ADGM Markets Infrastructure Rules (MIR Rulebook)chapter by chapter

Rule 1.1.1-1.1.41 Application and Purpose

The MIR Rulebook applies to recognised and remote investment exchanges, clearing houses and members under FSMR, and recognised bodies must also comply with relevant GEN and other Rulebook provisions.

Rules 1.1.1-1.1.71.1 Application and cross-referenced GEN obligations

The MIR Rules apply to ADGM Recognised Bodies, Remote Bodies and recognition applicants, and extend 22 general GEN Rules, including whistleblowing and cyber risk management, to Recognised Bodies.

Rule 2.2.12.2 Fit and proper suitability

A Recognised Body must be a fit and proper person to perform its regulatory functions, assessed on governance commitment, conflicts controls, oversight effectiveness, legal breaches, staff integrity, and controlling connections.

Rule 2.3.12.3 Governing Body compliance with GEN requirements

The governing body of a Recognised Body must comply with the specified GEN Rules on governing body requirements.

Rule 2.3.1-2.3.62.3 Governance and Key Individuals - Approval and Appointment

Firms must ensure each of the ten specified Key Individual roles, including Chief Compliance Officer, MLRO and Chief Risk Officer, is held by a person approved by the Regulator.

Rule 2.3.72.3 Governance and Key Individuals - Change Notification

Firms must notify the Regulator of proposed changes to Key Individuals, including appointments and resignations, generally 30 days ahead for appointments and as soon as practicable for resignations.

Rule 2.3.142.3 Change of Key Individual notification

A Recognised Body must notify the Regulator in writing within ten Business Days when an approved Key Individual resigns, withdraws or varies role, and keep meeting key individual requirements.

Rule 2.4.1-2.4.32.4 Financial Resources

Recognised Bodies must maintain at all times financial resources adequate for the scale and complexity of their business, such as Tier 1 Capital or amounts the Regulator requires.

Rule 2.4.72.4 Financial statements in accordance with GEN 6

Recognised Bodies must prepare and maintain their financial statements in accordance with chapter 6 of the General Rules (GEN) of the ADGM.

Rule 2.5.12.5 Adequacy of systems and controls

A Recognised Body must ensure its systems and controls are adequate for its business, covering risk management, conflicts of interest, asset safeguarding, outsourcing and contingency arrangements.

Rule 2.5.1-2.5.14 Guidance2.5 Systems, Controls and Conflicts of Interest

Market operators must maintain systems and controls for conflicts of interest, information flow, risk including climate-related financial risk, audits, IT, transaction settlement and investor protection, and cooperate with regulators.

Rule 2.5.22.5 General safeguards for investors

A Recognised Body must have rules, procedures and surveillance to protect investors against abuse, fraud and misconduct, and to support monitoring and regulatory compliance.

Rule 2.6.12.6 Operational risk management framework

Recognised Bodies must create a robust operational risk management framework to identify, monitor, and manage operational risks from key participants and external providers.

Rule 2.6.1-2.6.52.6 Operational Systems and Controls

Recognised Bodies must maintain a business continuity plan targeting resumption of critical systems within 2 hours, plus incident management and physical and information security controls.

Rule 2.6.22.6 Business continuity plan

Recognised Bodies must maintain a tested business continuity plan with two-hour critical IT resumption, and Recognised Clearing Houses must complete same-day settlement even in extreme circumstances.

Rule 2.7.12.7 Transaction recording arrangements

Recognised Bodies must establish arrangements to record transaction details, including audit trails and relevant financial data, without duplication between parties.

Rule 2.7.1-2.7.22.7 Transaction Recording

Recognised Bodies must maintain arrangements for recording transactions made through their facilities, sufficient to allow subsequent reconstruction and audit.

Rule 2.8.1-2.8.62.8 Membership Criteria and Access

The operator must maintain transparent, objective, non-discriminatory membership and access criteria with Direct Electronic Access controls, and immediately notify the Regulator of Remote Member applications, approvals and sanctions.

Rule 2.9.1-2.9.52.9 Financial Crime and Market Abuse Surveillance

Regulated firms must maintain an effective market surveillance programme to detect market abuse and financial crime, report suspicions to the Regulator immediately, and maintain whistleblower protection arrangements.

Rule 2.10.12.10 Custody arrangements for user assets

Recognised Bodies must ensure protective custody arrangements for user assets with an appropriate custodian, covering theft, loss, and compliance with usage instructions.

Rule 2.10.1-2.10.32.10 Custody

Firms must maintain satisfactory arrangements for safeguarding assets held on behalf of members or other persons, excluding assets subject to title-transfer collateral arrangements.

