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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Conduct of Business Module (COB) [VER33/07-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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  • COB 9.2 Main requirements relating to trading on the facility

    • COB 9.2.1

      (1) An ATS OperatorG must, at the time a LicenceG is granted and at all times thereafter, have:

      (a) transparent and non-discriminatory rules and procedures to ensure fair and orderly trading of Investments on its facility (“Operating RulesG ”);
      (b) objective criteria governing access to its facility (“Access CriteriaG ”);
      (c) objective and transparent criteria for determining the InvestmentsG that can be traded on its facility (“Investment CriteriaG ”);
      (d) adequate technology resources (“Technology ResourcesG ”); and
      (e) rules and procedures to ensure only InvestmentsG in which there is a Proper MarketG are traded on its facilities (“Proper MarketsG ”).

      (2) A breach of the Operating RulesG of an ATS OperatorG is a prescribed matter for the purposes of Article 67(1)(b) of the Regulatory Law 2004.

      [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]

      • COB 9.2.1 Guidance

        Pursuant to Article 67(1) of the Regulatory Law 2004, an Authorised FirmG is required to disclose to the DFSAG anything which reasonably tends to show breaches or likely breaches of requirements as prescribed in RulesG . Rule 9.2.1(2) prescribes a breach of Operating Rules as a the matter which is reportable to the DFSAG by an ATS OperatorG .

        [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]

    • Operating Rules

      • COB 9.2.2

        (1) The Operating RulesG of an ATS OperatorG must be:

        (a) based on objective criteria;
        (b) non-discriminatory;
        (c) clear and fair;
        (d) legally binding and enforceable against each member and where relevant, any other PersonG who has been allowed access to the facility through the member; and
        (e) in the case of a PersonG operating an MTFG , non-discretionary and made publicly available.

        (2) The Operating RulesG of an ATS OperatorG must place obligations upon PersonsG who are admitted to trading on its facility (“members”):

        (i) when undertaking transactions on its facilities; and
        (iii) relating to professional standards applicable to staff and other PersonsG allowed access to the facility through such a member.

        (3) Without limiting the generality of (1) and (2), the Operating RulesG of an ATS OperatorG must contain:

        (a) criteria for admission of members to its facility, in accordance with Rule 9.3.1;
        (b) criteria relating to InvestmentsG traded on its facility, in accordance with Rule 9.4.1;
        (c) the rules and procedures governing trading on the facility;
        (d) default rules;
        (e) the rules and procedures for the clearing and settlement of transactions executed on the facility; and
        (f) any other matters necessary for the proper functioning of its facility.
        [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]

    • Material changes to Current Arrangements

      • COB 9.2.3

        (1) An ATS OperatorG may only make material changes to its existing arrangements to meet the requirements in this chapter in accordance with the requirements in this RuleG .

        (2) The reference to "Existing ArrangementsG " in (1) is a reference to both the arrangements which were in place at the time of the initial grant of the LicenceG and any changes made to such arrangements in accordance with the requirements in this RuleG .

        (3) For the purposes of obtaining the DFSAG approval, an ATS OperatorG must provide to the DFSAG , at least 30 days before the proposed change is intended to come into effect, a notice setting out:

        (a) the proposed change;
        (b) the reasons for the proposed change; and
        (c) what impact the proposed change would have on its members and its ability to operate the facility.

        (4) The DFSAG must, upon receipt of a notice referred to in (1), approve or disapprove the proposed change as soon as practicable and in any event within 30 days of the receipt of the notice, unless that period has been extended by notification to the applicant.

        (5) The DFSAG may, in circumstances where a material change to Current ArrangementsG is shown on reasonable grounds to be urgently needed, accept an application for approval of such a change on shorter notice than 30 days.

        (6) The procedures in Schedule 3 to the Regulatory Law apply to a decision of the DFSAG to reject a proposed change under this Rule.

        (7) Where the DFSAG decides to reject a proposed change, the ATS OperatorG may refer the matter to the FMTG for review.

        [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]
        [Amended] DFSA RM175/2016 (Made 10th February 2016). [VER26/04-16]

        • COB 9.2.3 Guidance

          1. The period of 30 days runs from the time the DFSAG has received all the relevant information to assess the application.

          2. An ATS OperatorG should consider submitting its application for the DFSAG approval well in advance of the date on which a proposed amendment is intended to come into effect, especially in the case of significant material changes to its existing arrangements, to allow the DFSAG sufficient time to consider the application. If additional time is reasonably required to properly assess the impact of a proposed change due to its nature, scale and complexity, the DFSAG may make an appropriate extension of time beyond 30 days. Such an extension would be made in consultation with the applicant.

          [Added] DFSA RM123/2013 (Made 13th June 2013) [VER22/07-13]
          [Amended] DFSA RM175/2016 (Made 10th February 2016). [VER26/04-16]