History
Bahrain is one of the most important commercial
and banking centers at the regional and international level and that because of
its strategic geographical location, along pursued the policy of open market
economic policies and actors.
Bahrain dates back to the stock market in 1957
when it was the National Bank of Bahrain conversion into a public corporation
to be the nucleus of a Bahraini company stock. It was accompanied by the
emergence of some other institutions, such as Company Jewel Securities, which lasted
an informal basis until 1987. Bahrain Stock Exchange was founded in 1987 by
Legislative Decree No. (4) Ministerial Resolution No. (13) issued in 1988, it
has two decrees developments in the form of frames 17 Ueno 1989. Since its
inception it has afflux of foreign investors from more than forty countries
make up between 18% to 25% of the total shares traded during the period from
1991-1995m. The market has worked since its inception to take several steps to
expand and consolidate the financial market in the ordinary shares trade,
bonds, mutual funds and instruments of Islamic finance and derivatives and the
regional and global levels.
It should be noted that Bahrain Bourse had been
concluded on December 25, 1996 with the inclusion of a mutual stock exchange in
each of the Sultanate of Oman, Kuwait agreement. The agreement is the first of
its kind in the direction of establishment of a unified Gulf financial market.
Market's
board of management
The market runs the board of directors headed
by the Minister of Commerce, and includes eight members representing the
following agencies:
- A member representing the Ministry of
Commerce and the Vice-President.
- A member representing the Ministry of Finance
and National Economy.
- A member representing the Bahrain Monetary
Agency.
- Three members selected by the Chamber of
Commerce and Industry of Bahrain with experience and competence.
- Two members of the national banks and the
offices of accountants, auditors chosen by the President of the Council.
And issued by His Highness the Prime Minister a
decree appointing the members of the management of the market on the nomination
of the Minister of Trade and the duration of the Council for three years.
Traded bonds
Home tools and methods that can be traded and
trafficking in Bahrain Bourse include common stock and common stock and bond
guarantee, debt instruments in addition to the common currency guarantees and
investment funds.
Trading
System
Stock market system requires the presence of
brokers who have the buying and selling orders in place for them in the role of
trading shares, and completed the deal in conjunction supply and demand.
Transactions are made in a single session begins at ten in the morning until
twelve noon Sunday to Thursday.
The types of
transactions
There are in the market three types of deals to
be determined based on the value of these deals, as follows:
1.
fractures deals which transactions of less than market value for 1500 BD or the
equivalent in other clients.
2. key deals which deals market value of not
less than 1,500 Bahraini dinars or its equivalent in other currencies.
3. commands deals which transactions that
increase the market value of 30,000 (thirty thousand BD) or the equivalent in
other currencies and all the stock it owned only one person.
Settlements
and clearing system
Clearing and Settlement System depends on the
need for both the seller and the auctioneer buyer to hand over stock
certificates topic of the deal as well as the amounts owed to them
simultaneously within two business days of completion of the transaction.