Settlement and Central Depositary at Bahrain Bourse

The Central Securities Depository (CSD) at the Bahrain Bourse is based on the fundamental principle of book-entry as a mean of representing ownership and movement of securities. CDS account holders enjoy the convenience of electronic securities transfer and trade settlement, besides being able to obtain up-to-date information on their shareholding. Investors may also obtain the benefits of reduced cost and risks previously associated with the physical certificated environment.

Investors are required to open a securities account with any Licensed Participant through the CSD before they conduct any transaction of securities on Bahrain Bourse. Once a transaction is executed, securities on the Bahrain Bourse are transferred in electronic Book-Entry from between the selling investor and the buyer investor through the Broker Dealers via the Central Depository System. The automated Clearing, Settlement and Central Depository (CDS) System has been specifically designed to enable the Exchange to have better control of the market with its ability to monitor transactions throughout.

The CSD attracts wide local and international market participants providing a wide and comprehensive selection of services through its network of licensed brokers and custodians.