• MIR 2 MIR 2 RULES APPLICABLE TO ALL RECOGNISED BODIES

    • MIR 2.1 MIR 2.1 Introduction

      • MIR 2.1.1

        This chapter contains the Recognition Requirements for Recognised Bodies.

      • MIR 2.1.2

        A Recognised Body must at all times comply with the requirements of this chapter to the satisfaction of the Regulator. The same standards apply on initial recognition and throughout the period Recognised Body status is held. The term Recognised Body in the guidance should be taken to refer also to an Applicant when appropriate.

      • MIR 2.1.3

        In considering whether a Recognised Body satisfies Recognition Requirements applying to it, the Regulator may take into account all relevant circumstances including the constitution of the Person concerned and its Regulatory Provisions.

      • MIR 2.1.4

        In considering whether a Recognised Body satisfies the Recognition Requirements, the Regulator will have regard to:

        (a) the constitution, Regulatory Provisions and practices of the Recognised Body;
        (b) the nature (including complexity, diversity and risk) and scale of the Recognised Body's business;
        (c) the size and nature of the market which is supported by the Recognised Body's facilities;
        (d) the nature and status of the types of investor who use the Recognised Body's facilities or have an interest in the market supported by the Recognised Body’s facilities;
        (e) competition in the markets for services provided, or proposed to be provided, by the Recognised Body in its capacity as such; and
        (f) the nature and scale of the risks to the Regulator's objectives associated with the matters described in (a) to (e).

    • MIR 2.2 MIR 2.2 Suitability

      • MIR 2.2.1

        The Recognised Body must be a fit and proper Person to perform the Regulatory Functions of a Recognised Body. In determining whether a Recognised Body is a fit and proper Person, the Regulator may have regard to any relevant factor including, but not limited to:

        (a) the commitment shown by the Recognised Body's Governing Body to satisfying the Recognition Requirements and to complying with other applicable obligations;
        (b) its arrangements, policies and resources for fulfilling its obligations in relation to its activities as a Recognised Body, including in relation to the control of conflicts of interest;
        (c) the extent to which its constitution and organisation provide for effective governance and effective oversight by the Governing Body of its relevant Regulatory Functions;
        (d) breaches of any relevant law, regulation or code of practice by the Recognised Body or its Key Individuals;
        (e) its arrangements for ensuring that it employs individuals who are honest and demonstrate high standards of integrity;
        (f) the access which the persons responsible for the performance of supervisory functions has to the Governing Body;
        (g) the independence of the persons responsible for the performance of supervisory functions from its commercial and marketing arms;
        (h) its connections with any undertaking under its control or in its Group, and any Person with a position of influence over, or who effectively runs the business of, the Recognised Body, having regard to:
        (i) the reputation and standing of that other Person, including his standing with any relevant Abu Dhabi Global Market or Non‐Abu Dhabi Global Market Financial Services Regulator;
        (ii) breaches of any law or regulation by that other Person;
        (iii) the roles of any of the Recognised Body's Key Individuals who have a position within organisations under the control or influence of that other Person, including their responsibilities in that organisation and the extent and type of their access to its Senior Management or Governing Body;
        (iv) the extent to which the Recognised Body operates as a distinct entity notwithstanding its connection with that other Person; and
        (v) the extent to which the Recognised Body's Governing Body is responsible for its day‐to‐day management and operations,
        but nothing in this paragraph should be taken to imply any restriction on the ability of a Recognised Body to outsource any function to any Person in a manner consistent with the rules on outsourcing set out in Rule 2.14.

      • MIR 2.2.2 MIR 2.2.2

        Persons, including members of the Board and Key Individuals, who are in a position to exercise significant influence, directly or indirectly, over the management of the Recognised Body, and who effectively direct the business and operations of the Recognised Body must comply with the requirements for Approved Persons and Recognised Persons as set out in Part 5 of FSMR.

        • Guidance

          For the purposes of this Rule, the Regulator deems the following Persons Approved Persons: Members of the Governing Body, Senior Executive Officer, Finance Officer, Head of Supervision and Head of Operations. The Regulator deems the following Persons Recognised Persons: Compliance Officer, Risk Officer, Money Laundering Reporting Officer and Internal Audit.

    • MIR 2.3 MIR 2.3 Governance

      • MIR 2.3.1

        A Recognised Body's Governing Body must comply with the requirements set out in GEN chapter 3.

    • MIR 2.4 MIR 2.4 Financial resources

      • MIR 2.4.1

        A Recognised Body must have financial resources sufficient for the proper performance of its Regulatory Functions as a Recognised Body. In considering whether this requirement is satisfied, the Regulator must take into account all the circumstances, including the Recognised Body's connection with any Person, and any activity carried on by the Recognised Body, whether or not it is a Regulated Activity conducted by it in its capacity as an Exempt Person.

      • MIR 2.4.2

        In determining whether a Recognised Body has financial resources sufficient for the proper performance of its Regulatory Functions, the Regulator may have regard to:

        (a) the operational and other risks to which the Recognised Body is exposed;
        (b) if the Recognised Body guarantees the performance of transactions in Financial Instruments, the counterparty and market risks to which it is exposed in that capacity;
        (c) the amount and composition of the Recognised Body's capital and liquid financial assets;
        (d) the amount and composition of the Recognised Body's other financial resources (such as insurance policies and guarantees, where appropriate);
        (e) the financial benefits, liabilities, risks and exposures arising from the Recognised Body's connection with any Person, including but not limited to, its connection with:
        (i) any undertaking in the same Group as the Recognised Body;
        (ii) any other Person with a significant shareholding or stake in the Recognised Body;
        (iii) any other Person with whom the Recognised Body has made a significant investment, whether in the form of equity, debt, or by means of any guarantee or other form of commitment; and
        (iv) any Person with whom the Recognised Body has a significant contractual relationship;
        (f) the likely availability of liquid financial resources to the Recognised Body during periods of major market turbulence or other periods of major stress for the Abu Dhabi Global Market Financial System; and
        (g) in relation to a Recognised Investment Exchange, the nature and extent of the transactions concluded on the Recognised Investment Exchange.

      • Capital requirements

        • MIR 2.4.3

          A Recognised Investment Exchange must, at all times, hold capital in accordance with Rule 3.2.

        • MIR 2.4.4

          A Recognised Clearing House must, at all times, hold capital in accordance with Rule 4.2.

        • MIR 2.4.5

          "Capital" means Tier 1 Capital, as defined in PRU 3.9.

        • MIR 2.4.6

          The Regulator may require a Recognised Body to hold an additional capital buffer, which may be used only in times of market stress or financial difficulty.

      • Accounting information and standards

        • MIR 2.4.7 MIR 2.4.7

          The Regulator will rely on a Recognised Body's published financial statements provided that those financial statements, are prepared in accordance with the International Financial Reporting Standards.

