Operational Rules BookletEmpowering The UAE’s Economy

Article 1 — Words and expressions set out in this chapter shall have the meanings set out ¶

against each of them, unless the context indicates otherwise, words and expressions
not defined in these Rules shall have the meaning scribed to them in the law and
decisions of the Authority or the regulations, decisions and instructions issued by the
Market, as the case may be:
State : United Arab Emirates.
Government : The government of the United Arab Emirates, or any of the local
governments of the member emirates, and any of the govern-
ment departments and institutions thereof.
Authority : Securities and Commodities Authority.
Market : Abu Dhabi Securities Exchange.
Free Zone : The free zone established in any emirates of the State pursuant
to local laws or the financial free zone established pursuant to a
federal law.
Chief Executive
Officer
: the Chief Executive Officer of the Market.
Competent Au-
thority
: The local authority responsible for corporate affairs in the con-
cerned Emirate.
Company : the local, foreign, or free zone company listed in the Market.
Local Company : the public joint stock company or private joint stock company
incorporated in the State.
Foreign Com-
pany
: the company incorporated outside the State.
Free Zone Com-
pany
: The companies incorporated in the free zone in accordance with
the provisions of the legislations applicable to the free zone and
takes the form of a public joint stock company, a private joint
stock company, or the like.
CHAPTER 1
LISTING AND DISCLOSURE REGULATIONS

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Operational Rules Booklet
Special Purpose
Acquisition Ve-
hicle
: A company classified by the Authority as Special Purpose Acquisi-
tion Vehicle.
First Market : The market designated for listing the shares of public joint stock
companies and private joint stock companies, and it is divided
into first and second category, according to special listing condi-
tions for each category.
Second Market
(Growth Mar-
ket)
: The market designated for listing of the shares of private joint
stock companies.
Words and expressions set out in this chapter shall have the meanings set out
against each of them, unless the context indicates otherwise, words and expressions
not defined in these Rules shall have the meaning scribed to them in the law and
decisions of the Authority or the regulations, decisions and instructions issued by the
Market, as the case may be:
Foreign Market : the market licensed outside the state or in a Financial Free Zone
with the State by a regulator like the Authority.
Securities : Shares, bonds and notes issued by joint stock companies, bonds
and notes issued by the Federal Government or Local Govern-
ments, public authorities and public institutions in the State,
and any other domestic or non-domestic financial instruments
accepted by the Authority.
Free Float : the company’s subscribed shares less the following:
1. Shares owned by the government, foreign govern-
ments and the companies they own (100%).
2. Shares owned by the members of the Board of Direc-
tors and their relatives.
3. Shares owned by the parent, subsidiary or sister com-
pany
4. Shares owned by shareholders holding (5%) or more of
the company’s shares.
5. Shares owned by the company itself (treasury shares).
6. Shares not electronically deposited with Clearing.
7. Founders’ shares during blackout period.
8. Pledged and attached shares.

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Investment Fund : A financial pool engaged in the activity of accumulating In-
vestors’ assets for the purpose of investment against the issue
of Fund Units of equal value, including Mutual Funds, ex-
change-traded funds (ETFs), Real Estate Investment Trusts (REITs)
and any type of funds which the Authority approves its licens-
ing.
Debt Securities : Debt Securities issued by companies or governments and any
other debt Securities accepted by the Authority.
Debt bonds : Financial instruments of equal value and tradable, that establish-
es or create debt on the issuer whether covered or not.
Sukuk : Financial instruments equal in value and tradable represent
common shares in the ownership of an asset or group of assets
issued pursuant to Islamic Sharia.
Warrants : securities equal in value and tradable, gives its holder the right
in, without obligation, buying or selling specified number of
underlying assets at specified price within a specified period.
Business Con-
solidation
: Any partial or total acquisition or any merger of concerned
entity targeted by acquisition by or with Special Purpose Acquisi-
tion Vehicle
Target Entity : Any commercial entity incorporated within or outside the state
(excluding the public joint stock companies listed in the local or
foreign market) the Special Purpose Acquisition Vehicle intends
to own a percentage thereof or merger therewith on the date of
closure
Covered War-
rants
: The warrants issued by the company authorized by the Author-
ity to issue Covered Warrants in accordance with the legislation
issued by the Authority.
Depository Re-
ceipts
: A financial instrument issued in exchange for foreign securities
that can be listed and traded in the Market.
Depository Bank : A legal person that conducts the activity of the depository bank
within or outside the State in accordance with the provisions
of the legislation issued by the Authority concerning the De-
pository Receipts system.
Representative
of Foreign Fund
: A company operating in the field of securities and subject to the
supervision and control of the Authority; excluding the broker-
age company and the general clearing member.

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Capital : the issued capital of the company.
Relatives : Spouse and minor children.

Article 2 — No security may be listed on the Market without registration with the Authority. ¶

SECTION ONE: LISTING THE SHARES OF LOCAL COMPANIES

Article 3 — 1. The shares of local public joint stock companies shall be listed in the first and ¶

second category of the First Market in accordance with the provisions of these
Rules.
2. The shares of local private joint stock companies shall be listed in the Second
Market or the First Market in accordance with the provisions of these Rules.
Conditions for listing the shares of local joint stock companies

Article 4 — 1. To list the shares of the local public joint stock company in the second category ¶

of the first market, there shall be no restrictions on the transfer of the
ownership of the shares to be listed except for the restrictions permitted by the
legislation in force in the State.
2. To list the shares of a local public joint-stock company in the first category of
the first market or to transfer the listing of its shares from the second category
to the first category, the following conditions shall be fulfilled as of the end of
its fiscal year preceding the date of listing or transfer of listing,
a. The net equity of the company shall not be less than (100%) of its paid-up
capital.
b. The number of the shareholders of the company shall not be less than (100)
shareholders.
c. The percentage of the free float in the company to its capital shall not be
less than (20%).
d. The company has made profits in at least two financial years for the three
years preceding the date of the listing or the transfer of listing.
3. Notwithstanding paragraph (c) of Clause (2) of this Article, the Market may

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list the shares of a company in the First Category or transfer it’s listing to
this category if the percentage of the free float is less than (20%) provided
the capital of the company is not less than AED 500 million, and the Market
considered that the shares available for trading would constitute sufficient and
reasonable volumes of trading.
4. The listing of the company is moved from the first category to the second
category in the event of breach of any of the listing conditions of the first
category.
5. The transfer of the listing of the company from the Second Category to the
First Category, or from the First Category to the Second Category once per year
upon providing the Market with the company’s audited financial statement as
at the end of its fiscal year.
6. Notwithstanding any other provision, the Market may not transfer the listing
of the company’s shares from the Second Category to the First category if
penalties are imposed on the company during the last fiscal year preceding
the transfer of the listing as a result of its non-compliance with the applicable
legislation of the Authority or the Market.
7. Notwithstanding clause (2) of this Article, the Market may list the shares of
a local Governmental public joint-stock company, that offered its shares for
public subscription, in the first category of the first market despite not meeting
any of the conditions for listing in this category, provided that the provisions
relating to transfer between the first and second categories are applied to it
after two full fiscal years have passed since the date of its listing in the market.
8. Notwithstanding what is stated in Clause (5) of this Article, upon the
commencement of implementing these Rules, the Market shall distribute the
shares of its listed companies to the first and second categories in accordance
with the specific conditions for each category, based on the audited annual
financial statements for the year in which these Rules will come into force.
9. The market shall advertise on its website the transfer of the shares of the
companies between the two categories in accordance with the provisions of
this Article.
Conditions for listing the shares of local private joint stock companies

Article 5 — 1. The shares of a local private joint stock company are first listed in the second ¶

market, provided that the following conditions shall be met
a. The net equity of the company shall not be less than (100%) of its paid-up
capital.
b. Lapse of a period of not less than two years since the incorporation of the
company, during which audited financial statements for each year were
issued.
2. notwithstanding what is stated in Paragraph (b) of Clause (1) of this Article,

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a private joint stock company is exempted from the requirement of the lapse
of two years since its establishment if it has practiced business for at least two
fiscal years through one or more of its subsidiaries, and has announced the
audited annual financial statements of the activities of its subsidiaries for at
least the two fiscal years preceding the application for listing.
3. The private joint stock company listed on the Second Market and wishing to
transfer the listing to the First Market shall apply to the Market, provided that
the following conditions are met by the end of its fiscal year preceding the
date of submitting the application for transfer of listing:
a. The company has been listed in the Second Market for at least three fiscal
years.
b. The net equity of the company shall not be less than (100%) of its paid-up
capital for the last two fiscal years.
c. The number of the shareholders of the company shall not be less than (300)
shareholders at a monthly rate during the last fiscal year.
d. The percentage of the free float in the company to its capital shall not be less
than (10%).
e. The company has made profits in at least two financial years for the three years
preceding the date of submitting the application for transfer of listing.
f. The company must have achieved the minimum liquidity standards on its shares
during the last financial year in accordance with the liquidity standards set
annually by the Market for this purpose.
g. Any other details, information, or documents the Market deems appropriate
for transfer of listing decision taking.
4. Upon the transfer of a private joint stock company from the Second Market
to the First Market, the company’s shares shall be listed in the first category of
the First Market if the company fulfills the listing conditions for this category
specified in paragraph (2) of Article (4) of these Rules, the company shall be
listed in the second category of the First Market in the event that it does not
meet these conditions, and the private joint stock company shall be subject
to the provisions of transfer between the first and second categories in
accordance with Article (4) of these Rules.
5. The Market may transfer the listing of shares of the private joint stock
company from the First Market to the Second Market in the event of breach of
any of the listing conditions of the First Market for two consecutive fiscal years.
6. The Market shall issue its decision to approve or reject the request to transfer
the listing from the Second Market to the First Market within a period not
exceeding (3) working days from the date of receiving of the completed
application, if no decision is issued by the Market in this regard within that
period, this shall be considered as a rejection of the application. The Market’s
decision to approve the transfer of listing is considered as a discretionary
authority for the Market as it deems appropriate.
7. The listing transfer of shares of the private joint stock company from the First
Market to the Second Market once per year upon providing the Market with

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the company’s audited financial statement as at the end of its fiscal year.
Application for Listing

Article 6 — The Local Company that wishes to list its shares with the Market should submit the ¶

application for listing signed by the legal representative of the company to the
Market with the following enclosed:
1. The Company’s Memorandum and Articles of Association.
2. Certificate of registering for the company with the Authority or with the
Ministry of Economy and certificate of registration with the competent
authority.
3. A report issued by the Company’s Board of Directors which includes the
following:
a. A brief account of the Company’s activities, its main objects, and its
relationship with other companies, whether parent, sister, affiliate or
allied companies (if any)
b. Achievements and milestones of the company from the date of
incorporation to the date of submission of the application for listing.
c. The securities previously issued by the Company and of those the
Company wishes to have listed.
d. The percentage of the non-UAE nationals’ holdings in the capital of the
Company.
e. The names of legal persons who own (5%) or more of the shares of the
Company.
f. The names of natural people who own singly or jointly with their
relatives (5%) or more of the shares of the Company. The Associated
groups holding (5%) or more of the shares of the company
g. The names of the members of the board of directors and the executive
directors, and the Securities owned by them and their relatives, which
are issued by the parent, subsidiary, allied or affiliated company (if any),
and the membership of any of them in the boards of directors of other
local companies
h. The commercial agencies of the company, if any.
i. The Company’s annual report for the two fiscal years preceding the date
of submitting the application for listing (if any), which shall include the
Board of Directors report, the company’s audited financial statements,
the report of its auditor and the minutes of the meeting of the General
Assembly it has approved.

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j. Interim financial statements covering the period from the end of the
financial year preceding the submission of the application for listing to
the end of the last quarter preceding the date of such application, such
statements being certified by the Company’s auditor (if any).
k. Listing prospectus according to the form approved by the Market.
l. Subscription prospectus, if any
m. Any other details, information, or documents the Market deems
appropriate for listing decision taking.
Listing the increase in the capital of the company

Article 7 — The shares of increase in the company’s capital are listed after the completion of the ¶

issuance procedures, the distribution of the issued shares to their owners and the
completion of all the listing procedures prescribed by the Market in this regard.
Listing of Priority Rights

Article 8 — 1. Priority rights are legally listed in the Market on the day specified in the ¶

shareholder’s invitation announcement to inform them of their priority in
subscription to the company’s capital increase shares.
2. Priority rights trading begins on the day those rights are listed in the Market.
Priority rights must be listed for at least 10 working days, with the expiry date
up to five working days prior to the expiry of subscription.
3. Priority rights are delisted when the period of their trading is specified in
the Shareholder invitation announcement to inform them of their priority in
subscription to the Company’s capital increase shares.
Ongoing obligations of the listed Local Company

Article 9 — The listed Local Company shall disclose the following details, information and reports ¶

to the Market:
1. Information, reports and decisions issued by the company that may affect the
price of its securities, for example: Disasters, fires, mergers, issuance of new
securities or suspension of one of the production lines, as soon as the company
becomes aware of this information or as soon as the relevant reports and
decisions are issued.
2. The agenda and date of its General Assembly meetings at least 21 twenty-

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one day before the date of the meeting and the decisions of the meeting
immediately after the meeting.
3. The agenda and date of the meetings of its Board of Directors, at which any
matters affecting the price of the Company’s share will be discussed, two
working days before the date of the meeting without calculating the day in
which the disclosure was made, as well as the decisions made immediately after
the meeting.
4. Any amendment to the Articles and Memorandum of Association of the
Company upon its approval by the shareholders of the company.
5. any change to the board of directors and executive management of the
Company as soon as the change occurs.
6. The integrated annual report of the company, which includes its Board of
Directors report, audited financial statements and the auditor’s report, the
sustainability report and governance report, within (90) days of the end of its
fiscal year, or, at least, ten days before the convening of its general assembly,
whichever comes first.
7. A comparative quarterly report for the same period of the previous fiscal year
that includes the company’s financial statements audited by its auditor within
(45) days of the end date of the relevant quarter.
8. Summary of final accounts (preliminary unaudited nor reviewed financial
statements) within (45) days of the end of the fiscal year.
9. Any disclosure reports that the company is obliged to prepare in accordance
with the applicable legislation.
10. Decisions on liquidation, merger or transformation of the company upon
issuance.
11. Large transactions made or pulled out of by the Company, which constitute a
value of (5%) or more of the Company’s assets as soon as they occur.
12. Appointment or dismissal of the company’s auditor immediately upon making
the decision to appoint or dismiss.
13. Legal cases filed by or brought against the Company have an impact on the
Company’s financial position as soon as these legal cases are filed by the
company, or as soon as the company becomes aware of the legal cases filed
against it.
14. Any other information or data required and deemed necessary by the Market
during the period specified in the Application.
Suspension of trade in the shares of the listed Local Company’s

Article 10 — The Market shall suspend trading in the shares of the listed Local Company in ¶

any of the following cases:

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1. By a decision of the Authority in accordance with applicable legislation.
2. In cases of unjustified rise or decline of the share for more than three
consecutive sessions and until the company discloses to the shareholders the
material information that affected the movement of the share
3. The date of the General Assembly meeting is to coincide with trading hours,
starting from the beginning of the meeting and until the Market is provided
with the decisions taken at the meeting.
4. If the General Assembly meeting is held after the trading hours, starting from
the beginning of the next trading session, in the event the company did not
disclose the results of the meeting once it is finished until disclosure is made to
the Market on the outcome of the meeting.
5. In the event the meeting of the company’s board of directors coincides with
trading hours from the beginning of the meeting and until the Market is
provided with the decisions taken at the meeting.
6. Non-disclosure of the financial statements to the Market on time, starting from
the trading session following the end of the specified dates and until disclosure
of such statements is made to the Market.
7. If the Company decided to amend its capital and the market procedures of
operation require this suspension.
8. If the Market requested information that requires disclosure by the company
before a certain period expires and such period expires without providing the
Market with the required disclosure.
9. In the event the Company provided the Market during the trading session
with any disclosures that are insufficient or inconsistent with the applicable
legislation and until the Market is provided with the required information in
accordance with such legislation.
10. If the company submits a justified request accepted by the Market to suspend
trading of its securities.
11. If exceptional circumstances occur or an event threatens the proper functioning
of the business, or if it considers that the trading of the paper does not
serve the public interest or constitutes unfairness or a breach of the rights of
shareholders or for other reasons.
12. For a period of 30 minutes or as the Market deems appropriate if the
company, during the trading session, provides the Market with any financial
statements or material information that may affect the price of the security.

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SECTION TWO
LISTING OF FOREIGN COMPANIES SHARES
Conditions and application for listing

Article 11 — First: to list the shares of a foreign company in the Market, ¶

1. The foreign company shall be subject to the supervision of a regulator like the
Authority.
2. The shares of the foreign company shall be listed in a foreign market.
3. The company shall be in the legal form of a joint stock company or the like.
4. The equity of the foreign company shall not be less than (100%) of its capital
according to the latest audited annual financial statements.
5. At least two years have passed since the incorporation of the company during
which the company issued two balance sheets audited by its auditor.
6. The company shall have realized net profits during at least the last two fiscal
years.
7. The foreign company’s capital shall be fully paid and not less than (AED 40
million) or currency equivalent.
8. There are no restrictions on the transfer of ownership of the foreign company’s
shares
9. The foreign company shall appoint a representative in the State to register the
shares, distribute dividends, receive and issue reports and documents relevant
to the company’s operations. The representative may be the Market, a bank
operating in the State licensed by the Central Bank, or a company operating in
the field of securities licensed by the Authority.
10. The company shall appoint a listing advisor licensed by the Authority for
a period of one year from the date of listing, and the Market may, at its
discretion, extend this period.
Second: the foreign company that wishes to list its shares shall apply for listing signed
by the legal representative of the company with the following enclosed:
1. Information set forth in Article 6 of these Rules, including the certificate of
registration of a foreign company with the State of nationality.
2. A document proving the listing of the shares of the foreign company in a
foreign market.

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3. Name of the market(s) with which the company is listed
4. The approval or no objection of the foreign market in which the foreign
company’s shares are listed to list its shares in the Market if so, is required by
the foreign market legislation in which the foreign company’s shares are listed.
5. The document of appointment of listing advisor and the representative of the
foreign company in the State who performs the functions of registering shares,
distributing dividends, receiving and issuing reports and documents related to
the foreign company’s business.
6. The Company’s undertaking to comply with all disclosure requirements
applicable to local companies listed on the Market
Third: The foreign company that has been approved to list its shares is obliged to
disclose the following:
1. The information, data and reports referred to in Article 9 of these Rules
relating to the obligations of the listed Local Company.
2. Any inconsistency between the provisions of these Rules and the foreign
market regulations in which the shares of the company are listed, or any
material changes to the regulations of listing in the foreign market.
Fourth: The Market may, in specific cases and if deems appropriate, agree to list the
shares of a foreign company which is not listed in a foreign market.
Fifth: The Market may apply the Corporate Governance Guide for public joint stock
companies issued by the Authority for foreign companies listed in the Market as it
deems appropriate
Sixth:
1- The shares of the foreign public joint stock company or the like shall be listed
in the second category of the First Market, or in the first category if it meets the
conditions for listing in this category. The provisions for the transfer between the First
and Second Categories shall apply in accordance with Article 4 of these Rules.
2- The shares of the foreign company shall be listed for the first time in the Second
Market if private joint stock company or the like, the provisions for the transfer
between the First and Second Markets and between the First and Second Categories
in the First Market shall apply in accordance with Article 5 of these Rules.
Suspension of trading of the shares of the foreign company

Article 12 — The Market may suspend the trading of the shares of the foreign company in the ¶

event their trading is suspended in the foreign market specified in Article (11/First/2)
of these Rules, in all cases of trading suspension that applies to the shares of the
listed local companies set out in Article (10) of these Rules, or if any decision was

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issued by the competent authority in the foreign market in which the company’s
shares are listed stating that the company did not comply with the legislation in force
therein.
SECTION THREE
LISTING THE SHARES OF FREE ZONES COMPANIES
Conditions and Application for Listing

Article 13 — First: For listing of a free zone company shares in the Market the following conditions ¶

shall be met:
1. The company’s capital must be divided into shares which must ensure equal
equity rights for the shareholders within the concerned category.
2. There should be no restrictions on transferring the ownership of the company’s
shares.
3. The net equity in the company shall not be less than (100%) of its paid-up
capital
4. The company has undertaken its activity, directly or indirectly, through one or
more of its subsidiaries, and issued its annual financial statements audited by
its auditor, on its business or on the business of its subsidiaries for at least the
two financial years preceding the application for listing. The company in which
the government owns at least (25%) of its shares, is excluded.
5. The company shall appoint a listing advisor authorized by the Authority for
one year from the date of listing. Such duration may be extended by the
Market as it deems appropriate, at least three months before the end of the
duration of its appointment.
Second: The Free Zone company that wishes to list its shares shall submit the
application for listing signed by the legal representative of the company with the
following enclosed:
1. Information set forth in Article 6 of these Rules, including the certificate of
registration of the company with the free zone.
2. No objection of the regulatory authority similar to the Authority in the
financial free zone or the companies’ registrar in the free zone, as the case may
be, to the listing in the Market.
3. Approval or no objection of the foreign market in which the shares of the Free
Zone Company are listed, if the company is listed in a foreign market, to list its
shares in the Market if the foreign market legislation so requires.
4. The document of appointment of a listing advisor

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5. Membership of the Board of Directors members, executive directors and their
first-degree relatives in the boards of directors of other free zone companies.
6. The name of the market(s) in which the company is listed.
Third: The free zone company that has been approved to list its shares is required to
disclose the following to the Market:
1. Information, data and reports referred to in article 9 of these Rules relating to
the obligations of the listed Local Company.
2. Any inconsistency between the provisions of these Rules and the relevant
regulations of the free zone or the foreign market in which the shares of the
company are listed, or any material changes to the regulations of listing in the
foreign market, as appropriate.
Fourth:
1. The shares of the free zone company, if it is a public joint stock company or the
like, shall be listed in the second category of the First Market, or in the first
category if it meets the conditions for listing in this category. The provisions for
the transfer between the First and Second Categories shall apply in accordance
with Article 4 of these Rules.
2. The shares of the free zone company shall be listed for the first time in the
Second Market if private joint stock company or the like, the provisions for
the transfer between the First and Second Markets and between the First and
Second Categories in the First Market shall apply in accordance with Article 5
of these Rules.
3. The CEO may approve the listing of the free zone company if it is a public joint
stock company or the like in the first category of the First Market despite not
fulfilling the conditions for listing in this category if he deems that the volume
of the company’s activity and financial results qualify it for listing in this
category.
Fifth: The Market may apply the Corporate Governance Guide for public shareholding
companies issued by the Authority to the free zone companies listed in the Market as
it deems appropriate.
Sixth: The Free Zone Company is obliged to appoint an independent external auditor
to audit and review its annual and interim financial statements in accordance
with international standards approved by the Authority and any other
requirements it deems appropriate.

Article 14 — The security issued in a financial free zone or a free zone within the State shall be ¶

listed in accordance with the provisions of the listing foreign securities applicable in
these Rules, unless otherwise is provided for.

