Tuesday July 30 2024
News Source: Global Exchanges
Focus: Stock Exchange Regulation
Type: General
Country: Bahrain
On 28th July 2024, Bahrain Bourse (BHB) announced that to develop the capital market in the Kingdom of Bahrain and enhance market liquidity and following the approval of the Central Bank of Bahrain (CBB), Bahrain Bourse adopted a new set of Market Making regulation by introducing new Market Making Guidelines and simultaneously repurposing its existing Market Making regulation to exclusively regulate Liquidity Provision. The guidelines aim to regulate market making and liquidity provision in line with international best practices and standards, as well as distinguish between the role of Market Makers and Liquidity Providers. Accordingly, under the new regulatory framework, the current members under Market Makers will be shifted to ‘Liquidity Providers’.
The guidelines took effect on 28th July 2024, aiming for a timely implementation of the new regulations and smooth transition of current Market Makers to Liquidity Providers.
According to the new guidelines, there are two distinct types of membership aimed to enhance liquidity, Liquidity Providers and Market Makers.
Market Makers and Liquidity Providers require to be licensed by the Central Bank of Bahrain and authorized by Bahrain Bourse to undertake market making and liquidity provision activities and meet the eligibility and registration requirements stipulated in the guidelines.
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