          • Guidance

            GEN 6.2.2 requires all Recognised Bodies and Authorised Persons to prepare and maintain all financial statements in accordance with the International Financial Reporting Standards.

      • Counterparty, market, operational and other risks

        • MIR 2.4.8

          In assessing whether, pursuant to Rule 2.4.2(b), a Recognised Body has sufficient financial resources in relation to counterparty and market risks, the Regulator may have regard to the:
          (a) amount and liquidity of its financial assets and the likely liquid financial resources available to the Recognised Body during periods of major market turbulence or other periods of major stress for the ADGM Financial System; and
          (b) nature and scale of the Recognised Body’s exposures to counterparty and market risks and, where relevant, the counterparties to which it is exposed.

        • MIR 2.4.9

          For the purposes of Rule 2.4.2(a), in assessing whether a Recognised Body has sufficient financial resources in relation to operational and other risks, the Regulator may have regard to the extent to which, after allowing for the financial resources necessary to cover counterparty and market risks, the Recognised Body’s financial resources are sufficient and sufficiently liquid to:
          (a) enable the Recognised Body to continue to properly carry on the Regulated Functions that it expects to carry on; and
          (b) ensure that it would be able to complete an orderly closure or transfer of its Regulated Functions without being prevented from doing so by insolvency or lack of available funds.

    • MIR 2.5 MIR 2.5 Systems, controls and conflicts

      • MIR 2.5.1

        The Recognised Body must ensure that the systems and controls used in the performance of its Regulatory Functions are adequate, and appropriate for the scale and nature of its business. This applies in particular to systems and controls concerning:

        (a) the transmission of information;
        (b) the assessment, mitigation and management of risks to the performance of the Recognised Body's Regulatory Functions, including conflicts of interest;
        (c) the effecting and monitoring of transactions on the Recognised Body;
        (d) the technical operation of the Recognised Body, including contingency arrangements for disruption to its facilities;
        (e) the operation of its functions relating to the safeguards and protections to investors;
        (f) (where relevant) the safeguarding and administration of assets belonging to users of the Recognised Body's facilities; and
        (g) outsourcing.

      • MIR 2.5.2

        In assessing whether the systems and controls used by a Recognised Body in the performance of its Regulatory Functions are adequate and appropriate for the scale and nature of its business, the Regulator may have regard to the Recognised Body's:

        (a) arrangements for managing, controlling and carrying out its Regulatory Functions, including:
        (i) the distribution of duties and responsibilities among its Key Individuals and the departments of the Recognised Body responsible for performing its Regulatory Functions;
        (ii)the staffing and resources of the departments of the Recognised Body responsible for performing its Regulatory Functions;
        (iii) the arrangements made to enable Key Individuals to supervise the departments for which they are responsible;
        (iv) the arrangements for appointing and supervising the performance of Key Individuals (and their departments); and
        (v) the arrangements by which the Governing Body is able to keep the allocation of responsibilities between, and the appointment, supervision and remuneration of, Key Individuals under review;
        (b) arrangements for the identification and management of conflicts of interest;
        (c) arrangements for internal and external audit; and
        (d) information technology systems.

      • General safeguards for investors

        • MIR 2.5.3

          A Recognised Body must have rules, procedures and appropriate surveillance to ensure that its facilities are such as to afford proper protection to investors. The Regulator may have regard to the extent to which the Recognised Body's rules, procedures and arrangements for monitoring and overseeing the use of its facilities:

          (a) include appropriate measures to prevent the use of its facilities for abusive or improper purposes;
          (b) provide appropriate safeguards for investors against fraud or misconduct, recklessness, negligence or incompetence by users of its facilities;
          (c) provide appropriate information to enable users of its facilities to monitor their use of the facilities;
          (d) include appropriate arrangements to enable users of its facilities to raise queries about any use of those facilities which they are reported to have made;
          (e) include appropriate arrangements to enable users of its facilities to comply with any relevant regulatory or legal requirements; and
          (f) include appropriate arrangements to reduce the risk that those facilities will be used in ways which are incompatible with relevant regulatory or legal requirements,

          and in this paragraph "appropriate" should be taken to mean appropriate having regard to the nature and scale of the Recognised Body's facilities, the types of Persons who will use the facilities and the use which they will make of those facilities.

        • MIR 2.5.4

          A Recognised Body must be able and willing to promote and maintain high standards of integrity and fair dealing in the carrying on of business on or through its facilities. The Regulator may have regard to the extent to which the Recognised Body seeks to promote and encourage, through its rules, practices and procedures, conduct in Regulated Activities which is consistent with the Rules of Market Conduct and with any other Rules, codes or principles relating to behaviour in Regulated Activities which users of the Abu Dhabi Global Market Financial System would normally expect to apply to the Regulated Activity and the conduct in question.

        • MIR 2.5.5

          A Recognised Body must be able and willing to cooperate, by the sharing of information or otherwise, with the Regulator, with any other authority, body or Person having responsibility in the Abu Dhabi Global Market for the supervision or regulation of any Regulated Activity or other financial service, or with a Non-Abu Dhabi Global Market Financial Services Regulator. The Regulator may have regard to the extent to which the constitution and rules of the Recognised Body and its agreements with its Members enable it to obtain information from Members and to disclose otherwise confidential information to the Regulator and other appropriate bodies, including:

          (a) the extent to which the Recognised Body is willing to provide information about it and its activities to assist the Regulator in the exercise of its functions;
          (b) the extent to which the Recognised Body is open with the Regulator or other appropriate bodies in regulatory matters;
          (c) how diligently the Recognised Body investigates or pursues enquiries from the Regulator or other appropriate bodies; and
          (d) whether the Recognised Body participates in appropriate international fora.

        • MIR 2.5.6

          For the purpose of this section, "information" includes information held about large positions held by Members of a Recognised Body.

      • Conflicts of interest

        • Guidance

          A conflict of interest arises in a situation where a Person with responsibility to act in the interests of one Person may be influenced in his action by an interest or association of his own, whether Personal or business or employment related. Conflicts of interest can arise both for the Employees of Recognised Bodies and for the members (or other Persons) who may be involved in the decision‐making process, for example where they belong to committees or to the Governing Body. Conflicts of interest may also arise for the Recognised Body itself as a result of its connection with another Person.

          The Regulator recognises that a Recognised Body has legitimate interests of its own and that its general business policy may properly be influenced by other Persons (such as its owners). Such a connection does not necessarily imply the existence of a conflict of interest nor is it necessary to exclude individuals closely connected with other Persons (for example, those responsible for the stewardship of the owner's interests) from all decision‐making processes in a Recognised Body. However, there may be decisions, primarily regulatory decisions, from which it may be appropriate to exclude an individual in certain circumstances where an interest, position or connection of his conflicts with the interest of the Recognised Body.