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Suspension of trading of free zone companies’ shares

Article 15 — The Market is obligated to suspend the trading the shares of the free zone company ¶

in the event of suspension of its trading in the free zone market or in the foreign
market, to suspend trading in the shares of the free zone company in all trading
suspension cases applicable to shares of the listed local companies set out in Article
(10) of these Rules, or If any decision is issued by the competent authority in the
foreign market or the free zone market in which the company’s shares are listed
stating that the company has not adhered to the legislation in force therein.
SECTION FOUR
LISTING OF SPECIAL PURPOSE ACQUISITION VEHICLE

Article 16 — 1. Shares issued by Special Purpose Acquisition Vehicles shall be listed in the First ¶

of Second Category of the First Market in accordance with the requirements
for listing of local companies set forth in Chapter 1 of these Rules and shall
be subject to the general provisions contained herein to the extent that they
do not conflict with the provisions specified in this Chapter, the decision to
approve the listing is considered a discretionary authority for the Market,
which takes its decision according to the interest of the Market and its
investors taking into consideration the financial solvency of the sponsors
2. Warrants issued by Special Purpose Acquisition Vehicles shall be listed following
the end of the completion of subscription and allocation procedures, provided
that the Market is provided with the prospectus and any other documents or
information requested by the Market.

Article 17 — Apart from the provisions in Chapter 1 herein on the listing of companies’ shares, the ¶

following provisions shall be considered on the listing of securities issued by Special
Purpose Acquisition Vehicles:
1. A Special Purpose Acquisition Vehicle is not obliged to prepare or submit any
audited or interim financial statements or any information about its activities
as a precondition for the listing of securities issued by such companies in the
market, however:
(a) A Special Purpose Acquisition Vehicle shall, prior to the date of listing of
its securities, provide the Market with an opening budget as a condition
for listing the securities issued by such companies. Such a budget shall be
audited by an auditor.

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(b) A Special Purpose Acquisition Vehicle is obliged to disclose to the Market all
information, data and reports referred to in Article 9 herein.
2. A Special Purpose Acquisition Vehicle is obliged at no time to place its issued
capital at less than AED 100 million and the ownership of sponsors shall not be
more than 20% nor less than 3% of the issued capital of the Special Purpose
Acquisition Vehicle.
3. A Special Purpose Acquisition Vehicle shall immediately provide the Market
with an update of the information submitted if any of the following cases
occur:
(a) Any material change in any of the data contained in the prospectus
prepared for the purposes of public subscription, including any change
in the data contained in the prospectus, which may be required by the
regulations issued by the Authority.
(b) When the Special Purpose Acquisition Vehicle becomes aware that it will
not be able to complete the business consolidation process during the
period specified for business consolidation and the reasons for that.
(c) If the potential business consolidation transaction is not completed by
any of its parties for any reason, and in this case the Special Purpose
Acquisition Vehicle is obligated to notify the Market of the reasons for
the non-completion of the business consolidation process, the financial
impact of this on the Special Purpose Acquisition Vehicle, and the proposed
procedures to be taken to protect the interests of the shareholders of this
company
4. The Special Purpose Acquisition Vehicle shall provide the Market with the
following data regarding any potential business consolidation transaction once
available:
(a) A description of the activities of the Special Purpose Acquisition
Vehicle Target Entity, and all channels through which publicly available
information, including the financial data of the Target Company, can be
obtained.
(b) The main conditions of the proposed business consolidation transaction,
including the possible decrease in the shareholder’s ownership of securities
due to the percentage of securities owned by the sponsors or maybe issued
to these entities.
(c) The timeframe for negotiating the business consolidation transaction
(d) A description of the procedure that the Special Purpose Acquisition Vehicle
has followed or will follow to assess the Target Entity.
(e) Any information or data about a Target Entity that is in the possession or
expected to be in the possession of the Special Purpose Acquisition Vehicle.

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Article 18 — 1. The company’s shares shall continue to be listed after the business ¶

consolidation is completed and shall be subject to all the continuing
obligations of the companies listed in the Market
2. The Market shall delist the securities issued by the Special Purpose Acquisition
Vehicle if that company fails to complete the business consolidation transaction
within the time periods stipulated in the regulations of the Authority.

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SECTION FIVE: LISTING OF DEBT SECURITIES AND SUKUK
Application for Listing

Article 19 — First: ¶

1. For the purposes of the texts contained in these Rules relating to the listing of
Debt Securities and Sukuk, the issuing company means the company issuing
Debt Securities or Sukuk, as the case may be.
2. The issuing company that wishes to list Debt Securities or Sukuk must submit
an application for listing signed by the legal representative of the company to
the Market with the following enclosed:
a. the prospectus of the Debt Securities or Sukuk to be listed
b. Summary of conditions of issue
c. The issuing Company’s annual report for the last fiscal year preceding the
date of submitting the application for listing, which shall include the Board
of Directors report, the company’s audited financial statements, the report
of its auditor.
d. the interim financial statements of the issuing company audited by the
auditor covering the period from the beginning of the fiscal year to the end
of the quarter preceding the submission of the application for listing
e. the names of the members of the Board of Directors and the executive
directors of the issuing Company and the statement of securities issued by
the Company owned by any of them, their relatives, and their membership
in the boards of other companies in the State.
f. Any information or data that the Market deems necessary to decide on
listing.
g. Details on the conversion of Debt Securities or Sukuk to shares if such
instruments are convertible into shares.
Second: The Market may list government or foreign government issued Debt
Securities or Sukuk in accordance with these Rules, after applying for listing
and provide the Market with all information and data on the instruments to
be listed in the Market in accordance with the form approved by the Market
for the purpose of listing.
Third:
1. The Market may list foreign Debt Securities or Sukuk listed in a foreign market
in accordance with these Regulations, after submitting an application for
listing and provide the Market with all data and information contained in
clause “First” of this Article, Including the approval of the issuing company’s
board of directors or its listing representative and evidence of the listing of
Debt Securities or Sukuk in a foreign market and in accordance with the form
approved by the Market for the purposes of listing, as the case may be, and
any other information the Market deems necessary to enable it take the listing
decision.

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2. The Market may, in specific cases, list foreign Debt Securities or Sukuk that are
not listed in a foreign market if the Market sees the feasibility of listing
Fourth: The Market may list the issuance of free zone companies of Debt Securities
or Sukuk in accordance with the provisions of these Rules after submitting an
application for listing and providing the Market with all the data and information
mentioned in clause (First) of this Article, including the approval of the company’s
board of directors and in accordance with the form approved by the Market for the
purposes of listing, as the case may be, and any other information that the Market
deems necessary to enable it take the listing decision
Obligations Subsequent to listing

Article 20 — 1. The issuing company which Debt Securities or Sukuk has been listed in the ¶

Market shall disclose the following information, data, and reports:
a. The information and reports of the company and the decisions issued by it
that would have a material impact on the price or trading volume of Debt
Securities or Sukuk, the transactions that take place on them in the Market,
on its ability to fulfill its obligations, or any liquidation or dissolution of the
issuing company, as soon as this incident or information is known.
b. The data, information and reports that the listed companies are obligated
to provide to the Market, which are stated in Article (9) of these Rules, save
what is stated in items (8 and 9) of that Article.
c. Any failure to pay interest or profits due to the owners of the listed Debt
Securities or Sukuk.
d. any modification to the prospectus and terms of subscription.
e. Any reduction in the nominal value, decrease or redemption of a number of
listed Debt Securities or Sukuk
f. Any issuance of new securities by the issuing company
g. Any appointment or replacement of the payment trust or agent, where
applicable
h. All correspondence addressed by the issuing company or the obligor
to holders of Debt Securities or retail Sukuk and any information or
documents related to meetings of holders of Debt Securities or retail Sukuk,
immediately upon issuance
2. In addition to the obligations stipulated in Clause (1) of this Article, the foreign
issuing company and the issuing company established in the free zones that
have listed Debt Securities or Sukuk in the Market are obligated to:
a. Immediately notify the Market when any conflict occurs between the
provisions of the state legislation and the foreign market regulations in
which any of the Debt Securities or Sukuk are listed, for the Market to take
the decisions and procedures it deems appropriate after consultation with
the Authority.

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b. Provide the Market with all the information and documents that are
notified or provided to the foreign market, through electronic means, on
the form prepared for that with the Market, and by publishing them on the
website of the issuing company.
c. Notify the Market immediately of any change in any law, legislation or
regulation in the country of the foreign issuing company or in the free
zone, as the case may be, or any other country that may affect the trading
or the price of Debt Securities or Sukuk listed in the Market, including any
change or amendment to any tax legislation.
d. Notify the Market immediately in the event of cancellation of the listing of
the Debt Securities or Sukuk of the foreign issuing company or the issuing
company established in the free zone in its foreign market - as the case
may be - or if any penalties are imposed on the issuing company by the
foreign market or by the regulatory authority to which it is subject, and It
must notify the Market immediately of any material changes to the listing
regulations of the foreign market.
e. Provide the Market with annual financial statements and interim financial
reports filed with the foreign market, as appropriate, and any circulars or
notifications sent to holders of listed Debt Securities or Sukuk, immediately
upon issuance of any of them, through electronic means, on the form
prepared by the Market for that purpose, and by publishing them on the
website of the issuing company.
f. Notify the Market of any changes that may occur to the data contained
in this clause for the issuing company or the guarantor if the issuance is
guaranteed.
3. Governmental entities or foreign governments that issue any Debt Securities
or Sukuk listed in the Market are obligated to disclose any information or
decisions that may affect the price and trading volume of listed Debt Securities
or Sukuk.
Suspension of Debt Securities and Sukuk Trading

Article 21 — The Market may suspend trading of the listed Debt Securities and Sukuk in any of the ¶

following cases:
1. Failure of the issuer to comply with the prospectus or the terms of the issue
2. If the issuer breaches any of the listing conditions, obligations or requirements
contained in these Rules or any relevant applicable legislation.
3. If the issuer submits a justified request to suspend trading that shall include the
period of suspension of trading and the proposed mechanism for transferring
ownership after suspension of trading.

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SECTION SIX
LISTING OF THE UNITS OF INVESTMENT FUND
Listing Conditions

Article 22 — The following conditions shall be met to list the units of investment fund or a foreign ¶

investment fund in the Market:
1. The fund shall be incorporated and licensed by the Authority if not foreign
fund
2. The prospectus of the Fund shall provide for listing without any restrictions or
impediments
3. The Fund shall satisfy the technical requirements of listing in the Market
4. The mutual fund shall appoint at least one liquidity provider approved by the
Market
5. Appointment of a representative of the foreign fund in the State
Application for Listing

Article 23 — The management company of the Investment Fund or the representative of the ¶

foreign fund, who wishes to list its units in the Market, shall submit the application
for listing with the following enclosed:
1. A copy of the approval of the Authority to register the units of the fund
2. A copy of the Fund’s Articles and Memorandum of Association, if any,
according to the nature of the Fund
3. Copy of the units of the Fund prospectus submitted to the Authority for
registering the fund’s investment units.
4. A copy of the register of holders of units to be listed, if any.
5. A summary of the Fund investment policy, including methods and criteria
of diversifying the Fund’s investments and the investment decision-making
methodology.
6. The Applicant’s information and contact details
7. The approval or no objection of the regulatory authority and the Market
in which the Foreign Fund is listed at its place of incorporation for listing
the Fund’s units on the Market of so is required by the legislation of that
regulatory authority or the Market.

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8. The financial statements audited by the external auditor of the Fund for the
last two years preceding the date of submitting the listing application, if
available.
9. The interim financial statements for the period from the end of the financial
year preceding the application for listing until the end of the last quarter
preceding the date of that application, if they are reviewed by the external
auditor of the foreign fund, if available.
10. List of the persons who with their minor children hold (5%) or more of the
Funds’ units or any other corporate person holding the same percentage.
11. A statement of the major events from its date of incorporation until the date
on which the listing application is submitted (if any).
12. Clarifying the pricing mechanism of the Fund’s units when they are first listed
in the Market.
13. Details of the international classification number issued to the Fund
14. The events in which the holders of the Fund’s units should be called for
a meeting. The powers of the holders of the units should be determined
according to the of each meeting.
15. The events in which the Fund’s constitutional documents and prospectus should
be amended and the methodology of such amendment.
16. Identifying all expenses and financial encumbrances of the Fund, including
asset management fees, administrative services fees and any other fees or
charges.
17. The lending arrangements for the Fund’s units shall be explained (if any).
18. A summary of the risks associated with investing in the Fund and the risk
aversion strategy.
19. A summary of the tax consequences on the holders of the Fund’s units (if any)
20. Any other documents or information may be requested by the Market.
Obligations subsequent to listing

Article 24 — The investments management company or the representative of the foreign fund ¶

shall constantly comply with the following:
1. The requirements for listing shall continue to be met, and corrective measures
taken should they be breached to ensure that the Fund complies with them.
2. Provide the Market with a copy of any amendments to the prospectus, the
partnership agreement, the Articles, or Memorandum of Association once
approved.

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Operational Rules Booklet
3. The terms specified by the Market for publication requirements, and any
technical requirements for open-ended funds operating on swap contracts
(SWAP-based).
4. Provide the Market with all publications, financial reports issued by the Fund in
accordance with its prospectus issued by the Fund and all publications for the
holders of the units, once any of them have been issued.
5. Comply with all decisions, rules and circulars issued by both the Authority and
the Market.
6. Disclose the following:
a. any illustrative information or documentation regarding the conditions and
activities of the Investment Fund to ensure proper handling and security of
the unit holders, when so is required, and with the mechanism the Market
deems appropriate.
b. the interim (semi-annual) financial statements audited by the external
auditor of the Fund, within (45) days of the expiration of the specified
financial period, signed by the Board of Directors or its equivalent.
c. the annual financial statements audited by the external auditor of the Fund,
within (90) days of the end of the financial year, signed by the Board of
Directors or its equivalent.
d. a semi-annual report issued by the valuer for all the assets of the real estate
investment fund.
e. the unit’s net value as it is calculated according to the fund’s prospectus and
the governing rules.
1. the financial statements of the Fund shall include:
a. All the assets, and investments and market value of the Fund.
b. Credit rating (if any) of securities in which the Fund is investing.
c. Disclose - for the Real Estate Fund - the nature, type and location of assets
and real estate investments, statement of the Fund’s net assets with fair value
based on the valuer report, annual report containing the invested in assets,
and proportion of leased and non-leased properties.
2. disclosure of any unannounced material information that may affect the price
of the units of the Fund or the ability of the Fund to meet its obligations, for
example:
a. any asset purchase, sale, mortgage, or lease transaction with the value of
(10%) of the total value of the fund’s assets.
b. any losses equal to or greater than (10%) of the net value of the Fund’s
assets.
c. any change in the composition of the Board of Directors or committees of the
Fund.
d. any dispute, suit or litigation taken in favor of or against the Fund valued at
(5%) and more of the net value of the assets.

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e. increase or decrease in profits or asset value equal to (10%) and more of the
net asset value.
f. Change the Fund auditor or trustee.
g. changing the capital.
h. issuance of a decision or judgment affecting the use by the Fund of any part
of its assets equal to (5%) and more of the net value of the assets.
i. statement of dividends distributed to unit holders.
j. any material adjustment to the Fund’s investment policy, provided that the
adjustment is made in accordance with the mechanism set out in the Fund’s
founding documents or prospectus.
k. Any decision to liquidate the fund according to the mechanism set out in the
fund’s founding documents or prospectus.
Disclosures regarding the Open-ended Investment Fund

Article 25 — In addition to the obligations set forth in Article 24 of these Rules, the listed Open- ¶

ended Investment Fund is obliged to provide the Market with the following:
1. A daily statement on the net value of the unit before the beginning of the next
day’s trading session.
2. A periodic statement, agreed upon by the Market, the investment
management company of the Fund, or the representative of the Fund which
shall include:
a. The number of units issued or redeemed.
b. Any change to the number of existing units and their information.
c. Any steps temporarily taken to suspend the redemption or issuance of units.
d. Any redemption of existing units.
e. The date and value of the dividend distributions (if any) .
f. The value of the Fund’s assets.
g. Any change to the Fund’s asset mix.
h. Components of the Fund’s asset mix - according to a technical formula
accepted by the Market that allows the net value of the Fund’s indicative
assets to be calculated.

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Special Disclosures

Article 26 — The Market may, according to the type and nature of the investment fund, request ¶

the disclosure of any information other than that specified in these Regulations, and
the Market may also include any additional information in the listing application
form other than that specified in these Regulations if the Market deems it necessary
to protect investors and in accordance with the type and nature of the fund.
Suspension of Investment Fund or Foreign Fund Trading

Article 27 — The Market may suspend the trading of units of a listed investment fund or foreign ¶

fund in any of the following cases:
1. The increase or decrease of the unit price for a maximum of three consecutive
sessions and until the Fund discloses to unit holders the material information
that affected the unit’s movement
2. Failure to disclose to the Market the financial statements on the specified dates
specified, starting from the next trading session to the expiry of the specified
date and until such statements are disclosed to Market.
3. If, during the trading session, the Fund provides the Market with any material
information or data that affects the unit price in the Market and until such
information and data are disclosed to the unit holders.
4. If the Fund violates any of the listing conditions, obligations or requirements
contained in these Regulations.
5. If the Fund ceases its activity
6. If the Fund submits a justified request to suspend trading of its units, including
the duration of the suspension of trading in its units and the proposed
mechanism for transferring the ownership of its units after the suspension of
trading
7. If the Market requests information that requires disclosure by the Fund before
the expiry of a certain period and this period expires without providing the
Market with the required disclosure.
8. If, during the trading session, the Fund provides the Market with any
insufficient disclosures or inconsistent with the applicable legislation and until
the information required in accordance with these legislations are provided to
the Market.
9. The Market is obligated to suspend the trading of the units of the foreign
investment fund in the event of its suspension in the foreign market, and the
Market shall have the right to suspend the trading of the units of the foreign
investment fund if any decision is issued by the competent authority in the

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foreign market in which the units of the foreign investment fund are listed
stating that the fund is not abiding by the legislation in force therein.
SECTION SEVEN: LISTING OF DEPOSITORY RECEIPTS
Application for Listing

Article 28 — The Depository Bank or the foreign issuer, as appropriate, willing to list Depository ¶

Receipts, shall submit an application to the Market, including the following
information and data:
1. An explanation of the program the Depository Receipts to be listed.
2. Depository Receipts Subscription Prospectus.
3. A report issued by the foreign issuer that shall include the following:
a. Brief account about the issuer and the nature of its activity.
b. Description of all the securities issued by it.
c. Names of the members of the board of directors of the foreign issuer
and the names of the senior executive management with their direct and
indirect holdings in the securities issued by it.
d. The audited financial statements of the foreign issuer for the two fiscal
years preceding the application for listing
e. The latest interim statement audited by the auditor of the foreign issuer
from the beginning of the fiscal year to the end of the last quarter
preceding the submission of the application for listing.
f. Name of the foreign market in which the securities against Depository
Receipts are listed
4. Any other information the Market deems necessary to take a listing decision.
Obligations Subsequent to Listing

Article 29 — The Depository Bank or the foreign issuer shall disclose the following: ¶

1. Annual and interim financial statements of the foreign issuer
2. All the events and decisions relating to the foreign issuer that effect the prices
of the Depository Receipts listed on the Market.
3. The agenda of the General Assembly meetings of the foreign issuer once
released and to provide the Market with the outcome of such meetings before
the next working day trading session.

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4. All the disclosures announced by the foreign issuer in the foreign market
where its securities against Depository Receipts are listed.
5. Any conflict between the provisions of the State legislation and the foreign
market regulations.
6. Any change to the submitted data or documents.
7. Changing or replacing the Depository Bank or the custodian concerned
Suspension of Trading of Depository Receipts

Article 30 — The Market may suspend the trading of Depository Receipts in any of the following ¶

cases:
1. If the Depository Bank breaches any of the listing conditions, obligations or
requirements contained in these Regulations
2. All cases in which trading in the foreign market is suspended on the securities
corresponding to the Depository Receipts.
3. Upon a justified request from the Depository Bank, including the period of
suspension of trading
SECTION EIGHT: LISTING OF COVERED WARRANTS

Article 31 — Covered Warrants are listed in accordance with the provisions of these Regulations ¶

upon submitting the application for listing and providing the Market with the
information and data relating to the Warrants to be listed in accordance with form
prepared by the Market for this purpose, including the prospectus of these Warrants,
and the appointment of a liquidity provider licensed by the Market for the Covered
Warrants the issuer wishes to list.
Obligations subsequent to listing

Article 32 — The issuer of the Covered Warrants shall disclose the following: ¶

1. Any material changes to the statements, documents, or information previously
submitted to the Market.
2. Any material developments or any decisions that may affect the price of
the Covered Warrants or the Issuer’s ability to meet its obligations or any
amendments to the calculation of the warrants price.

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3. Any illustrative information regarding the Issuer’s situation and activities to
ensure safe transactions and security of the investors, upon Market request.
Suspension of Trading of Covered Warrants

Article 33 — The Market may suspend the trading of the Covered Warrants in any of the following ¶

cases:
1. If the issuer of the Covered Warrants violates any of the listing conditions,
obligations or requirements contained in these Regulations.
2. Upon a justified request from the issuer of the Covered Warrants, including the
period of suspension of trading and the proposed mechanism of transferring
the ownership after the suspension of trading
3. If the trading in the assets subject of the Warrants is suspended
SECTION NINE: LISTING OF THE MARKET LISTED SECURITIES ON THE FOREIGN
MARKET

Article 34 — 1. The issuer of the securities listed in the Market may not list its securities in the ¶

foreign market prior to obtaining the approval of the Market in accordance
with the form prepared by the Market for this purpose, supported with the
following documents and data:
a. Approval of the Authority to list in the foreign market.
b. The number of securities to be listed in the foreign market may not exceed
(30%) of the securities listed in the Market of the same type and class.
c. Technical study showing the objective of listing in the foreign market,
listing requirements and advantages and the obligations of the issuer in
that market.
d. The Depository entity in the foreign market shall conclude an agreement
with the Market to regulate the transfer of securities between the Market
and foreign market.
e. Undertaking to provide the Market with all the disclosure requirements in
the foreign market.
f. Undertaking to comply with the legislation in force in the foreign market.
g. Any other documents or data requested by the Market.
2. The Market shall issue its decision to approve or reject the application within
a period not exceeding (5) working days from submitting the completed
application, provided that the decision is notified to the Authority in the

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following day of issuance of the decision
3. In accordance with the provisions of clause (1) of this Article, the issuer
granted approval to list part of its securities on the foreign market shall disclose the
following:
a. Any information that needs to be disclosed in conjunction with the foreign
market
b. Any penalties that have been imposed on it by the foreign market, or any
measures to suspend or delisting its securities in that market
c. Any matters or events relating to the securities listed in the foreign market
which may adversely affect the price of the securities listed on the Market
SECTION TEN: DELISTING OF SECURITIES

Article 35 — 1. The company’s shares shall be delisted from the Market in any of the following ¶

cases:
a. Issuance of a decision to dissolve or liquidate the company.
b. If the company merges with another company or companies and this
results in the lapse of the legal personality of the listed company.
c. If the company is transformed and takes a form other than that of a public
or private joint stock company.
2. The Market may delist the company’s shares if it breaches any of the listing
conditions or the obligations stipulated in these Regulations.
3. The Market may delist the shares of a private joint stock company, a foreign
company, or a free zone company if the company requests the delisting by
virtue of a decision of its general assembly.
4. Debt Securities and Sukuk shall be delisted in any of the following cases:
a. Decision to dissolve or liquidate the issuer is taken.
b. Redeemed in full.
c. Expiry of its term.
d. Any case provided for in its prospectus or any legislation in force.
5. The Market may delist Debt Securities and Sukuk at the request of the issuer
and after completing all the procedures specified by the Market in this regard.
6. Fund’s investment units shall be delisted upon the expiry of the fund’s term, it
liquidation, merger, or expiry of its legal personality for any reason.
7. Depository Receipts shall be delisted in any of the following cases:
a. Expiry of the legal personality of the foreign issuer for any reason.

