• MIR 7 MIR 7 Remote Bodies

    • MIR 7.1 MIR 7.1 Applications

      • MIR 7.1.1

        Applicants for recognition as a Remote Investment Exchange or Remote Clearing House shall follow the same application procedures as apply in respect of Applicants for recognition as a Recognised Investment Exchange or Recognised Clearing House.

      • MIR 7.1.2

        Applicants for recognition as a Remote Clearing House must demonstrate, where they act as a CCP, that they have QCCP status for the purposes of the Bank for International Settlements' paper BCBS282 entitled "Capital requirements for bank exposures to central counterparties".

      • MIR 7.1.3

        In addition, applications for recognition as a Remote Investment Exchange or Remote Clearing House must contain:

        (a) the address of the Applicant's head office in its home jurisdiction;
        (b) the address of a place in the Abu Dhabi Global Market for the service on the Applicant of notices or other documents required or authorised to be served on it;
        (c) information identifying any type of activity which the Applicant envisages having in the Abu Dhabi Global Market and extent and nature of usage and membership;
        (d) a comparative analysis of the Applicant's regulatory requirements in its home jurisdiction compared against those under the Rules set out in this Rulebook and those contained in the IOSCO Principles for Financial Market Infrastructures;
        (e) the information, evidence and explanatory material necessary to demonstrate to the Regulator that the requirements specified in Rule 7.2.2 are met;
        (f) one copy of each of the following documents:
        (i) its most recent financial statements; and
        (ii) the Applicant’s memorandum and articles of association or any similar documents; and
        (g) the date by which the Applicant wishes the Recognition Order to take effect.

      • MIR 7.1.4

        The Regulator may require further information, including information specified in Rule 2.15.4, from the Applicant and may need to have discussions with the appropriate authorities in the Applicant's home jurisdiction.

      • MIR 7.1.5

        All material should be supplied in English, or accompanied, if appropriate, by an accurate English translation. An English glossary of technical or statistical terms may be sufficient to accompany tables of statistical or financial information.

    • MIR 7.2 MIR 7.2 Recognition Requirements

      • MIR 7.2.1

        Before making a Recognition Order, the Regulator will need to be satisfied that the Remote Recognition Requirements in Rule 7.2.2 have been met.

      • MIR 7.2.2 Remote Recognition Requirements:

        A Remote Body must ensure that:

        (a) investors are afforded protection equivalent to that which they would be afforded if the body concerned were required to comply with the Recognition Requirements;
        (b) there are adequate procedures for dealing with a Person who is unable, or likely to become unable, to meet his obligations in respect of one or more Market Contracts connected with the Remote Body;
        (c) the Applicant is able and willing to co‐operate with the Regulator by the sharing of information and in other ways; and
        (d) adequate arrangements exist for co‐operation between the Regulator and those responsible for the supervision of the Applicant in the jurisdiction in which the Applicant's head office is situated.

      • MIR 7.2.3 MIR 7.2.3

        In considering whether it is satisfied as to the requirements mentioned in Rule 7.2.2(a) and (b), the Regulator shall have regard to:

        (a) the relevant law and practice of the jurisdiction in which the Applicant's head office is situated, including with respect to a Remote Clearing House Applicant, the equivalence of such laws to those set out in Chapter 3, Chapter 4 of Part 12, and Part 13 of FSMR; and
        (b) the Regulatory Provisions of the Applicant.

        • MIR 7.2.4

          The Regulator may require further information from the applicant and may need to have discussions with the appropriate authorities in the applicant's home territory. To allow sufficient time for applications to be processed and for the necessary contacts to be made with the appropriate home territory authorities, applications should be made not later than six months before the applicant wishes the recognition order to take effect. No guarantee can be given that a decision will be reached within this time, although the Regulator will endeavour to meet the applicant's reasonable timing requirements.

        • MIR 7.2.5

          All material should be supplied in English, or accompanied, if appropriate, by an accurate English translation. An English glossary of technical or statistical terms may be sufficient to accompany tables of statistical or financial information.

    • MIR 7.3 MIR 7.3 Regulator Decision On Recognition

      • MIR 7.3.1

        If the Regulator considers that the Remote Recognition Requirements are satisfied, it may make a Recognition Order, which will state the date on which it takes effect.