Rule 2.11.1-2.11.62.11 Rules and Consultation

Public consultation is required for proposed rule amendments for at least 10 Business Days before obtaining Regulator approval.

Rule 2.12.1-2.12.42.12 Discipline

A Recognised Body must maintain effective arrangements to monitor and enforce compliance with its own rules, using disciplinary powers, including financial penalties, only for permitted purposes.

Rule 2.13.1-2.13.42.13 Complaints

Firms must maintain arrangements for an independent complaints investigator who can investigate customer complaints and recommend compensatory payments or other remedies.

Rule 2.14.1-2.14.32.14 Outsourcing

Firms must obtain the Regulator's prior written approval before entering any material outsourcing arrangement.

Rule 2.15.1-2.15.52.15 Applications for Recognition

Applicants must submit a complete application for recognition with prescribed information items; the Regulator must decide within six months of receiving a complete application.

Rules 2.1.2-2.1.32.1 Continuous compliance and information provision

A Recognised Body must at all times meet Recognition Requirements to the Regulator's satisfaction and provide all relevant information on its business, market, investors, competition and risks.

Rules 2.3.2-2.3.42.3 Appointment of Key Individuals

A Recognised Body must, when the Regulator requires, appoint Key Individuals for its Regulatory Functions, with each appointment subject to Regulator approval.

Rules 2.3.5-2.3.132.3 Key Individual fit and proper approval process

The Regulator approves a Key Individual application only if the individual is fit and proper under the Approved Persons principles; approval may be conditional, time-limited, withdrawn, or varied.

Rules 2.4.1-2.4.22.4 Sufficiency of financial resources

A Recognised Body must hold financial resources sufficient for its Regulatory Functions, considering risks, guarantee exposures, stressed liquidity and, for exchanges, the nature and extent of transactions.

Rules 2.4.3-2.4.62.4 Capital requirements and buffer

A Recognised Investment Exchange must always hold Tier 1 capital under PRU 3.9, and a Recognised Clearing House must hold capital as required; the Regulator may demand a stress buffer.

Rules 2.5.3-2.5.42.5 Integrity and fair dealing standards; cooperation

Recognised bodies must maintain rules and procedures promoting high integrity and fair dealing consistent with the Code of Market Conduct, and cooperate with the regulator by sharing information.

Rules 2.5.5-2.5.62.5 Separation of commercial interests from Regulatory Functions

Recognised Bodies must take all reasonable steps, through systems and controls, ensuring commercial interests and profitability do not adversely affect the performance of their Regulatory Functions.

Rules 2.6.3-2.6.52.6 Incident management, operational reliability and security

A Recognised Body must maintain an incident management procedure for operational incidents, clear operational reliability objectives with scalable capacity, and a comprehensive physical and information security policy.

Rules 2.8.1-2.8.32.8 Membership access criteria and rules

Recognised Bodies must establish transparent, non-discriminatory access criteria to protect market order and investor interests, ensuring members are fit, competent, and adequately resourced.

Rules 2.8.4-2.8.62.8 Remote Member notification and Member listing

A Recognised Body must immediately notify the Regulator of Remote Member applications, approvals and disciplinary measures, and regularly provide the Regulator a list of its Members and users.

Rules 2.8.7-2.8.102.8 Direct Electronic Access controls

Recognised Bodies permitting Direct Electronic Access must set risk controls and be able to identify and stop a specific Client's DEA orders without affecting other Member activity.

Rules 2.9.1-2.9.22.9 Market Abuse and Financial Crime surveillance and reporting

Recognised bodies must run effective market surveillance, immediately report suspected market abuse and financial crime to the regulator in writing, and provide whistleblowing protections for employees.

Rules 2.11.1-2.11.92.11 Rule-making, consultation and amendment procedures

A Recognised Body must consult publicly on Business, Clearing or Default Rule amendments with a ten-Business-Day comment period and obtain Regulator approval before they take effect.

Rules 2.12.1-2.12.22.12 Discipline - monitoring and enforcement arrangements

Recognised bodies must monitor and enforce compliance with their rules, investigate facility-user complaints, and provide independent appeals; penalties go only to investigation costs, user benefit, or charity.

Rules 2.13.1-2.13.32.13 Complaints investigation and resolution

Recognised Bodies must have effective complaints arrangements covering their regulatory functions, including fair investigation by an independent person empowered to recommend compensation or remedies.

Rules 2.14.1-2.14.42.14 Outsourcing of Recognition Requirement functions

A recognised body may outsource a function to a fit and proper person with prior regulator approval for material arrangements, but remains fully responsible for meeting recognition requirements.