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b. If the securities against the depository receipts are delisted in the foreign
market.
c. Termination of the Depository Receipts scheme.
d. Upon a justified request from the Depository Bank after completing the
procedures specified by the Market in this regard.
8. Covered Warrants shall be delisted in any of the following cases:
a. If the assets subject of the Covered Warrants is delisted.
b. Upon a justified request from the issuer of the Covered Warrants and after
completing the procedures specified by the Market in this regard.
SECTION ELEVEN: GENERAL PROVISIONS
Study and Approval of the Application for Listing

Article 36 — 1. The Market shall issue its decision to approve or reject the listing application ¶

within a period not exceeding (5) working days from the date of receiving
the completed application. If no decision is made by the Market in this regard
within that period, this shall be considered as a rejection of the application.
2. The decision to approve the listing is considered a discretionary authority for
the Market, which takes its decision according to the interest of the Market
and its investors.
3. The Market determines the start date of trading on any security that has been
approved for listing immediately upon completion of the procedures required
by these Regulations and any technical requirements specified by the Market in
relation to trading.
4. In the event of approval of the listing, the Market shall notify the Authority, on
the same and the date of commencement of trading on the day following the
date of approval.
Listing Applicant’s Responsibility

Article 37 — The Applicant shall constantly be responsible of the following: ¶

1. The accuracy of the data, information, reports and documents provided by
it, and the fact that the Market has been informed or approved them in their
publications shall not be considered to constitute an acknowledgment from the
Market of the accuracy of its contents, or acknowledgment of the legality of
the conduct of any person acting pursuant thereof.
2. To meet all technical requirements required by the Market so that the issuer of
the listed security can fulfill all duties, obligations and disclosures to investors.

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Article 38 — 1. The Chief Executive Officer shall take all the necessary decisions to implement ¶

the provisions of these Rules in a manner not inconsistent with the provisions
thereof.
2. The Market shall announce on its website in Arabic and English and circulate
to all Brokerage Companies operating in the Market at least three days before
the date specified for the commencement of trading of those securities in the
Market about the issuer’s annual financial statements, the most recent interim
financial statements and a summary of the company’s board of directors’ report
- as the case may be - submitted for listing purposes
3. The Market shall notify the Authority of any suspension or delisting decision
once issued.

Article 39 — If the trading of any security in the Market is suspended, it shall be returned to ¶

trading by a decision of the authority that decided the suspension after of the
reasons that led to such suspension are no longer exist.

Article 40 — The Authority may, after consultation with the Market, suspend trading of, or ¶

delist any security listed on the market in accordance with the applicable legislation
if exceptional circumstances or an event threatens the proper functioning of the
business occur, or if it deems that trading in the security does not serve the public
interest or constitutes unfairness or breach of the rights of shareholders or for any
other reason.

Article 41 — The issuer may not disclose any data or information which are still at the negotiating ¶

stage if its senior management has reasonable grounds to believe that disclosure
would seriously damage its interests and that no transactions in the securities issued
by it – were made by its board members, executives director or their first-degree
relatives - based on information not publicly released. The issuer shall, immediately
upon knowledge of this data and information, provide the Market with it, identify
the insiders who have access to such information and request that such information
be treated as confidential until the reasons for that are no longer present. The Chief
Executive Officer may respond to the request or require the issuer to disclose the
data and information if considered that the disclosure of such data will not affect the
interests of the issuer or if it is found that information and data that the issuer has

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Operational Rules Booklet
requested to be treated as confidential are leaked. The issuer is obliged to provide
the Market with any new developments regarding the negotiations immediately as
they happen in case the request of the issuer for non-disclosure is approved.

Article 42 — 1. With exception of the foreign company and the free zone company, the ¶

listed company shall prepare its annual and interim financial statements in
accordance with accounting standards adopted by the Authority
2. The financial statements of the listed company shall include, at a minimum, the
following information:
a. The Board of Directors Report or the discussion report of its executive
management
b. Balance sheet
c. Income statement (profit and loss account)
d. Statement of changes in equity
e. Statement of cash flows
f. Notes on the financial statements
g. The auditor’s report

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Article 43 — 1. For the purposes of these Regulations, disclosure means that the issuer of any ¶

securities listed in the Market conduct the following:
a. Publish the required data, information and reports to be available to all on
the channels provided by the Market for this purpose and notify the issuing
authority.
b. Publish the required data, information and reports on its website
2. The Market may request the issuer of any securities listed in the Market to
disclose the data, information and reports that require disclosure through
electronic programs determined by the Market, and the Market may charge a
fee for its use of its electronic programs

Article 44 — The issuer of any listed securities shall be bound to: ¶

1. comply with all applicable legislation and decisions concerning the listing of
securities issued by the Authority and the Market and continuing obligations
for listing.
2. Pay all the fees prescribed by the applicable legislation and decisions

Article 45 — The Market may, after obtaining the approval of the Authority, establish platforms ¶

for the trading of certain securities or securities in which the trading is restricted to
certain investors other than those specified in these Rules.

Article 46 — The Market may exempt any entity from the provisions of these Rules if the Market ¶

considers that there are justified reasons for this exception.

Article 47 — For the purposes of regulating self-listing in the Market, the Authority shall have ¶

all the powers enjoyed by the Market, in accordance with the provisions of these
Regulations to regulate the listing affairs.

Article 48 — The Market may request all information, data and documents, and any additional ¶

clarifications, information, data or documents from issuers whose securities are listed
and subject to these Regulations and their employees, for the purposes of ensuring
their compliance with these controls, decisions and circulars issued in implementation
thereof.

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Operational Rules Booklet
Article (1)
Subject to the provisions of the applicable Companies Law, a Public Shareholding
Company may purchase a percentage of the shares issued by it for the purpose of
disposing of the same later in any way including transfer of ownership in accordance
with the provisions of these Rules.
Article (2)
The following are required for the approval of the Public Shareholding Company to
purchase the shares issued by it:
1. At least two fiscal years must have passed since its incorporation.
2. Have issued two audited balance sheets that have been approved by the
company’s general assembly.
3. That at least one full year has passed since the date of the company’s last
disposal of shares issued by it (if any).
4. The percentage of the shares to be purchased shall not exceed (10%) of the
company’s paid-up capital.
5. The company should not have issued any securities during the six months prior
to submitting the purchase approval request, except for the capital increase
through free shares.
6. The approval of the general assembly on the purchase process, provided
that the decision of the general assembly authorizes the company’s board of
directors to do the following:
a. Executing the decision of the general assembly within the period approved
by the Market to implement the purchase process.
b. Reducing the company’s capital by the amount of the purchased shares if
the company does not dispose the purchased shares in any way within the
period specified in these Rules and amend the articles of incorporation and
articles of association to reflect this reduction.
7. The purchase shall not be financed through borrowing.
8. The company is not established for the purpose of acquisition or merger, until
the completion of the acquisition or merger procedures.
Article (3)
1. The company that wishes to purchase the shares issued by it must submit
CHAPTER 2
COMPANY’S PURCHASE OF SHARES ISSUED
BY IT

37
Operational Rules Booklet
an application to the Market on the form designated for this, including the
following information and documents:
a. Minutes of the company’s general assembly meeting in which the company
approved the purchase.
b. The approval of any regulatory or supervisory authority to which the company
is subject to the purchase process, particularly the approval of the UAE Central
Bank for companies subject to its regulations.
c. Sources of financing the purchase.
d. An undertaking from the company to abide by the provisions of these Rules
and any legislation related to the purchase.
e. Any other information or documents the Market may request
2. The Market shall issue its decision to approve or reject the application within
(3) three working days from the date of submitting the application, fulfilling
all the required information and documents.
Article (4)
1. The company that obtained the Market approval to purchase the shares issued
by it is obligated to do the following:
a. Announcing the purchase process and the Market’s approval on the
Market’s website and in two daily newspapers issued in the State, at least
one of them in Arabic.
b. not to initiate purchases prior to the lapse of (7) seven days from the
publication of the advertisement referred to in Clause (1) of this Article.
c. Implementation of the purchase process within a period of one year from
the date of issuance of the market decision approving the purchase process.
d. Not to execute purchases before (15) days from the date of disclosing any
of its quarterly or annual financial statements or disclosing any material
information that affects the company’s share price, until (3) three days have
passed since such disclosure.
e. Not to execute any purchase through cross orders.
f. Not to undertake any sale of the shares purchased by it while undertaking
the announced purchases.
2. When disposing the purchased shares in any way, the company is obliged to
the following:
a. Not to dispose the purchased shares until one year has passed from the date
on which the company obtained the Market approval for the purchase.
b. disposing the purchased shares within a period not exceeding two years
from the date of the last purchase, or within the period determined
in the incentive scheme if the purchase was for the purposes of share
incentive scheme for its employees, otherwise the purchase process shall
be considered as a reduction of the company’s capital by the amount of

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Operational Rules Booklet
the purchased shares that were not disposed without the need to issue a
resolution from the General Assembly in this regard.
c. Notify the Market of the date of the company’s board of directors meeting,
in which the issue of the company’s disposal of the purchased shares will be
discussed, at least two working days before the date of the meeting, as well
as inform the Market of the decision taken by the board of directors in this
regard as soon as it is taken.
d. Notify the Market of the start date of the disposal transactions.
3. Subsidiaries may not be a party to the purchase and sale of shares issued by the
parent company or the holding company.
4. No member of the company’s board of directors or its executive managers may
be a party to the purchase of shares issued by the company or a party to the
sale of shares issued by the company if the disposal was through selling the
shares through the market.
5. The company may not issue any new shares or any debt instruments convertible
into shares before the completion of the disposal or cancellation of the
purchased shares.
6. The company is obliged to the requirements of disclosing the purchase and
disposal of shares issued by it, according to the form approved by the Market
for this purpose.
7. The company’s purchase of its issued shares is carried out in accordance with
the trading rules in force in the Market.
8. The company’s disposing of shares issued by it in any form of disposal
transferring ownership shall be carried out in accordance with applicable
legislations.

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Operational Rules Booklet
Article (1) Definitions
The following words and expressions shall have the meaning set opposite each of
them unless otherwise required for the context:
UAE : The United Arab Emirates.
SCA : The Securities & Commodities Authority.
Market : Abu Dhabi Securities Exchange
Company (P.J.S.C).
Board : The Market Board.
Chief Executive : the Chief Executive of the Market
E-trading System : The electronic trading system in use at
the Market.
Securities : Shares, bonds and promissory notes
issued by joint stock companies; bonds
and promissory notes issued by federal
or local governments, public authorities
and public organizations in the UAE;
as well as any other local or non-local
financial instruments acceptable to SCA.
For the purposes of these rules, every
financial instrument that can be listed
and traded on the Market shall be
deemed Securities.
Brokerage
Company (Broker)
: A juristic person licensed by SCA to
practice Brokerage activities.
Brokers’ and
Brokers’
Representatives
Register
: The register held by the Market to keep
all information related to Brokers and
Brokers’ representatives operating at the
Market.
CHAPTER 3
Broker and Trading Rules

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Operational Rules Booklet
Authorization : The request submitted by a Client to a
Broker authorizing the Broker to buy
or sell any security based on certain
conditions set by the Client pursuant to
these rules.
Order : Information sent to the E-trading System
by the order operator, which, minimum,
include Securities code, quantity, and
required price, as well as the trading
account number of the Investor, and
time of entering the order.
Buy Order : The order sent to E-trading System to
buy a certain security.
Sell Order : The order sent to E-trading System to sell
a certain security.
Trading Session : The period during which transactions
on securities are executed, through
entering, modifying or cancelling orders,
and executing transactions. Trading
sessions are divided into several periods
based on these rules.
Closing Price : The balance price between offered and
ordered quantities calculated by the
E-trading System after the completion
of the price ticks process, in accordance
with the calculation standards set out in
these rules.
Deal : Matching between a buy order with a
sell order through the E-trading System
in use at ADX.
First: Brokers’ Rules
Article (2)
Broker Registration
For practicing Brokerage, licensed Brokers should be registered at the ADX
according to the following conditions:
1) The Broker shall have a valid license issued by the SCA to practice
Brokerage business.

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Operational Rules Booklet
2) Any other conditions, requirements or documents required by the
management of the Market.
3) Payment of the due fees as per the list of fees approved by the Market
4) The Broker when registering for the first time shall continuously meet all
licensing conditions pursuant to SCA applicable decisions.
Article (3)
1) The application for registration of the Broker with the Market shall be
submitted on the form prepared for that purpose, with an acknowledgment
that all the information and data contained in the registration application,
as well as the submitted documents, are correct and complete, and that
the applicant is fully responsible for the correctness and accuracy of the
information, data and documents.
2) The Market shall register the Broker in the Brokers’ Register based on the
registration request meeting all conditions and requirements.
Commencement of Brokerage
Business
Article (4)
For the Brokers to commence business after registration with the Market, the
following conditions shall be fulfilled:
1) Complete the connectivity process with the E-trading System according to
the conditions and requirements set by the Market in this regard along with
paying the fees required considering the list of the fees approved by the
Market.
2) Obtain access credentials (username) to the E-trading System and E-clearing
System along with paying the fees required in light of the list of fees
approved by the Market.
3) The Broker shall set the date to commence providing Brokerage business
after meeting all conditions and requirements.
Cancelation of Brokers Registration
Article (5)
The Market shall cancel the Broker Registration based on the Authority’s decision to
cancel its registration. The refund of the fees shall be as per the list of fees approved
by the Market.

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Operational Rules Booklet
Capital Adequacy
Article (6)
The Broker shall always keep the capital adequacy required for providing
Brokerage services to fulfill the obligations thereof pursuant to the standards
issued by the Authority in this regard.
Compliance
Article (7)
The Broker shall comply with the provisions of the applicable laws as well as the
regulations, rules, decisions and circulars issued by the Authority and the Market.
Providing the Market with Reports, Documents and Information
Article (8)
The Broker shall provide the ADX with the following reports, documents and
information:
1) Preliminary financial statements (quarterly and semiannual) audited by the
Firm’s external auditor within 45 days from the end of the specified fiscal
period and audited by the Chairman of Board, or the General Manager or by
the authorized signatory.
2) Audited annual financial statements audited by the Firm’s external auditor
within three months from the end of the specified fiscal period and audited
by the Chairman of Board or the General Manager – as appropriate – or by
the authorized signatory.
3) Any approvals issued by the Authority or any other competent authority
regarding:
A) Adding an activity to, omitting or modifying an activity in the commercial
license, or any other approval issued by the Authority to practice any
activity related to financial services.
B) Amending the Brokerage Company’s Articles or Memorandum of
Association.
C) Increasing or decreasing capital.
D) Carrying out mergers or acquisitions
E) Changing the address, headquarters or branch.
F) Changing partners or modifying the percentages of their ownership.
4) Any other financial data or reports required by the Market.
5) Any other information or documents required by the Market for the
purposes of control of trading, investigation of violations or complaints.

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Operational Rules Booklet
Second: Trading
Trading through Brokers
Article (9)
1) Securities on the Market shall be traded under contracts that are concluded
between the Brokers for their own benefit or for the benefit of their Clients.
2) Trading transactions at the Market shall be proven by the E-trading System
outputs.
3) The E-trading System outputs shall be deemed legal evidence on the trading
transactions stated, unless otherwise is proven.
Article (10)
1- A person wishing to trade in securities listed in the market must open a
trading account with a broker.
2- It is not permissible to open more than one trading account for each
investor with a single broker, except for the following:
a) Opening trading accounts for legal persons or investment funds
according to the procedures set by the market.
b) Custodian accounts and accounts related to special types of trading
such as margin accounts and accounts for lending and borrowing
securities and others, according to the market rules.
3- The broker opens trading accounts for his clients on the electronic
market systems designated for this purpose.
Article (11)
1) No Broker shall trade in Securities in favor of any of the Clients thereof
except after concluding an agreement therewith to prove the rights and
obligations of both parties in accordance with the decisions issued by the
Authority.
2) No Broker shall dispose of the cash and Securities owned by any of the
Clients thereof except in accordance with the provisions of the legislations,
regulations, rules and provisions of the agreements signed with the Clients.
3) The Broker may not under any agreement concluded thereby restrict the
obligations thereof specified by the applicable legislations or may not obtain
an exemption from such obligations. Any other condition in contrary shall be
invalid.
4) Any condition in the Client’s agreement in breach of the applicable
legislations shall be deemed invalid.

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Operational Rules Booklet
Authorization Issued by the Client
Article (12)
1) the Broker is prohibited from entering any Buy or Sell Orders in favor of a
client thereof before obtaining an Authorization from the Client to take such
action.
2) The Client Authorization shall be in writing and may be given by a telephone
or in the form of a fax or an email and may be in the form of a letter
or electronic information that are sent or delivered by any electronic or
telecommunications means such as smartphone applications.
3) The Broker shall bear the onus of proof that the Broker obtained an
Authorization from his Client and shall bear the burden of keeping and
archiving any documents, records, or electronic or written information
exchanged with the client thereof for a period that is no less than (10) years
or any other documentary cycle prescribed by effective laws. The Broker shall
be responsible without limitation for the following:
A) Obtaining the Client signature on the written Authorization Form and
keeping photocopies therefrom.
B) Recording and archiving the phone calls and Authorizations given by
phone.
C) Ensuring the validity of the Authorizations given by fax, email or
broker’s website, and keeping and archiving such Authorizations.
D) Preservation and archival of electronic letters, documents, records
or information as per the conditions set by the applicable laws
concerning electronic transactions.
E) Agreement and electronic register to access electronic systems and
smart phone applications.
4) The Authorization shall include all the data specified by the Authority under
its decisions.
5) The Broker shall enter the Buy and Sell Orders in the E-trading System
immediately upon receiving the related Authorizations provided that such
entry shall take place according to the priority of Authorizations received.
6) The price in the Authorization shall be at a specific price that cannot be
raised in buying or decreased in selling, or the Authorization shall be at the
Market price.
Right to Access the E-trading System
Article (13)
1) The Market shall give the right to access the E-trading System to the
Representatives of:

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Operational Rules Booklet
A) The Broker.
B) Market maker (liquidity provider)
C) Any other licensed entity the Market decides to grant access.
2) No natural person shall enter or send Buy or Sell Orders to the E-trading
System unless such person is granted the right to access by the Market.
3) The parties mentioned in Clause (1) above may use any other electronic
means or program that enters or sends the Orders to the E-trading System
and may grant the access to such electronic means or program to the
Representatives or Clients thereof, provided abidance by the regulations set
by the Market in this regard.
4) The person entering or sending the Order as stated in Clause (1) above shall
be responsible for all Orders entered into the E-trading System. In all cases,
such person shall be accountable for the violation of the Market rules and
E-trading requirements.
Notifying Clients of Executed Transactions
Article (14)
The Broker shall notify the Client of the transactions executed and not executed in
accordance with the decisions of the Authority.
Obligations of the Broker toward Client Orders
Article (15)
If the Broker has an interest in the transaction to be executed in favor of the Client
or has any relation to the said transaction which may lead to a conflict of interest,
the Broker shall take the appropriate procedures that ensure the Client interest and
fair treatment, which shall include informing the client of the broker’s interest, and
the client shall have the right to refuse the transaction.
Article (16)
1) In case any Order is executed in violation of the legislation, decisions and
rules of the Market, articles of associations of the listed companies, or in
violation of the trading orders issued by the Client, the Market shall have the
right to compel the Broker to resell or repurchase the respective Securities or
any part thereof to restore to the situation to condition before executing the
breaching Order.
2) In case a profit is made from the resale or repurchase transaction according
to the provisions of paragraph (1) of this Article, the concerned Broker shall
abide by transferring such profit to the Market. In case a loss is incurred it
shall be borne by the Broker, and the Broker may have recourse to the client,
if it is proved that the violation was caused by the client.

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Operational Rules Booklet
3) Taking the procedures stated in paragraphs 2 and 3 of this Article shall not
prevent the Market from taking any disciplinary procedure against the
violating Broker as per the decisions and rules.
Article (17)
1) The Broker shall ensure that the Client thereof already owns the said security
before entering the Sell Order. Transactions conducted according to the short
selling rules and derivative futures trading shall be excluded.
2) The Broker shall pay the Client thereof the value of the sold Securities less
the commissions and fees due during the period agreed between the parties.
3) The buyer customer is obliged to pay the value of the securities purchased
for his or her benefit prior to the execution of the purchase by his or her
client. The broker, with full responsibility, may perform the execution before
the customer makes the payment and after verifying the customer’s ability
to pay the value of the purchases of the securities prior to the settlement
date. If the purchases and sale of the securities at the same trading session
are carried out, there must be a cash balance in the client’s account covering
the purchase value and clearing between the purchases and the sale of the
securities at the same trading session shall be negligible.
4) If the buyer client fails to pay the value of the purchased Securities plus the
accrued commissions during the settlement period, the Broker must sell the
said Securities in a period of one business day maximum from the settlement
date in accordance with the following procedures:
a) To sell upon obtaining the approval of the Market
b) To sell with the Market rate
c) The Broker shall bear the loss arising from the sale
d) The Broker shall bear the loss arising from the sale if he fails to abide by
the above procedures
e) in all cases, to deposit any profit resulting from the sale of the above
securities in accordance with the mechanism determined by the Market
5) As an exception from the previous clause, DVP clients transactions shall be
settled in accordance with the settlement system on DVP basis.
Cash Dealing with Clients
Article (18)
The Broker shall, when having cash dealings with the Clients thereof, comply with
the laws, regulations, decisions, circulars and rules applicable in the UAE concerning
money laundry and terrorism finance and the relevant decisions issued by the
Authority.

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Operational Rules Booklet
Official Trading Days
Article (19)
1) The Board, after the Authority’s approval, shall set the official trading days
and trading session times at the Market.
2) The Market management, after the Authority’s approval, shall set official
holidays and the dates of trade resumption.
3) The Market management shall announce the decisions related to trading
days, sessions and holidays.
4) The Market shall notify the Brokers and financial institutions operating in the
Market immediately in case there is any change in the timetable of trading
sessions due to emergencies.
Price Limits and Circuit Breaker
Article (20)
The board of directors determines the percentage of the security that is allowed to
rise from the previous closing price, as well as the percentage of the security to fall
from the previous closing price, in one trading day.
Article (21)
The Market Board shall set the Circuit Breaker procedures under which the Market
shall have the right to suspend trading manually or automatically on a specific
Security for a specific period if the price thereof changed by a certain percentage -
up and/or down at the discretion of the Board of Directors- during the same trading
session.
Article (22)
The Market may cancel the effect of any transaction when calculating the closing
price of a specific Security if the execution of such transaction was aimed to impact
the closing price of such Security.
Broker Trading for its own Account
Article (23)
All Representatives and staff of the Broker shall be prohibited from trading in the
Securities listed on the Market except through the Broker for whom they work. The
Market may exempt certain cases.

