The Bahrain Stock Exchange (BSE), which officially commenced operations on 17th June 1989 is the focus of capital market activities in Bahrain. The exchange has grown significantly in the number of listed securities with currently 50 equities, 19 bonds (both conventional and Islamic) and 35 mutual funds. As at end December 2006, market capitalization stood at US$21.2 billion, representing roughly 160% of GDP.
Trading is carried out through 14 securities brokers active in the market and day-to-day trading takes place through the Automated Trading System (ATS). There is also a Clearing, Settlement and Central Depository System (CDS), which is likewise automated. These two systems have combined to ensure a fast and efficient trading process, ensuring delivery versus payment on a T+2 basis.
The capital market is under the regulatory and supervisory oversight of the Central Bank's Capital Market Supervision Directorate, which oversees both the primary and secondary markets. Following the enactment of the Central Bank of Bahrain and Financial Institutions Law 2006, a new and comprehensive set of regulations based on international best practices is being introduced. The capital markets rulebook (which will comprise Volume 6 of the CBB Rulebook) will provide a market and disclosure based system of regulation that promotes transparency and fairness in capital market transactions. It will upgrade and bring together into a single publication the various regulations that currently apply to capital markets activity.
For further information please visit the Bahrain Stock Exchange website.