      • MIR 7.3.2 [Deleted]

        A Non-Abu Dhabi Global Market Recognised Body must ensure that:

        (a) investors are afforded protection equivalent to that which they would be afforded if the body concerned were required to comply with Recognition Requirements;
        (b) there are adequate procedures for dealing with a Person who is unable, or likely to become unable, to meet his obligations in respect of one or more market contracts connected with the Non-Abu Dhabi Global Market Recognised Body;
        (c) the applicant is able and willing to co-operate with the Regulator by the sharing of information and in other ways; and
        (d) adequate arrangements exist for co-operation between the Regulator and those responsible for the supervision of the applicant in the country or territory in which the applicant's head office is situated.

      • MIR 7.3.3 [Deleted]

        In considering whether it is satisfied as to the requirements mentioned in Rule 7.3.2, the Regulator shall have regard to:

        (a) the relevant law and practice of the country or territory in which the applicant's head office is situated; and
        (b) the rules and practices of the applicant.

      • MIR 7.3.4 [Deleted]

      • MIR 7.3.5 [Deleted]

      • MIR 7.3.6

        If the Regulator decides to refuse to make a Recognition Order, it will follow the procedure set out in Rule 6.9.6.

      • Guidance

        Where the Regulator considers that it is unlikely to make a Recognition Order it may discuss its concerns with the Applicant with a view to enabling the Applicant to make changes to its Regulatory Provisions, or other parts of its application.

    • MIR 7.4 MIR 7.4 Supervision

      • MIR 7.4.1 MIR 7.4.1

        A Remote Body shall provide the Regulator with an annual report which contains the information set out in Rule 7.4.2. In relation to the report:

        (a) the period covered by such a report starts on the day after the period covered by its last report or, if there is no such report, after the making of the Recognition Order recognising the Remote Body as such, and ends on the date specified in the report or, if no date is specified, on the date of the report.
        (b) if a Remote Body changes the period covered by its report, it should ensure that the first day of the period covered by a report is the day immediately following the last day of the period covered by the previous report.
        (c) copies of the report should be sent to the Regulator within two months after the end of the period to which it relates.

        • Guidance

          The period covered by the report to be submitted under Rule 7.4.1 would most conveniently be one year.

      • MIR 7.4.2

        A Remote Body must, in the circumstances noted, notify the Regulator of the following information:

          Event Timing Information requirement
        1. An event occurs which is likely to affect the Regulator's assessment of whether it is satisfied that the Remote Body continues to satisfy the Remote Recognition Requirements (see Rule 7.4.3). As soon as reasonably practicable. Particulars of the relevant event.
        2. A Remote Body amends its:
        (a) memorandum and articles of association or any similar or analogous documents; or
        (b) chairman or president, or chief executive (or equivalent).
        In its next annual report (or first annual report, if not notified to the Regulator during application process). Particulars of the change and effective date.
        3. Disciplinary action (or any similar or analogous action) is taken against the Remote Body by any supervisory authority in its home jurisdiction, whether or not that action has been made public in that jurisdiction. As soon as reasonably practicable. Particulars of the disciplinary action taken.
        4. Publication of annual report and accounts. Within fourteen days of publication or approval of the auditor, whichever is the sooner. A copy of the annual report and accounts.
        5. A Remote Body proposes to change:
        (a) its address in the Abu Dhabi Global Market for the service of notices or other documents required or authorised to be served on it; or
        (b) the address of its head office.
        Fourteen days before the change is effective. The new address.
        6. A Remote Body has notice that any license, permission or authorisation which it requires to conduct any regulated activity in its home jurisdiction has been or is about to be revoked or modified in any way which would materially restrict the Remote Body in performing any regulated activity in its home jurisdiction or in the Abu Dhabi Global Market. As soon as practicable.
        (a) particulars of the license, permission or authorisation which has been or is to be revoked or modified, including particulars of the Remote Body's regulated activities to which it relates;
        (b) an explanation of how the revocation or modification restricts or will restrict the Remote Body in carrying on any regulated activity in its home jurisdiction or in the Abu Dhabi Global Market;
        (c) the date on which the revocation or modification took, or will take, effect and, if it is a temporary measure, any date on which, or any conditions that must be met before which, it will cease to have effect; and
        (d) any reasons given for the revocation or modification.
        7. A Remote Body admits for the first time a Member whose head or registered office is in the Abu Dhabi Global Market. As soon as practicable.
        (a) notice of that event;
        (b) the address of the new Member.
        8. A Remote Body decides to put a Member into default. As close to when such a decision is taken by a Remote Body as practicable.
        (a) notice of that event;
        (b) the name of the Member and (where relevant) the class of membership;
        (c) the reasons for that decision; and
        (d) the names of any other exchange, Clearing house or trading platform on which, to the best of that Remote Body's knowledge, that Member clears business or transacts for, or in respect of, its Clients.
        9. A Remote Body issues a consultation on proposed changes to its rules or procedures. As soon as practicable. A copy of the consultation paper and accompanying documentation.
        10. Changes to a Remote Body's rules or procedures become effective. As soon as practicable. A copy of the amended rules or procedures.
        11. A Remote Body issues guidance on or a circular relating its rules or procedures. As soon as practicable. A copy of the guidance or circular.