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Operational Rules Booklet
Request for Modifying Entered Account Number
Article (24)
1) The Broker may request a modification of the trading account number in a
particular transaction in the event of an error in the entry into the trading
system, by submitting a request through the electronic trading system,
including the details of the deal.
2) The Market may take all the procedures and request all the documents that
it deems fit to ensure that the reason for modification is an error in the entry
into the E-trading System.
3) The modification request shall be submitted within 30 minutes from the
close of trading session. When necessary, the Market may approve the
modification request after the said time.
4) The Broker shall be subject to accountability and regulatory procedures if
the Market finds that the modification request was not made because of
an entry error and that the request was aimed at making gains or avoiding
losses for the Broker or the Client. The Market may return to the previous
condition before making such modification.
Cancelation of Orders or Transactions by the Market
Article (25)
1) The Market shall have the right to cancel any Order or Deal when there is
a technical glitch in the Market electronic systems, especially if the prices
or quantities of such Orders lead to suspending the trading on any listed
Security.
2) The Market shall assume no responsibility for compensating any of the
Brokers or Investors as a result of canceling any executed or non-executed
Order pursuant to Clause (1) of this Article, provided the error is beyond the
control of the Market, due to an emergency or force majeure and not as a
result of their negligence or omission.
The Market Exemption from Responsibility
Article (26)
The Market shall assume no responsibility for any damages or losses incurred by
any registered Broker or Investor as they deal or use any of the facilities or services
provided by the Market as long as the error is beyond the control of the Market,
due to an emergency situation, or force majeure, and not due to their negligence
or omission. Particularly, the Market shall assume no responsibility in any of the
following cases:
1) The Broker failure to access the E-trading System

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Operational Rules Booklet
2) The Broker failure to use any of the Market electronic systems
3) The delay in the availability of the information related to the prices and
quantities of traded Securities to the Brokers and Investors.
ADX Trading Procedures
Article (27)
The Broker shall comply with all regulatory, administrative and technical procedures
set by the Market to regulate the trading process in the Market.
Negotiated and Big Block Transactions
Article(28)
1- For the purposes of these rules, negotiated transactions mean transactions
in which the seller and buyer agree on the number of shares, their price and
all other details outside the order book and are executed within the window
designated for this type of transactions in the electronic trading system,
provided that the minimum requirements specified by the market in this regard
are met.
2- A negotiated transaction is considered a big block transaction if the number of
securities or their value exceeds the limit determined by the market, in which
case the market’s prior approval is required to execute the transaction within
the window designated for negotiated transactions in the electronic trading
system.
3- It is required for the execution of a negotiated and big block transactions that
they do not violate the decisions of the Authority or the market rules, and
that their execution does not lead to a violation of the company’s articles of
association.
4- Trading commissions on negotiated and big block transactions are calculated
based on the execution price or the closing price of the company’s share on the
day prior to the execution of the transaction, whichever is higher.
5- The negotiated and big block transactions executed in the market do not affect
the calculation of the closing price of the company’s shares and the price index,
nor do they affect the highest and lowest prices executed during the session
and during the last (52) weeks.
6- Big block transactions are subject to the disclosure procedures applicable in the
market.
7- The electronic trading system’s using guide referred to in Article (31) of these
rules specifies the conditions that must be met for any transaction to be
considered a negotiated or big block transaction, whether in terms of the
number of shares, their value, the price limits allowed for execution, or any
other conditions specified by the guide.

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Operational Rules Booklet
8- No big block transaction may be executed if the applicable legislations require
obtaining the approval of any regulatory authority in the country, before
providing the market with such approval.
Sale of unpaid securities
Article (29)
1- The listed company may submit a request to the market to sell the securities of
shareholders who have not paid the installments due from the value of their
shares on the date specified by the company. The request must include the
following:
- Evidence that the company has requested the due installments and specified
the date of payment of the installments.
- Evidence that the company has notified the shareholders who are in arrears
in paying the due installments by registered letters of the necessity of paying
those installments and the lapse of a period of thirty days from the date of
sending the registered letters.
- The decision of the company’s board of directors to approve the sale of the
shareholders’ securities, who are in arrears in paying the due installments.
- A list of the names of shareholders who are in arrears in paying the due
installments.
2- The market, after verifying the availability of the conditions set forth in Clause
(1) of this article and in coordination with the company, shall determine the
date of selling the securities, the company shall announce through one of
the local newspapers in the country the date of sale and that shareholders
can pay the installments due from them during the period mentioned in the
announcement.
3- The company shall provide the market with a final list of the names of
shareholders who have not paid their due installments by the end of the day
specified in Clause (2) of this Article.
4- The market shall transfer the shareholders’ shares included in the final list to a
special account at the depository.
5- The market shall assign one of the brokerage companies operating in the
market, according to the procedures followed by the market, to implement
the sale process in the market according to the same controls followed for
selling shares under judicial orders, provided that the brokerage company, after
implementing the sale process, shall issue a check in the name of the listed
company for the proceeds of the sale process, minus the commissions due on
the sale process, and deliver the check to the market.
6- The market shall deliver the check to the listed company

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Operational Rules Booklet
Selling securities based on the orders of the courts and competent authorities
Article (30)
- The market shall sell securities based on the order of the court or competent
authority, considering the following:
a. Selling securities during the trading session.
b. Selling securities through brokers operating in the market, according to the
mechanism determined by the market.
c. Securities sale orders are entered by brokers at the market price.
d. The market may follow any procedures it deems necessary to avoid affecting
the price of the security being executed.
e. The broker who undertook the sale process shall issue a check for the
proceeds of the sale (the price of the securities minus the due commissions)
in the name of the party that requested the sale and deliver it to the market,
which in turn shall send it to that party in an official letter, including all
reservations and mortgages on the securities that were sold - if any.
Guideline of using the electronic trading system
Article (31)
The CEO shall issue the electronic trading system’s using guide .

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Operational Rules Booklet
Article (1)
Definitions
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
Companies Law : Federal Law No (2) of 2015 concerning the Commercial
Companies Law, as amended.
Law : The Federal Law No. (4) of 2000 concerning Emirates
Securities and Commodities Authority and Market, as
amended.
Authority : Securities and Commodities Authority.
Market: : Abu Dhabi Securities Exchange.
Securities : Shares, stocks, bonds, promissory notes issued by the
shareholding companies, bonds and promissory notes
issued by the federal government, local governments,
general authorities and corporations in the state and any
other local or non-local financial instruments acceptable to
the authority.
Brokerage Company : The brokerage company authorized by the Authority to
practice financial brokerage activities.
Market Making : The activity which mainly depends on providing continuous
prices for the purchase and sale of a certain security with
the aim to increase the liquidity on such security.
Market Maker : The corporate body incorporated in the state having the
license from the Market to practice market making activity
in the state.
Foreign Market
Maker
: The Market Maker incorporated abroad, or in a financial
Free Zone within the state having the approval of the
Market to practice the activity of Market Making in the
state.
CHAPTER 4
Market Maker Regulations

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Operational Rules Booklet
Eligible Securities : Securities that comply with the standards set by the Market
and that are tradable with the support of Market Makers.
Article (2)
Practicing the Market Making Activity
Market making activity may not be practiced in the state without obtaining a license
or approval from the Market in accordance with the terms, conditions and procedures
stipulated in these regulations and the technical requirements set by the Market.
Article (3)
Conditions for practicing the activity
To practice the activity of Market Making a license or approval of the Market shall be
obtained in accordance with the following:
First: obtaining a license from the Market in accordance with the following
conditions:
1. The applicant for the license shall take one of the following forms:
a. A company established in the state with one of its purposes be to
practice Market Making or licensed by the Authority with the compliance
of preventing conflict between activities regulations issued by the
Authority.
b. A commercial bank or investment company licensed by the United Arab
Emirates Central Bank, or a branch of a foreign bank, provided that the
parent bank of the foreign bank is licensed to practice Market Making, and
subject to obtaining the approval of the United Arab Emirates Central Bank
in any of these cases.
2. The paid up or allocated capital for practicing Market Making may not be less
than AED (30) million or its equivalent in any other currency
3. Availability of financial solvency and qualified administrative and technical
staff to practice Market Making in accordance with the conditions and
regulations set by the Market.
4. The availability of electronic programs and technical systems required to
conduct the activity in accordance with the requirements, conditions and
regulations set by the Market.
5. Make available professional code of conduct manual, company internal
procedures manual and risk management regulation.
6. The applicant for the license shall meet the conditions of the license on an
ongoing basis

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Second: the Foreign Market Maker shall obtain the approval of the Market to
conduct the activity in accordance with the below conditions:
1. The applicant for approval must be a foreign company licensed to conduct
Market Maker activity in the country incorporation by a regulator similar to the
Authority, member of the International Organization for Securities Committees
(IOSCO), and applies rules and procedures similar to that applied in the State
with regard to Know Your Customer (KYC), Customer Due Diligence (CDD)
and Anti-Money Laundry/Combating the Finance of Terrorism (AML/CFT), or a
company licensed to conduct Market Making activity in a financial free zone
within the State.
2. The Foreign Market Maker shall obtain the approval of the competent
authority to conduct the Market Making activity within the state if foreign
company, or meet the conditions of the Cabinet of Ministers in relation to
registration if a company established in a financial free zone within the state in
accordance with the Companies’ Law
3. The similar regulator in the country of incorporation shall deal similarly with
the Market Maker licensed within the state.
4. The Foreign Market Maker shall have at least five years’ experience in the same
field
5. Contract with a brokerage company licensed in the State (member of the
Market) to execute the orders through it.
Article (4)
Application to conduct Market Making Activity in the Market
The applicant for the license or approval to practice the Market Making activity shall
apply to the Market using the form prescribed for this purpose, together with the
information, data and supporting documents, in particular:
First: The Local Applicant
1. The legal form of the applicant and a list of names of the members of the
board of directors, the executive management and persons authorized to sign
and submit the application.
2. A report clarifying the document keeping system relating to the practice of the
activity.
3. A Report clarifying the regulations and basis of internal control and financial
audit
4. If the applicant is an entity authorized by the Authority to practice any
other activity or financial services, a letter from the Authority indicating the
following:
A. The company did not commit any material violations of financial solvency
standards or the rules of separating the accounts approved by the
Authority within the six months preceding the date of submitting the
license application.

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B. Availability of the financial solvency required for the company to practice
the activity in accordance with the standards issued in this regard.
Second: Applicant for Foreign Market Maker Approval
1. No objection from the regulator like the Authority in the country of
incorporation, or from a regulator in the financial free zone if incorporated in
such zone.
2. Submit an undertaking to the Market to disclose any information it may
request and any changes to its organizational and financial status, that have
impact on its conduct of the activity, or any decisions taken against it in
the country or incorporation, any other country or the free zone wherein it
practices the Market Making activity.
3. Provide the Market with a copy of the contract concluded between Foreign
Market Maker and the brokerage company licensed in the state (member of
the Market)
Third: The Market may request other clarifications, information or documents if it is
deemed necessary.
Article (5)
The Market Decision
1. The Market shall issue its decision to approve or decline an application within 5
five working days from the date of submitting the application that satisfies the
conditions, requirements and technical standards set by the Market.
2. The applicant shall register the approval issued by the Market with the
Authority within (5) working days from the date of its issue, provided
registration renewal is carried out with the Authority at least one month prior
to expiry.
Article (6)
Collaterals required from the Market Maker
1. The Market shall determine the type and amount of the collaterals to be
provided by the Market Maker
2. The brokerage company executing the Foreign Market Maker’s orders shall
verify its financial solvency and ability to meet its obligations, and the Market
shall determine the type and number of collaterals that shall be provided by
the brokerage company.

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Article (7)
Market Maker Obligations
Without prejudice to any other obligations prescribed by any law, regulations,
decisions or circulars issued by the Authority, the Market Maker undertakes as
follows:
1. To sign an agreement with the Market prior to commencing the activity,
that shall include the conditions, requirement and regulations of its business
and trading in the Market and shall state the eligible securities under its
responsibility.
2. Shall notify the Market about any unusual trading in the securities under its
responsibility.
3. Refrain from using the Market Maker facilities to trade on behalf of the clients.
4. To maintain the financial solvency required to conduct the activity in
accordance with the solvency standards issued by the Authority, or the
standards issued by the regulator for the Foreign Market Maker
5. Provide the Market with the following reports:
a. A monthly report of profit and loss and the size of the portfolio with
respect to the activities of Market Making.
b. The quarterly financial statements audited by the account’s auditor, if the
Market Maker is a company practicing Market Making activities only.
c. The audited annual financial statements if the Market Maker is a company
practicing Market Making activities only.
d. A semi-annual report on the internal control function covering the
following aspects as a minimum:
• The procedures of organizing internal control.
• a list of internal control processes implemented and their outcomes.
• a list of issues discovered and the corrective action plan, especially those
related to market risk, settlement and liquidity.
6. Retain commercial records, registers, statements, data and information relating
to trading and practicing the activity for a period not less than (10) years and
retain an electronic back-up copies of such data for the same period.
7. Practice the activity and exert the care of a prudent person in accordance
with the provisions of the law, regulations, decisions, rules and circulars
issued pursuant thereto, considering commercial norms in this regard and the
principles of honesty, justice and equality

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Article (8)
Market Maker Trading
1. The Market shall determine trading numbers for the Market Maker so that
it is distinguished from the other trading numbers and to ensure a complete
separation between the activity of the Market Maker and any other activity it
practices
2. The Market trading system shall determine the transactions relating to the
Market Maker and classifies them as from the Market Maker.
3. The Market Maker shall enter the orders in the trading system directly or
through a brokerage company (member of the contracting market) in the
event of Foreign Market Maker.
4. The Market Maker shall have the same priorities of other investors in executing
transactions
5. The Market Maker trading transactions shall be subject to the laws of the
Authority, the regulations, decisions, rules issued pursuant thereto and the
provisions of these regulations.
6. The Market Maker shall enter the bid or ask orders executable on eligible
securities under its responsibility without violation or contradiction with the
data set forth in the agreement concluded between the Market Maker and the
Market, including:
a. Minimum Orders Size
b. Maximum difference between bid and ask orders
c. Minimum presence of Market Maker’s Orders in orders book in a
continuous trading session during the day
d. Refresh bid and ask orders over minimum time period, and refresh the
same on executing bid or ask orders or both in full and on cancellation of
the order or expiry of its duration.
e. The entered bid or ask order should be within the best number of requests
determined by the market, in the orders register at the time on which the
Market Maker’s order is entered.
7. The Market Maker shall be exempted from its obligations to enter executable
bid and ask orders on eligible securities in the following conditions:
a. During scheduled and unscheduled bidding periods, such as opening bid
period and closing bid period
b. During suspension of trading in the eligible security under its responsibility.
c. Exceeding the permitted ownership limits
d. Exceeding its permitted trading ceiling

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e. During the opening and closing periods
8. The Market may exempt the Market Maker from its obligations, wholly or
partially, based on a request submitted by it, in accordance with the conditions
and in such cases as provided for in the agreement, or circumstances at the
discretion of the Market
Article (9)
The Facilities granted to the Market Maker
1. The Market Maker may practice short selling, Securities lending and borrowing
in accordance with the regulations of the Market in this regard
2. If an issuer of covered warrants is acting as a Market Maker for such covered
warrants it will be exempt from complying with the requirements of the
minimum number of covered warrant holders for the issuance value.
3. A security may have more than one Market Maker.
Article (10)
Cancellation of Eligible Security Registration
1. The Market Maker may request the cancellation of the registration of the
eligible security under its responsibility after the lapse of the minimum
duration provided for in the agreement.
2. The Market may cancel the registration of a security or more of the eligible
securities under the Market Maker responsibility if it sees that the performance
of the Market Maker does not serve the interests of the Market
Article (11)
The Market Disclosures
1. The Market, at the beginning of each financial year, publishes a list of the
securities eligible for Market Making, and have the same updated as required
2. The Market shall publish any license or approval to practice the activity of
Market Making and the eligible securities under its responsibility, as well as
the cancellation of any license or approval of any Market Maker through the
website of the Market or any other mean as the Market deems appropriate.

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Article (12)
Control and Inspection of the Market Maker
1. The Authority may perform oversight and inspection over the Market Maker to
ensure its compliance with the Authority’s law, regulations and decisions issued
pursuant thereto.
2. The Authority may perform periodical oversight and inspection over companies
practicing Market Making to ensure their compliance with the Authority’s
law, regulations, the decisions issued pursuant thereto and regulations of the
Market and shall notify the Authority with any violation committed and the
penalties imposed on it.
Article (13)
Suspension and Cancellation of the License or approval
1. The Market may suspend the Market Maker from Market Making if the Market
establishes that the Market Maker’s performance does not serve the interests
of the Market, or upon the expiry of the agreement concluded between them,
without effecting its previous obligations.
2. The Market may cancel the approval of the Market Maker in any of the
following cases:
a. Failure to comply with any of the conditions of the license or approval
stipulated in the Law, regulations, decisions, controls, or instructions issued
in implementation thereof.
b. Serious breach of any of the duties or obligations set out in the Law,
regulations, decisions, controls or instructions issued in implementation
thereof.
c. Failure to pay the applicable fees or the imposed fines
d. The passing of a final court judgment declaring the licensed company
bankrupt.
e. The winding-up or liquidation of the licensed company.
f. The Market Maker is becoming subject to an investigation involving
suspicious fraud or breach of trust whether within the State or abroad.
g. Pursuant to a decision from the Authority
3. The decision to cancel the license of a Market Maker shall, at the company’s
expense, be published in two daily newspapers issued in the State with at least
one in the Arabic language.

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Article (1)
Definitions
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
Authority : Securities and Commodities Authority
Market : Abu Dhabi Securities Exchange
Securities : Shares, stocks, bonds, promissory notes issued by the shareholding
companies, bonds and promissory notes issued by the federal
government, local governments, general authorities and
corporations in the state and any other local or non-local financial
instruments acceptable to the authority.
Liquidity
Provision
: the service under which a market maker undertakes to improve
the liquidity of a listed security based on a liquidity provision
agreement with the issuer of that paper.
Liquidity
Provider
: A market maker engaged with an issuer of a listed security in
order to provide liquidity on that security in accordance with the
provisions of this regulation.
Market Maker : A corporate person licensed or having the approval of the Market
to practice the activity of the Market Making in the State.
Authorized
Commissioner
A legal person with Market approval to practice the activity of the
Authorized Commissioner in accordance with the provisions of
these Rules shall be appointed by the Traded Indicators Fund and
the commodities fund to assume the functions of requesting the
issuance, recovery or sale of the units of the traded Indicators Fund
and the commodities fund with a view to maintaining the prices of
the traded Indicators Fund and the commodities fund in fair value.
Brokerage
Company
A trading broker or a trading and clearing broker licensed by the
Authority.
CHAPTER 5
LIQUIDITY PROVIDER RULES

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Article (2)
Approval for providing Liquidity Provision Service
Liquidity provision shall be conducted only by the Market Maker after obtaining the
Market approval in accordance with the terms, conditions and procedures stipulated
in these Rules and the technical requirements set by the Market.
Article (3)
Conditions for Approval
The Market Maker shall meet the following conditions to provide Liquidity Provision
service
1. Validity of the license of approval issued by the Market to practice the market
making activity
2. Payment of the Market fee
3. the Market Maker shall have the technical and administrative capabilities
necessary to provide the service
4. conclude a liquidity provision agreement with the issuer of listed security
regarding the provision of liquidity to that security, provided that the agreement
includes the regulation of the relationship between them and all mutual rights
and obligations, and in particular:
a. determine of the Security subject matter of the agreement
b. state the content and objectives of liquidity provision for such a security and
the duration of the agreement
c. Minimum order volumes.
d. Maximum difference between a sell order and a buy order.
e. Minimum ratio of the duration of liquidity provider orders in the order books
to the duration of the continuous trading session during the day.
f. Updating buy and sell orders over the minimum period and updating them
when the sell order or the buy order or both are fully executed and when the
order is cancelled or expires.
g. The entered buy or sell order must be within the best number of orders
determined by the market entered in the order book at the time the liquidity
provider order is entered.
h. State whether the Liquidity Provider is the exclusive Liquidity Provider for such
a Security, or whether the issuer may contract with other Liquidity Providers for
the same Security.

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i. The fees payable to the Liquidity Provider in return for the service
j. The mechanism of terminating the agreement in terms of the procedures that
should be followed and means of notification.
k. Determining the real owner of the security subject to the agreement to whom
the profits and assets of the company shall accrue upon its liquidation, as well
as how to vote on the decisions of the general assembly.
Article (4)
Application for Approval
First: it is a condition for the Market Maker to provide the Liquidity Provision service
to submit an application to the Market in accordance with the form prescribed
for this purpose together with the information, data and supporting documents,
particularly the following:
1. A copy of the valid license or approval issued by the Market on the practice of the
activity of Market Making
2. A report clarifying the Liquidity Provision documents keeping system
3. Liquidity Provision agreement form including all the information and data
Second: The Market may request any clarifications, information, or other documents
if it deems necessary
Article (5)
The Market Decision
1. The Market shall issue its decision to approve or reject the application within
five(5) working days from the date of submission of the application, complying
with the conditions, requirements and technical standards set by the Market
2. The Market Maker shall register the approval issued by the Market with the
Authority within a period not exceeding (5) working days from the date of issue,
provided the annual renewal of the registration is done at least one month prior
to its expiry.
Article (6)
The Liquidity Provider’s Obligations
1. Without prejudice to any other obligations set out in the law, regulations,
decisions of the Authority, the Liquidity Provider undertakes as follows:

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a. Refrain from performing Liquidity Provision functions for listed Securities
before signing the agreement for Liquidity Provision with the issuer and
obtaining the approval of the Market.
b. The ownership of the security subject of the agreement shall not exceed, in any
time, (5%) of the total number of the issued security.
c. Notify the Market and the Authority of any irregular trading in the securities
under its responsibility.
2. Without prejudice to any other obligations set out in the law, decisions and
circular of the Authority, the Liquidity Provider shall be obliged towards the
exchange traded fund and commodities fund with the following:
a. Provide sale and purchase orders of the Fund’s units to make
them available for execution through the means of trading in
the relevant market to ensure the required liquidity based on
the net asset value of the declared unit or on the indicative
value of the unit’s net asset value during daily trading.
b. The difference between the buying and selling prices shall not
exceed the agreed-upon margin as stated in the offer document.
c. Notify the Market and the Authority of any irregular trading in
the exchange traded fund and the commodity fund for which it
bears responsibility.
d. Cooperating with other liquidity providers of the investment
fund to ensure the performance of all the tasks entrusted
to them as required and to ensure the achievement of the
necessary liquidity for the fund units in the secondary market.
e. Provide the Authority, the Market and all parties associated with
the fund with the necessary information upon request.
f. Exercise the care of a prudent person when performing his
duties
Article (7)
The Security Issuer Disclosure
The issuer of the security subject of the Liquidity Provision agreement undertakes as
follows:
1. Disclose to the Market the name of the Liquidity Provider and the percentage
of the securities he is permitted to own under the agreement once executed.
The Market shall disclose such data to the public.
2. Disclose to the Market in the event of termination of the Liquidity Provision
agreement and the date of termination. The Market shall disclose the same to
the public.

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Article (8)
Market Functions
The Market carries out the following functions regarding liquidity provision activity:
1. Review the Liquidity Provision agreements
2. Identify the securities that can be subject of Liquidity Provision
3. Develop internal regulations to oversee and control Liquidity Providers
4. Ensure compliance with the procedures of terminating the Liquidity Provision
agreement in the event of termination of the agreement
Article (9)
General Provisions
1. Subject to the Market’s approval, Securities may have more than one Liquidity
Provider
2. A Liquidity Provider may also not be a Market Maker for the same Security.
3. Liquidity Provider does not benefit from the facilities granted to the Market
Maker in connection with the following:
a. Exemptions available to the Market Maker from certain disclosures
b. The exemption given to Market Maker from all or some of the trading
commissions
4. If the listed company is unable to sign a liquidity provision agreement for
justified reasons, the market may agree that a shareholder who owns a
percentage not less than the limit determined by the Market of the issued
shares of a company listed in the Market concludes an agreement with a
liquidity provider approved by the Market to provide liquidity on the shares
of the concerned company, provided that this shareholder and the Liquidity
Provider abide by any controls set by the Market in this regard .
Article (10)
Control and Inspection
1. The Authority may perform oversight and inspection over the Market Maker
in order to ensure its compliance with the Authority’s law, regulations and
decisions issued pursuant thereto.
2. The Authority may perform oversight and inspection over the Market Maker
in order to ensure its compliance with the Authority’s law, regulations,
the decisions issued pursuant thereto and regulations of the Market and

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shall notify the Authority with any violation committed and the penalties
imposed on it.
The Authorized Commissioner Rules
Article (11)
Practicing the Authorized Commissioner Activity
The Authorized Commissioner’s activity in the Market may not be practiced except
after obtaining approval from the Market in accordance with the terms, conditions
and procedures stipulated in these Rules.
Article (12)
Conditions for practicing the Authorized Commissioner Activity
To practice the activity of an authorized commissioner, it is required to obtain
approval from the market according to the following :
1. The applicant must be a broker, a commercial bank, or a branch of a foreign
bank, provided that the parent bank is licensed to engage in this activity, and
the approval of the UAE Central Bank is required if the applicant is a local bank
or a foreign bank branch. The paid-up capital allocated to this activity shall not
be less than (30) million UAE dirhams, or its equivalent in any other currency.
2. Availability of financial solvency, and qualified administrative and technical
staff necessary to engage in Market Making activity in accordance with the
conditions, rules and requirements set by the Market.
Article (13)
Application to practice the activity of the Authorized Commissioner
The applicant for approval to practice the activity of the Authorized Commissioner
must submit an application to the Market according to the form prepared for this,
together with the information, data and documents supporting the application and
which prove the fulfillment of the conditions specified in Article (12) of these Rules.
Article (14)
The Market Decision
1. The Market shall issue its decision approving or rejecting the application within
(5) five working days from the date of submitting the application, fulfilling the
conditions, requirements and technical standards set by the Market.