Rules 2.15.1-2.15.52.15 Application for Recognised Body status - content checklist

Applicants for Recognised Body status must show the Regulator they meet recognition requirements, filing an application checklist with fees; the Regulator may demand more information or IT system inspection.

Rules 2.15.6-2.15.92.15 Application determination timing and amendment

The Regulator must decide a completed application within six months, and applicants may amend rules, guidance or application parts after formal submission if the application is updated.

Rule 3.2.1-3.2.33.2 Capital Requirements

Firms must hold capital covering at least six months of operating expenses, plus any additional buffer up to six months the Regulator requires, calculated on an IFRS basis from audited financials.

Rule 3.3.1-3.3.63.3 Fair and Orderly Trading - Prohibited Practices

Business Rules must be transparent and non-discretionary, must prohibit manipulative trading such as wash, cross and accommodation trades, and must monitor for such conduct.

Rule 3.3.7-3.3.113.3 Position and Price Limits for Derivatives

Firms must set and monitor derivatives position limits, report excesses to the regulator, and categorize participants accordingly.

Rule 3.4.1-3.4.43.4 MTF/OTF, Trade Repository, Spot Commodities and Benchmark Rules

Operators of MTFs, OTFs, Trade Repositories, Spot Commodities facilities or Benchmark administrators must comply with the additional MIR requirements applicable to their specific activity type.

Rule 3.5.1-3.5.83.5 Pre-Trade Transparency

Trading venues must continuously publish current bid/offer prices and trading interest depth during normal hours, suited to their trading-system type, applying permitted waivers such as large-in-scale orders.

Rule 3.6.1-3.6.53.6 Post-Trade Transparency

Post-trade transparency rules require public disclosure of transaction details in real-time or with applicable delays.

Rule 3.7.1-3.7.23.7 Public Disclosure Format

Public disclosure of pre- and post-trade information must be made available in a machine-readable format meeting prescribed criteria.

Rule 3.8.1-3.8.33.8 Settlement and Clearing Services Arrangements

Firms must maintain satisfactory clearing service arrangements and preserve members' right to choose among available settlement facilities.

Rule 3.9.1-3.9.63.9 Admission of Financial Instruments to Trading

Detailed criteria must be maintained and applied before admitting financial instruments, collective investment funds, and derivatives to trading.

Rule 3.10.1-3.10.53.10 Default Rules (RIE)

Members must maintain enforceable default rules allowing action when a member cannot meet obligations on unsettled market contracts, publish notice of suspension or termination, and cooperate with the regulator.

Rule 3.11.1-3.11.33.11 Use of Price Reporting Agencies

Firms must conduct due diligence on any price reporting agency they use and review it periodically to ensure reported prices remain reliable and have integrity.

Rule 4.2.1-4.2.44.2 Capital Requirements - Calculation Methodology

Firms must hold capital equal to winding-down costs, operational risk capital, credit, counterparty and market risk capital, and business risk capital, and notify the Regulator immediately and then weekly if capital falls below the threshold.

Rule 4.3.1-4.3.24.3 Clearing and Settlement Standards

Clearing and settlement arrangements must operate consistent with internationally accepted Financial Market Infrastructure (FMI) standards.

Rule 4.4.1-4.4.34.4 Admission of Financial Instruments to Clearing

Clearing house must maintain detailed investment and admission criteria for Securities and Derivatives, and apply them before admitting any such instrument to Clearing.

Rule 4.5.1-4.5.114.5 Default Rules (RCH) - Framework and Testing

Central counterparty clearing house must maintain legally enforceable default rules covering member suspension, close-out, porting, auction, default fund waterfall, and test them at least annually.

Rule 4.6.1-4.6.34.6 Stress Testing of Capital

Each RCH must conduct comprehensive capital stress testing under a range of scenarios and hold additional resources if systemically important or having a complex risk profile.

Rule 4.7.1-4.7.54.7 Risk Management - Operational and Legal Risk

Firms must maintain a documented operational risk assessment system subject to independent review, and ensure a robust multi-jurisdictional legal basis for activities, supported by independent legal opinions where relevant.

Rule 4.7.6-4.7.154.7 Risk Management - Credit, Liquidity and Custody Risk

Firms must run credit-risk stress testing at least bi-monthly, validate models annually, hold minimum liquid resources, and deposit assets only with FSP-holders or equivalent.

Rule 4.8.1-4.8.24.8 Money Settlement

Commercial banks must minimize and manage money settlement risks by applying specific criteria for selecting settlement banks.

Rule 4.9.1-4.9.24.9 Physical Delivery

Firms must maintain adequate information and arrangements to manage physical delivery obligations arising under cleared contracts.

