Bahrain Bourse Adopts the REITs and Funds Instruments Trading Guidelines

Bahrain Bourse Adopts the REITs and Funds Instruments Trading Guidelines

The Chief Executive Officer of Bahrain Bourse (BHB), Sh. Khalifa bin Ebrahim Al-Khalifa issued on Wednesday, 16th March 2016 Resolution No. (11) of 2016 in respect of adopting the Guidelines on the Trading of Real Estate Investment Trusts (REITs) and Funds Instruments listed at Bahrain Bourse. 
Trading in the REITs and Funds Instruments Market will be conducted during the trading session of BHB, from Sunday to Thursday between 9:30am and 1:00pm. According to the guidelines, investors can submit their orders to the brokers to enter them in the REITs and Funds Instruments Market through the Automated Trading System that will match the buy and sell orders in accordance with the principles for matching orders as per the “Matching Priority” Rule of BHB. 

The minimum accepted order in the REITs and Funds Instruments Market is BD500 (Five Hundred Dinars) or its equivalent in the REITs currency. The pricing mechanism implemented in the REITs and Funds Market will depend on supply and demand, and the Net Asset Value (NAV) will be an indication to specify the value of the Trust. The daily price fluctuation (up or down) is limited to a maximum of 10% of the previous closing price, and the settlement day for the trades is two days following the trade date (T+2). 

It is worth mentioning that a Resolution was issued by BHB’s Chairman on 7th March 2016 in respect of creating the REITs Market at Bahrain Bourse and adding it to the markets at BHB. Several REITs are expected to list at the Bourse that will enable investors to trade these new instruments and benefit from their availability in the secondary market. Adding the REITs Market to BHB will provide investors the opportunity to diversify their investment portfolios and manage their risk by investing in more than one instrument. 

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