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2. The applicant must register the approval issued by the Market with the
Authority within a period not exceeding (5) working days from the date of its
issuance, provided that the registration is renewed annually with the Authority
at least one month before the expiry of its period.
Article (15)
Obligations of the Authorized Commissioner
Without prejudice to any other obligations set out in the law, decisions, or circulars
of the Authority and the Market, the Authorized Commissioner is obliged to the
following:
1. Contracting with the founder of the fund to carry out his duties
2. Cooperating with all parties related to the fund to develop a mechanism that
includes the tasks of each party, and a mechanism for exchanging assets, units,
documents and information.
3. Purchasing assets consistent with the fund index and transferring them to the
fund’s custodian to obtain new fund units equivalent to the value of those
assets that represent the index components, or returning the fund’s units in
exchange for the assets that are transferred to it from the fund representing
the index components or in exchange for what is agreed upon in accordance
with the concluded agreement between it and the founder in this regard.
4. To provide off-floor or primary market liquidity to liquidity providers at an
agreed price based on a declared net asset value (NAV) of the unit or an
indicative net asset value (INAV) in a manner that ensures that trading liquidity
is maintained in accordance with Market procedures.
5. Not to exceed the price difference between bid and ask in the agreed-upon
order book as specified in the prospectus.
6. Providing the Authority, the Market and all parties related to the fund with the
necessary information upon request.
7. Exerting the care of a prudent person when performing his duties.

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Article (1)
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
State: United Arab Emirates
Companies Law: Federal Law No (2) of 2015 concerning the Commercial
Companies Law, as amended.
Law: The Federal Law No. (4) of 2000 concerning Emirates
Securities and Commodities Authority and Market, as
amended.
Authority: Securities and Commodities Authority.
Market: Abu Dhabi Securities Exchange.
Clearing House: Clearing, Settlement, and Depository function of ADX,
carried out by the Clearing, Settlement, and Depository
Departments at ADX.
Securities: Shares, bonds and notes issued by the joint stock
companies, bonds, notes, and bills issued by the Federal
or local governments, public authorities and public
institutions in the State, and any other domestic or non-
domestic financial instruments considered as such by
SCA.
Brokerage Company: The brokerage company authorized by the Authority to
practice financial brokerage activities.
Covered Short Selling: The sale by a customer of borrowed securities or
securities confirmed to be lent in accordance with the
provisions of these Regulations.
Lending Agent: A Lending and Borrowing Agent approved to conduct
Securities Lending transactions on behalf of others.
Lender: The clearing house or any investor having an investor
number with the Market willing to lend securities to
the borrower in accordance with the provisions of these
Regulations and clearing procedures.
CHAPTER 6
COVERED SHORT SELLING

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Customer: A person having an investor number in the Market who
wishes to execute a CSS transaction in accordance with
the provisions of these Regulations.
Eligible Investor: The eligible investor as per the decisions issued by the
Authority
Delivery Versus Payment The decision of the Authority and the operational
procedures approved by the Market of the Delivery
Versus Payment form
Collateral: Cash amounts or securities deposited by the Customer
in the CSS account maintained with the Brokerage
Company according to the determined percentage of the
market value of the Securities intended for CSS trading
in accordance with the provisions of these Regulations.
Securities Lending and
Borrowing Rules:
The Market Rules related to Securities Lending and
Borrowing
Total Collateral: The Collateral amount plus the net value received from
selling securities short, in the CSS account.
Maintenance Margin: The Customer’s minimum contribution that must be
maintained in a CSS account to the market value of a
security at any time after the date of sale.
Uptick Rule: The CSS order price shall be above one tick size than the
last traded price or the current traded price is above the
previous trade price.
Article (2)
Preface
The Market Maker and the Liquidity provider shall be exempted from the obligation
of the broker.
Article (3)
Conditions for the Brokerage Company to obtain the approval to use CSS mechanism
In order for a Brokerage Company to obtain the Market’s approval, it shall:
1. Be licensed by the authority.
2. Holding an approval from the Market to carry out the margin trading activities.

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3. Has the technical and administrative capabilities and competence required to
conduct the CSS process and manage the concerned accounts.
4. Has the necessary financial solvency or capital adequacy to conduct the CSS
transactions in accordance with the relevant standards issued by the Authority.
5. Has not committed any material violations of the financial solvency or capital
adequacy criteria or the rules concerning the separation of accounts approved
by the Authority within the six months preceding the date of submitting the
application form for approval.
Article (4)
Application form for approval
The Brokerage Company, which wishes to exercise Covered Short Selling
mechanism, shall submit an application to the Market as per the form
designated for this purpose, together with the information, details and
supporting documents, particularly the following:
1. A report describing the technical system used to manage Covered Short Selling
accounts.
2. Holding an Order Management System (OMS) to distinguish the Covered Short
Selling orders from other orders and send a message to the Customer of the
content of the issued order.
3. An undertaking and report, audited and signed by the Brokerage Company’s
manager, the internal auditor, and the IT officer, showing that the order
Management System OMS meets the Uptick Rule requirements.
4. A report showing the system of keeping documents related to Covered Short
Selling transactions.
5. A report showing the Covered Short Selling internal control and auditing
regulations and controls.
6. Customer Agreement Form, including the following minimum information:
a) Statement of the Covered Short Selling service concept, and the risks
that the Customer may bear as a result thereof.
b) Determination of the Collateral ratio and Maintenance Margin.
c) A detailed description of the rights and obligations of both the
Customer and the Brokerage Company.
d) Determination of the method by which the Customer is to
be notified in case the Collateral value becomes less than the
Maintenance Margin.
e) An undertaking from the Customer to feed the Covered Short
Selling Account in case the Collateral value becomes less than
the minimum Maintenance Margin after being notified by the
Brokerage Company.

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f) The Customer’s express consent to the fact that Brokerage
Company shall retain the Collateral, to secure the repurchase of
the shares short sold.
7. The Market may request any other clarifications, information, or
documents as it may deem necessary.
Article (5)
1. The Market shall issue its decision approving or rejecting the application
within (5) five working days from the date of submitting the application,
fulfilling the conditions stipulated in these Rules.
2. The applicant must register the approval issued by the Market with the
Authority within a period not exceeding (5) working days from the date
of its issuance, provided that the registration is renewed annually with
the Authority at least one month before the expiry of its period.
Article (6)
Brokerage Company Obligations
The Brokerage Company shall be obliged on ongoing basis with the following:
1. Maintain financial solvency or capital adequacy according to the standards
issued by the authority.
2. Make sure that each Customer is financially solvent before executing
the sell order.
3. Limit the Covered Short Selling transactions to Covered Short Selling Eligible
Securities in accordance with the provisions of these Regulations.
4. Conclude a Covered Short Selling Agreement with each Customer wishing
to use such mechanism.
5. Open a Covered Short Selling /Securities Lending and Borrowing Account
with the Market for the Customer in order execute the Covered Short
Selling transactions.
6. Separate the Covered Short Selling /Securities Lending and Borrowing
Trading Account from any other account of the Customer.
7. Ensure that there are borrowed securities before executing the
Covered Short Selling order, with exception of Delivery Versus Payment
customers for whom it is sufficient to have an undertaking or a
confirmation that the securities will be lent to them.
8. Receiving collateral from the Customer with a value of no less than
50% of the market value of the Covered Short Selling designated
security calculated by the last closing/ reference price, prior to the sale
of the security, and retaining the Collateral plus the sale proceeds of
that security (Total Collateral) until the Customer’s financial position is
closed through repurchasing the securities short sold.

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9. The Brokerage Company, if it lent its Customer from its own account,
or in its capacity as a Lending Agent, shall have the right to acquire the
Collateral specified in Clause (8) of this Article, or the Collateral specified
pursuant to the Securities Lending and Borrowing Rules issued by the
Market, as it deems fit.
10. Enter and execute Covered Short Selling orders according to the Uptick
Rule.
11. Evaluate the securities regulated short sold at the market closing price
by the end of each working day, and inform the Customer immediately
if his contribution falls below 25% (Maintenance Margin ratio), by
applying the following formula: (value of the total Collateral minus
the market value of the securities short sold) + (the proceeds of the
securities short sold), in order for the Customer to cover the shortage
by increasing his contribution to more than Maintenance Margin
ratio, not later than the next working day at the agreed time between
Broker and Customer from the date of being notified of the same.
12. Allow the customer to withdraw the excess funds if his contribution
exceeds 50% according to the formula referred to in Clause (11) of this
Article.
13. Settle all Covered Short Selling transactions, without changing the specified
settlement cap during the specified settlement date in the market (T+2).
14. Not to transfer any securities from the Covered Short Selling account to
any other account, save the following:
a. In the event of returning the borrowed securities to the lender
b. If the securities to be transferred are additional securities and do not
represent a collateral to the Short Selling transaction, and the transfer of
which to the customer’s other account does not represent a breach of its
obligations pursuant to the provisions of these Rules.
15. Provide the Customer with a detailed monthly statement showing the
movements in the CSS account, including changes in the Collateral value.
Article (7)
Additional obligations towards delivery versus payment DVP customers
The Brokerage Company shall:
1. Ensure of the existence of an undertaking or confirmation included in the
Securities Lending and Borrowing agreement from the Lender to lend the
securities the subject matter of the Covered Short Selling Securities to the
Customer and ensure the Customer’s ability to deliver those securities on
the settlement day.
2. Maintain a locate confirmation record to keep the pledges or
confirmations made by the Lender to lend its Covered Short Selling
Securities to the Customer. The locate confirmation record must contain
the following details:

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a) Date and time of confirmation.
b) Quantity of securities
c) Name and type of securities.
d) Name or identifier Code of Lending Agent.
e) Name or identifier Code of Borrower.
f) Evidence of Lending Agent’s confirmation to hold the quantity
and type of securities, subject matter of the Covered Short
Selling, or SLHK Bloomberg.
3. Follow the delivery versus payment (DVP) procedures in case the Customer
fails to deliver the Securities sold on his Covered Short Selling /Securities
Lending and Borrowing account maintained with the Brokerage Company on
the T+2 settlement date.
Article (8)
Obligations of the Brokerage Company towards the Market
The Brokerage Company shall:
1. Provide a report to the Market if the Net Covered Short Selling positions of
0.2% of total issued capital and above in Designated Covered Short Selling
Securities and every subsequent 0.1% change up or down in Net Covered
Short Selling position must be reported.
2. Provide the Market with any report as may be required in relation to
conducting such transactions to ensure its control.
3. Obtain the Market’s prior approval for any subsequent modification to
the Order Management System and submit a technical report on the
compliance of the modified OMS with the Market’s requirements.
Article (9)
Covered Short Selling Eligible Securities
1. Based on the following criteria, the Market shall define the securities
eligible for short selling and shall review them every 6 months:
a. Securities turnover ratio.
b. The presence of a market maker.
c. Presence of a Liquidity Provider.
1. The Market has the power to change the said parameters and may conduct
additional reviews it deems necessary.

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Article (10)
Actions to be taken in the event the price of the security subject to CSS decreases
1. If the price of any Covered Short Selling Security decreases by 5% from the
previous day’s close price or goes limit down, Covered Short Selling activity
on that security will be suspended immediately for two trading days
including the day of suspension.
2. Covered Short Selling will resume on the 2nd trading day from suspension
period if there is no further 5% decrease in price or limit down event. For
example, if Covered Short Selling is suspended for a security today (T+0),
Covered Short Selling will resume on T+2 provided there is no 5% fall or
limit down in T+1.
3. If there is a further 5% fall in price or limit down in T+1, Covered Short
Selling for this security will remain suspended for two trading days, i.e.
T+1 and T+2 and will only resume on the third day after suspension, i.e.
T+3.
4. Covered Short Selling will resume only when there is one clear trading
day where there is no 5% fall in price or limit down of the Covered Short
Selling eligible security.
5. The exchange has the power to modify or change the above parameters
(on a market-wide or security-specific basis).
6. The Market has the capacity to suspend Covered Short Selling if the
practice will harm the security or the market.
7. The Market will suspend covered short selling for a security if the short
interest reaches 10% of the company’s issued capital.
Article (11)
Penalties
The Market may levy the following fines on the Brokerage Company if it fails
to deliver the Covered Short Selling securities on the settlement day, as follows:
1. AED 1,000 or 0.01% of the Covered Short Selling trade value whichever
is the higher if the settlement is made the day following the intended
settlement day (i.e. T+3)
2. AED 3,000 or 0.05% of the Covered Short Selling trade value whichever is
the higher if the settlement is made after two days following the intended
settlement day (i.e. T+4)
3. AED 5,000 or 0.1% of the Covered Short Selling trade value whichever
is the higher if the settlement failed to after two days from the
intended settlement date and the settlement is made through the cash
compensation of the Buyer. This fine shall be paid in addition to the buyer’s
cash compensation.

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In any case, the fine levied on the Brokerage Company shall not exceed the
maximum fine set out in the Authority’s Law and the regulations issued
pursuant thereto.

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Article (1)
The expressions and terms used in this document must have the same meanings
assigned to them; unless otherwise defined in the context of this document:
SCA : Securities and commodities Authority
Market : Abu Dhabi Securities Exchange (ADX)
Securities : Shares, bonds, and Sukuks issued by the Public
Joint Stock companies, besides the bills and
debentures issued by the Federal Government, the
Local Governments, the public entities, the public
institutions in the State (the UAE), the investment
components issued by investment funds, and any
other local or foreign financial securities branded as
such by the Council.
Market maker : The legal entity licensed to engage in market-making,
or the foreign market maker registered with ADX.
Brokerage
Company
: Trading broker or trading and clearing broker
Technical Short
Selling
: The process which the investor sells a security he does
not own and to commit to cover during the settlement
period (T+2)
Initial Margin : The amount of money deposited by the client with the
Brokerage Company for the Margin Trading Account
in accordance within the prescribed ratio of the
market value of the securities to be traded on margin
prior to executing the purchase order.
Collateral : The value of the initial margin with the amount
collected out of the sale of the securities deposited in
the technical short selling account.
Client : Natural or juristic person holding an investor number
in ADX.
CHAPTER 7
TECHNICAL SHORT SELLING RULES

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Authorized entity : The Brokerage company registered in ADX and
holding ADX approval to use the mechanism of
technical short selling.
Article (2)
The Market may, from time to time, define the clients who will not be
eligible to utilize the mechanism of the technical short-selling.
Article (3)
The conditions to approve using the technical short selling transaction for the
authorized entity
1- Having the technical and administrative capabilities and competence
required to exercise the mechanism of technical short selling, manage the
accounts, and provide the necessary collaterals.
2- Having never committed substantial violations of the creditworthiness
standards, the rules for accounts’ split-up, and the applicable trading
and settlement procedures within the last six months prior to the date of
application.
3- Having the necessary technical and procedural systems to initiate the
transactions of lending and borrowing or contracting with a lending and
borrowing agent registered in the Market.
4- All requirements must be available on an ongoing basis.
5- Any other terms, conditions, or requirements ADX might consider essential.
Article (4)
Documents needed for approval
1- The entity willing to utilize the technical short selling mechanism should submit
an application to the Market, enclosed with the supporting data, information,
and documents, especially:
a. The client agreement form.
b. The internal procedures of the technical short selling transactions.
2- The Market may request extra explanations, information, or documents, if they
are necessary.
3- The Applicant shall register the approval issued by the Market to the Authority
within a period not exceeding (5) working days from the date of issue, provided
the annual renewal of registration is carried out at least one month from expiry.

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Article (5)
Defining the securities eligible for short selling
Based on the following criteria, the Market shall define the securities eligible for
short selling and shall review them every 6 months:
1- Securities turnover ratio.
2- The presence of a market maker.
3- A contract signed with a liquidity provider.
Article (6)
Obligations of the authorized entity
1- Comply with the type and quantity of the securities approved for technical
short selling as per the regular disclosure rules of the Market.
2- Commit to the deadline set by the Market to allow the technical short
selling.
3- Apply accounting system that will support the technical short selling.
4- Provide an OMS (Order Management System) to distinguish the technical
short selling orders from other orders and send a confirmation message to
the client summarizing the selling order.
5- Using an independent trading account dedicated to short selling.
6- Freeze the Collateral in the client’s account till the transaction is settled.
7- Evaluate the technically short sold securities at the market closing price, by
the end of each working day, and inform the client if his contribution falls
to 25%, by applying the following formula: (value of the Collateral minus
the market value of the securities) and divided by (the market value of the
securities), so the client would be able to cover the shortage and increase his
contribution ratio to more than 25%, otherwise the Broker shall be obliged
to apply the measures stated in Article 11/2.
8- Keep the records of all technical short-selling transactions in compliance with
the resolutions, rules, and procedures set in the regulations of SCA and the
Market.
9- Record all the technical short selling transactions in special registers,
provided they shall exhibit the following data as a minimum requirement:
a. Name of the client.
b. The trading order, and the name of the security subject of trading.
c. Value of the executed transaction.
d. All commissions and fees.
e. The mechanism and time of covering the technical short selling.
f. The alert and warning messages addressed to the client as regards the
decline of the collateral ration.

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10- Provide the Market with a weekly report or as per its request including the
following:
a. The total market value of the Securities traded on basis of technical
short selling,
b. The number of notifications addressed to the clients requesting
him to increase the collateral ratio, and the value of this required
increase,
c. Cases, procedures, and the dates set for the covering and
settlement the clients’ accounts designated for the technical short
selling transactions,
11- Applying the measures stated in Article 11/2 in case the client fails to settle
the technical short selling transaction,
12- The Market may add any regulations, requirements, or conditions based on
the requirements of public interest.
Article (7)
Cases where the Market shall automatically stop the technical short selling
transaction
1- When the price of the securities decreases by (5%) from the closing price of
the former trading day. The stopping shall be done on the same date the
securities decreases, and through the next working day.
2- If the short-sold Securities reach (10%) of the issued capital.
3- Five working days before the general assembly of the issuing entity is
convened.
4- Five days preceding the day the register is closed for the purpose of cash
dividends, bonus shares, or rights issue.
5- During the trading period of the issuing company’s rights issue.
6- Any other cases specified by the Market.
Article (8)
Conditions of Security technical short selling
1- The price of the short selling transaction is at least higher by one bid unit
than the last traded transaction price (Short Sell Up Tick Rule).
2- The client is obliged to deposit an Initial Margin equivalent to 50% of the
market value of the security required to be sold by technical short selling.

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Article (9)
The Market disclosure on the website
The Market shall disclose the following information on its website:
1- The Securities allowed to be technically short sold.
2- The entity authorized to exercise the mechanism of technical short selling.
3- The quantity of Securities is already technically short sold.
4- The starting date of the Securities can be traded based on technical short
selling.
5- The automatic stop days of the technical short selling.
Article (10)
The agreement of the technical short selling
When carrying out a short selling, the authorized entity is obliged to enter into
an agreement with each client; where the full data and information indicated
hereunder shall be demonstrated, besides any other information the Market
might consider necessary:
1- The client’s express written acknowledgement and acceptance of:
a. The right of the authorized entity to secure the outcome of the
technical short selling and use it for settlement in case the client failed
to provide the technically short sold financial Securities for settlement.
b. The right of the authorized entity to use the deposited collateral, to
cover the shortage of the buying value in case a client fails to provide
the technically shorted Securities for settlement.
c. The right of the authorized entity to use the collateral in case the client
fails, when the value of his contribution decreases, to respond within
the specified period and increase its contribution accordingly.
2- Indication of the potential risks that might result from the technical short-
selling transactions.
3- The client’s declare affirmation that he recognizes and perceives the
implications of the procedures and his responsibilities, besides the risks
related to the technical short selling.
Article (11)
The conditions and available means to cover the technically short sold Securities
1- The authorized entity, after securing the client’s approval, shall settle the
technical short selling transaction on the next day after its execution; if
there were any serious reasons that might so necessitate.
2- In case the client fails to settle the technical short selling transaction, the

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authorized entity shall take the following measures: and in the following
sequence:
a. Transfer the financial Securities from other accounts of the client
with the authorized entity, after securing the client’s approval,
b. During the T+2 period, and by using the collateral, the financial
Securities that were technically short sold are re-bought.
c. In compliance with the procedures issued by the Market and
approved by SCA, the Securities that were technically short sold are
borrowed.
d. The technically short-sell Securities are re-bought during the (Buy-
In) session of the clearing system.
e. Cash reparation to the buying party in compliance with the
mechanism approved by the Market.