        • MIR 2.5.7 [Deleted]

          A conflict of interest arises in a situation where a Person with responsibility to act in the interests of one Person may be influenced in his action by an interest or association of his own, whether Personal or business or employment related. Conflicts of interest can arise both for the employees of Recognised Bodies and for the members (or other Persons) who may be involved in the decision-making process, for example where they belong to committees or to the governing body. Conflicts of interest may also arise for the Recognised Body itself as a result of its connection with another Person.

        • MIR 2.5.8 [Deleted]

          The Regulator recognises that a Recognised Body has legitimate interests of its own and that its general business policy may properly be influenced by other Persons (such as its owners). Such a connection does not necessarily imply the existence of a conflict of interest nor is it necessary to exclude individuals closely connected with other Persons (for example, those responsible for the stewardship of the owner's interests) from all decision-making processes in a Recognised Body. However, there may be decisions, primarily regulatory decisions, from which it may be appropriate to exclude an individual in certain circumstances where an interest, position or connection of his conflicts with the interest of the Recognised Body.

        • MIR 2.5.9

          The Regulator may have regard to the arrangements a Recognised Body makes to structure itself and to allocate responsibility for decisions so that it can continue to take proper regulatory decisions notwithstanding any conflicts of interest, including:

          (a) the systems and controls intended to ensure that confidential information is only used for proper purposes;
          (b) the size and composition of the Governing Body and relevant committees;
          (c) the roles and responsibilities of Key Individuals, especially where they also have responsibilities in other organisations;
          (d) the arrangements for transferring decisions or responsibilities to alternates in individual cases; and
          (e) the arrangements made to ensure that individuals who may have a permanent conflict of interest in certain circumstances are excluded from the process of taking decisions (or receiving information) about matters in which that conflict of interest would be relevant.

        • MIR 2.5.10

          The Regulator may also have regard to the contracts of employment, staff rules, letters of appointment for members of the Governing Body, members of relevant committees and other Key Individuals and other guidance given to individuals on handling conflicts of interest. Guidance to individuals may need to cover:

          (a) the need for prompt disclosure of a conflict of interest to enable others, who are not affected by the conflict, to assist in deciding how it should be managed;
          (b) the circumstances in which a general disclosure of conflicts of interest in advance of any particular instance in which a conflict of interest arises may be sufficient;
          (c) the circumstances in which a general advance disclosure may not be adequate;
          (d) the circumstances in which it would be appropriate for a conflicted individual to withdraw from involvement in the matter concerned, without disclosing the interest; and
          (e) the circumstances in which safeguards in addition to disclosure would be required, such as the withdrawal of the individual from the decision-making process, or from access to relevant information.

        • MIR 2.5.11

          The Regulator may also have regard to the arrangements made:

          (a) for enforcing rules or other provisions applicable to staff and other Persons involved in regulatory decisions; and
          (b) to keep records of disclosures of conflicts of interest and the steps taken to handle them.

        • MIR 2.5.12

          A Recognised Body must ensure that appropriate arrangements are made to:

          (a) identify conflicts between the interests of the Recognised Body, its shareholders, owners and operators and the interests of the Persons who make use of its facilities or the interests of the facilities operated by it; and
          (b) manage or disclose such conflicts so as to avoid adverse consequences for the sound functioning and operation of the facilities operated by the Recognised Body and for the Persons who make use of its facilities.

        • MIR 2.5.13

          A Recognised Body must establish and maintain adequate policies and procedures to ensure that its Employees do not undertake personal account transactions in Financial Instruments in a manner that creates or has the potential to create conflicts of interest.

        • MIR 2.5.14

          A Recognised Body must establish a code of conduct that sets out the expected standards of behaviour for its Employees, including clear procedures for addressing conflicts ofinterest. Such a code must be:

          (a) binding on Employees; and
          (b) to the extent appropriate and practicable, made publicly available.

      • Information transmission

        • MIR 2.5.15

          In assessing a Recognised Body's systems and controls for the transmission of information, the Regulator may also have regard to the extent to which these systems and controls ensure that information is transmitted promptly and accurately:

          (a) within the Recognised Body itself;
          (b) to its Members; and
          (c) (where appropriate) to other market participants or other relevant Persons.

      • Risk management

        • MIR 2.5.16

          In assessing a Recognised Body's systems and controls for assessing and managing risk, the Regulator may also have regard to the extent to which these systems and controls enable the Recognised Body to:

          (a) identify, measure and control all the general, operational, legal and market risks wherever they arise in its activities;
          (b) allocate responsibility for risk management to Persons with appropriate knowledge and expertise; and
          (c) provide sufficient, reliable information to Key Individuals and, where relevant, the Governing Body of the Recognised Body.

      • Internal and external audit

        • MIR 2.5.17

          In  assessing  the  adequacy  of  a  Recognised  Body’s  internal  and  external  audit  arrangements, the Regulator may have regard to: 

          (a) the  size,  composition  and  terms  of  reference  of  any  audit  committee  of  the Recognised Body's Governing Body;
          (b) the frequency and scope of external audit;
          (c) the provision and scope of internal audit;
          (d) the staffing and resources of the Recognised Body's internal audit department;
          (e) the internal audit department's access to the Recognised Body's records and other relevant information; and
          (f) the position, responsibilities and reporting lines of the internal audit department and its relationship with other departments of the Recognised Body.

      • Information technology systems

        • MIR 2.5.18

          In assessing the adequacy of the information technology used by a Recognised Body to perform or support its Regulatory Functions, the Regulator may have regard to:

          (a) the organisation, management and resources of the information technology department within the Recognised Body;
          (b) the arrangements for controlling and documenting the design, development, implementation and use of information technology systems; and
          (c) the performance, capacity and reliability of information technology systems.

        • MIR 2.5.19

          The Regulator may also have regard to the arrangements for maintaining, recording and enforcing technical and operational standards and specifications for information technology systems, including:

          (a) the procedures for the evaluation, selection and testing of information technology systems;
          (b) the procedures for problem management and system change;
          (c) the arrangements to monitor and report system performance, availability and integrity;
          (d) the arrangements (including spare capacity and access to back-up facilities) made to ensure information technology systems are resilient and not prone to failure;
          (e) the arrangements made to ensure business continuity in the event that an information technology system does fail;
          (f) the arrangements made to protect information technology systems from damage, tampering, misuse or unauthorised access; and
          (g) the arrangements made to ensure the integrity of data forming part of, or being processed through, information technology systems.

        • MIR 2.5.20

          The Regulator may have regard to the arrangements made to keep clear and complete audit trails of all uses of information technology systems and to reconcile (where appropriate) the audit trails with equivalent information held by system users and other interested parties.