Rule 4.10.1-4.10.104.10 Collateral and Margin Management

Firms must maintain a collateral management system covering margin calls, daily mark-to-market, daily variation margin, annual haircut validation, concentration limits, initial margin models and cross-margining safeguards.

Rule 4.11.1-4.11.24.11 Settlement Finality

Recognised clearing houses must maintain clear rules establishing the point of final and irrevocable settlement for cleared transactions, under ADGM market infrastructure settlement finality requirements.

Rule 4.12.1-4.12.54.12 Segregation and Portability

Members must offer omnibus and individual client segregation account structures as applicable, and disclose the protection levels and costs of each account structure to members and their clients.

Rules 3.2.1-3.2.33.2 Capital requirements for a Recognised Investment Exchange

A Recognised Investment Exchange must hold capital equal to six months' operational expenses, plus an additional buffer of up to six further months' expenses, unless the Regulator directs otherwise.

Rules 3.3.1-3.3.43.3 Fair and orderly trading - Business Rules standards

A Recognised Investment Exchange must maintain transparent, non-discretionary Business Rules ensuring fair and orderly trading, prohibiting abusive trading practices such as wash trades, and enabling best price execution.

Rules 3.3.5-3.3.113.3 Price and position limits for Derivatives

Recognised Investment Exchanges must mitigate derivative price movement risks, implement position limits, ensure compliance, and report thresholds and limits to the Regulator.

Rules 3.3.8-3.3.153.3 Annual position-limit effectiveness demonstration and position reports

A Recognised Investment Exchange must demonstrate position limit effectiveness against market abuse to the Regulator annually, publish and report weekly derivative position aggregates by participant category, and provide detailed overviews on request.

Rules 3.4.1-3.4.53.4 MTF/OTF, Trade Repository, Spot Commodity and Benchmark stipulations

Recognised Investment Exchanges must operate MTF/OTF, Trade Repository, or conduct Accepted Spot Commodity activities in accordance with their Recognition Order stipulations.

Rules 3.5.1-3.5.53.5 Pre-trade transparency obligations

Recognised Investment Exchanges must continuously publish and submit to the Regulator current bid/offer prices and trading interest depth, per the trading-system-type table during normal trading hours.

Rules 3.5.7-3.5.123.5 Waivers from pre-trade transparency

The Regulator may waive pre-trade transparency requirements for reference-price systems, negotiated trades, large-in-scale orders sized by average daily turnover, and orders held pending disclosure, subject to specified conditions.

Rules 3.6.1-3.6.103.6 Post-trade transparency and deferred publication

Recognised Investment Exchanges must publish transaction price, volume and time information as close to real-time as possible, with regulator-approved deferred publication for large, illiquid or high-risk trades.

Rules 3.7.1-3.7.43.7 Public disclosure arrangement standards

Public disclosure arrangements must include reliability and error-correction controls, data consolidation, and non-discriminatory machine-readable access at reasonable cost, with an industry-standard structured format permitted for Recognised Investment Exchanges.

Rules 3.8.1-3.8.43.8 Settlement and Clearing Services arrangements

A Recognised Investment Exchange must ensure timely clearing and settlement arrangements for transactions, and its Business Rules must let Members choose their settlement facility where links exist.

Rules 3.9.1-3.9.43.9 Admission of Financial Instruments to trading

Recognised Investment Exchanges admitting financial instruments to trading must meet listed admission standards, including clear business rules, orderly tradability, issuer disclosure verification, and ongoing admission compliance reviews.

Rules 3.10.1-3.10.33.10 Default Rules for Recognised Investment Exchanges

An ADGM Recognised Investment Exchange must have enforceable default rules to suspend or terminate defaulting members, publicly notify such actions, and cooperate with regulators and authorities on default matters.

Rules 3.11.1-3.11.33.11 Use of Price Reporting Agencies

Recognised Investment Exchanges admitting instruments referencing a price reporting agency benchmark must perform due diligence on the agency's standards and regularly review its continued compliance.

Rule 5.2.1-5.2.65.2 Form and Method of Notification

Oral notices to the Regulator must be confirmed promptly in writing and sent by recorded courier, email or hand-delivery, with non-business-day deadlines moved to the next business day.

Rule 5.3.15.3 Waivers and Modifications of Notification Rules

Firms may apply to the Regulator for a waiver or modification of any notification rule where appropriate, following the prescribed application procedure.

Rule 5.4 Item 255.4 Notification Table - Delegation of Regulatory Functions

Notify the Regulator promptly of any delegation of Regulatory Functions to another person, including reasons and agreement details.

