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  • Part 2 Application and Authorisation

    • AMI 2 Application for a Licence or Endorsement

      • AMI 2.1 Application

        • AMI 2.1.1

          (1) This chapter applies to a PersonG who intends to carry on either or both of the Financial ServicesG of Operating an ExchangeG or Operating a Clearing HouseG in or from the DIFCG .
          (2) This chapter also applies to a PersonG referred to in (1), who intends to obtain an endorsement on its LicenceG to:
          (a) carry on the Financial ServiceG of Operating an Alternative Trading SystemG to the extent that such activities constitute operating a Multilateral Trading FacilityG ; or
          (b) act as a Trade RepositoryG .
          (3) A PersonG who intends to carry on the Financial ServicesG and activities referred to in (1) and (2) is referred to in this chapter as an "applicant" unless the context otherwise provides.
          (4) This chapter also applies to an Authorised Market InstitutionG applying to change the scope of its LicenceG , or where a condition or restriction has previously been imposed on its LicenceG , to have such a condition or restriction varied or withdrawn. Such an Authorised Market InstitutionG may be referred to as an "applicant" in this chapter.
          Derived from RM118/2013 [VER15/07-13]

          • AMI 2.1.1 Guidance

            1. The activity of operating a Multilateral Trading FacilityG ("MTF") is an activity that falls within the definition of the Financial ServiceG of Operating an Alternative Trading SystemG (see GEN Rule 2.22.1). A PersonG needs to be LicensedG as an Authorised FirmG to carry on that Financial ServiceG . However, pursuant to GEN Rule 2.2.12, a holder of a LicenceG to Operate an ExchangeG may also operate an MTFG if it has obtained an endorsement on its LicenceG permitting it to do so.
            2. Acting as a Trade RepositoryG is not a Financial ServiceG , and may be carried on by an Authorised FirmG or Authorised Market InstitutionG with an endorsement on its LicenceG permitting it to do so (see GEN Rule 2.2.13).
            3. A new applicant for a LicenceG or an existing holder of a LicenceG may apply to have an endorsement on its LicenceG to operate a Multilateral Trading FacilityG or to maintain a Trade RepositoryG .
            Derived from RM118/2013 [VER15/07-13]

      • AMI 2.2 Application for a Licence

        • AMI 2.2.1

          An applicant who intends to carry on either or both of the Financial ServicesG of Operating an ExchangeG or Operating a Clearing HouseG must apply to the DFSAG for a LicenceG in accordance with the Rules in this section and chapter 3.

          Derived from RM118/2013 [VER15/07-13]

        • AMI 2.2.2

          The DFSAG will only consider an application for a LicenceG to Operate an ExchangeG or Operate a Clearing HouseG from a PersonG :

          (a) who is a Body CorporateG ; and
          (b) who is not an Authorised FirmG or an applicant to be an Authorised FirmG .
          Derived from RM118/2013 [VER15/07-13]

        • AMI 2.2.3

          A PersonG applying for a LicenceG must submit a written application to the DFSAG :

          (a) demonstrating how the applicant intends to satisfy the Licensing RequirementsG specified in Part 3 and any other applicable requirements; and
          (b) with copies of any relevant agreements or other information in relation to the application.
          Derived from RM118/2013' [VER15/07-13]

      • AMI 2.3 Application for an Endorsement

        • AMI 2.3.1

          The following requirements must be met by an applicant for the grant of an endorsement to operate a Multilateral Trading FacilityG :

          (a) it must hold a LicenceG with an authorisation to OperateG an ExchangeG ; and
          (b) it must be able to demonstrate that it can satisfy the requirement in Rule 4.2.1(3).
          Derived from RM118/2013 [VER15/07-13]
          [Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

          • AMI 2.3.1 Guidance

            1. Under GEN Rule 2.2.11(c) and GEN Rule 2.2.12, an Authorised Market InstitutionG Licensed to Operate an ExchangeG may obtain an endorsement to carry on the activity of operating a Multilateral Trading FacilityG .
            2. An ExchangeG with an endorsement to operate an MTFG needs to meet, on an on-going basis, the applicable Licensing RequirementsG under Rule 4.2.1(3). Accordingly, when an ExchangeG wishes to obtain such an endorsement, it needs to be able to demonstrate to the DFSAG that it can meet each of the Licensing Requirements with respect to the proposed MTFG . For example, it should demonstrate how the IT systems and human resources available to it would be utilised for the purposes of operating the MTFG .
            [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 2.3.2

          The requirements in App 5 to GEN must be met by an Authorised Market InstitutionG for the grant of an endorsement to act as a Trade RepositoryG .

