Regulatory Alerts2018-02-20
Proposed Short Selling and Giving Securities on Loan Regulation
The Central Bank of Bahrain has issued a consultation letter proposing new regulations for short selling and securities lending to enhance capital market efficiency, price discovery, and liquidity. The draft framework standardizes operational procedures for executing short sales and lending transactions, thereby facilitating diverse market activities while mitigating associated risks. All CBB licensees, listed companies, and regulatory bodies must submit their written feedback electronically to the Capital Markets Supervision Directorate by 20 February 2018.
المركز المالي للرقابة والتنظيم
Executive Director - Banking Supervision
EDBS/KH/C/3/2018
21st January 2018
مصرف البحرين المركزي
Central Bank of Bahrain
The CEO/General Manager
All CBB Licensees
All Listed Companies
Self- Regulatory Organizations (SROs)
SRO Members
All Legal Firms
All Audit Firms
Manama - Kingdom of Bahrain
Dear Sir,
**Re: Consultation on the proposed Short Selling and Giving Securities on Loan Regulation**
As part of the Central Bank of Bahrain’s (“CBB”) effort to develop the financial sector in the Kingdom of Bahrain, I enclose for your comments the draft of the proposed short selling and giving securities on loan regulation.
The objective of the proposed regulation is to improve efficiency of the capital market and facilitate a variety of transactions in the market which shall result in better price discovery and enhanced liquidity.
The proposed regulation will be available following the issuance of this letter on the CBB website (www.cbb.gov.bh) under the Regulatory Functions/Consultations Section.
You are kindly requested to review the proposed regulation, and to provide the CBB with your comments electronically, including ‘nil comment’, to the Director – Capital Markets Supervision Directorate, Mrs. Abeer Al Saad via email at **AAlsaad@cbb.gov.bh** and CBB Consultation Team at **consultation@cbb.gov.bh** by 20th February 2018.
Yours faithfully,
Khalid Hamad
ص.ب: ٢٧، المنامة - مملكة البحرين
هاتف: (+973) 1705674٠٠ - فاكس: (+973) 1705740٥
P.O. Box : 27, Manama - Kingdom of Bahrain
Tel: (+973) 17547400 - Fax: (+973) 17532605
website: www.cbb.gov.bh
E-mail: khalid.hamad@cbb.gov.bh
Share