, within 30 days from the date of submission, require an applicant to furnish it with amendments or such additional information or documents as the CBB considers necessary in relation to the application.
The CBB may refuse to accept any application if:(a) It is not completed in accordance with this Module; or(b) It is not accompanied by the relevant fee.
Where strict compliance with any form is not possible, the CBB may in its sole discretion, and upon request from the applicant to this effect, allow for the necessary modifications to be made to that form, or for the requirements of that form to be complied with in such other manner as the CBB deems fit.Amended: April 2016
The applicant may, at any time before a decision has been made about the application, withdraw his application or make amendments to any errors therein or in the supporting documents.