          Derived from RM118/2013 [VER15/07-13]
          [Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

          • AMI 2.3.2 Guidance [Deleted]

            [Deleted] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 2.3.3 [Deleted]

          [Deleted] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 2.3.4 [Deleted]

          [Deleted] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

      • AMI 2.4 Application for a Change of Scope of a Licence

        • AMI 2.4.1

          An Authorised Market InstitutionG applying to change the scope of its LicenceG , or to have a condition or restriction varied or withdrawn, must provide the DFSAG with written details of the proposed changes including an assessment of how it intends to satisfy the Licensing RequirementsG in relation to the new LicenceG scope.

          Derived from RM118/2013 [VER15/07-13]

          • AMI 2.4.1 Guidance

            1. Where an Authorised Market InstitutionG applies to change the scope of its LicenceG , it should provide at least the following information:
            a. particulars of the new activities requiring a variation to the scope of LicenceG , and the date of the proposed commencement of such activities;
            b. a revised business plan as appropriate, describing the basis of, and rationale for, the proposed change;
            c. details of the extent to which existing documentation, procedures, systems and controls will be amended to take into account any additional activities, and how the Authorised Market InstitutionG will be able to comply with any additional regulatory requirements including the applicable Licensing RequirementsG ; and
            d. if the Authorised Market InstitutionG is reducing its activities and it has existing MembersG who may be affected by the cessation of a Financial ServiceG , details of any transitional arrangements.
            2. If an application for a change of scope of LicenceG involves carrying on a new Financial ServiceG , the application will be assessed against all the requirements applicable to the relevant Financial ServiceG .
            Derived from RM118/2013 [VER15/07-13]

    • AMI 3 Authorisation

      • AMI 3.1 Application

        • AMI 3.1.1

          This chapter applies to every PersonG who is an applicant for:

          (a) a LicenceG to be an Authorised Market InstitutionG ;
          (b) an endorsement to:
          (i) maintain an Official List of SecuritiesG ;
          (ii) operate a Multilateral Trading FacilityG ; or
          (iii) act as a Trade RepositoryG ; or
          (c) Key IndividualG status.
          Derived from RM118/2013 [VER15/07-13]

          • AMI 3.1.1 Guidance

            1. This chapter outlines the DFSA'sG authorisation requirements for an Authorised Market InstitutionG and its Key IndividualsG , as well as the process for an Authorised Market InstitutionG to obtain an endorsement on its LicenceG to maintain an Official List of SecuritiesG , operate a Multilateral Trading FacilityG or act as a Trade RepositoryG .
            2. This chapter should be read in conjunction with the RPP SourcebookG , which sets out the DFSA'sG general regulatory policy and processes. See chapter 2 of the RPP sourcebookG .
            Derived from RM118/2013 [VER15/07-13]

      • AMI 3.2 Assessment

        • AMI 3.2.1

          (1) In order to become authorised to carry on one or both of the Financial ServicesG of Operating an ExchangeG or Operating a Clearing HouseG , the applicant must demonstrate to the satisfaction of the DFSAG that it can meet the relevant Licensing RequirementsG specified in chapters 5, 6 and 7, as appropriate to the Financial ServicesG it proposes to carry on, both at the point of the grant of the LicenceG and thereafter on an on-going basis.
          (2) In order to obtain an endorsement on its LicenceG to:
          (a) maintain an Official List of SecuritiesG ;
          (b) operate a Multilateral Trading FacilityG ; or
          (c) act as a Trade RepositoryG ,
          the applicant must demonstrate to the satisfaction of the DFSAG that it can meet the requirements applicable to PersonsG undertaking the relevant activities, both at the point of the grant of the endorsement and thereafter on an on-going basis.
          Derived from RM118/2013 [VER15/07-13]

          • AMI 3.2.1 Guidance

            1. The Licensing RequirementsG are specified in chapters 5, 6 and 7 of Part 3 of this module. These include the general requirements applicable to all Authorised Market InstitutionsG (chapter 5), and the additional requirements applicable to specific types of activities of Authorised Market InstitutionsG (chapters 6 and 7).
            2. Where an Authorised Market InstitutionG (or an applicant for a LicenceG ) seeks to obtain an endorsement on its LicenceG , additional requirements relevant to the type of endorsement need to be satisfied (see, for example, App 5 of GEN for the requirements relating to Trade RepositoriesG ).
            3. Currently, the function of maintaining an Official List of SecuritiesG is performed by the DFSAG . However, the DFSAG has the power, pursuant to Article 29 of the Markets LawG , to grant an Authorised Market InstitutionG an endorsement on its LicenceG permitting it to maintain an Official List of SecuritiesG .
            4. Section 3.6 of the RPP SourcebookG sets out the matters which the DFSAG takes into consideration when making an assessment under Rule 3.2.1.
            Derived from RM118/2013 [VER15/07-13]

