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Location: Central Bank of Bahrain Volume 6—Capital Markets > Part A > Institutions > MAE — Markets and Exchanges > MAE-4 Instruments, Transactions and Contracts > MAE-4.4 Emergency Powers of the CBB > MAE-4.4.1
  • MAE-4.4 Emergency Powers of the CBB

    • MAE-4.4.1

      Where the CBB has reason to believe that an emergency exists, or thinks that it is necessary or expedient in the interests of the public or a section of the public or for the protection of investors, the CBB may direct by notice in writing a licensed exchangeG or licensed market operatorG to take such action as it considers necessary to maintain or restore orderly trading in securitiesG or futures contracts or any class of securitiesG or futures contracts.

    • MAE-4.4.2

      Without prejudice to MAE-4.4.1, these activities which the CBB may direct a licensed exchangeG or licensed market operatorG to take shall include:

      (a) Terminating or suspending trading on the licensed exchangeG or licensed market operatorG ;
      (b) Confining trading to liquidation of securitiesG or futures contracts positionsG ;
      (c) Ordering the liquidation of all positionsG or any part thereof or the reduction in such positionsG ;
      (d) Limiting trading to a specific price range;
      (e) Modifying trading days or hours;
      (f) Altering conditions of delivery;
      (g) Fixing the settlement price at which positionsG are to be liquidated;
      (h) Requiring any personG to act in a specified manner in relation to trading in securitiesG or futures contracts or any class of securitiesG or futures contracts;
      (i) Requiring margins or additional margins for any securitiesG or futures contracts; and
      (j) Modifying or suspending any of the business rulesG of the licensed exchangeG or licensed market operatorG .

    • MAE-4.4.3

      Where the licensed exchangeG or licensed market operatorG fails to comply with any direction of the CBB under Paragraph MAE-4.4.1 within such time as is specified by the CBB, the CBB may:

      (a) Set margin levels in any securitiesG or futures contract or class of securitiesG or futures contracts to cater for the emergency;
      (b) Set limits that may apply to market positionsG acquired in good faith prior to the date of the notice issued by the CBB; or
      (c) Take such action as the CBB may deem fit to maintain or restore orderly trading in any securitiesG or futures contracts or class of securitiesG or futures contracts, or liquidation of any positionG in respect of any securitiesG or futures contract or class of securitiesG or futures contracts.
      Amended: April 2016

    • MAE-4.4.4

      In this section "emergency" means any threatened or actual marketG manipulation or cornering, and includes:

      (a) Any act of any government affecting a commodity or securitiesG ;
      (b) Any major marketG disturbance which prevents the marketG from accurately reflecting the forces of supply and demand for such commodity or securitiesG ; or
      (c) Any undesirable situation or practice which in the opinion of the CBB, constitutes an emergency.

    • MAE-4.4.5

      The CBB may modify any action taken by a licensed exchangeG under Paragraph MAE-4.4.1, including the setting aside of that action.

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