5 / 10
5
Issue 7 - March 2016
@BahrainBourse
www.bahrainbourse.comBAHRAIN BOURSE CREATES “REITs” MARKET
AND ADOPTS THE REITS & FUNDS INSTRUMENTS TRADING GUIDELINES
The Chairman of Bahrain Bourse
(BHB), Mr. Yusuf Abdulla Hu-
mood issued a resolution in re-
spect of the creation of the Real
Estate Investment Trusts “REITs”
Market at Bahrain Bourse and
adding it to the markets at BHB.
In this market, REITs licensed
by the Central Bank of Bahrain
(CBB) can be listed and traded by
investors in the secondary market
in accordance to the general trad-
ing guidelines in BHB’s Rulebook.
The details of the market and the
trading mechanism of REITs will
be announced later on by the Chief
Executive Officer of the Bourse.
It is worth mentioning that the
Automated Trading System at
Bahrain Bourse comprises of
several markets such as the Eq-
uity Market, Debt Market, Mu-
tual Funds Market, Treasury Bills
Market, and the REITs Market.
Those markets provide investors
with various options that will en-
able them to manage their portfo-
lios in order to diversify their risk
and maximize their profitability.
BHB ADOPTS REITS AND
FUNDS INSTRUMENTS
TRADING GUIDELINES
The Chief Executive Officer of
Bahrain Bourse (BHB), Sh. Khalifa
bin Ebrahim Al-Khalifa issued on
Wednesday, 16th March 2016 Res-
olution No. (11) of 2016 in respect
of adopting the Guidelines on the
Trading of Real Estate Investment
Trusts (REITs) and Funds Instru-
ments listed at Bahrain Bourse.
Trading in the REITs and Funds
Instruments Market will be con-
ducted during the trading session
of BHB, from Sunday to Thurs-
day between 9:30am and 1:00pm.
According to the guidelines, in-
vestors can submit their orders
to the brokers to enter them in
the REITs and Funds Instru-
ments Market through the Auto-
mated Trading System that will
match the buy and sell orders in
accordance with the principles
for matching orders as per the
“Matching Priority” Rule of BHB.
The minimum accepted order in
the REITs and Funds Instruments
Market is BD500 (Five Hun-
dred Dinars) or its equivalent in
the REITs currency. The pricing
mechanism implemented in the
REITs and Funds Market will de-
pend on supply and demand, and
the Net Asset Value (NAV) will be
an indication to specify the value
of the Trust. The daily price fluc-
tuation (up or down) is limited to
a maximum of 10% of the previ-
ous closing price, and the settle-
ment day for the trades is two days
following the trade date (T+2).
It is worth mentioning that a Reso-
lution was issued by BHB’s Chair-
man on 7th March 2016 in respect
of creating the REITs Market at
Bahrain Bourse and adding it to
the markets at BHB. Several REITs
are expected to list at the Bourse
that will enable investors to trade
these new instruments and benefit
from their availability in the sec-
ondary market. Adding the REITs
Market to BHB will provide in-
vestors the opportunity to diver-
sify their investment portfolios
and manage their risk by invest-
ing in more than one instrument.