        • Inquiries and Information

          • AMI 3.2.2

            In assessing an application for a LicenceG or an endorsement on a LicenceG , the DFSAG may:

            (a) make any enquiries which it considers appropriate, including enquiries independent of the applicant;
            (b) require the applicant to provide additional information;
            (c) require the applicant to have information on how it intends to ensure compliance with a particular requirement;
            (d) require any information provided by the applicant to be verified in any way that the DFSAG specifies; and
            (e) take into account any information which it considers relevant.
            Derived from RM118/2013 [VER15/07-13]

          • AMI 3.2.3

            (1) In assessing an application for a LicenceG , the DFSAG may, by means of written notice, indicate the legal form that the applicant may adopt to enable authorisation to be granted.
            (2) Where the DFSAG thinks it appropriate, it may treat an application made by one legal form or PersonG as having been made by the new legal form or PersonG .
            Derived from RM118/2013 [VER15/07-13]

      • AMI 3.3 Obtaining Key Individual Status

        • AMI 3.3 Guidance

          Under Article 43 of the Regulatory LawG , every Authorised Market InstitutionG must have Key IndividualsG appointed to perform Licensed FunctionsG . Key IndividualsG appointed by an Authorised Market InstitutionG to perform Licensed FunctionsG must be approved by the DFSAG before they are permitted to carry on such functions. This section sets out the matters that will be considered by the DFSAG in approving such Key Individuals. The list of Licensed FunctionG s for an Authorised Market InstitutionG is in section 5.3 of this module.

          Derived from RM118/2013 [VER15/07-13]
          [Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • AMI 3.3.1

          (1) In regard to an application for approval for an individual to be granted Key IndividualG status, both the Authorised Market InstitutionG and the individual must complete the appropriate form in AFNG .
          (2) An Authorised Market InstitutionG must be satisfied that the individual with respect to whom an application is submitted:
          (a) is competent in his proposed role;
          (b) has kept abreast of relevant market, product, technology, legislative and regulatory developments; and
          (c) is able to apply his knowledge.
          Derived from RM118/2013 [VER15/07-13]

          • AMI 3.3.1 Guidance

            See paragraph 2.2.16(j) and section 2-3 of the RPP sourcebook for the details of the assessment which an Authorised Market InstitutionG is expected to undertake.

            Derived from RM118/2013 [VER15/07-13]

        • AMI 3.3.2 [Deleted]

          [Deleted] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

          • AMI 3.3.2 Guidance [Deleted]

            [Deleted] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

        • Requirements for Key Individuals

          • AMI 3.3.2

            (1) To be authorised as a Key IndividualG an individual must demonstrate that he is fit and proper to perform the Licensed FunctionG .
            (2) In assessing whether an individual is fit and proper to perform a Licensed FunctionG under (1) the DFSAG will consider:
            (a) the individual's integrity;
            (b) the individual's competence and capability;
            (c) the individual's financial soundness;
            (d) the individual's proposed role within the Authorised Market InstitutionG ; and
            (e) any other relevant matters.
            [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

          • AMI 3.3.3

            Without limiting Rule 3.3.2, an individual shall not be considered fit and proper for the the purposes of that Rule if he:

            (a) is bankrupt;
            (b) has been convicted of a serious criminal offence; or
            (c) is incapable, through mental or physical incapacity, of managing his affairs.
            [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

          • AMI 3.3.4

            In assessing whether an individual is fit and proper to be granted Key IndividualG Status to carry out a Licensed FunctionG , the DFSAG may:

            (a) make any enquiries which it considers appropriate, including enquiries independent of the applicant;
            (b) require the Authorised Market InstitutionG or the individual to provide additional information;
            (c) require any information provided by the Authorised Market InstitutionG or the individual to be verified in any way specified by the DFSAG ; and
            (d) take into account any information which it considers appropriate.
            [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]

            • AMI 3.3.4 Guidance

              Section 2.3 of the RPP Sourcebook sets out the matters which the DFSAG takes into consideration when making an assessment referred to in this section.

              [Added] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]