        • MIR 2.5.21

          In assessing a Recognised Body’s systems and controls for the effecting and monitoring of transactions, and for the operation of settlement arrangements, the Regulator may have regard to the totality of the arrangements and processes through which the Recognised Body’s transactions are effected, cleared and settled, including:

          (a) a Recognised Body’s arrangements under which orders are received and matched, its arrangements for trade and transaction reporting, and (if relevant) its arrangements with another Person under which any rights or liabilities arising from transactions are discharged including arrangements for transmission to a settlement system or Recognised Clearing House;
          (b) (if relevant), a Recognised Body’s arrangements under which instructions relating to a transaction to be cleared by another person by means of a Clearing Service are entered into its systems by the relevant person providing the Clearing Service and transmitted to the Recognised Body; and
          (c) the arrangements made by the Recognised Body for monitoring and reviewing the operation of these systems and controls.

        • Safeguarding and administration of assets

        • MIR 2.5.22

          In assessing a Recognised Body’s systems and controls for the safeguarding and administration of assets belonging to users of its facilities, the Regulator may have regard to the totality of the arrangements and processes by which the Recognised Body:

          (a) records the assets held and the identity of the owners of (and other persons with relevant rights over) those assets;
          (b) records any instructions given in relation to those assets;
          (c) records the carrying out of those instructions;
          (d) records any movement in those assets (or any corporate actions or other events in relation to those assets); and
          (e) reconciles its records of assets held with the records of any custodian or sub‐ custodian (or Person Acting as a Central Securities Depository) used to hold these assets, and with the records of beneficial or legal ownership of those assets.

        • Performance of Regulatory Functions

        • MIR 2.5.23

          A Recognised Body must take all reasonable steps to ensure that the performance of its  Regulatory Functions is not adversely affected by its commercial interests. 

        • MIR 2.5.24

          For the purposes of Rule 2.5.23, a Recognised Body must have adequate systems and controls, including policies and procedures, to ensure that the pursuit of its commercial interests (including its profitability) does not adversely impact on the performance of its Regulatory Functions.

        • Guidance

          A Recognised Body should have systems for identifying, and drawing to the attention of its Senior Management and Governing Body, situations where its commercial interests conflict, or may potentially conflict, with the proper performance of its Regulatory Functions. This would enable the Recognised Body to take appropriate steps to ensure that such conflicts do not adversely affect the proper performance by the Recognised Body of its Regulatory Functions. In particular, the Recognised Body should ensure that adequate human, financial and other resources (both in terms of quantity and quality) are provided for risk management, regulatory, compliance and other similar functions.

    • MIR 2.6 MIR 2.6 Operational systems and controls

      • MIR 2.6.1

        A Recognised Body must establish a robust operational risk management framework with appropriate systems and controls to identify, monitor and manage operational risks that key participants, other Recognised Bodies, service providers (including outsourcees) and utility providers might pose to itself

      • MIR 2.6.2

        A Recognised Body must have a business continuity plan, which is subjected to periodic review and scenario testing, that addresses events posing a significant risk of disrupting operations, including events that could cause a widespread or major disruption. The plan should:

        (a) outline objectives, policies, procedures and responsibilities to deal with internal and external business disruptions and measures to ensure timely resumption of service levels;
        (b) include policies and procedures for event and crisis management;
        (c) incorporate the use of a secondary site;
        (d) contain appropriate emergency rules for force majeure events;
        (e) be designed to ensure that critical information technology systems can resume operations within two hours following disruptive events;
        (f) outline business continuity procedures in respect of its Members and other users of its facilities following disruptive or force majeure events; and
        (g) in the case of a Recognised Clearing House, be designed to enable the Recognised Clearing House to complete settlement by the end of the day of disruption, even in case of extreme circumstances.

      • MIR 2.6.3

        A Recognised Body should have an incident management procedure in place to record, report, analyse and resolve all operational incidents.

      • MIR 2.6.4

        A Recognised Body should have clearly defined operational reliability objectives and policies to achieve these objectives, as well as a scalable operational capacity adequate to handle increasing stress volumes, service-level objectives and historical data.

      • MIR 2.6.5

        A Recognised Body should have a comprehensive physical and information security policy, standards, practices and controls to identify, assess and manage security threats and vulnerabilities and to protect data from loss and leakage, unauthorised access and other processing risks.

    • MIR 2.7 MIR 2.7 Transaction recording

      • MIR 2.7.1

        The Recognised Body must ensure that satisfactory arrangements are made for recording transactions effected on or cleared (or to be cleared) by the Recognised Body by means of its facilities.

      • MIR 2.7.2

        In determining whether a Recognised Body has satisfactory arrangements for recording the transactions effected on, or cleared (or to be cleared) by means of, its facilities, the Regulator may have regard to:

        (a) whether the Recognised Body has arrangements for creating, maintaining and safeguarding an audit trail of transactions for at least 7 years; and
        (b) the type of information recorded and the extent to which the record includes details for each transaction of:
        (i) the name of the Financial Instrument (and, if relevant, the underlying asset) and the price, quantity and date of the transaction;
        (ii) the identities and, where appropriate, the roles of the counterparties to the transaction;
        (iii) if the Recognised Body's rules make provision for transactions to be effected, cleared or to be cleared in more than one type of facility, or under more than one part of its rules, the type of facility in which, or the part of its rules under which, the transaction was effected, cleared or to be cleared; and
        (iv) the date and manner of settlement of the transaction.

      • MIR 2.7.3

        Where transactions are effected on a Recognised Investment Exchange and cleared through a Recognised Clearing House, the Recognised Bodies concerned may agree which information is to be recorded by each Recognised Body and need not duplicate each other's records.

    • MIR 2.8 MIR 2.8 Membership criteria and access

      • MIR 2.8.1

        A Recognised Body must ensure that access to its facilities is subject to criteria designed to protect the orderly functioning of the market and the interests of investors.

      • MIR 2.8.2

        The  Recognised  Body  must  make  transparent  and  non‐discriminatory  rules,  based  on objective criteria, governing access to, or membership of, its facilities. In particular, those rules must specify the obligations for users or Members of its facilities arising from:

        (a) the constitution and administration of the Recognised Body;
        (b) rules relating to transactions on a Recognised Body’s market;
        (c) its professional standards for staff of any Authorised Person, or Remote Member, having access to or membership of a financial market operated by the Recognised Body;
        (d) conditions established for access to or membership of a financial market operated by  the  Recognised  Body  by  Persons  other  than  Authorised  Persons,  including Remote Members; and
        (e) the rules and procedures for Clearing and settlement of transactions.

      • MIR 2.8.3

        The Recognised Body shall only give access to or admit to membership a Person who:

        (a) is fit and proper and of sufficient good repute;
        (b) has a sufficient level of ability, competence and experience, including appropriate standards of conduct for its staff;
        (c) where applicable, has adequate organisational arrangements, including financial and technological resources; and
        (d) where that Person is a Remote Member, they have been granted a Recognition Order by the Regulator under section 138A of FSMR.