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Article (1)
Definitions
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
State : United Arab Emirates
Authority : Securities and Commodities Authority
Market : Abu Dhabi Securities Exchange
Clearing House : The entity conducting clearing and settlement processes of
all orders executed in the Market in accordance with the
regulating decisions
Securities : Shares, stocks, bonds, promissory notes issued by the
shareholding companies, bonds and promissory notes issued
by the federal government, local governments, general
authorities and corporations in the state and any other local
or non-local financial instruments acceptable to the authority.
Brokerage
Company
: The brokerage company authorized by the Authority to
practice financial brokerage activities
Cash Trading
Account
: The account which the client pays to the Brokerage Company
the trades full value before the order for the purchase of a
certain security is settled
Margin Trading
Account
: The client account with the Clearing House, through which
dealings in securities financed on margin are executed
Margin Trading : The financing made by the Brokerage Company of a
proportion of the market value of the securities financed on
margin, and secured as collateral by the securities available
in the Margin Trading Account or any other collaterals in the
cases exclusively stated in these Regulations
CHAPTER 8
MARGIN TRADING REGULATION

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Initial Margin : The amount of money or securities deposited by the client
with the Brokerage Company for the Margin Trading Account
in accordance with the prescribed ratio of the market value of
the securities to be traded on margin prior to executing the
purchase order
Maintenance
Margin
: The minimum set by the Market for the contribution of the
client in the market value of securities in a margin trading
account at any time after the date of purchase
Client : A person (natural or legal) who has an investor number in the
Market
Margin Trading
Agreement
: The agreement between the Brokerage Company and the
Client specifying the terms and conditions governing the
relationship between them in relation to Margin Trading,
and in a manner not conflicting with the regulations of the
Authority and the provisions of these Rules.
Financial
Institution
: A bank or financial institution licensed by the Central Bank of
the United Arab Emirates to practice the activity of providing
financing facilities of all kinds.
Article (2)
The Approval to provide Margin Trading Service
Margin Trading Service may only be provided through a brokerage company after
obtaining the approval of the Market in accordance with the terms, conditions and
procedures stipulated in this decision and the technical requirements set by the
Market.
Article (3)
Conditions for Approval
The Brokerage Company is required to meet the following conditions to provide the
Margin Trading Service
1. The Brokerage Company shall have the technical and administrative capabilities
necessary to provide the Margin Trading Service and operate the accounts
thereof.
2. The Brokerage Company has not committed any material violation of the
standards of financial solvency or the rules concerning the separation of
accounts approved by the Authority within the six months preceding the date
of submitting the application for a license

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3. obtaining The Market’s prior approval on the Margin Trading Account opening
form and the Margin Trading agreement form. The Margin Trading agreement
form shall specifically contain the information and data stated below, as
well as the data contained in Article (8) herein. The Market may, as it deems
appropriate, require any amendments to these forms:
a. determine the concept of the Margin Trading service and the risks to which
the client may be exposed consequently thereof.
b. Determine the Initial Margin and Maintenance Margin according to the
prescribed ratios
c. Determine the amount of the commissions, expenses and charges payable
by the client in return for such service
d. A detailed statement of the rights and obligations assumed by the client
and the Brokerage Company
e. A detailed statement of the Brokerage Company powers in case the client
fails to meet any of his obligations, particularly in relation to disposing
securities available in the Margin Trading Account; and adding the shares
issued to raise the capital and which the client subscribes into the Margin
Trading Account if the Brokerage Company finances such subscription
according to the mutual agreement of the two parties within the Initial
Margin limits
f. Confirmation of the client’s right to pay the balance of the price of the
securities in the Margin Trading Account at any time
g. An undertaking by the client to replenish the Margin Trading Account if
the percentage of his ownership falls below the Maintenance Margin, after
being notified by the Brokerage Company
h. Identify The methods for notifying the client when the percentage of his
ownership falls below the Maintenance Margin
i. Determine the terms of the agreement termination, or the duration of
financing, or to terminate it at the will of either party, together with
the determination of the mechanism for the settlement of its rights and
obligations, in particular in regard to how to dispose of the margin-funded
securities in line with the laws in force in the State.
Article (4)
Application for Approval
First: without prejudice to any of the other obligations set out in the law, regulations
decisions of the Authority, the Brokerage Company shall apply to provide
Margin Trading service to the Market in accordance with the form prescribed for
this purpose together with the information, data and supporting documents,
particularly the following:
1. A copy of the valid license issued by the Authority on the practice of the
activity of financial brokerage
2. financial statements of the first quarter preceding the date of submitting the

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application, signed by the chairman of the company or his delegate and the
internal controller, as well as the report of the external auditor in this regard.
3. A report describing the technical system for processing Margin Trading
Accounts data, as well as proof of co-ordination with the Market regarding the
readiness of such system in a manner which enables follow up and inspection
4. A report describing the system used by the Brokerage Company to maintain
Margin Trading service records
5. A report describing the systems and bases of internal controls and financial
audit in the Brokerage Company.
6. Margin Trading Account opening and Margin Trading agreement forms
containing all the information and data contained in Article (3) of these Rules
Second: The Market may request any other clarifications, information or documents it
deems necessary.
Article (5)
The Market Decision
1. The Market shall issue its decision to approve or reject the application
within Five (5) working days from the date of submission of the application,
complying with the conditions, requirements and technical standards set by the
Market.
2. The Market shall have the right to verify the Margin Trading system of the
Brokerage Company prior to granting the approval.
3. The brokerage Company shall register the approval issued by the Market with
the Authority within a period not exceeding (5) working days from the date
of issue, provided the annual renewal with the Authority is made at least one
month prior to its expiry.
Article (6)
The Brokerage Company’s Obligations
Without prejudice to any other obligations set out in the law, regulations, decisions
of the Authority, the Brokerage Company which obtained the approval to provide
the Margin Trading service undertakes as follows:
1. Apply due diligence prior to opening a Margin Trading Account for the
client. Such measure shall include, for example but not limited to, knowing
the financial position, investment objectives, risk appetite, knowledge and
experience of the client in trading in financial markets
2. Open an account with the Clearing House to be named (Margin Trading
Account) for the client who wishes to avail such service
3. verify the legal capacity and financial solvency of each client

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4. Separate the same client’s Cash Trading Account from that client’s Margin
Trading Account
5. Ensure that the client has deposited the Initial Margin in his account with the
Brokerage Company in accordance with the specified percentage, prior to the
purchase of any securities financed on margin.
6. Register the securities financed on margin with the Clearing House in the name
of the client, and in the event of a distribution of bonus shares or shares issued
as a result of a capital increase produced by the securities financed on margin,
such shares shall be added to the client’s Margin Trading Account with the
Brokerage Company in accordance with clause (3/e) of Article (3) of these Rules
7. Provide the client with a detailed monthly statement of account showing the
trading movement of the securities financed on margin and the percentage of
his ownership in the account
8. Review the Margin Trading Account of each client at the end of each business
day and to notify the client promptly when the percentage of the client’s
ownership in that account falls below the Maintenance Margin, so that he can
cover the shortfall in the account within a period not exceeding two working
days from the date of the notification.
9. Sell all or some of the securities available in the Margin Trading Account if
the client fails to cover the shortfall indicated in clause (8) of this Article to
the extent required to restore the client’s percentage of ownership to the
Maintenance Margin as per the market value of such securities on the date of
sale.
10. Stay or suspension of trading in the security results in ceasing the time limit
specified in clause (8) of this Article to be completed after the end of the stay
or suspension, with the Company’s obligation to the prescribed notification.
This provision shall not apply in the event of the existence of more than one
security in the Margin Trading Account, as clauses (8) and (9) of this Article
shall apply.
11. Obtain the prior approval of the Authority on any subsequent amendment
to the accounting system and provide a technical report confirming that the
amended system fulfills the requirements of Margin Trading service.
12. Retain backup copies of all the data and documents relating to the provision of
this service for (10) years, to maintain clients’ data and transactions and protect
them from any damage.
Article (7)
On-going obligations
The Brokerage Company which obtained the approval to conduct Margin Trading
shall, on an on-going basis, undertakes as follows:
1. Maintain financial solvency in accordance with the criteria for financial
solvency issued by the Authority.
2. Ensure that the aggregate funds allocated for Margin Trading by the Brokerage

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Company shall not exceed (300%) of the total of the principal capital (Tier 1)
and the additional capital (Tier 2) as set out in the criteria of financial solvency
approved by the Authority
3. the amounts financed on margin extended to one client shall not exceed 10%
of funds allocated for Margin Trading by the Brokerage Company defined in
Clause 2 of this Article
4. The Initial Margin shall not be less than (50%) of the market value of the
securities to be traded on margin
5. The Maintenance Margin shall not be less than (25%) of the market value
of the securities in the Margin Trading Account at any time after the date of
purchase
6. enable the Market to view all the data and documents relating to Margin
Trading orders
7. creating independent accounts for Margin Trading service
8. Provide the Market with all facility agreements concluded between the
Brokerage Company and banks regarding Margin Trading service.
9. Provide the Market with the reports, data and documents relating to Margin
Trading service it requests for the purpose of monitoring and overseeing the
Brokerage Company.
10. Not to utilize the funds of any client to provide the facilities of Margin Trading
to another client even if client consent is obtained by the Brokerage Company.
Article (8)
Margin Trading Agreement
In addition to the data and information referred to in clause (3) of Article (3) herein,
the Margin Trading agreement shall include the following:
1. The client’s express consent that the securities financed on margin shall be
guaranteed in favor of the Brokerage Company to pay the amounts payable to
the Brokerage Company in the Margin Trading Account
2. The client’s express consent to grant the Brokerage Company the right to
sell a percentage of the securities available in the Margin Trading Account in
accordance with the conditions set out herein
3. The Brokerage Company’s consent to grant the client the right to dispose
of the securities financed on margin throughout the validity of the Margin
Trading Agreement in accordance with the procedures of the Market.
4. To define the Margin Trading and risk the client may expose to when providing
this service, such risks include the following:
a. The client may lose all or part of the monies deposited in the Margin
Trading Account

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b. The right of the Brokerage Company to sell all or part of the securities
purchased through Margin Trading if the Maintenance Margin falls below
the percentage specified in the Agreement.
5. Determine the limits of the Initial Margin and Maintenance Margin which shall
not fall below the prescribed and approved limits.
6. The amount of commissions, expenses and fees payable by the client against
the services provided by the Brokerage Company.
7. Confirm the right of the client to pay the remaining of the securities price in
the account at any time.
8. Consider the securities and the cash balance maintained in the Margin Trading
Account of the client as collateral to cover the amounts due to the Brokerage
Company in this account.
9. The right of the client to receive dividends of the securities financed on margin
when due, and the right to vote in the general assembly meetings of the
companies who issued the securities financed on margin.
10. The approved means of communication for the Brokerage Company to notify
the client in the event the percentage of the client ownership in the account
falls below the Maintenance Margin
11. The client acknowledgement and acceptance of Margin Trading conditions
Article (9)
Procedures
1. The purchase of margin-financed securities shall not exceed the ceiling for
purchase (total Initial Margin held by the Client, and the amount of financing
granted by the Company).
2. If the Client purchases margin-financed securities in an amount less than the
ceiling for the purchase, the Client may use the remaining amount to purchase
other securities in the Margin Trading Account provided that this does not
affect the Maintenance Margin.
3. The Client may withdraw cash from the Margin Trading Account, transfer
amounts to the cash trading account, or use them for a new margin financing
if these amounts are higher than the Initial Margin.
4. The Client may, in agreement with the Brokerage Company, sell all or part of
the margin-financed securities for the purpose of purchasing other margin-
financed securities, provided that this does not affect the Maintenance Margin,
and that the market value of the securities purchased does not exceed the
value of the proceeds of the securities sold.
5. If the Client wishes to buy securities that are more valuable than the margin-
financed securities, they shall fund their account in order to maintain the
Brokerage funding ratio. Margin-financed securities can be transferred from
the Client’s Margin Trading Account at the Brokerage Company to the Margin
Trading Account of another brokerage company in accordance with the Market
procedures.

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Article (10)
Collateral for the Margin Trading Account
1. It shall not be permissible to accept collateral in Margin Trading Account other
than the securities financed on margin in that account
2. As an exception from clause (1) of this Article, the Brokerage Company may
accept further collateral in the Margin Trading Account in the following cases:
a. Where there is a continuing fall in the market value of the security financed
on margin.
b. Where trading in the security financed on margin is suspended or
discontinued for more than seven working days
3. The additional collateral referred to in clause (2) of this Article must securities
listed in the Market, any other market licensed in the State, or bank guarantee
issued by a local bank
Article (11)
Sharia Complaint Finance
Financing which complies with the provisions of the Islamic Sharia shall be deemed
acceptable insofar as consistent with the contents of these Rules
Article (12)
Margin Trading Account
The Brokerage Company may not open more than one account for Margin Trading
for each client. The Margin Trading Account shall be used to transact in the listed
securities.
Article (13)
Margin Trading Account Closure
1. The Brokerage Company may close the Margin Trading Account without
recourse to the client, and shall have the right to determine its rights with
regard to the securities available in the Margin Trading Account, provided that
it shall not dispose of any securities available in the account or the cash balance
of the Client in any way.
2. The Brokerage Company shall notify the Market with a written statement
including the name of its client, clarifying the reason for closing the client
account, the number and type of securities available in the Margin Trading
Account, the cash balance of the client in the account and the finance amount
due to the company, within a period not to exceed the following working day
from the date of closure of the account and it may take such legal action as
it deems appropriate to preserve its rights in accordance with the laws of the
State.

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Article (14)
Margin Trading Service in agreement with a Financial Institution
1. The Brokerage Company may provide Margin Trading service for its Clients
by concluding an agreement with a Financial Institution upon obtaining the
Market approval in accordance with the terms, conditions and procedures
stipulated in these Rules, and the technical requirements set by the Market,
without prejudice to the provisions of these Rules and the independence of the
Brokerage Company’s relationship with its Client from its relationship with the
Financial Institution.
2. Notwithstanding clause (1) of this Article, the provisions of clauses (2) and
(3) of Article (7) of these Rules shall not apply to the Brokerage Company
providing Margin Trading service for its clients by concluding an agreement
with a Financial Institution.
3. The Brokerage Company shall be obligated to provide the Market with the
agreement concluded with the Financial Institution prior to commencing with
the provision of Margin Trading service for its clients.
4. The Brokerage Company approved by the Market to provide the Margin
Trading service for its clients by concluding an agreement with a Financial
Institution in accordance with the provisions of this Article, may not provide
the Margin Trading service from its own funds without obtaining the approval
of the Market in accordance with the provisions of these Rules.

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Article (1)
Definitions
In applying the provisions of these Regulations, the following words and phrases shall
have the meanings ascribed thereto hereunder, unless the context otherwise requires:
SCA : Securities & Commodities Authority
Market : Abu Dhabi Securities Exchange.
Securities: : Shares, bonds and securities issued by joint stock companies,
bonds and treasury bills issued by the Federal Government or
Local Governments, public bodies and establishments of the
State and any other financial instruments approved by SCA.
Brokerage
Company
: the brokerage company authorized by SCA to conduct financial
brokerage business
Short-Term
Trading
: the financing of a percentage of the market value of the
securities purchased from the client provided the client
undertake to sell the financed securities within a period not
exceeding the period specified by ADX in accordance with the
provisions of these regulations
Short-Term
Trading Account
: the client’s account with the clearing entity through which
Short-Term Trading is conducted.
Initial Margin : The amount of money or securities deposited by the client in
the Short-Term Trading account with the Brokerage Company in
accordance with the ratio determined in these regulations
Maintenance
Margin
: The minimum limit determined by ADX for the client’s
contribution in the market value of the securities in the Short-
Term Trading Account at any time after purchase date.
CHAPTER 9
SHORT-TERM TRADING REGULATIONS

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Article (2)
Approval to provide Short-Term Trading Service
Short-Term Trading service shall only be provided through the Brokerage Company
upon obtaining the Market approval and in accordance with terms, conditions and
procedures provided for in these regulations.
Article (3)
Approval Requirements
For approval to provide Short-Term Trading the following requirements shall be
satisfied:
1. The applicant must be a Brokerage Company licensed by SCA and have the
approval of the Market to conduct margin trading.
2. The Brokerage Company has not failed to settle transactions executed within
the six months preceding the date of the application for service.
3. The Brokerage Company has not committed substantial breaches of the
financial solvency standards or the rules for separating accounts approved by
SCA within the six months preceding the date of submission of the application
4. the Brokerage Company shall provide an Order Management System (OMS)
that distinguishes Short-Term Trading orders from other orders and issues a
confirmation message to the client on the content of the issued order.
Article (4)
Application for Approval
The approval application shall be submitted with its supporting data and information
included, particularly the following:
First: The internal procedures of the Brokerage Company for providing Short-Term
Trading service and risk management procedures.
Second: The client agreement form that shall provide for all rights and obligations
between the parties in a manner not contradicting with the provisions of these
Regulations, SCA law, or any of the regulations issued thereunder, in particular the
following:
1. Definition of Short-Term Trading and potential risks to a client when using this
mechanism in trading, for example:
a. the possibility of the client losing all, or part of the funds or securities
deposited in the Short-Term Trading Account.
b. the right of the Brokerage Company to sell all or part of the securities in
the Short-Term Trading Account in two cases:
- The Maintenance Margin is lower than the ratio specified in the

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agreement and the non-compliance of the client to feed their account
in a manner restoring the Maintenance Margin to the agreed upon
ratio.
- Non-compliance of the client to sell the financed securities on time in
accordance with the provisions of these Regulations.
c. The right of the Brokerage Company to act on the Maintenance Margin
deposited to cover the amounts due to the Brokerage Company, and to close
the Short-Term Trading in such a way as not to conflict with the provisions of
these Regulations.
2. The client’s express consent, acknowledgment and acceptance of the Short-
Term Trading conditions, the mechanism of trading and dealing in that account
and the mechanism for the disposition of the securities therein, in accordance
with the provisions of these Rules.
3. Identify the Initial Margin and Maintenance Margin ratios which shall not be
below the limits set by these Regulations
4. the amount of commissions, expenses and fees payable by the client for
services provided by the Brokerage Company.
5. the right of the client to receive a dividend of the securities in the account
when they are due, and the right to vote at the general assembly meetings of
the securities issuing companies.
6. The means of communication agreed upon between the Brokerage Company
and the client, especially if the Maintenance Margin falls below the prescribed
limit.
7. Investment objectives and risk ratio acceptable by the client
8. The cases and conditions for termination of the agreement in a manner not
contradicting with the provisions of these Regulations
Third: The market may request any further clarifications, information or
documentation if it deems necessary
Article (5)
The Market Decision
1. The Market shall issue its decision whether to approve or reject the application
within five working days from the date of submission of the application complying
with the conditions, requirements and technical standards set by the Market.
2. The Market shall be entitled to verify the Short-Term Trading electronic system of
the Brokerage Company before the approval is granted.
3. The Brokerage Company shall register the approval issued by the Market with SCA
within a period of no more than (5) working days from the date of issue, provided
the annual registration is renewed with the Authority at least one month prior to
its expiry.

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Article (6)
Obligations of the Brokerage Company
Without prejudice to any other obligations set out in SCA law, regulations, or
decisions, the Brokerage Company approved to provide Short-Term Trading service
shall comply with the following:
1. The Initial Margin shall not be less than 20% of the value of the securities to be
purchased in the Short-Term Trading Account with the minimum amount of AED
100,000, AED One Hundred Thousand, even if the purchase order is made by a
lower margin.
2. The Initial Margin shall be in cash or in securities listed in one of the State licensed
markets in which the Brokerage Company operates, and shall be deposited in the
Short-Term Trading account
3. The Maintenance Margin in the Short-Term Trading Account shall not be less than
(10%) of the market value of the purchased securities at any time after the date of
purchase.
4. Using the agreed upon means, notify the client immediately if the Maintenance
Margin falls below the agreed limit, and that cash or securities listed in a licensed
market must be deposited into the Short-Term Trading Account to the extent that
the Maintenance Margin is restored to the prescribed limit latest by the official
opening of the trading session following the decline in Maintenance Margin.
5. To sell all or part of the financed securities at the prevailing market price before
the end of the pre-closure session of decline in the Maintenance Margin to the
extent Maintenance Margin is restored to the agreed limit in the event of non-
compliance of the client with the previous clause.
Article (7)
Short-Term Trading Mechanism
1. the client is obliged to sell the financed securities within a period not exceeding
the seventh session (T+7) following the date of purchase.
2. If the client does not sell the securities purchased during the period specified in
the preceding paragraph, the Brokerage Company is obliged to sell them during
the eighth trading session (T+8) following the date of purchase at the prevailing
market price and the customer shall bear any resulting loss.
3. The Brokerage Company shall bear any losses arising from the following:
a. its non-compliance with the selling of the financed securities as set out in
clause (2) of this article.
b. its non-compliance with the selling of the securities in the Short-Term Trading
Account to the extent that Maintenance Margin is restored to the agreed
margin should the customer fail to do so.
c. In the event of failure to sell the financed securities in the (T+8) trading session
for any reason.

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Article (8)
General
1. The market may at any time increase the ratio of the Initial Margin or the
Maintenance Margin for Short-Term Trading if appropriate for the interest of ADX
and the increase may be limited to a particular security, Brokerage Company, or
client.
2. The securities acceptable for margin trading are acceptable for Short-Term
Trading, and the market may at any time review the securities acceptable for
Short-Term Trading.
3. The brokerage company may not open more than one account for the client to
use the Short-Term Trading mechanism
4. in the event the market cancels the margin trading approval of the Brokerage
Company, the Short-Term Trading approval shall automatically and directly be
canceled.
5. ADX shall notify the SCA immediately after the cancellation of the approval issued
to the Brokerage Company for margin trading or Short-Term Trading.

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Article (1)
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
Market : Abu Dhabi Securities Exchange.
Securities : Shares, stocks, bonds, promissory notes issued by the share-
holding companies, bonds and promissory notes issued by the
federal government, local governments, general authorities
and corporations in the state and any other local or non-local
financial instruments acceptable to the authority.
Brokerage Com-
pany
: the brokerage company authorized by the Authority to prac-
tice financial brokerage activities.
E- trading : The system used by the Brokerage Company, which enables the
customer to enter orders for the purchase or sale of securities
directly through the Internet, where the system once received
the order verifies the possibility of implementation and then
automatically send to the Electronic Trading System applicable
at the Market.
Article (2)
Approval to provide E-trading Service
The E- trading service may only be provided through the Brokerage Company and
after obtaining the market approval in accordance with the terms, conditions and
procedures stipulated in this resolution and the technical requirements of the Market.
Article (3)
Conditions for Approval
the Brokerage Company is required to meet the following conditions in order to
provide the E- Trading Service:
1. The Brokerage Company shall have the technical and administrative capabilities
necessary to provide the E- Trading Service
CHAPTER 10
E- TRADING REGULATION

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2. The Brokerage Company shall have qualified technical personnel in the following
fields
a. Operating systems and networks
b. Database systems
c. Information protection systems
3. Obtain the prior approval of the Market on the form of the E- Trading
agreement, which shall include in particular the information and data shown below,
and the market may request any amendments it may consider appropriate on this
form:
a. Identify the concept of E-trading service, indicating what it takes to benefit
from this service of high knowledge of the client in the field of securities
trading.
b. Determining the value of charges incurred by the customer for use of this
service.
c. A detailed statement of the rights and obligations of both the client and
Brokerage Company, and the duration of the agreement
d. Emphasis on the responsibility of the customer in maintaining the user
number and password and all the orders executed through it.
e. Determine the means of communication with the client
f. Determine the nature of the work of and employer of the client indicating
his knowledge in the field of securities trading.
g. Emphasize that the client alone bears all the responsibilities resulting from
his investment through the E-trading system
h. Emphasize that the client understands the risks and losses that may impact
his investments in securities through E-trading and in particular the
following:
1. That the processing of orders entered may not take place immediately,
and follow in this regard the regulatory procedures established by the
Market
2. The seriousness of processing orders entered through the Internet due to
the speed of change in prices according to the mechanism of supply and
demand in the Market
3. That some orders may not be executed, may be delayed in execution, or
canceled due to the mechanism of supply and demand in the Market
4. the possibility of incurring losses due to delays in the execution of orders
or non-execution for any technical reason, unless due to mistake or
negligence of the Brokerage Company

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Article (4)
Application procedures
First: without prejudice to any of the other obligations set out in the law, regulations,
or the decisions of the Authority, the Brokerage Company shall apply to provide
E-trading service to the Market in accordance with the form prescribed for
this purpose together with the information, data and supporting documents,
particularly the following:
1. A copy of the valid license issued by the Authority on the practice of the
activity of financial brokerage.
2. A report clarifying the technical system used by the Brokerage Company to
process information and indicating the existence of an electronic link between
the Brokerage Company and the Market to achieve follow-up and control.
3. A report showing the technical system used by the Brokerage Company to
receive and record the orders of clients entered into the E-trading system, in
accordance with the technical controls and requirements set by the Market
4. A report clarifying the information protection systems from penetration on
the Internet, in accordance with the technical controls and requirements
established by the Market.
5. A report showing the technical devices and communication systems, available
to provide the E- trading service, in accordance with the technical controls and
requirements established by the Market.
6. A sample of the E-trading agreement including all the information contained
in Article (3) of this resolution.
7. the existence of written policies and procedures for E-trading
Second: The Market may request any clarifications, information, or other documents
if it deems necessary
Article (5)
The Market decision
1. The Market shall issue its decision to approve or reject the application within five
working days from the date of submission of the application, complying with the
conditions, requirements and technical standards set by the Market
2. The Brokerage Company shall register the approval issued by the market with the
Authority within a period not exceeding (5) working days from the date of issue,
provided the annual registration with the Authority is renewed at least one month
before its expiry.