Rule 5.4 Item 64 (MIR 3.3.7(e))5.4 Notification Table - Position Limit Threshold Breach

Participants and Members must notify the Regulator promptly when a position limit threshold is exceeded, explaining the reason for the large position, its link to trading strategy, and any hedging and hedged contracts.

Rule 5.4 Items 1-75.4 Notification Table - Key Individuals and Governance Personnel

Notify the Regulator of Key Individual appointments and resignations, major responsibility changes, and disciplinary or insolvency events promptly.

Rule 5.4 Items 8-125.4 Notification Table - Constitution, Governance and Auditors

Regulated entities must notify the Regulator, as soon as practicable, of proposed and effective constitutional amendments, governance agreement changes, and auditor cessation or appointment.

Rule 5.4 Items 13-185.4 Notification Table - Financial Reporting

Firms must submit financial reporting to the Regulator: audit reports within four months of year end, management accounts within one month, and forecasts before each financial year begins.

Rule 5.4 Items 19-245.4 Notification Table - Fees, Complaints, Insolvency and Legal Proceedings

Firms must notify the Regulator as soon as practicable of insolvency events, material legal proceedings and complaint investigator recommendations, and fee changes no later than member communication.

Rule 5.4 Items 26-335.4 Notification Table - Products, Services, Facilities and Operating Hours

A regulated market must notify the regulator in advance of proposed changes to listings, delistings, clearing services, derivative terms, asset safeguarding arrangements, and operating hours.

Rule 5.4 Items 34-425.4 Notification Table - Suspension of Services, IT Failures and Inability to Discharge Functions

Authorised firms must notify the regulator as soon as practicable of trading or clearing suspensions, IT failures, and inability to discharge regulatory functions, with reasons and remedial action.

Rule 5.4 Items 43-485.4 Notification Table - Membership and Third-Party Investigations

Members must notify the regulator as soon as practicable of new member admissions, third-party investigations into facility business, disciplinary actions, and evidence of criminal offences.

Rule 5.4 Items 49-525.4 Notification Table - Market Conduct, Default and Ownership

Notify the regulator in advance of significant-influence control changes from ownership transfers, and of position restrictions, member defaults, significant rule breaches, or disorderly trading.

Rule 5.4 Items 53-585.4 Notification Table - Rule Changes, RCH Capital Threshold and Market Operation

Market operators must provide the Regulator with rule-change consultation copies, amended rules and guidance, report capital shortfalls with remediation plans, and notify market operation proposals to members.

Rule 5.4 Items 59-63 (GEN 8.10.6-8.10.12, GEN 3.5.18)5.4 Notification Table - GEN Cross-Referenced Notifications

Firms must immediately notify the regulator of false or misleading information, fraud, misconduct, reputational or systems events, non-ADGM regulatory actions, and material cyber incidents within 24 hours.

Rule 5.4.1 Event 645.4 Position limit threshold breach notification

A Recognised Body must promptly notify the Regulator when a position limit threshold is exceeded, explaining the reason, how it supports trading strategy, and hedging details where applicable.

Rule 5.4.1 Events 1-55.4 Key Individual and standing committee notifications

A Recognised Body must notify the Regulator at least 30 days before Key Individual appointments take effect, and promptly report Key Individual resignations and standing committee changes.

Rule 5.4.1 Events 6-75.4 Key Individual disciplinary and insolvency-event notifications

A Recognised Body must promptly notify the Regulator of Key Individual disciplinary action, misconduct-related resignation or dismissal, and any bankruptcy petition, bankruptcy order, or creditor voluntary arrangement.

Rule 5.4.1 Events 8-105.4 Constitution and governance change notifications

A Recognised Body must notify the Regulator in advance or as soon as practicable of proposed constitutional amendment circulation, when amendments take effect, and of changes to governance agreements.

Rule 5.4.1 Events 11-135.4 Auditor change and audit report notifications

Recognised bodies must promptly notify the regulator when auditors cease to act, including reasons for termination or non-renewal, and of new auditor appointments, and provide audit reports within four months of year end.

Rule 5.4.1 Events 14-185.4 Financial information notifications

Recognised Bodies must submit annual accounts within four months of year end, quarterly or monthly management accounts within one month, and forecasts and balance sheets before each financial year begins.

Rule 5.4.1 Events 19-205.4 Fees and incentive scheme change notifications

A Recognised Body must notify the ADGM regulator of proposed fee or charge changes as close as practicable to Member communication, and of actual changes no later than their publication, with summaries.

Rule 5.4.1 Events 21-225.4 Complaints investigator outcome notifications

Recognised Bodies must promptly notify the Regulator when a complaints investigator recommends compensation or remedy for a Regulatory-Function complaint, and when the investigator's report becomes available.