      • MIR 2.8.4

        A Recognised Body must immediately notify the Regulator of the:
        (a) receipt of a Member application from a Remote Member;
        (b) approval by the Recognised Body of a Remote Member application; and
        (c) imposition of disciplinary measures or sanctions on a Remote Member by the Recognised Body.

      • MIR 2.8.5

        In assessing whether access to a Recognised Body's facilities is subject to criteria designed to protect the orderly functioning of the market, or of those facilities, and the interests of investors, the Regulator may have regard to whether:

        (a) the Recognised Body limits access as a Member to such Persons:
        (i) over whom it can with reasonable certainty enforce its rules contractually;
        (ii) who have sufficient technical competence to use its facilities;
        (iii) whom it is appropriate to admit to membership having regard to the size and sophistication of users of its facilities and the nature of the business effected by means of, or cleared through, its facilities; and
        (iv) (if appropriate) who have adequate financial resources in relation to their exposure to the Recognised Body;
        (b) indirect access to the Recognised Body's facilities is subject to suitable criteria, remains the responsibility of a Member of the Recognised Body and is subject to its rules;
        (c) where access is granted to Members outside the Abu Dhabi Global Market, there are adequate safeguards against financial crime.
        (d) the Recognised Body’s rules:
        (i) over whom it can with reasonable certainty enforce its rules contractually;
        (ii) set out the risk for Members and other participants when accessing and participating on the Recognised Body’s facilities;
        (iii) contain provisions for the resolution of Members’ and other participants’ disputes and an appeal process for the decisions of the Recognised Body;
        (iv) contain disciplinary proceedings, including any sanctions that may be imposed by the Recognised Body against its Members and other participants; and
        (v) any other matters necessary for the proper functioning of the Recognised Body and the facilities operated by it.

      • MIR 2.8.6

        The Recognised Body must make arrangements regularly to provide the Regulator with a list of users or Members of its facilities.

      • Electronic access

        • MIR 2.8.7

          A  Recognised  Body may  only  permit  a Member  to  provide  its  Clients Direct Electronic Access to the Recognised Body's facilities where: 

          (a) the  Clients meet  the  suitability  criteria established  by  the Member in  order  to meet the requirements in Rule 2.8.8;
          (b) the  Member  retains  responsibility  for  the  orders  and  trades  executed  by  the Clients who are using Direct Electronic Access; and
          (c) the  Member  has  adequate  mechanisms  to  prevent  the  Clients  placing  or executing orders using Direct Electronic Access in a manner that would result in the Member exceeding its position or margin limits.

        • MIR 2.8.8

          A  Recognised  Body  which  permits  its  Members  to  allow  their  Clients  to  have  Direct Electronic Access to its trading facilities must:

          (a) set  appropriate  standards  regarding  risk  controls  and  thresholds  on  trading through Direct Electronic Access;
          (b) be able to identify orders and trades made through Direct Electronic Access; and
          (c) if  necessary,  be  able  to  stop  orders  or  trades  made  by  a  Client  using  Direct Electronic Access provided by the Member without affecting the other orders or trades made or executed by that Member.

        • MIR 2.8.9 [Deleted]

          "Direct Electronic Access" means any arrangement, such as the use of the Member's trading code, through which a Member or the clients of that Member are able to transmit orders relating to investments directly to the facility provided by the Recognised Body.

        • MIR 2.8.10

          A Person who is permitted to have Direct Electronic Access to a Recognised Body's facilities through a Member is not, by virtue of such permission, a Member of the Recognised Body.

        • MIR 2.8.11

          The Regulator may have regard to the arrangements made to permit Direct Electronic Access to the Recognised Body's facilities and to prevent and resolve problems likely to arise from the use of electronic systems to provide indirect access to its facilities by Persons other than its Members, including:

          (a) the rules and guidance governing Members' procedures, controls and security arrangements for inputting instructions into the system;
          (b) the  rules  and  guidance  governing  the  facilities  Members  provide  to  Clients  to input instructions into the system and the restrictions placed on the use of those systems; 
          (c) the rules and practices to detect, identify, and halt or remove instructions breaching any relevant restrictions;
          (d) the quality and completeness of the audit trail of any transaction processed through an electronic connection system; and
          (e) procedures to determine whether to suspend trading by those systems or access to them by or through individual Members.

    • MIR 2.9 MIR 2.9 Financial crime and market abuse

      • MIR 2.9.1

        A Recognised Body must:

        (a) operate an effective market surveillance program and appropriate measures to identify,  monitor,  deter  and  prevent  conduct  which  may  amount  to  market misconduct,  Financial  Crime  and  money laundering  on  and  through  the Recognised Body's facilities; and
        (b) immediately report to the Regulator any suspected market misconduct, Financial Crime or money laundering, along with full details of that information in writing.

      • MIR 2.9.2

        A  Recognised  Body  must  have  appropriate  procedures  and  protections  for  enabling Employees to disclose any information  to the Regulator or to other appropriate bodies involved in  the prevention of market misconduct, money laundering or other Financial Crime or any other breaches of relevant legislation.

      • MIR 2.9.3

        In  determining  whether  a  Recognised  Body's  measures  are appropriate  to  reduce  the extent to which its facilities can be used for a purpose connected with Market Abuse or Financial Crime, to facilitate their detection and to monitor their incidence, the Regulator may have regard to:

        (a) whether the rules of the Recognised Body enable it to disclose any information to the Regulator or other appropriate bodies involved in the detection, prevention or pursuit of Market Abuse or Financial Crime inside or outside  the Abu Dhabi Global Market; and
        (b) whether the arrangements, resources, systems, and procedures of the Recognised Body enable it to:
        (i) monitor the use made of its facilities so as to obtain information regarding possible patterns of normal, abnormal or improper use of those facilities;
        (ii) detect  possible  instances  of  Market  Abuse  or  Financial  Crime,  for example, by detecting suspicious patterns in the use of its facilities;
        (iii) communicate  information  about  Market  Abuse  or  Financial  Crime promptly and accurately to appropriate organisations; and
        (iv) cooperate with all  relevant bodies in  the prevention, investigation and pursuit of Market Abuse or Financial Crime.

    • MIR 2.10 MIR 2.10 Custody

      • MIR 2.10.1

        A Recognised Body must ensure that, where its facilities include making provision for the safeguarding and administration of assets belonging to users of those facilities, satisfactory arrangements are made for that purpose with an appropriate custodian or settlement facility.

