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Location: Central Bank of Bahrain Volume 6—Capital Markets > Part A > Institutions > MAE — Markets and Exchanges > MAE-2 Obligation of Licensed Exchanges, Market Operators and Crowdfunding Platform Operators > MAE-2.1 General Obligations > Notification Requirements > MAE-2.1.7
  • Notification Requirements

    • MAE-2.1.2

      A licensed exchangeG or licensed market operatorG shall, as soon as practicable after the occurrence of any of the following circumstances, notify the CBB of the circumstance:

      (a) Any material change to the information provided by the licensed exchangeG or licensed market operatorG in its application under MAE-1.2;
      (b) The carrying on of any business by the licensed exchangeG or licensed market operatorG other than:
      (i) The business of operating a marketG ;
      (ii) A business incidental to operating a marketG ; or
      (iii) Such business or class of businesses as the CBB may prescribe;
      (c) The acquisition by the licensed exchangeG or licensed market operatorG of a substantial shareholding in a corporation which does not carry on:
      (i) The business of operating a marketG ;
      (ii) A business incidental to operating a marketG ; or
      (iii) Such business or class of businesses as the CBB may prescribe;
      (d) The licensed exchangeG or licensed market operatorG becoming aware of a financial irregularity or other matter which in its opinion:
      (i) May affect its ability to discharge its financial obligations; or
      (ii) May affect the ability of a memberG of the licensed exchangeG or licensed market operatorG to meet its financial obligations to the licensed exchangeG or licensed market operatorG ;
      (e) The licensed exchangeG or licensed market operatorG reprimanding, fining, suspending, expelling or otherwise taking disciplinary action against a memberG of the licensed exchangeG or licensed market operatorG ;
      (f) The licensed exchange or licensed market operator reprimands, suspends, dismisses or otherwise takes disciplinary action against any of its directors, or key management officers or if any director or key management officer is subject to an order or petition of bankruptcy or criminal prosecution;
      (g) Any civil or criminal legal proceeding instituted against the licensed exchangeG or licensed market operatorG , whether in Bahrain or elsewhere;
      (h) Any disciplinary action taken against the licensed exchangeG or licensed market operatorG by any regulatory body, whether in Bahrain or elsewhere, other than the CBB;
      (i) Any significant change to the regulatory requirements imposed on the licensed exchangeG or licensed market operatorG by any regulatory body, whether in Bahrain or elsewhere, other than the CBB;
      (j) A failure by the licensed exchangeG or licensed market operatorG to adhere to the trading days, hours or sessions of the licensed exchangeG or licensed market operatorG ;
      (k) Any disruption of, delay in, suspension of, or termination in any trading procedure or trading practice of the licensed exchangeG or licensed market operatorG including those resulting from any system failure;
      (l) Any other matter that the CBB may specify by notice in writing to the licensed exchangeG or licensed market operatorG .
      Amended: April 2013

    • MAE-2.1.3

      The CBB may, at any time after receiving a notification referred to in Paragraph MAE-2.1.2 and after providing the licensed exchangeG and licensed market operatorG an opportunity to be heard, issue directions to the licensed exchangeG or licensed market operatorG :

      (a) Where the notification relates to a matter referred to in Subparagraph MAE-2.1.1 (b):
      (i) To cease carrying on the first-mentioned business referred to in Subparagraph MAE-2.1.1 (b); or
      (ii) To carry on the first-mentioned business referred to in Subparagraph MAE-2.1.1 (b) subject to such conditions or restrictions as the CBB may impose; or
      (b) Where the notification relates to a matter referred to in Subparagraph MAE-2.1.1 (c):
      (i) To dispose of the shareholding referred to in Subparagraph MAE-2.1.1 (c); or
      (ii) To exercise its rights relating to such shareholding subject to such conditions or restrictions as the CBB may impose, and the licensed exchangeG or licensed market operatorG shall comply with such directions.
      Amended: April 2016
      Amended: April 2013

    • MAE-2.1.4

      Where a circumstance referred to in MAE-2.1.2 has occurred, the licensed exchangeG or licensed market operatorG shall, in addition to the notification required under Paragraph MAE-2.1.2, within 14 days of the occurrence of the circumstance or such longer period as the CBB may permit, submit a report to the CBB of the circumstances relating to the occurrence, the remedial actions taken at the time of the occurrence, and the subsequent follow-up actions that the licensed exchangeG or licensed market operatorG has taken or intends to take.

      Amended: April 2016

    • MAE-2.1.5

      An exchange may levy on its membersG , participantsG and usersG such fees as it may deem necessary in the form of:

      (a) Membership fees; and/or
      (b) Listing fees
      Amended: April 2013

    • MAE-2.1.6

      The fees shall be paid quarterly, semi-annually or annually at the discretion of the exchange.

    • MAE-2.1.7

      A licensed exchangeG or licensed market operatorG shall, within a reasonable period of time prior to entering into negotiations to establish a trading linkage, clearing arrangement or cooperative arrangement with the personG establishing or operating an overseas marketG or clearing facility, notify the CBB of such intent to enter into negotiations.

    • MAE-2.1.8

      In Paragraph MAE-2.1.7, "cooperative arrangement" shall not include:

      (a) Any joint development of products and services;
      (b) Any joint marketing efforts between the licensed exchangeG and the personG operating an overseas marketG or clearing facility in promoting the services of either entity; or
      (c) Any memoranda of understanding for the exchange of information.

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