Rule 5.4.1 Events 23-245.4 Insolvency and legal proceedings notifications

A Recognised Body must notify the Regulator as soon as practicable of insolvency events and of civil or criminal proceedings against it, unless specified immateriality conditions are met.

Rule 5.4.1 Events 25-265.4 Delegation of Regulatory Functions notifications

A Recognised Body must promptly notify the Regulator when offering or agreeing to delegate a significant Regulatory Function to another Person, or to undertake one from another Recognised Body.

Rule 5.4.1 Events 27-335.4 Products, services and operating-hours notifications

Recognised Bodies must notify the Regulator before informing Members of proposed listing, clearing or operating-hours changes, and promptly report delistings, derivatives term amendments and third-party asset safeguarding proposals.

Rule 5.4.1 Events 34-425.4 Suspension of services and inability to operate notifications

A recognised body must promptly notify the regulator of trading suspensions, clearing or safeguarding suspensions, operating hour changes, IT continuity changes, and inability to discharge regulatory functions.

Rule 5.4.1 Events 43-455.4 Membership and investigation notifications

Recognised Bodies must promptly notify the ADGM Regulator of new member admissions, first-time remote member admissions from new jurisdictions, and awareness of non-Regulator investigations through their facilities, subject to listed exemptions.

Rule 5.4.1 Events 46-495.4 Member disciplinary, criminal-offence and position-restriction notifications

Recognised Bodies must promptly notify the Regulator of member disciplinary actions, related appeals, suspected unauthorised activity or market abuse evidence, and position restriction or close-out decisions, with supporting details.

Rule 5.4.1 Events 50-525.4 Default, ownership-transfer and significant-breach notifications

Recognised Bodies must promptly notify the Regulator of member defaults, ownership transfers, significant breaches, and trading issues.

Rule 5.4.1 Events 53-565.4 Rule change and RCH capital notifications

Recognised Bodies must promptly notify the Regulator of rule consultations, effective rule changes, guidance or circulars, and, for clearing houses, capital falling below the notification threshold with remediation plans.

Rule 5.4.1 Events 57-635.4 Market/MTF-OTF operation and GEN-linked notifications

Recognised Bodies must notify the regulator before announcing market or MTF/OTF operation changes, and immediately report fraud, serious irregularities, misleading information, and material cyber incidents within 24 hours.

Rules 5.1.2-5.2.45.1-5.2 Notification form, method and timing

Recognised Bodies must notify the Regulator orally or in writing, confirm oral notice in writing, deliver written notices by courier, confirmed email or hand delivery, within set deadlines.

Rule 4.2.44.2 Capital shortfall notification threshold

A Recognised Clearing House whose capital falls below 110% of its requirement or USD 9.5 million threshold must immediately notify the Regulator in writing and update it weekly until recovered.

Rule 4.13.14.13 Central Securities Depository functions

A Recognised Clearing House performing Central Securities Depository functions may seek separate Authorised Person registration for those activities, in which case only the CSD Rules and specified provisions apply to that function.

Rules 4.1.2-4.1.74.1 CPSS-IOSCO consistency and additional stipulated activities

A Recognised Clearing House should comply with CPSS-IOSCO principles for financial market infrastructures and must provide transparent, non-discriminatory clearing rules for facility access, refused only on legitimate commercial grounds.

Rules 4.2.1-4.2.34.2 Capital requirements for a Recognised Clearing House

Recognised clearing houses must hold minimum capital covering six months of gross operating expenses, operational risk, credit and market risk, and business risk, based on IFRS audited financial statement figures.

Rules 4.3.1-4.3.34.3 Clearing and settlement arrangements

A Recognised Clearing House must meet internationally accepted financial market infrastructure standards and maintain arrangements for timely settlement, trade matching, default rules and settlement-failure monitoring.

Rules 4.4.1-4.4.24.4 Admission of Financial Instruments to Clearing

Recognised Clearing Houses must set clear investment criteria for admitting financial instruments, focusing on trading standards and market conditions.

Rules 4.5.3-4.5.44.5 Default Rules - enforceability and default-management powers

A Recognised Clearing House must maintain legally enforceable default rules to suspend or terminate defaulting Members, share information, and manage defaulting positions, auctions, and default contribution funds.

Rules 4.5.5-4.5.114.5 Default Rules content and periodic testing

The Default Rules must define default events, loss allocation and fund porting, and be tested periodically, expected annually, or after material changes.

Rules 4.6.1-4.6.24.6 Stress testing of capital adequacy

A Recognised Clearing House must hold adequate total financial resources for credit risk and regularly stress-test them against default scenarios in extreme but plausible market conditions.