      • MIR 2.10.2

        In determining whether a Recognised Body has made satisfactory arrangements for the safeguarding and administration of assets belonging to the users of its facilities, the Regulator may have regard to:

        (a) the level of protection which the arrangements provide against the risk of theft or other types or causes of loss;
        (b) whether the arrangements ensure that assets are only used or transferred in accordance with the instructions of the owner of those assets or in accordance with the terms of the agreement by which the Recognised Body undertook to safeguard and administer those assets;
        (c) whether the arrangements ensure that the assets are not transferred to the Recognised Body or to any other Person to settle the debts of the owner (or other Person with the appropriate rights over the assets) except in accordance with valid instructions from a Person entitled to give those instructions, or in accordance with the terms of the agreement by which the Recognised Body undertook to safeguard and administer those assets;
        (d) whether the arrangements include satisfactory procedures to ensure that any rights arising in relation to the assets held as a result of any actions by the issuers of those assets (or other relevant Persons) are held, transferred or acted upon in a timely and accurate manner in accordance with the instructions of the owner of those assets or in accordance with the terms of the agreement by which the Recognised Body undertook to safeguard and administer those assets;
        (e) whether there are adequate arrangements to ensure the proper segregation of assets belonging to the Recognised Body (or to undertakings in the same Group) from  those  belonging  to  the  users  of  its  facilities  for  the  safeguarding  and administration of assets;
        (f) whether the arrangements include satisfactory procedures for the selection, oversight and review of custodians or sub-custodians used to hold the assets;
        (g) whether the agreements by which the Recognised Body undertakes to safeguard and administer assets belonging to users of its facilities include appropriate information regarding the terms and conditions of that service and the obligations of the Recognised Body to the user of the service and of the user of the service to the Recognised Body;
        (h) whether the records kept of those assets and the operation of the safeguarding services provide sufficient accurate and timely information:
        (i) to identify the legal and beneficial owners of the assets and of any Persons who have charges over, or other interests in, the assets;
        (ii) to record separately any additions, reductions and transfers in each account of assets held for safeguarding or administration; and
        (iii) to  identify  separately  the  assets  owned  by  (or,  where  appropriate,  on behalf  of)  different  Persons,  including,  where  appropriate,  the  assets owned by Members of the Recognised Body and their Clients;
        (i) the frequency of reconciliation of the assets held by (or on behalf of) the Recognised Body with the accounts held with the Recognised Body by the users of its safeguarding and administration services and the extent of the arrangements for resolving a shortfall identified in any reconciliation; and
        (j) the frequency with which statements of their holdings are provided to the users of the safeguarding and administration services, to the owners of the assets held and to other appropriate Persons in accordance with the terms of the agreement by which the Recognised Body undertook to safeguard and administer those assets.

      • MIR 2.10.3

        This Rule 2.10 does not apply to collateral taken under title transfer arrangements.

    • MIR 2.11 MIR 2.11 Rules and consultation

      • MIR 2.11.1

        The Recognised Body must ensure that appropriate procedures are adopted for it to make rules, for keeping its rules under review and for amending them. The procedures must include procedures for consulting users of the Recognised Body's facilities in appropriate cases.

      • MIR 2.11.2

        Any amendment to a Recognised Body's Business Rules must, prior to the amendment being effective, be

        (a) made available for public consultation; and
        (b) approved by the Regulator.

      • MIR 2.11.2A

        Any amendment to a Recognised Body’s guidance to its Business Rules must, prior to the amendment being effective, be notified to the Regulator.

      • MIR 2.11.3

        The Regulator may dispense with the requirement in Rule 2.11.2(a) in cases of emergency, force majeure, typographical errors, minor administrative matters, or to comply with applicable laws.

      • MIR 2.11.4

        A Recognised Body must have procedures for notifying users of these amendments.

      • Public consultation

        • MIR 2.11.5

          A Recognised Body must, before making any amendment to its Business Rules, undertake public consultation on the proposed amendment in accordance with the requirements in this Rule.

        • MIR 2.11.6

          For the purposes of Rule 2.11.5, a Recognised Body must publish a consultation paper setting out (a) the text of both the proposed amendment and the Business Rules that are to be amended, (b) the reasons for proposing the amendment, and (c) a reasonable consultation period, which must not be less than fourteen days from the date of publication, within which Members and other stakeholders may provide comments. The Recognised Body must lodge with the Regulator the consultation paper no later than the time at which it is released for public comment.

        • MIR 2.11.7

          The Regulator may, where it considers on reasonable grounds that it is appropriate to do so, require the Recognised Body to extend its proposed period of public consultation specified in the consultation paper.

        • MIR 2.11.8

          A Recognised Body must

          (a) facilitate, as appropriate, informal discussions on the proposed amendment with Members and other stakeholders including any appropriate representative bodies of such Persons;
          (b) consider the impact the proposed amendment has on the interests of its Members and other stakeholders; and
          (c) have proper regard to any public comments received.

        • MIR 2.11.9

          Following public consultation, a Recognised Body must publish the final rules and consider whether it would be appropriate to discuss the comments received and any amendments made prior to publication.

      • Review of rules

        • MIR 2.11.10

          In determining whether a Recognised Body's procedures for consulting Members and other users of its facilities are appropriate, the Regulator may have regard to the range of Persons to be consulted by the Recognised Body under those procedures. Consultation with a smaller range of Persons may be appropriate where limited, technical changes to a Recognised Body's rules are proposed. A Recognised Body's procedures may include provision to restrict consultation where it is essential to make a change to the rules without delay in order to ensure continued compliance with the Recognition Requirements or other legal obligations.

        • MIR 2.11.11

          In determining whether a Recognised Body's procedures for consulting Members and other users of its facilities are appropriate, the Regulator may have regard to the extent to which the procedures include:

          (a) informal discussions at an early stage with users of its facilities or appropriate representative bodies;
          (b) publication to users of its facilities of a formal consultation paper which includes clearly expressed reasons for the proposed changes and an appropriately detailed assessment of the likely costs and benefits;
          (c) adequate time for users of its facilities to respond to the consultation paper and for the Recognised Body to take their responses properly into account;
          (d) adequate arrangements for making responses to consultation available for inspection by users of its facilities, unless the respondent requests otherwise;
          (e) adequate arrangements for ensuring that the Recognised Body has proper regard to the representations received; and
          (f) publication, no later than the publication of the amended rules, of a reasoned account of the Recognised Body's decision to amend its rules.

    • MIR 2.12 MIR 2.12 Discipline

      • MIR 2.12.1

        The Recognised Body must have effective arrangements for monitoring and enforcing compliance with its rules (including, in the case of a Recognised Investment Exchange, effective arrangements for monitoring transactions in order to identify disorderly trading conditions or Market Abuse).

      • MIR 2.12.2

        The arrangements must include procedures for:

        (a) investigating complaints made to the Recognised Body about the conduct of Persons in the course of using the Recognised Body's facilities; and
        (b) fair, independent and impartial resolution of appeals against decisions of the Recognised Body.

      • MIR 2.12.3

        Where arrangements include provision for requiring the payment of financial penalties, they must include arrangements for ensuring that any amount so paid is applied only in one or more of the following ways:

        (a) towards meeting expenses incurred by the Recognised Body in the course of the investigation of the breach in respect of which the penalty is paid, or in the course of any appeal against the decision of the Recognised Body in relation to that breach;
        (b) for the benefit of users of the Recognised Body's facilities; or
        (c) for charitable purposes.