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Article (6)
The Brokerage Company’s Obligations
Without prejudice to any other obligations set out in the law, regulations, decisions
of the Authority, the Brokerage Company when providing E-trading service
undertakes as follows:
1. Obtain a special username for this service to assigned by the Market to each
Brokerage Company that wishes to provide this service
2. Provide the client with a detailed monthly statement showing the securities
trading carried out through the E- trading service and the cash balance in the
account.
3. Enable the Market to access all data and documents relating to E- trading orders
4. Provide the Market with a report issued by an external auditor stating that he has
audited the information security and programs at the Brokerage Company.
5. Ensure that any modification or update to electronic software is in compliance
with the requirements of these regulations.
6. Retain backup copies of all the data and documents relating to the provision of
this service for (10) years, to maintain clients’ data and transactions and protect
them from any damage.
7. Appoint a compliance officer to deal with the clients’ complaints.
Article (7)
Operational Requirements
The Brokerage Company undertakes to provide a technical system with the following
operational characteristics and requirements:
1. The system shall allow obtaining the IP address for all orders automatically.
2. Failover Solution shall be available in the required systems and applications to deal
with any defect in operation that may result from a single point of failure.
3. It shall have a secure encryption system from one side to another to transfer all
data between the client and the Brokerage Company’s system through a secured
unified protocol, and that the implementation of mutual authentication between
the client and the server of the Brokerage Company.
4. The system shall have sufficient security features to ensure that it is not subject to
internal or external attacks.
5. The alternative communication channel shall have sufficient capabilities to identify
and authenticate the client in the event of failure of E-trading.
6. Implementation of the Second factor of authentication for the login session of all
orders issued using the Internet Protocol.
7. It shall have the ability to automatically terminate the trading session in the event
the client does not perform any activity.

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8. The backup and storage systems maintained by the Brokerage Company shall
be sufficient to provide sustainable performance and the Brokerage Company
shall have on-site and remote backup capabilities by providing another Disaster
Recovery Site.
Article (8)
Audit of Information Security
1. The Brokerage Company undertakes to appoint an external auditor to audit the
information security and programs and submit his report to the Market when the
application is submitted and at the end of June and December of each year.
2. The Brokerage Company may submit a unified report on the DMA service and
E-trading service if it is authorized to provide both services.
3. The Market shall make its observations and recommendations on the submitted
reports.
Article (9)
Suspension or cancellation of the E-trading service by the Market
The Market shall have the right to suspend or cancel the E-trading service in any of
the following events:
1. In case of any technical defect in the trading system in the Market, or the
Brokerage Company’s electronic systems.
2. If the Market found that any of the investors has violated the applicable
legislations
3. In the event the Brokerage Company submitted a request to the Market to
cancel or suspend the service provided to its client for violation of the applicable
legislations.
In all cases, the suspension or cancellation of the service shall have no impact on the
orders already executed and the rights incurred prior to the date of cancellation
Article (10)
General Provisions
The Market shall provide the infrastructure for linking the electronic trading system
with the Brokerage Company’s system to provide E-trading service.

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Definitions
Article (1)
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
State : United Arab Emirates.
Law: : The Federal Law No. (4) of 2000 concerning Emirates
Securities and Commodities Authority and Market, as
amended.
Authority : Securities and Commodities Authority.
Market : Abu Dhabi Securities Exchange.
Securities : Shares, stocks, bonds, promissory notes issued by the
shareholding companies, bonds and promissory notes
issued by the federal government, local governments,
general authorities and corporations in the state and
any other local or non-local financial instruments ac-
ceptable to the authority.
Remote Access : The foreign brokerage company entry of orders to
buy or sell securities from outside the State to execute
them directly in the Market in accordance with the
provisions of these Rules.
Foreign Brokerage
Company
: A brokerage company licensed to practice financial
brokerage business by a regulatory authority similar
to the Authority and a member of the International
Organization of Securities Commissions (IOSCO).
CHAPTER 11
Foreign Brokerage Companies Remote
Access Rules

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Clearing Member : 1. Local banks or branches of foreign banks licensed to
practice the activity of securities custodian in the State
2. Local bank of a branch of a foreign bank licensed to
operate in the State, having the Authority’s approval
to carry out clearance and settlement transactions for
the accounts of the brokers and their clients
Remote Access
Article (2)
Remote Access is not permissible except through a foreign brokerage company and
after obtaining the approval of the Market in accordance with the terms, conditions
and procedures stipulated in these Rules and the technical requirements set by the
Market.
Conditions for Remote Access Approval
Article (3)
For the Remote Access of the foreign brokerage company, it is required to obtain the
approval of the Market according to the following:
1. The Foreign Brokerage Company shall be licensed to conduct financial brokerage
activity in the home country by a regulator similar to the Authority, member of
the International Organization for Securities Committees (IOSCO), and applies
rules and procedures similar to that applied in the State with regard to Know
Your Customer (KYC), Customer Due Diligence (CDD) and Anti-Money Laundry/
Combating the Finance of Terrorism (AML/CFT), in addition to meeting any
requirements as per the UAE Commercial Companies Law in force.
2. Provide a guarantee to the Market in accordance with the conditions and
procedures it determines.
3. Contracting with a general clearing house to undertake clearing and settlement of
trading operations in case the company desires to obtain a license to operate as a
brokerage company (trading member).
4. That its license has not been previously refused by any regulatory authority similar
to the Authority.
5. Its professional record with the supervisory authorities during the six months
preceding the date of submitting the application does not include decisions
to suspend work, or serious violations such as violations of financial solvency
standards, or segregation of accounts.
6. Providing the necessary electronic programs and technical systems in accordance
with the requirements determined by the Market.

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Application for Approval
Article (4)
First: A foreign brokerage company wishing to have remote access must submit an
application to the Market according to the form prepared for this, together with the
information, data and documents supporting the application, and in particular the
following:
1. The legal status of the foreign brokerage company
2. A copy of a valid license to practice financial brokerage activity granted to a
foreign brokerage company in the home country.
3. A no-objection certificate from a similar supervisory authority in the home country
whenever its laws require it.
4. A copy of the contract concluded between the foreign brokerage company and
the general clearing within the country in case it was licensed or wished to engage
in the activity of a brokerage company (trading member only).
5. A copy of the internal control system to ensure the integrity of the application of
the law, the regulations, decisions and circulars issued pursuant thereto, and the
internal regulations in force in the Market.
6. A copy of the company’s operating manual for risk management.
7. An undertaking to disclose to the Authority and the Market any information
about the company or its clients upon request, and any changes that may occur
to the company’s organizational or financial position or affect its activity, or any
decisions taken against it, whether in the home country or any other country in
which it conducts its activity.
Second: The Market may request any clarifications, information or other documents if
it deems it necessary.
The Market Decision
Article (5)
1. The Market shall issue its decision approving or rejecting the application within
thirty days from the date of submitting the application, fulfilling the conditions,
requirements and technical standards set by the Market.
2. The applicant must register the approval issued by the Market with the Authority
within a period not exceeding (5) working days from the date of its issuance,
provided that the registration is renewed annually with the Authority at least one
month before the expiry of its period.
3. The market shall approve the foreign brokerage company to trade under its name
and for its own account, or to trade for clients on margin, or to provide internet
trading services to its clients, provided that it meets the necessary technical and
legal requirements.

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Foreign Brokerage Company’s Obligations
Article (6)
Without prejudice to any other obligations contained in the law, decisions or circulars
of the Authority, the foreign brokerage company is obliged to the following:
1. Provide a Business Continuity Plan (BCP).
2. Retaining evidence of the annual renewal of the license to engage in financial
brokerage activity in the home country.
3. Maintain commercial records, and records related to customer data, accounts,
trades and orders in the market of all kinds and means, for a period of no less
than (10) years, and keep backup copies of such data and records for the same
period.
4. developing the rules of professional conduct for its employees and supervising
them, regulating and monitoring their personal dealings in securities to ensure
their compliance with the provisions of the law, regulations, decisions and
circulars issued by the Authority, especially those related to honesty, integrity and
conflict of interest.
5. Exercising the care of a prudent man, maintaining the confidentiality of data and
information when engaging in activity in the state, and adhering to the provisions
of the law, regulations, decisions, rules and circulars issued pursuant thereto.
6. Provide the Market with the following reports:
a. An annual internal control report (compliance report) prepared by the internal
controller within (90) days from the end of the fiscal year, clarifying the extent
of commitment, and confirming the effectiveness of the company’s internal
control system.
b. The financial reports shown below in case the company is engaged in
brokerage activity only:
• Quarterly financial reports, reviewed by the company’s external auditor
within (45) days from the end of the specified time period and signed by the
Chairman of the Board of Directors or the person authorized to sign on his
behalf.
• An annual financial report, audited by the company’s external auditor
within (90) days from the end of the fiscal year, and signed by the Board of
Directors or the person authorized to sign on its behalf.
c. The reports shown below in case the company is engaged in brokerage activity
in addition to other activities:
• Quarterly reports within (45) days from the end of the quarterly period
signed by the manager responsible for the brokerage activity.
• An annual report within (90) days from the end of the fiscal year signed by
the manager responsible for the brokerage activity.
d. Any financial statements or other reports required by the Authority or the
Market.

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Oversight and inspection of the foreign brokerage company
Article (7)
1. The Authority may monitor and inspect any transactions, records, data or
documents of a foreign brokerage company regarding its trading or activity in the
market, in order to ascertain the extent of its compliance with the Authority’s law
and the decisions issued pursuant thereto.
2. The Market shall have the right to monitor and inspect a foreign brokerage
company that has obtained approval for Remote Access or any other approval
from the Market regarding its trading and dealings in the Market in order to
ascertain the extent of its compliance with the Authority’s law, the decisions and
circulars issued pursuant thereto, and the rules of the Market, provided that the
Authority is notified of any violations committed by them, or any Sanctions are
taken against it.

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Article (1)
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
Authority : Securities and Commodities Authority.
Market : Abu Dhabi Securities Exchange.
Securities : Shares, stocks, bonds, promissory notes issued by the
shareholding companies, bonds and promissory notes
issued by the federal government, local governments,
general authorities and corporations in the state and any
other local or non-local financial instruments acceptable
to the authority.
Brokerage
Company
: the brokerage company authorized by the Authority to
practice financial brokerage activities.
Direct Market
Access (DMA)
: a service allows the DMA client to enter trading orders
(buy and sale of securities) in the Market directly through
DMA programs package via Trusted Financial Connection
assigned by the Brokerage Company as a form of
electronic trading.
DMA Client : A global broker, or a local or foreign corporate person
practicing the activity of investment management and
trade directly on behalf of its clients in the Market using
the DMA service provided by the a brokerage company
approved by the Market to provide such service.
Article (2)
Approval to provide Direct Market Access service (DMA)
DMA service may only be provided through the Brokerage Company upon obtaining
the Market approval in accordance with the terms, conditions and procedures
stipulated in these Rules and the technical requirements set by the Market.
CHAPTER 12
DIRECT MARKET ACCESS REGULATIONS
(DMA)

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Article (3)
Conditions for Approval
In order to provide the DMA service, the Brokerage Company shall satisfy the
following conditions:
1. Provide the following requirements:
First: provide a technical system to receive and record the orders of DMA client,
provided the system shall have the following features:
1) Capability of verifying all the market controls and determinants
2) distinguish the username of DMA clients to differentiate their orders
from the orders of the other investors
3) Transmitting the orders through the exchange message protocol (FIX
Gateway) from the brokerage Company to the Market and through a
special DMA user assigned by the Market for each Brokerage Company
willing to provide the service; registered electronically in the Market’s
trading system, and then executed.
4) Capability of cancelling or modifying the order which has not been
executed, wholly or partially, by the DMA client.
5) The information exchanged between the DMA client and the brokerage
Company shall be archived and recorded via the Audit Trail Log showing
the date, time, and place of issuance thereof (IP Address).
6) The DMA client shall be provided with the capability to make queries or
extract reports relating to:
a. Status of an Order (pending, partially executed, fully executed, order
cancelled) at any time, showing the status date
b. The position of its securities portfolio and cash account.
c. Statements of accounts and movements on its balances
Second: Information Protection and Security Systems, through the commitment
of the Brokerage Company to provide the following protection systems:
1) Protection and security systems for communication between the
brokerage Company and the Market:
a. Firewall system for external communication networks, including the
Internet in addition to the networks connected with the Market,
Clearing and Settlement houses
b. Antivirus protection systems
2) Security systems for the communication between the DMA client and the
brokerage Company
a. Firewall systems and mechanisms to secure the connection lines and
encryption of data transferred between the brokerage Company and
the DMA client (Secured Connection)

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b. Security systems to verify the username and ID of the DMA
client connected with the brokerage Company and prohibit any
unauthorized person from accessing his account.
3) Operating and Protection Systems:
a. A system for the reception and transmission of market messages (FIX
Messages) in accordance with the controls set by the markets
b. Secured databases with high operational capacity, which provide
nonstop operation all the time (Fault Tolerant, Hot-Standby or
Cluster).
c. Modern and secured operating systems that allow serving as central
servers.
d. A disaster recovery center that contains a copy of every server and
backup copies of the data and applications updated in real-time,
provided that the disaster recovery center relates to the company
headquarter via a main connection line and another backup line
equipped with a failover platform.
Third: Reports of the External Auditor in charge of Information Security
1) The brokerage Company shall appoint an external auditor to audit the
security of information and programs, provided that such auditor shall
submit his report to the Authority upon request and by the end of June
and December each year.
2) The brokerage Company may submit a consolidated report on this
service and the online trading service if it is licensed to provide the two
services.
Fourth: Transaction agreements, account opening, and document provision.
In addition to compliance with the anti-money laundering procedures,
the Brokerage Company shall:
1) Sign a transaction agreement with the DMA client to include
the rights and obligations of both parties in accordance with the
conditions and obligations set forth in these regulations and in the
law, regulations and decisions of the Authority, provided it includes
the right of the Brokerage Company to modify the orders entered
by the DMA client prior to transmission to the trading system of the
Market, to reject or cancel such orders if violating the applicable
legislation, to suspend the DMA service in the event the DMA
client abuses the service, violates his obligation pursuant to these
regulations or the concluded agreement, or if the Authority or the
Market issue a decision to that effect.
2) Provide the Market with all data and documents at any time and in
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Article (4)
Application for Approval
First: without prejudice to any of the other obligations set out in the law, regulations,
or the decisions of the Authority, the Brokerage Company shall apply to
provide DMA service to the Market in accordance with the form prescribed for
this purpose together with the information, data and supporting documents,
particularly the following:
1. Copy of the valid license issued by the Authority concerning the practice of
financial brokerage activity
2. a report clarifying the technical devices and communication systems available
to provide the DMA service, in accordance with the regulations and technical
requirements set by the Market.
3. the DMA agreement form that shall include all the information and data
Second: The Market may ask for any clarifications, information, or other documents it
deem necessary.
Article (5)
The Market Decision
1. The Market shall issue its decision to approve or decline an application within
five working days from the date of submitting the application that satisfies the
conditions, requirements and technical standards set by the Market.
2. The Applicant shall register the approval issued by the Market with the Authority
within a period not exceeding (5) working days from the date of issue, provided
the annual registration with the Authority is renewed at least one month before its
expiry.
Article (6)
The Brokerage Company’s Obligations
Without prejudice to any other obligations set out in the law, regulations, decisions
of the Authority, the Brokerage Company when providing DMA service undertakes as
follows:
1. Establish Know Your Customer (KYC) procedures and make the necessary efforts to
implement these procedures, provided that such procedures include the retention
by the Broker of the documents and information that will enable it to identify
the personality of the client and provide the Market with such documents and
information whenever requested.
2. Verify the user identity for all the orders issued by DMA clients
3. Set appropriate limits for risks for all DMA clients
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5. Ensure that any amendment or update to the electronic programs is consistent
with the requirement set out herein.
6. Ensure the correctness of the information entered by its authorized clients and
that they are not in violation of the applicable legislations, as the Brokerage
Company will be responsible of any trading conducted in violation of any
regulations, decisions, or circulars.
7. Enable the Market to view all the data and documents relating to DMA orders
8. Retain backup copies of all the data and documents relating to the provision of
this service for (10) years, in order to maintain client’s data and transactions and
protect them from any damage.
9. Provide the client with the trading information such as trading stages, times and
regulations to enter the order
Article (7)
Suspension or cancellation of the DMA service by the Market
The Market shall have the right to suspend or cancel the DMA service in any of the
following events:
1. In case of any technical defect in the trading system in the Market, or the
Brokerage Company’s electronic systems.
2. If the Market found that any of the investors has violated the applicable
legislations
3. In the event the Brokerage Company submitted a request to the Market to
cancel or suspend the service provided to its client for violation of the applicable
legislations.
In all cases, the suspension or cancellation of the service shall have no impact on the
orders already executed and the rights incurred prior to the date of cancellation

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Article (1)
Definitions
The following words and expressions shall have the meaning set opposite each of
them unless the context otherwise requires:
Authority : Securities and Commodities Authority
Market : Abu Dhabi Securities Exchange.
Clearing House : The entity conducting clearing and settlement operations
for all orders executed in the Market in accordance with the
regulating rules and decisions.
Securities : Shares, stocks, bonds, promissory notes issued by the
shareholding companies, bonds and promissory notes issued
by the federal government, local governments, general
authorities and corporations in the state and any other local or
non-local financial instruments acceptable to the authority.
Brokerage
Company
: the brokerage company authorized by the Authority to
practice financial brokerage activities.
Investor Number : the Identification number assigned by the Market for each
investor in the securities to be able to deal in the Market.
Article (2)
Approval for the Brokerage Company to trade in its name and for own account
The Brokerage company may not trade in its name or for its own account without
obtaining the approval of the Market in accordance with the terms, conditions and
procedures stipulated in this decision and the technical requirements set by the
Market.
CHAPTER 13
BROKERAGE COMPANIES’ TRADING IN
THEIR NAMES AND FOR OWN ACCOUNT
REGULATION

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Article (3)
Conditions and Application for Approval
First: it is a condition for the Brokerage Company to trade in its name and for its own
account to submit an application to the Market as per the form prescribed for this
purpose, together with the information, data and supporting documents, particularly
the following:
1. A valid copy of license issued by the Authority concerning the conduct of financial
brokerage activity.
2. Statement of the accounts of the Brokerage Company with the national and
foreign banks, with a commitment to notify the Market of any changes thereto.
3. A letter signed by the members of the board of directors or panel of managers
stating the right of the Market to inquire about the accounts of the company with
the national and foreign banks
4. A report from the board of directors or panel of managers of the Brokerage
Company clarifying the following:
a. The investment policy and the amount of funds allocated for this purpose
b. Statement of sources of funding
c. The extent to which investment in securities affects its financial solvency,
and their plans to address this effect if the value of the securities in which
they invest declined.
5. Copy of the board of directors or the panel of managers’ resolution including the
name, title and qualifications of the person authorized to operate the account of
the Brokerage Company to invest in securities.
6. A statement indicating the availability of an internal control system that prevents
the Brokerage Company, when trading in its name and for its own account, from
benefiting from the financial advices or the financial analysis report issued by it
but have not been announced that have an impact on the price of the security.
7. When trading in its name and for its own account, an undertaking to refrain
from any manipulation in the Market or exploitation of any orders or information
relating to the clients.
Second: The Market may request any clarifications, information or other documents it
deems necessary.
Article (4)
The Market Decision
1. The Market shall issue its decision to approve or decline an application within
five working days from the date of submitting the application that satisfies the
conditions, requirements and technical standards set by the Market.

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2. The Brokerage Company shall register the approval issued by the Market with the
Authority within a period not exceeding (5) working days from the date of issue.
Article (5)
The Brokerage Company’s Obligations
Without prejudice to any other obligations set out in the law, regulations, decision,
or circulars of the Authority, the Brokerage Company approved to trade in securities
in its name and for its own account undertakes as follows:
1. Obtain an investor number with the Clearing House to be assigned for the
purpose of trading of the Brokerage Company in its name and for its own
account.
2. Issue the orders relating to its trading through the person authorized to operate
the investment account.
3. Maintain the requirements of financial solvency necessary for conducting its
activity in order to ensure its compliance with its obligations
4. Always verify that there is an adequate cash balance in hand or in its accounts
with the banks before the execution of the purchase and shall not pay from the
balances of clients.
5. Create a special register of trading for the company’s own account, wherein all the
details of the trading transactions and the approvals issued by the Market shall be
recorded.
6. Give the execution of the clients’ orders the priority over the orders of the
Brokerage Company.
7. Prepare a quarterly report confirming the non-violation of the investment to the
law, regulations and the approved investment policy, and submit such report
to the board of directors of the company or the panel of managers, with a
copy thereof to the Market, provided that the report is signed by the internal
controller.
8. The size of the investment of the Brokerage Company in securities shall not
exceed (40%) of the total Tier1 and Tier 2 capital as set out in the standards of
the financial solvency approved by the Authority, with its investment in a single
security not exceeding (10%) of the amount allocated for investment in the
securities for its own account.
9. Shall not trade in the foreign financial markets with more than (10%) of the
amount allocated for investment in the securities for its own account.
10. To provide the Market with any agreement entered into by the Brokerage
Company or any of its subsidiaries with the banks that entails financial
obligations, and any undertaking or guarantee given to any other party.
11. Not to execute any trading transaction for the account of the Brokerage Company
relating to a security which was subject to financial advice or financial analysis
report issued by it, nor in any financial derivatives relating to such security, during
the periods specified by the decision of the financial advice and the financial
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12. Not to execute any trading transaction for the account of the Brokerage Company
relating to a security or any of the financial derivatives relating thereto in a
manner violating the recommendations set out in the financial advice or the
financial analysis report issued by it during the period specified by the decision of
the financial advisory and financial analysis system issued by the Authority

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Article (1)
The following words and expressions shall have the meaning set opposite each of
them unless otherwise required for the context:
SCA Securities and Commodities Authority.
Market Abu Dhabi Securities Exchange.
Price stability mechanism A mechanism that aims to maintain the stability of the
company’s share price when it is listed for the first time
in the Market in accordance with the provisions of these
Rules.
Issuer A public joint stock company that is under incorporation
or a company that is in the process of transforming into
a public joint stock company and wishes to list its shares
in the Market.
Price stabilization
manager
The company licensed by the Authority to act as a
financial advisor, or the company approved by the
Market to carry out the functions of a market maker.
Price stability period The period during which the price stabilization manager
exercises his duties, which is agreed upon between the
issuer and the price stabilization manager, provided that
it does not exceed (30) days from the date of the first
day of listing the company’s shares in the Market.
CHAPTER 14
RULES OF PRICE STABILITY MECHANISM

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Additional offer The procedure by which a number of additional shares
owned by the founders are offered to the public
during the offering period at the same offering price
in accordance with the agreement signed between the
price stabilization manager and the issuer and/or the
founders, provided that:
1. The additional shares offered should exceed the
minimum limit set for the founders in accordance
with the provisions of the Companies Law.
2. The number of additional shares offered shall not
exceed 15% of the number of shares offered for
subscription
Article (2)
General
1. The issuer shall, in the event of applying the price stability mechanism, disclose in
the prospectus or its subsequent supplementary disclosures the following:
a. The number of additional shares that will be offered in accordance with the
additional offering agreement, not exceeding the maximum limit allowed for
the additional offering.
b. Price stability duration
c. Any other restrictions imposed by the issuer or the underwriter on the price
stabilization manager.
d. Price stabilization manager
2. No additional offering may be made except during the offering period.
3. The issuer shall notify the Market immediately in the event of the termination
of the appointment of the price stabilization manager or upon his resignation,
stating the reasons for resignation or cessation of the appointment, with
his commitment to appoint another stabilization manager and to ensure his
commitment and ability to continue with the tasks.
Article (3)
Price stabilization manager’s obligations
1. The price stabilization manager must disclose to the Market when the additional
offering is exercised during the offering period.
2. Starting from the first day of listing the shares in the Market, the price
stabilization manager must disclose to the Market at the end of every five trading
days and until the end of the price stability period, the details of all the price
stabilization operations he has implemented, including the disclosure of the
quantity of shares purchased, and the range price of those shares.

