Key upgrades to securities trading frameworks will improve market integrity, fairness, transparency and better safeguard the interests of investors, it has emerged.

Central Bank of Bahrain (CBB) Governor Rasheed Al Maraj told the Arab Federation of Exchanges (AFE) Equities Summit 2015 yesterday (April 22) that the changes will be for clearing and settlement, central depository and central registry as well as market intermediary supervisory functions, said a report in the Gulf Daily News (GDN), our sister publication.

He said the CBB is looking to set up a disclosure and corporate governance-based monitoring framework for supervision of listed companies and other securities.

Al Maraj said the capital market regulator has encouraged the Bahrain Bourse (BHB) to adopt initiatives that will help to enhance market liquidity and depth and provide a diversified, fair and transparent environment for public investors.

“The bourse has been working closely with the regulator in introducing new products and services and co-ordinating with industry stakeholders in enhancing market infrastructure,” he added.

“In order for the capital market to remain effective and efficient, it should continue to build and enhance liquidity, depth and diversification in terms of investment instruments, listings and capital flow at the regional and international levels,”  Al Maraj said.

“Market operators must also look to attract good flow of foreign capital and issuers.”

According to him, efforts of the AFE and regional securities market regulators to further upgrade regulation in line with best international standards through co-operation would further enhance the growth of the regional capital markets.

“These initiatives will further lend breadth and depth to the capital markets and will lead to creating more opportunities for fund raising and widening the investors base in the region,” he said.

Hosted by the BHB in co-­operation with Thomson Reuters and the AFE, the annual gathering of regional securities markets leaders is being held at the Ritz-Carlton, Bahrain Hotel and Spa. - TradeArabia News Service