      • MIR 2.12.4

        In determining whether a Recognised Body has effective arrangements for monitoring and enforcing compliance with its rules (including its settlement arrangements), the Regulator may have regard to:

        (a) the Recognised Body's ability to:
        (i) monitor and oversee the use of its facilities;
        (ii) assess its Members' compliance with its rules (and settlement arrangements, where appropriate);
        (iii) assess the significance of any non-compliance;
        (iv) take appropriate disciplinary action against Members in breach of its rules (and settlement arrangements, where appropriate);
        (v) suspend a Member's access to its facilities;
        (vi) refer Members' or others' conduct to other appropriate authorities for possible action or further investigation;
        (vii) retain authority over a Member for at least one year after he has ceased to be a Member;
        (viii) where appropriate, enforce its rules (and settlement arrangements, where appropriate) against users (other than Members) of its facilities; and
        (ix) take action against suppliers of services to Members (for example, warehouses) whose performance or conduct may be critical to ensuring compliance with its rules (and settlement arrangements, where appropriate);
        (b) the position, management and resources of the departments responsible for monitoring and overseeing the use of the Recognised Body's facilities and for enforcing compliance with its rules (and settlement arrangements, where appropriate); and
        (c) the arrangements made for the determination of disciplinary matters including the arrangements for disciplinary hearings and the arrangements made for appeals from the Recognised Body's decisions in those matters.

      • MIR 2.12.5

        In assessing whether the procedures made by a Recognised Body to investigate complaints about the users of its facilities are satisfactory, the Regulator may have regard to:

        (a) whether these procedures include arrangements which enable the Recognised Body to:
        (i) acknowledge complaints promptly;
        (ii) consider and investigate these complaints objectively, promptly and thoroughly;
        (iii) provide a timely reply to the complainant; and
        (iv) keep adequate records of complaints and investigations;
        (b) the arrangements made to enable a Person who is the subject of a complaint to respond in an appropriate manner to that complaint; and
        (c) the documentation of these procedures and the arrangements made to ensure that the existence of these procedures is brought to the attention of Persons who might wish to make a complaint.

      • MIR 2.12.6

        In assessing whether the arrangements include procedures for the fair, independent and impartial resolution of appeals against decisions of a Recognised Body, the Regulator may have regard to at least the following factors:

        (a) the appeal procedures of the Recognised Body, including the composition and roles of any appeal committees or tribunals, and their relationship to the Governing Body;
        (b) the arrangements made to ensure prompt hearings of appeals from decisions made by the Recognised Body;
        (c) the format, organisation and rules of procedure of those hearings;
        (d) the arrangements made to select the Persons to preside over those hearings and to serve as members of any appeal tribunal;
        (e) the provision for determining whether or not such hearings should be in public;
        (f) the provision made to enable an appellant to be aware of the procedure at any appeal hearing and to have the opportunity to prepare and present his case at that hearing;
        (g) the provision made for an appeal tribunal to give an explanation of its decision; and
        (h) the provision for publicity for any appeals or for determining whether or not publicity should be given to the outcome of any appeal.

      • MIR 2.12.7

        In assessing whether a Recognised Body's arrangements include appropriate provision for ensuring the application of any financial penalties in ways described in the Recognition Requirement, the Regulator may have regard to:

        (a) the Recognised Body's policy regarding the application of financial penalties; and
        (b) the arrangements made for applying that policy in individual cases,

        but the Regulator does not consider that it is necessary for Recognised Bodies to follow any specific policy in order to meet this Recognition Requirement.

    • MIR 2.13 MIR 2.13 Complaints

      • MIR 2.13.1

        The Recognised Body must have effective arrangements for the investigation and resolution of complaints arising in connection with the performance of, or failure to perform, any of its Regulatory Functions.

      • MIR 2.13.2

        The arrangements must include arrangements for a complaint to be fairly and impartially investigated by a Person independent of the Recognised Body, and for him to report on the result of his investigation to the Recognised Body and to the complainant.

      • MIR 2.13.3

        The arrangements must confer on the Person mentioned in Rule 2.13.2 the power to recommend, if he thinks appropriate, that the Recognised Body:

        (a) makes a compensatory payment to the complainant; or
        (b) remedies the matter complained of,

        or takes both of those steps.

      • MIR 2.13.4

        Nothing in these Rules is to be taken as preventing the Recognised Body from making arrangements for the initial investigation of a complaint to be conducted by the Recognised Body.

      • MIR 2.13.5

        In determining whether a Recognised Body has effective arrangements for the investigation and resolution of complaints arising in connection with the performance of, or failure to perform, any of its Regulatory Functions, the Regulator may have regard to the extent to which the Recognised Body's resources and procedures enable it to:

        (a) acknowledge complaints promptly;
        (b) make an objective, prompt and thorough initial investigation of complaints;
        (c) provide a timely reply to the complainant after that initial investigation;
        (d) inform the complainant of his right to apply to the Recognised Body's complaints investigator; and
        (e) keep adequate records of complaints and investigations.

      • MIR 2.13.6

        In determining whether a Recognised Body's arrangements for the investigation of complaints include appropriate arrangements for the complaint to be fairly and impartially investigated by an independent Person (a "complaints investigator"), the Regulator may have regard to:

        (a) the arrangements made for appointing (and removing) a complaints investigator, including the terms and conditions of such an appointment and the provision for remuneration of a complaints investigator;
        (b) the  complaints  investigator's  access  to,  and  relationship  with,  the  Recognised Body's Governing Body and Key Individuals;
        (c) the arrangements made for giving complainants access to the complaints investigator;
        (d) the facilities made available to the complaints investigator to enable him to pursue his investigation and prepare his report and recommendations, including access to the Recognised Body's records, Key Individuals and other staff (including, where appropriate, suppliers, contractors or other Persons to whom any functions have been outsourced and their staff); and
        (e) the arrangements made for the Recognised Body to consider the complaints investigator's report and recommendations.

    • MIR 2.14 MIR 2.14 Outsourcing

      • MIR 2.14.1

        A Recognised Body may satisfy Recognition Requirements applying to it by making arrangements for functions to be performed on its behalf by any other Person.

      • MIR 2.14.2

        Where a Recognised Body makes such arrangements, the arrangements do not affect the responsibility on the Recognised Body to satisfy Recognition Requirements applying to it, but it is in addition a Recognition Requirement applying to the Recognised Body that the Person who performs (or is to perform) the functions is a fit and proper Person who is able and willing to perform them.

      • MIR 2.14.3

        A Recognised Body must, before entering into any material outsourcing arrangements with a service provider, obtain the Regulator's prior approval to do so.

      • MIR 2.14.4

        A Recognised Body that outsources any functions must comply with the outsourcing requirements in GEN 3.3.32.