      • MIR 7.4.3

        The following events are examples of events likely to affect an assessment of whether a Non-Abu Dhabi Global Market Recognised Body is continuing to satisfy the Non-Abu Dhabi Global Market Recognition Requirements:

        (a) significant changes to any relevant law or regulation in its home territory, including laws or regulations:
        (i) governing exchanges or Clearing houses;
        (ii) designed to prevent insider dealing, market manipulation or other forms of market abuse or misconduct;
        (iii) designed to protect the interests of clients of Members of the Non-Abu Dhabi Global Market Recognised Body, or of a class of bodies which includes the Non-Abu Dhabi Global Market Recognised Body;
        (iv) which affect:
        A. the ability of the Non-Abu Dhabi Global Market Recognised Body to seek information (whether compulsorily or voluntarily) from its Members, including information relating to the price and volume of transactions, the identity of parties to transactions, and the movement of funds associated with transactions; and
        B. the ability of the Non-Abu Dhabi Global Market Recognised Body to pass such information, on request, to Global Market authorities;
        (b) significant changes to its internal organisation or structure;
        (c) significant changes to the practices of the Non-Abu Dhabi Global Market Recognised Body applying to any Regulated Activities carried on by it in the Abu Dhabi Global Market; or
        (d) any other event or series of events in relation to the body which:
        (i) affects or may significantly affect cooperation between the Non-Abu Dhabi Global Market Recognised Body, or its supervisor in its home territory, and the Regulator;
        (ii) has or may have a substantial effect on the structure of the markets in which the body operates;
        (iii) brings about or may bring about a substantial change in the nature and composition of its Membership in the Abu Dhabi Global Market; or
        (iv) brings about or may bring about a substantial change in the Regulated Activities undertaken by it in the Abu Dhabi Global Market.

      • Language of notice

        • MIR 7.4.4

          Any notice to be given or information to be supplied under these notification rules must be supplied in English, and any document to be provided must be accompanied, if not in English, by an accurate English translation.

        • MIR 7.4.5

          An English glossary of technical or statistical terms may be sufficient to accompany tables of statistical or financial information.

      • Form and method of notification

        • MIR 7.4.6

          The Rules relating to the form and method of notification in Rule 5.2 also apply to Remote Bodies.

      • Waivers

        • MIR 7.4.7

          Remote Bodies may apply to the Regulator for a waiver of any of the notification rules. The procedure is the same as that for applications from Recognised Bodies, as set out in Rule 5.3.1.

    • MIR 7.5 MIR 7.5 Powers To Supervise

      • MIR 7.5.4 MIR 7.5.4

        Any notice to be given or information to be supplied under these notification rules must be supplied in English, and any document to be provided must be accompanied, if not in English, by an accurate English translation.

        • MIR 7.5.6 MIR 7.5.6

          The rules relating to the form and method of notification in Rule 5 also apply to Non-Abu Dhabi Global Market Recognised Bodies.

          • MIR 7.5.1 MIR 7.5.1

            The Regulator has similar powers to supervise Non‐Abu Dhabi Global Market Recognised Bodies to those it has to supervise Recognised Bodies. It may (in addition to any other powers it might exercise):

            (a) give directions to a Remote Body if it has failed, or is likely to fail, to satisfy the Non‐Abu Dhabi Global Market Recognition Requirements or if it has failed to comply with any other obligation imposed by or under the FSMR and the Rules; or
            (b) revoke a Recognition Order if a Remote Body is failing, or has failed, to comply with the Remote Recognition Requirements or any other obligation in or under the FSMR and the Rules; or
            (c) require a Remote Body or a Person connected with the Remote Body, to provide or produce specified information or information of a specified description, at a specified place and before the end of a reasonable period, in such form and with such verifications or authentications as it may reasonably require; or
            (d) require any of the following Persons, to provide the Regulator with a report on any matter, or appoint a Skilled Person to provide the Regulator with information or produce documents with respect to any matter:
            (i) the Remote Body; or
            (ii) any other Member of the Remote Body's Group; or
            (iii) a partnership of which the Remote Body is a Member; or
            (iv) a Person who has at any time been a Person falling within (i), (ii) or (iii).

