New market rules that allow margin trading and non-Bahraini brokers to trade will come into effect from today (September 1) at the Bahrain Bourse (BHB).

A key provision is that non-Bahraini brokers licensed by capital market regulatory institutions in their domiciles can trade at the BHB without having a representative office in Bahrain, provided an authorised clearing member is appointed to settle transactions, said a report in the Gulf Daily News (GDN), our sister publication.

In addition, the new rules will reduce the number of exceptional cases from 16 to four.

Moreover, the procedure of issuing licences to brokers has been organised according to new requirements that will help in developing the services brokers provide to investors at the bourse.

The rules will also allow the trading of new investment instruments such as options, exchange traded funds, real estate investment trust, and include other areas related to developing trading mechanisms.

Brokers were given a six-month transitional period to meet the requirements of the new rules. - TradeArabia News Service