      • MIR 2.14.5

        If a Person who performs a function on behalf of a Recognised Body is himself carrying on a Regulated Activity in the Abu Dhabi Global Market, he will, unless he is a Person to whom the General Prohibition does not apply, need to be either an Authorised Person or an Exempt Person. The Person to whom a function is delegated is not covered by the Recognised Body's exemption.

    • MIR 2.15 MIR 2.15 Applications for recognition

      • Application process

        • MIR 2.15.1

          An Applicant for Recognised Body status must demonstrate to the Regulator that it is able to meet the Recognition Requirements before a Recognition Order can be made. Once it has been recognised, a Recognised Body must comply with the Recognition Requirements at all times.

        • MIR 2.15.2

          The Regulator must refuse to make a Recognition Order in relation to a body applying for recognition as a Recognised Body if it appears to the Regulator that an existing or proposed Regulatory Provision of the Applicant in connection with the Applicant's business as a Recognised Investment Exchange or Recognised Clearing House, or will impose, an excessive requirement on Persons directly or indirectly affected by it. A requirement is excessive if it is not required by any Abu Dhabi Global Market law and either:

          (a) it is not justified as pursuing a reasonable regulatory objective; or
          (b) it is disproportionate to the end to be achieved,

          in either case, having regard to the effect of existing legal and other requirements, the global character of financial services and markets and the international mobility of activity, the desirability of facilitating innovation and the impact of the proposed Regulatory Provision on market confidence.

        • MIR 2.15.3 MIR 2.15.3 [Deleted]

          There is no standard application form. A prospective applicant should contact the Regulator at an early stage for advice on the preparation, scheduling and practical aspects of its application. It is very important that an application is comprehensively prepared, demonstrates satisfaction of all Recognition Requirements and is based on a well-developed and clear proposal.

          • Guidance

            There is no standard application form. A prospective Applicant should contact the Regulator at an early stage for advice on the preparation, scheduling and practical aspects of its application. It is very important that an application is comprehensively prepared, demonstrates satisfaction of all Recognition Requirements and is based on a well‐ developed and clear proposal.

        • MIR 2.15.4

          An application should include the following information:

          (a) Details  of  the  Applicant's  constitution  including  copies  of  its  memorandum  and  articles of association  (or similar or analogous documents) and any agreements between  the Applicant, its owners or other Persons relating to its constitution or governance.
          (b) Details of the Applicant's structure and ownership, including the identity and scale of interests of the Persons who are in a position  to exercise  significant influence over  the management of  the proposed Recognised Body, whether directly or indirectly in a structure chart.
          (c) A full organisation chart and a list of the posts to be held by Key Individuals (with details of the duties and responsibilities) and the names of the Persons proposed for these appointments when these names are available.
          (d) Copies of the Applicant's proposed Regulatory Provisions.
          (e) Information, evidence and explanatory material (including supporting documentation) necessary to demonstrate to the Regulator that the Recognition Requirements will be met.
          (f) Details of all business to be conducted by the Applicant, whether or not a Regulated Activity. 
          (g) Details  of  the  facilities  which  the  Applicant  plans  to  operate,  including  details  of  the  trading platform, settlement arrangements, Clearing Services and custody services which it plans to supply.
          (h) Copies of the last three annual reports and accounts and, for the current financial year, quarterly management accounts.
          (i) Its business plan for the first three years of operation as a Recognised Body.
          (j) Details of its auditors, bankers,  solicitors and any Persons providing corporate finance advice or similar services (such as reporting accountants) to the Applicant.
          (k) Details  of  any Regulatory  Functions to  be  outsourced  or  delegated,  with  copies of  relevant agreements.
          (l) Details of information technology systems and of arrangements for their supply, management, maintenance and upgrading, and security.
          (m) Details of all plans to minimise disruption to operation of its facilities in the event of the failure of its information technology systems.
          (n) Details of internal systems for financial control, arrangements for risk management and insurance arrangements to cover operational and other risks.
          (o) Details of its arrangements for managing any counterparty risks, including details of margining systems, guarantee funds and insurance arrangements.
          (p) Details of internal arrangements to safeguard confidential or privileged information and for handling conflicts of interest.
          (q) Details of arrangements for complying with the notification rules and other requirements to supply information to the Regulator.
          (r) Details of the arrangements to be made for monitoring and enforcing compliance with its rules and with its Clearing, settlement and default arrangements.
          (s) A summary of the legal due diligence carried out in relation to ascertaining the enforceability of its rules (including Default Rules) and arrangements for margin against any of its Members based outside the Abu Dhabi Global Market, and the results and conclusions reached.
          (t) Details of the procedures to be followed for declaring a Member in default, and for taking action after that event to close out positions, protect the interests of other Members and enforce its Default Rules.
          (u) Details of membership selection criteria, rules and procedures.
          (v) Details of arrangements for recording transactions effected by, or cleared through, its facilities.
          (w) Details of arrangements for detecting Market Abuse or Financial Crime, including arrangements for complying with money laundering law.
          (x) Details of criteria, rules and arrangements for selecting Financial Instruments to be admitted to trading on a Recognised Investment Exchange, or to be cleared by a Recognised Clearing House and, where relevant, details of how information regarding Financial Instruments will be disseminated to users of its facilities.
          (y) Details of arrangements for cooperating with the Regulator and other appropriate authorities, including draft memoranda of understanding or letters.
          (z) Details of the procedures and arrangements for making and amending rules, including arrangements for consulting on rule changes.
          (aa) Details of disciplinary and appeal procedures, and of the arrangements for investigating complaints.
          (bb) Any information required in accordance with directions issued by the Regulator.
          (cc) The appropriate fee.

        • MIR 2.15.5

          The Regulator may require the Applicant to provide additional information, and may require the Applicant to verify any information in any manner. In view of their likely importance for any application, the Regulator will normally wish to arrange for its own inspection of an Applicant's information technology systems.

      • Timing

        • MIR 2.15.6

          The application must be determined by the Regulator before the end of the period of six months beginning with the date on which it receives the completed application.

        • MIR 2.15.7

          At any time after making a formal application, the Applicant may make amendments to its rules, guidance or any other part of its application submitted to the Regulator, provided that it updates its application accordingly.

        • MIR 2.15.8 MIR 2.15.8 [Deleted]

          The Regulator will keep the applicant informed of the progress of the application. It may be necessary to ask the applicant to clarify or amplify or discuss some aspects of its proposals, and the Regulator may invite the applicant to attend meetings for that purpose.

          • Guidance

            The Regulator will keep the Applicant informed of the progress of the application. It may be necessary to ask the Applicant to clarify or amplify or discuss some aspects of its proposals, and the Regulator may invite the Applicant to attend meetings for that purpose.

        • MIR 2.15.9

          The Regulator will follow the procedure set out in Rule 6.9.6 if it does not give its approval.