            • MIR 7.5.7

              Non-Abu Dhabi Global Market Recognised Bodies may apply to the Regulator for a waiver of any of the notification rules. The procedure is the same as that for applications from Recognised bodies.

            • MIR 7.5.5 MIR 7.5.5

              An English glossary of technical or statistical terms may be sufficient to accompany tables of statistical or financial information.

              • MIR 7.5.2

                The Regulator will follow the approach in Rules 6.2.1, 6.6.1, 6.8.1, 6.96 and GEN 8.12 if it is considering exercising these powers in relation to a Remote Body.

              • MIR 7.5.3

                The following events are examples of events likely to affect an assessment of whether a Non-Abu Dhabi Global Market Recognised Body is continuing to satisfy the Non-Abu Dhabi Global Market Recognition Requirements:

                (a) significant changes to any relevant law or regulation in its home territory, including laws or regulations:
                (i) governing exchanges or Clearing houses;
                (ii) designed to prevent insider dealing, market manipulation or other forms of market abuse or misconduct;
                (iii) designed to protect the interests of clients of Members of the Non-Abu Dhabi Global Market Recognised Body, or of a class of bodies which includes the Non-Abu Dhabi Global Market Recognised Body;
                (iv) which affect:
                A. the ability of the Non-Abu Dhabi Global Market Recognised Body to seek information (whether compulsorily or voluntarily) from its Members, including information relating to the price and volume of transactions, the identity of parties to transactions, and the movement of funds associated with transactions; and
                B. the ability of the Non-Abu Dhabi Global Market Recognised Body to pass such information, on request, to Global Market authorities;
                (b) significant changes to its internal organisation or structure;
                (c) significant changes to the practices of the Non-Abu Dhabi Global Market Recognised Body applying to any Regulated Activities carried on by it in the Abu Dhabi Global Market; or
                (d) any other event or series of events in relation to the body which:
                (i) affects or may significantly affect cooperation between the Non-Abu Dhabi Global Market Recognised Body, or its supervisor in its home territory, and the Regulator;
                (ii) has or may have a substantial effect on the structure of the markets in which the body operates;
                (iii) brings about or may bring about a substantial change in the nature and composition of its Membership in the Abu Dhabi Global Market; or
                (iv) brings about or may bring about a substantial change in the Regulated Activities undertaken by it in the Abu Dhabi Global Market.

    • MIR 7.6 MIR 7.6 Powers to supervise

      • MIR 7.6.1

        The Regulator has similar powers to supervise Non-Abu Dhabi Global Market Recognised Bodies to those it has to supervise Recognised Bodies. It may (in addition to any other powers it might exercise):

        (a) give directions to a Non-Abu Dhabi Global Market Recognised Body if it has failed, or is likely to fail, to satisfy the Non-Abu Dhabi Global Market Recognition Requirements or if it has failed to comply with any other obligation imposed by or under the Act; or
        (b) revoke a recognition order if a Non-Abu Dhabi Global Market Recognised Body is failing, or has failed, to comply with the Non-Abu Dhabi Global Market Recognition Requirements or any other obligation in or under the Act; or
        (c) require a Non-Abu Dhabi Global Market Recognised Body or a Person connected with the Non-Abu Dhabi Global Market Recognised Body, to provide or produce specified information or information of a specified description, at a specified place and before the end of a reasonable period, in such form and with such verifications or authentications as it may reasonably require; or
        (d) require any of the following Persons, to provide the Regulator with a report on any matter, or appoint a Skilled Person to provide the Regulator with information or produce documents with respect to any matter:
        (i) the Non-Abu Dhabi Global Market Recognised Body; or
        (ii) any other Member of the Non-Abu Dhabi Global Market Recognised Body's group; or
        (iii) a partnership of which the Non-Abu Dhabi Global Market Recognised Body is a Member; or
        (iv) a Person who has at any time been a Person falling within (i), (ii) or (iii).

      • MIR 7.6.2

        The Regulator will follow the approach in Rule 5, mutatis mutandis, if it is considering exercising these powers in relation to a Non-Abu Dhabi Global Market Recognised Body.