Rules 4.7.1-4.7.24.7 Comprehensive risk management framework

Recognised clearing houses must maintain a comprehensive risk management framework covering systemic, legal, credit, liquidity and operational risks, with periodic effectiveness reviews and wind-down planning.

Rules 4.7.6-4.7.134.7 Operational and legal risk management

A Recognised Clearing House must maintain an independently reviewed operational risk management system reporting to senior management, and ensure enforceable legal basis, clearing rules, and independent legal opinions on enforceability.

Rules 4.7.14-4.7.214.7 Credit risk management and stress testing

A recognised clearing house must manage counterparty credit and market risk, run regular stress tests including two-monthly analysis and annual model validation, and report results to the governing body and senior management.

Rules 4.7.22-4.7.344.7 Liquidity risk management framework

Recognised Clearing Houses must maintain sufficient liquid resources for settlements, document their rationale, and regularly review their liquidity risk management framework.

Rules 4.7.35-4.7.374.7 Custody and investment risk

A Recognised Clearing House must manage custody risk for its own and members' assets, use appropriately licensed custodians, regularly evaluate custodian concentration, and invest only in low-risk instruments under a disclosed strategy.

Rules 4.8.1-4.8.34.8 Money settlement risk controls

Recognised Clearing Houses settling money via commercial bank money must minimise and strictly control credit and liquidity risk, limit settlement-bank exposure and concentration, and use only low-risk settlement assets.

Rules 4.9.1-4.9.24.9 Physical delivery obligations

A Recognised Clearing House facing physical delivery obligations must publish adequate information, manage physical delivery and storage risks, maintain delivery arrangements, and clearly express those obligations in its rules and agreements.

Rules 4.10.1-4.10.54.10 Collateral management system

Recognised Clearing Houses must establish a robust collateral management system covering margin calls, valuation, haircuts, concentration limits and reuse tracking, and rules must bar applying defaulter client margin to proprietary shortfalls.

Rules 4.10.6-4.10.104.10 Margin system requirements

Recognised Clearing Houses must mark participant positions to market, collect variation margin at least daily, and maintain risk-based initial margin models validated through back-testing and sensitivity analysis.

Rules 4.11.1-4.11.24.11 Settlement finality arrangements

A Recognised Clearing House must ensure clear, certain final settlement of payments and transfer instructions, settling by value-date end, defining finality points and barring revocation of irrevocable instructions.

Rules 4.12.1-4.12.84.12 Segregation and portability of Client positions

Recognised Clearing Houses must ensure segregation and portability of client positions and collateral, with clear rules and member disclosures on segregation policies.

Rule 6.1.1-6.3.36.1-6.3 Regulator Supervisory, Information-Gathering and Risk Assessment Powers

Recognised Bodies must cooperate with regulator powers to suspend or remove financial instruments from trading, answer written information requests, and join periodic risk assessments.

Rule 6.4.2-6.4.66.4 Co-operation with Regulator Complaints Investigations

Authorised entities must co-operate with the ADGM regulator's complaints investigation arrangements, including responding to enquiries and commenting on preliminary or draft conclusions.

Rule 6.5.1-6.5.136.5 Compliance with Regulator Directions on Default Rules Actions

Recognised Bodies must comply with regulator directions regarding action or inaction under Default Rules and respond to regulator consultations beforehand.

Rule 6.6.1-6.7.36.6-6.7 Compliance with Regulator Directions (General and Controllers)

Firms must comply with Regulator directions under FSMR sections 132 and 133 to secure Recognition Requirements compliance, including granting access, and with Controller-change notification requirements.

Rule 6.8.1-6.8.66.8 Consequences of Recognition Order Revocation

When a Recognition Order is revoked, a Recognised Clearing House must close out all open contracts through termination, transfer, invoicing back, or other means before revocation takes effect.

Rule 6.9.3-6.10.66.9-6.10 Regulator Procedure for Orders and Disciplinary Measures

Recognised Bodies must promptly respond to regulatory notices and can face financial penalties for contraventions.

Rule 6.11.1-6.11.36.11 Publication of Information

Publish promptly ownership particulars including significant-influence persons after a Recognition Order, ownership transfers changing significant-influence control, and decisions suspending or removing financial instruments from trading, as required.

Rules 6.1.1-6.1.46.1 Suspension/removal of Financial Instruments by the Regulator

Regulator may mandate suspension or removal of Financial Instruments from trading by Recognised Investment Exchanges to protect investors, and must publish its decisions promptly.

Rules 6.2.1-6.2.26.2 Cooperation with Regulator information-gathering

A Recognised Body and connected persons must provide or produce information requested by written notice from the Regulator, in the specified form, verified, and within the stated timeframe.

