FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
BAHRAIN BOURSE
HISTORY AND DEVELOPMENT
Bahrain Bourse (BHB) was established as a
shareholding company according to Law No.
60 for the year 2010 to replace Bahrain Stock
Exchange (BSE) that was established in 1987.
The first Bahraini Public Shareholding Company
was established in 1957. Since then, more
local public shareholding companies began to
operate, reaching their peak in the beginning
of the 1980’s. During this period, shares of
public shareholding companies were being
actively traded in a non-official market called “Al
Jowhara Market”. Such market soon collapsed
along with the collapse of the Souk Al-Manakh
stock market crash in Kuwait at the beginning of
the 80’s of the last century.
Following the crash, the Bahraini Government
in cooperation with the International Finance
Corporation (IFC) prepared a feasibility study to
establish an official stock market in Bahrain. As
a result of the recommendation of the study, the
Bahraini Government established Bahrain Stock
Exchange in 1987 according to Amiri Decree
No. 4. The Exchange officially commenced
operations in June 1989 with 29 Bahraini
shareholding companies listed. The only
instruments traded at that time were common
shares.
Since the bourse’s establishment in 1989
(formerly Bahrain Stock Exchange), trading was
conducted manually through a system called
“Auctional Trading” System. Using this system,
the broker had to write the bid and offer orders
that they receive from the investor on the trading
boards at the trading floor. The transaction takes
place when the bid and offer prices match.
In 1999, BHB implemented the Automated
Trading System (ATS) to carry out all the
bourse’s transactions electronically, replacing
the old manual system.
In 2002, the legislative and regulatory authority
and supervision of BHB was transferred from
the Ministry of Commerce to the Central Bank
of Bahrain (CBB) in which CBB regulates and
supervises all the bourse’s activities.
With the development of the bourse,
government institutions and companies started
issuing several investment instruments taking
advantage of the legislative and technical
infrastructure established by the bourse. Since
then, the bourse witnessed the listing and
registration of preferred shares, bonds, sukuk,
and mutual funds, making it the first bourse to
list such instruments in the region.
In 2010, Bahrain Bourse moved to its new
premises at Bahrain Financial Harbour after
preparing the new premises with the latest
technological equipment in order to support
the bourse’s efforts to provide a variety of
advanced services that satisfy issuers, brokers
and investors.
FUTURE OUTLOOK
In the year 2010, Bahrain Bourse will continue
its efforts to attract more local, regional, and
international mutual funds. The bourse will
continue to attract more listed companies, both
local and international and will also seek more
cooperation with stock exchanges worldwide,
with the aim of exchanging information and
expertise. In addition, Bahrain Bourse will
pursue strategic partnerships in many different
areas that we hope to add value to all parties
involved.
Key Information Contacts
Central Bank of Bahrain www.cbb.gov.bh/cmsrule/bmaindex.jsp
Ministry of Finance www.mofne.gov.bh/English/eindex.asp
Bahrain Government www.bahrain.gov.bh
Economic Development Board www.bahrainedb.com
CONTACT INFORMATION
Contact Name Mr. Ali Mansoor
E-mail [email protected]
Website www.bahrainstock.com
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