AMI 9.11 Guidance

1. Article 26 of the Markets Law provides as follows:
"(1) Without limiting the application of the Regulatory Law 2004, the DFSA may direct an Authorised Market Institution to do or not do specified things that the DFSA considers are necessary or desirable or ensure the integrity of the financial services industry in the DIFC, including but not limited to, directions:
(a) requiring compliance with any duty, requirement, prohibition, obligation or responsibility applicable to an Authorised Market Institution;
(b) requiring an Authorised Market Institution to act in a specified manner in relation to transactions conducted on or through the facilities operated by an Authorised Market Institution, or in relation to a specified class of transactions; or
(c) requiring an Authorised Market Institution to act in a specified manner or to exercise its powers under any rules that the Authorised Market Institution has made.
(2) Without limiting the application of Article 75 of the Regulatory Law 2004, the DFSA may direct an Authorised Market Institution to:
(a) close the market or facilities operated by an Authorised Market Institution in a particular manner or for a specified period;
(b) suspend transactions on the market or through the facilities operated by an Authorised Market Institution;
(c) suspend transactions in Investments conducted on the market or through the facilities operated by an Authorised Market Institution;
(d) prohibit trading in Investments conducted on the market or through the facilities operated by an Authorised Market Institution;
(e) defer for a specified period the completion date of transactions conducted on the market or through the facilities operated by an Authorised Market Institution;
(f) prohibit a specified person from undertaking any transactions on the facilities operated by the Authorised Market Institution; or
(g) do any act or thing, or not do any act or thing, in order to ensure an orderly market, or reduce risk to the DFSA's objectives."
2. The DFSA expects to use these powers only in exceptional circumstances. Factors the DFSA will consider in exercising these powers include:
a. what steps the Authorised Market Institution has taken or is taking in respect of the issue being addressed in the planned direction;
b. the impact on the DFSA's objectives if a direction were not issued; or
c. whether it is in the interests of the DIFC.
3. The Decision Notice given by the DFSA will specify what an Authorised Market Institution is required to do under the exercise of such powers.
Derived from RM118/2013 [VER15/07-13]
[Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]