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3. After the end of the price stability period, the price stabilization manager must
disclose the following to the market before the beginning of the trading session
for the next day:
a. Whether the purchase option is exercised.
b. The number of shares on which the purchase option was exercised.
c. The number of remaining shares in which the purchase option has not been
exercised, if any.
d. The beginning and end of the price stability period.
e. The price range within which purchase orders were executed in order to
achieve price stability.
f. Any additional information that the Market requests from the price
stabilization manager to disclose.
4. The price stabilization manager must have a bank account in accordance with
the Market procedures designated to keep the sums of money obtained from
subscribing to the additional offering, and the operations in it are limited
to executing stock purchases during the price stability period or transferring
those sums of money to the founders if the purchase option is not exercised in
accordance with the agreement concluded between him and the issuer and/or
founders.
5. The price stabilization manager must have a securities account at the Market
clearing house, in which dealing is limited to transferring the ownership of shares
purchased during the period of exercising the price stability mechanism to the
founders in accordance with the agreement concluded between it and the issuer
and/or the founders.
6. The price stability manager may not carry out any sale of the shares that were
purchased to implement the price stability mechanism during the price stability
period.
7. The price stabilization manager shall deal with cases of conflict of interest in
accordance with the decisions and rules issued by the Authority and the Market in
this regard.
8. The price stabilization manager must consider the interests of the issuer when
exercising the price stability mechanism, in a manner that does not conflict with
the provisions of these Rules.
Article (4)
Price Stabilization transactions record
1. The price stabilization manager must create and maintain a daily updated record,
in which he records every transaction he makes in accordance with the provisions
of these Rules.
2. The price stabilization manager must ensure that the record referred to in Clause
(1) of this Article contains the following information:

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a. The quantity and price of shares for each transaction that took place during
the exercise of the price stability mechanism.
b. Date and time of the transaction
3. The record referred to in Clause (1) of this Article, as well as the statements and
all data and information related to the implementation of the price stability
mechanism, must be kept for a period of no less than ten years after the end of
the price stability period.

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Article (1)
Definitions
The following expressions and words shall have the meanings set out against each of
them, unless the context indicates otherwise
Authority : Securities and Commodities Authority
Market : Abu Dhabi Securities Exchange Company
(P.J.S.C.)
Board : ADX Board of Directors
Derivative
Trading System
: The Derivatives Trading System provided by an Exchange to its
members for the trading of Derivatives Contracts.
Block Trade
: Transactions made on regulated derivative contracts in large
amounts outside the central order book in the Market in
accordance with the provisions of these Regulations.
Brokerage
Company
: A brokerage company licensed by the Authority to carry out
the activity of a trading broker or a trading and clearing
broker.
Derivative
Member
: A legal person having the Market approval to carry out the
functions of a derivatives Member in accordance with the
provisions of these Regulations.
Dealer : A legal person licensed by the Authority to exercise the
activity of a securities dealer.
Market Maker : A legal person incorporated within the state and having the
Market approval to exercise market making activity in the
state.
CHAPTER 15
Regulated Derivative Contracts Trading
Regulations

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Central
Clearing
: A legal person licensed by the Authority to exercise the
activity of central clearing.
Central Order
Book
: The electronic register within the Market Derivative Trading
System that is used to display, trade, execute and safeguard
orders in respect of Derivatives Contracts
Contract Series
(Series)
: Regulated derivative contracts standardized in terms of the
type of security involved, its quantity, or the contract’s validity
date.
Contract
Specifications
: The specific terms and conditions that are applicable to a ADX
Derivatives Contract, that are approved by the Authority and
issued via Notice from time to time.
Price Limits
: The permissible percentage of increase or decrease of the
previous closing price of derivative contracts determined by
the Market.
Daily
Settlement
Price
: A price that is determined by Central Clearing House to be
used for the daily settlement of Derivative Contracts.
Closing Price : The price of the balance between the offered and required
quantities calculated by the electronic trading system after the
pre-closure bid in accordance with the calculation standards
provided by the Market derivative trading system.
Derivatives
Contract
: A financial contract with a specified value by both parties to
the contract, and that contract derives its value from the value
of the underlying securities and depends on the change in the
value of those securities.
Regulated
Derivative
Contract
: A derivative contract issued in accordance with the terms and
conditions of the Market.
Futures
Contract
: A regulated derivative contract that obligates the parties
to the contract to buy and sell a specified amount of the
underlying securities at a specified price on a certain future
date.
Expiry Day : the last day of trading for a specific Derivatives Contract

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Initial Margin : The cash amount, a few securities, or bank letter of guarantee
deposited by both the seller and buyer of a regulated
derivatives contract upon contracting in his account at the
Central Clearing House in accordance with the percentages
and conditions specified by the Central Clearing House.
Maintenance
Margin : The minimum initial margin agreed between the Derivatives
Member and its client, with which the client is required to
deposit a cash amount or additional securities to restore his
account with the Central Clearing House to the initial margin
Opening Price : The opening price of the derivative contract according to the
mechanism determined by the Market.
Order : The order entered into Derivative Trading System to buy or sell
listed Derivatives Contracts
Securities : Any tradable securities accepted by the Authority
Underlying
Securities
: Securities, foreign securities, local or foreign indices subject of
the derivatives contract.
Corporate
Action
: Actions taken by the listed company that result in rights,
obligations or changes to the securities issued by it, such
as: declaration of profits, bonus shares, subscription rights,
reducing or increasing the capital, splitting or re-merging
shares, merging or acquisition, suspension or cancellation
of listing the security or changing the nominal value of the
shares.
Open Position : A buy or sell position in a Derivatives Contract, held under
an account of the Clearing Member, that has not been closed
through a corresponding trade
Primary
Exchange
: The home exchange where the Underlying Security to a
Derivatives Contract is listed and/or traded
Settlement
Bank
: The entity concerned with the cash settlement operations,
through the transfer, deduction, and payment of the owed
funds.
Tick Size : Refers to the minimum price fluctuation in relation to a
Derivatives Contract

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Article (2)
Derivative Member Approval Requirements
1. The functions of the Derivatives Member may only be carried out after obtaining
the approval of the Market in accordance with the provisions of these Rules.
2. The following conditions shall be satisfied for the Market to grant its approval to
exercise the functions of a Derivatives Member:
a. The applicant shall be a Brokerage Company, a Dealer, or a Market Maker.
b. Availability of the financial solvency necessary to carry out the work.
c. Availability of qualified human resources required for work.
d. Availability of electronic programs and technical systems required for
trading in derivative contracts as specified by the Market from time to time,
particularly the Order Management System (OMS).
Article (3)
The entity willing to exercise the functions of the Derivatives Member must submit an
application to the Market on the form approved for this purpose, provided that the
application includes the following, as a minimum:
1. Documents evidencing the fulfillment of the conditions stipulated in Article (2) of
these Rules.
2. A copy of the client agreement form for trading in derivative contracts, which
must include the following as a minimum:
a. An explanation of the concept of derivative contracts and the trading
mechanisms for this type of securities.
b. The risks that the client may be exposed to as a result of trading in derivative
contracts.
c. The ratio of the Initial Margin and the Maintenance Margin, provided that
they shall be within the ratio specified by these Rules.
d. The mechanism of exchanging notifications with the client and the times of
sending these notifications which relate to trading of derivative contracts
Article (4)
The Market’s Decision
1. The Market shall make its decision whether to approve or reject the application
within five (5) working days from the date of submission of the application
satisfying all the conditions, requirements and technical standards set by the
Market.
2. The Applicant shall register the approval issued by the Market with the Authority
within a period of no more than (5) working days from the date of issue and shall
annually renew the registration with the Authority.

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3. The Market may grant approval with the conditions or restrictions it deems
appropriate.
4. A Derivatives Member who has obtained the Market approval to carry out the
activity may not start carrying out the activity before the Market ascertains that
the member has done the following:
a. Installing and equipping the technical systems necessary to participate in the
Market’s derivative contracts trading system, and the Market’s carrying out
the necessary tests to ensure the same.
b. Prepare the human resources trained by the Market and will work for the
member.
c. Payment of any approval fees prescribed by the Market.
Article (5)
Derivatives Member Obligations
First: The Derivatives Member shall, on an ongoing basis, be obligated to the
following:
1. Satisfy all approval requirements on an ongoing basis and notify the Market
immediately of breach of any of the conditions of granting the approval
2. Notify the Market immediately upon imposing any disciplinary penalty on it by
any of its governing regulator.
3. Notify the Market of any change in any of the information provided to the
Market, whether before or after granting the approval to carry out the activity.
4. Refrain from carrying out any act that would adversely affect the reputation of
the Market or its dealers.
5. Refrain from carrying out any trading process for derivative contracts or entering
any trading orders with the aim of affecting the prices or trading volumes of
derivative contracts or that would affect the interaction of bid and offer forces in
the Market.
6. Refrain from making any change to or update its order receiving and
management system without obtaining prior approval from the Market.
7. Comply with all regulatory decisions that may be issued by the Authority or the
Market in relation to the trading of derivative contracts.
Second: A Derivatives Member who deals for the benefit of clients in derivative
contracts trading shall abide by the following:
1. Notify the client of the trading operations executed in his favor on the same day
of trading and by the mechanism agreed upon in the client agreement, provided
that the notification shall include the following information, as a minimum:

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a. The name, address, account number and other personal information of the
client.
b. Details of the executed transactions, including type (buy or sell), quantity,
price and execution time.
c. Any details of the calculated, paid and due margin for the transactions
executed during the day.
d. Commissions due from the client
2. Send the session account statement to the client as per the mechanism and within
the times agreed upon in the client agreement.
3. Not to carry out any trading operation for the benefit of its clients if it has an
interest in carrying out this transaction that may lead to a conflict of interest,
unless the client is informed of that interest and takes all necessary measures to
ensure a fair treatment of the client.
Third: Additional Obligations of the Market Maker
1. Trading for his own account only.
2. Opening a special account for trading in regulated derivative contracts called
(Derivatives Trading Account).
3. Not to transfer the executed orders from the account designated for the trading
transactions of Regulated Derivatives Contracts to another account.
Fourth: Additional Obligations for the Dealer: The Dealer is obligated to sell or buy
derivative contracts to investors in accordance with the regulation governing the
exercise of his activity.
Article (6)
Derivative Contracts
1. The Market will list the regulated derivative contracts after registering them with
the Authority
2. The Market will publish the specifications of the listed derivative contracts in
accordance with the provisions of these Regulations.
3. The Market will specify the timings for derivative contracts trading sessions
Article (7)
Margin Requirements
1. The Derivatives Member is obligated to collect the initial margin from their clients
in a special account for the trading of regulated derivative contracts in amounts
that cover at least what the Derivatives Member shall submit to the Central
Clearing House in the Market in accordance with the provisions of the Central
Clearing rules and to obtain the client’s express approval regarding the Derivatives
Member’s maintenance of that margin until the client’s position is closed, before
entering any order.

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2. The Derivatives Member is obligated to obtain an undertaking from his client
to feed his derivatives trading account if his ownership percentage of the
Maintenance Margin drops below the specified limit after being notified of this by
the Derivatives Member.
Article (8)
Price Management
1. The Market will establish the method used to calculate and publish the Opening
Prices, Intra-Day Prices, and Closing Prices for each Derivative Contract.
2. The Market will establish the minimum price movement, daily price limits for each
Derivative Contract and publish it as part of the contract specifications
Article (9)
Orders Management
1. Trading in Derivative Contracts shall be conducted through the Market Derivative
Trading System.
2. The trading order shall include the following information:
a. client’s identification number
b. Trading Symbol/Code assigned to the Derivative Contract
c. type of order (sell or buy)
d. Quantity
e. price
3. The Market may set a minimum or a maximum Order quantity or value for any
Derivatives Contracts
4. Orders are executed in the Order Book subject to the following priorities:
a. Best Price: Orders with the best price (Highest bid/lowest offer) shall have
priority upon execution.
b. Order entry time: Orders are arranged in time serial Order by placing the
Order which holds the earliest time stamp first.
5. In terms of price, orders are divided into the following:
a. Limit Order – An Order that has specified a maximum buy price or a
minimum sale price.
b. Market Order: an order that gives priority to execution price
All orders are executed on the corresponding side of the Orders Register until the
quantity specified of such order is executed.

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6. On partial execution of the Order, the remaining quantity automatically converts
to a limit Order at the last matched price from the other side of the Order Book.
7. Order shall be divided in terms of validity into:
a. Day Order -Valid for the Trading Day only.
b- Good till Date (GTD) - Order valid till stipulated date
8. Orders are divided in terms of executed quantities into:
a. Fill or Kill” (FOK) Order - Execute the entire Order else cancel the Order
b. All or None (AON) - Executes the entire Order quantity in one trade (if
available)
c. Minimum Fill - Executes an Order only if the minimum specified quantity is
available on the other side of the Order Book to be filled.
9. a. A Derivative Trading Member may amend the data entered into the trading
system prior full execution or cancellation of the order
b. in the event of amendments or withdrawal of any order before execution the
application of the price and time priority rules will vary based on the mechanism
the Market’s Derivatives Trading System operates.
Article (10)
Executed trade transactions amendment
1. No Derivatives Trading Member can amend any trade executed by them.
2. In case of any error trade, Derivatives Trading Member must report such error
within 30 minutes of its execution time. The market may, at its absolute discretion,
agree to amend or reject the error.
Article (11)
Trade Cancellation
The Market may, in exceptional circumstances or in cases of serious violations of any
applicable legislation, cancel any trading transaction made on derivative contracts.
Article (12)
Financial Position Limits
1. The Market may, by a disclosure, specify limits on the number of regulated
derivative contracts and series, and specify the underlying securities, the month
of contract settlement, the month of contracting and the validity date of the
derivatives contract that may be registered with the Market, and may impose
limits for each of the regulated derivative contracts or for all contracts.
2. Derivatives Trading Members may not engage in any transactions if this would
result in exceeding a Financial Position Limit

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3. The Market may direct a Derivatives Trading Member to reduce its position,
or adjust its trading in Listed Derivatives Contracts, where the Market deems
it necessary for the proper functioning of the market. If a Derivatives Trading
Member transmits an order to trade a Listed Derivatives Contract, and the
execution of such order would result in the breach of the Position Limit, the
Market may suspend some or all of the trading activities of the Derivatives Trading
Member until such time as determined by the Market.
Article (13)
Block Trades
1. Derivatives Trading Members may conduct block trades through the Market
Derivative Trading System for Block Trades.
2. For the purpose of these Regulations, the Market shall determine from time to
time the value of a transaction that is considered a Block Trade.
Article (14)
Derivative Contract Specifications
Each Derivatives Contract shall include the following:
1. The underlying securities
2. The contract size refers to the quantity of Underlying Securities.
3. A trading currency and a settlement currency.
4. Contract Series that refer to multiple contracts with the same Underlying Asset,
but different Expiry Day.
5. Tick Size refers to the minimum price fluctuation.
6. Trading hours
7. Settlement type
8. Daily Settlement Price which is used to calculate the daily variation margins
(mark to market)
9. Expiry Day or Last Trading Day
10. Settlement Day
11. Final Settlement Price
Article (15)
Futures Contract
1) In the Futures Contract, the Buyer shall be committed to executing the settlement
and shall have the right to buy the Underlying Securities or to execute cash
settlement when the price moves down, as provided in the Contract Specifications

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and these Regulations. The Seller shall be committed to executing the settlement
and shall have the right to sell the Underlying Securities or to execute cash
settlement when the price increases, as provided in the Contract Specifications and
these Rules
2) The Underlying Securities shall give the Futures Contract the key components
as a security against which compliance shall arise and shall form the base for
calculating the daily settlement (Mark to Market) and the final settlement, upon
expiration of the Contract due to delivery or cash settlement.
3) Contract Size, which includes the number of Underlying Securities, shall be stated
in the Contract Specifications.
4) The Volume of Price Movement (tick size), which means the scope of the price
movement volume with respect to the Contract and shall be stated in the Contract
Specifications
5) The Forward Price, which is the price agreed upon between the parties.
6) Mechanism of closing the transaction, which means the revocation of the
obligations of the parties to the Contract by closing their positions. It shall be
stated in the Contract Specifications.
7) Final Trading Time, which refers to the deadline for executing and registering the
orders upon expiration of the Contract. They shall be provided for in the Contract
Specifications.
8) Fixation Value is the value calculated to the Underlying Securities, which
represents the basis for calculating Contract expiration settlement or calculating
the daily settlement (Mark to Market).
9) Mechanism and Dates of Settlement
10) Contract Expiration Date is the last day of the month under which the final
settlement between the Buyer and the Seller shall take place, while the details
relating to month and year of expiration shall be defined upon designation of the
Series.
11) Duration of the Series in Futures Contracts shall start from the first trading day
and shall end upon expiration of the Contract.
12) Trading currency shall be in AED.
13) In case the Market has listed new Series during the period pertaining to the same
Series, such Series shall be distinguished by the same volume and designation with
respect to the actual listed Contracts.
14) Designation of contract Series shall be as follows (designation of series):
a. Each Series shall be designated to each Futures Contract, so as to contain
unified symbols.
b. Contract expiration year shall be designated by referring to the final figure
of the year in which the Series ends.
c. Contract expiration month shall be designated using a code that refers to
such a month.

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Article (16)
Cash Settlement and Payment
1. Each Derivatives Contract shall be settled by the CCP through the Settlement Bank
in cash
2. In respect of each Derivatives Contract, the following payments shall be made:
a. Where the Final Settlement Price exceeds the Derivatives Contract price, the
Derivative Member shall pay to the Central Clearing House, and the Central
Clearing House pays to the Derivative Member through the Settlement Bank
an amount calculated as the product of the number of Contracts and the
difference of the Final Settlement Price and the Contract price, and
b. Where the Derivatives Contract price exceeds the Final Settlement Price, the
buyer pays to the Central Clearing House through the Settlement Bank, and
the Central Clearing House pays to the buyer through the Settlement Bank
an amount calculated as the product of the number of Contracts and the
difference of the Derivatives Contract price and the Final Settlement Price.
Article (17)
The cash Settlement for each Derivatives Contract shall be affected via Settlement
Bank who will be a member of the Central Clearing House.
Article (18)
Corporate Actions
Where any Corporate Actions occur with respect to an Underlying Securities, the
Market may, in its sole discretion, but shall not be obligated to, determine:
a) To make Adjustment to the Contract size and/or price.
b) To make any other relevant variation to the Contract or any features of its
specifications to best reflect the Corporate Action.
c) To decide to delist the contract before the expiry date of the Corporate
Action, where such event following a Corporate Action announcement cannot
be easily adjusted for; substituting the delisted Contract with a new Contract
that reflects the same Underlying Securities as the delisted Contract, on the
expiry day of the Corporate Action
d) Any decision to specifically handle the said Corporate Action to uphold the
fairness and effectiveness of such adjustment.
e) The handling of the Corporate Actions will be in accordance with the
Corporate Action adjustment policy of the Central Clearing House.

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Article (19)
Trading in Underlying Securities
Where trading in the Underlying Securities is suspended or cancelled at its trading
venue, the Market may, in its absolute discretion, take the following actions:
(a) If the Underlying Securities is temporarily suspended in accordance with the
rules of its Primary Exchange, the relevant Contract(s) will be put in suspended
trading mode until the Underlying Securities resumes trading at its primary
trading venue.
(b) If the Underlying Securities is cancelled at its trading venue, the Market may,
in its sole discretion, delist the relevant Contract(s) after duly informing of the
method of settlement that will apply to such Contracts.
(c) When there is no relevant Reference Price available, in the case (b) above, the
Market may, but is not obligated to, use a theoretically derived price for the
purpose of final settlement of the Contract in accordance with the Central
Clearing derivative rules.
Article (20)
Default in Settlement
1. Where a buyer or a seller fails to fulfil its payment obligation, in the manner
prescribed within the Central Clearing rules, the Market may declare such party
is in default.
2. In the event of Default by a buyer or seller in respect of a Derivative Contract,
the Default Management Rules of the Central Clearing House will come into
effect.
Article (21)
Delisting of Derivative Contracts
1) The Market may, from time to time and at its absolute discretion, delist any
derivative contract by a 14 days prior notice to the Market.
2) If there are no open positions in the relevant derivative contract which the
Market wishes to delist, such delisting shall become effective at the time
determined by the Market.
3) If there are open financial positions in the relevant derivative contract which
the Market wishes to delist, the Market may request early settlement of such
open financial positions or restrict trading to the extent that the Market
considers such trading to be necessary to enable participants to settle their
open positions and to maintain Fair, orderly and transparent Market.

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Article (22)
Penalties
In the event of violation of these Regulations, the Market may take the following:
1) Advising the Derivatives Member or compelling it to close one or more of the
counterparty transactions either instantly or within a specific period of time.
2) Serving a notice of warning to the Derivatives Member
3) Suspension of the approval granted to the Derivatives Member
4) Cancellation of the approval granted to the Derivatives Member.
5) Impose a fine on the Broker which obtained the approval to exercise
Derivatives Member functions, within the maximum limit stipulated in the
Authority’s law and the Regulations issued pursuant thereto.
6) Impose penalties and other fines pursuant to the Regulations of the Market
and to the extent it is not inconsistent with the law and Regulations of the
Authority.
7) Refer any violator to the Authority to consider its violation and decide on the
appropriate penalty
Article (23)
The Chief Executive Officer of the Market shall take all necessary decisions to
implement the provisions of these Regulations.
Article (24)
The Market may, exempt any entity from the requirements of these Regulations
based on a request from it personally or by an initiative from the Market.

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Article (1)
The Board of Directors, after consultation with the Authority, shall issue a resolution
specifying all fees and commissions charged by the Market for the services it provides.
Article (2)
All fees and commissions prescribed and in force when approving the booklet of
the operational rules of the market shall continue until the issuance of the decision
referred to in Article (1) above.
CHAPTER 16
FEES AND COMMISSION

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Article (1)
1. The Market may take any of the following measures in case any natural or legal
person violates any of the provisions contained in the Market’s operational Rule
Booklet:
a. To issue a warning to the violator and oblige him to remove the violation
within the period specified by the Market.
b. Impose a fine not exceeding AED 100,000 on the violator.
c. Suspend or revoke any market approval for the exercise of any of the activities
or functions mentioned in the Market Operational Rules Booklet.
d. Suspending or delisting any security according to the provisions of the Market
Operational Rules Booklet.
e. e. liquidate or use any guarantees submitted to the Market in return for
compliance with the provisions of the applicable legislation, rules and
decisions.
2. In addition to the procedures set forth in Clause (1) of this Article, the Market
may oblige the violator to remove the violation within the period specified by the
Market.
Article (2)
The Market may issue a guide list of penalties and fines imposed by the Market when
violating any of the provisions contained in the Market operational rules booklet,
provided that the repetition of the violation by the violator is considered when
developing such a guide.
Article (3)
The Market may refer any violator to the Authority to consider its violation and
impose the appropriate penalty if the Market finds that the violator has violated any
of the Authority’s legislation in force.
CHAPTER 17
PENALTIES

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