BHB approves Market Making Guidelines

Manama : Bahrain Bourse (BHB) has approved Market Making Guidelines, which will commence on March 1, 2017.

A resolution (No. (2)  for 2017) regarding the adoption was issued by Shaikh Khalifa bin Ebrahim Al Khalifa, CEO of BHB. 

Commenting, Shaikh Khalifa said, “The Guidelines has set a professional foundation for Market Making in Bahrain Bourse as applied in international financial markets.” 

The guidelines include the operational and technical requirements that market makers should comply for making bid and offer quotation, ensuring continuous liquidity on a specified security or many securities in accordance with the conditions and requirements stated in the Guidelines. 

It also include technical and price requirements in the buy and sell orders announced by the market maker during the main trading session. The Guidelines also highlighted the mandatory procedures to be followed by a market maker to apply to the exercise of market-making in the bourse. 

Legal, administrative, financial, technical and accounting requirements that must be met when submitting applications, as well as the need to meet the Capital Adequacy requirements are clarified in the Guidelines.