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Issue 11 - MARCH 2017


The Board of Directors of Bahrain

Bourse (BHB) held its second meet-

ing for the year 2017 on Wednes-

day, 22


February 2017 chaired

by Mr. Abdulkareem Ahmed Bu-

cheeri, Chairman of the Bourse.

The Board discussed the topics

on the agenda including the latest

developments at Bahrain Bourse,

where the strategic review of

BHB’s operational plan for 2016

was presented by the Chief Exec-

utive Officer of the Bourse, Shaikh

Khalifa bin Ebrahim Al-Khalifa.

The presentation outlined the

major achievements of Bahrain

Bourse during 2016 such as the

launch of the T-Bills market,

where 42 T-Bill issues with a total

value of BD2.82 billion were listed.

The REITs market was also creat-

ed with the listing of Eskan Bank

Units of the Eskan Bank Realty In-

come as the first REIT in BHB. In

addition, 4 sukuk issues were listed

with a total value of BD871 million.

In 2016, the Market Making

Guidelines were implemented,

resulting in the approval of the

first market maker in BHB with

another company to follow soon.

Moreover, BHB’s new website

was launched with an interactive

interface offering comprehen-

sive solutions to all BHB’s clients.

Bahrain Bourse also succeeded in

transferring the paper shares cer-

tificates of all listed companies to

the electronic records and depos-

iting them in the Bourse’s Central

Depository System leading to

the upgrade of Bahrain Bourse’s

CSD services rating by Thom-

as Murray from A-, CSD Flash

Impact: “Stable”, to CSD Rating:

AA-, Flash Impact: “Positive”.

The Board praised BHB’s

achievements in 2016 and ap-

preciated the efforts of its em-

ployees throughout the year.

Furthermore, the Board approved

the Listing Rules in order to en-

hance the role of BHB as a Self-Reg-

ulatory Organization (SRO) by

expanding its legislative and su-

pervisory authorities in aspects

related to listing, disclosure, and

investors’ protection as well as the

obligations of issuers of securities.

In addition, the Board issued

a resolution to establish Bah-

rain Clear Company with an is-

sued capital of BD5 million and

paid-up capital of BD1 million.

The Board also nominated the

Board Members and Executive

Management of the company.

Bahrain Clear will provide services

in the areas of settlement, deposi-

tory of securities, custodians, and

other services to companies, in-

vestors, and other related parties.

The Board was also briefed on

BHB’s strategic plan for 2016-

2020, and agreed to focus on key

actions that go in line with BHB’s

vision in the upcoming period.

During the meeting, the Board

approved BHB’s financial re-

sults for the year ended 31 De-

cember 2016 as well as the

recommendation to the share-

holder to re-appoint the Auditor.

The Board discussed the eval-

uation criteria of BHB and

BHB’s Corporate Governance

Report for the year 2016.

The Board discussed the reports

and recommendations of the

Board’s Committees and decid-

ed on the actions to be taken.

Shaikh Khalifa bin Ebrahim

Al-Khalifa, CEO of Bahrain Bourse

(BHB) issued on Thursday, Jan-

uary 26, 2017 Resolution No. (2)

for 2017 regarding the adoption of

Market Making Guidelines in Bah-

rain Bourse, that will commence

on Wednesday, March 1, 2017.

Sh. Khalifa Al Khalifa said that

the issuance of these Guidelines

has set a professional founda-

tion for Market Making in Bah-

rain Bourse as applied in in-

ternational financial markets.


Shaikh Khalifa expressed recom-

mendation to all parties involved

benefiting from these Guidelines

that will reflect positively on the

Bourse’s trading activity attract-

ing more investors to take ad-

vantage of such initiatives and

services offered by the Bourse.

He also assured that these guide-

lines come to complement the

legal framework stated in BHB’s

Market Rules that aims at in-

creasing Market Makers’ efficien-

cy and maintain market integrity

as well as investor protection.

The Guidelines include the opera-

tional and technical requirements

that market makers should comply

with to carry out their responsi-

bilities aimed at making bid and

offer quotation, ensuring continu-

ous liquidity on a specified security

or many securities in accordance

with the conditions and require-

ments stated in the Guidelines.

The Guidelines also include tech-

nical and price requirements

in the buy and sell orders an-

nounced by the market maker

during the main trading session.

The Guidelines also highlighted the

mandatory procedures to be fol-

lowed by a market maker to apply

to the exercise of market-making

in the bourse. Legal, administra-

tive, financial, technical and ac-

counting requirements that must

be met when submitting applica-

tions, as well as the need to meet

the Capital Adequacy requirements

are clarified in the Guidelines.