ADVOKS GLOBAL · KENYA
The Capital Markets (Licensing Requirements) (General) Regulations
7. Requirements for approval of a securities exchange trading system
Edition: 2023-10-06 · In force
7. Requirements for approval of a securities exchange trading system
(1)A trading system to be adopted by a securities exchange shall be approved by the Authority before such system is implemented.(2)The trading system referred to in paragraph (1) shall provide for—(a)a trading facility at which all bids to purchase and offers to sell are exposed to each other and at which members of the public are granted an opportunity to witness trading;(b)a transparent and efficient pricing mechanism which—(i)displays the best offer and bid prices;(ii)provides for automatic matching;(iii)displays the highest and lowest prices, the latest transactions as well as the volume of securities traded;(iv)has an audit trail and trace back mechanism for all transactions;(v)has sufficient internal controls and security measures to ensure that only authorized persons have access;(vi)provides for integration with a central depository system; and(vii)maintains records of all transactions and retrieves such records as may be necessary.