Rules 6.3.1 and 6.4.2-6.4.66.3-6.4 Regulator risk assessment and complaints-handling cooperation

The Regulator conducts periodic risk assessments of each Recognised Body, reviews them for factual accuracy with staff, and investigates complaints after the body's internal complaints process is exhausted.

Rules 6.5.3-6.5.136.5 Regulator direction on Default Rules action

The Regulator may direct a Recognised Body to take or refrain from default rules action, which it must comply with; negative directions lapse after a formal insolvency event affecting the defaulter.

Rules 6.6.1-6.7.36.6-6.7 Regulator directions and Controller notifications

The Regulator can direct a Recognised Body to ensure compliance with Recognition Requirements and notify changes related to its Controllers.

Rules 6.8.1 and 6.8.66.8 Consequences of recognition revocation

The Regulator can revoke a Recognition Order, requiring recognised clearing houses to terminate open contracts before revocation takes effect.

Rules 6.11.1-6.11.36.11 Publication of ownership and decision information

A Recognised Body must publish its ownership particulars after recognition, publish ownership transfers changing significant-influence persons, and publish decisions to suspend or remove financial instruments from trading, as the Regulator requires.

Rule 7.1.1-7.3.67.1-7.3 Applications and Recognition Requirements

Remote Clearing Houses seeking ADGM recognition must follow standard application procedures, provide comparative analysis against FMI principles, evidence QCCP status if acting as a CCP, and meet remote recognition requirements.

Rule 7.4.17.4 Annual Report to the Regulator

Firms must provide the Regulator with an annual report containing the information prescribed in Rule 7.4.2, submitted within two months after the end of the reporting period.

Rule 7.4.2 Items 1-6, 9-117.4 Notification Table - Governance, Reporting and Rule Changes

A recognised firm must notify the Regulator of matters including constitutional amendments, chairman or CEO changes, disciplinary action, annual report publication, address changes, licence revocations, and rule changes.

Rule 7.4.2 Items 7-87.4 Notification Table - Membership and Default

The ADGM Regulator must be notified as soon as practicable of a Member's first admission where its head or registered office is in ADGM, and of any decision to default a Member.

Rule 7.4.4-7.4.77.4 Language, Form and Waivers

Notices and information must be supplied in English with accurate translations of non-English originals, following form-and-method requirements, and waivers of notification rules may be sought from the Regulator where appropriate.

Rule 7.5.1-7.5.27.5 Regulator Supervisory Powers over Remote Bodies

Remote Bodies must co-operate with the Regulator's powers, including directions on Non-ADGM Recognition Requirements, Recognition Order revocation, information production and Skilled Person reporting.

Rules 7.1.1-7.1.57.1 Remote Body application requirements

Remote Investment Exchanges and Clearing Houses must submit detailed application documents and analysis for recognition, including financial statements and a proposed effective date.

Rules 7.2.1-7.2.37.2 Remote Recognition Requirements

Before granting a recognition order to a remote applicant, the regulator must confirm equivalent investor protection, default procedures, and cooperation arrangements with the applicant's home supervisor.

Rules 7.4.1-7.4.27.4 Remote Body annual report and ongoing notifications

A Remote Body must submit an annual report within two months of period end, notify the Regulator of specified events and changes, and publish accounts within fourteen days.

Rule 8.1.1-8.3.28.1-8.3 Application and Remote Member Requirements

Applicants for remote membership must submit a written application proving compliance with remote member requirements, including ADGM Court jurisdiction, equivalent home-state regulation, regulator cooperation, and restricted facility use.

Rule 8.4.1-8.4.58.4 Notification of Changes and Adverse Events

Recognised bodies must give the Regulator advance notice of name or address changes, immediately report exchange or clearing membership changes, and promptly report investigations, sanctions, and suspected market abuse, dealing openly in English.

Rule 8.5.1-8.5.28.5 Revocation of Remote Member Recognition Order

A remote member seeking revocation of its ADGM recognition order must submit a written request giving reasons, confirming membership cessation, termination date, and discharge of ADGM obligations.

Rules 8.1.1-8.2.38.1-8.2 Remote Member application and requirements

Applicants for Remote Member status must submit a written application showing how they meet and will continue to meet the Remote Member Requirements, with a satisfaction plan.

Rules 8.4.1-8.4.58.4 Remote Member ongoing notifications

A Remote Member must notify the Regulator promptly of exchange membership changes, risks of failing requirements, home-regulator investigations, and suspected Market Abuse, without informing the Client.

Rules 8.5.1-8.5.28.5 Revocation of Remote Member Recognition Order

Remote Members must submit a written request for revocation of their Recognition Order, confirming membership termination and obligations discharge.