For Participants

Capital Markets Division supervises Authorized Market Institutions (AMIs) and Multilateral and Organised Trading Facilities (MOTF).

AMIs are AIFC Participants licensed to carry on one or more Market Activities. An AMI can be an Authorised Investment Exchange (AIX) and an Authorised Clearing House (ACH).

MOTFs are systems that bring together multiple third-party buyers and sellers of investments, rights or interests in investments, enabling transactions according to discretionary or non-discretionary rules.

Potential participants interested in authorization should visit the Authorisation section of our website.

The activities of the above-mentioned Participants are subject to AFSA’s ongoing supervision to ensure the orderly functioning of capital markets in the AIFC. Supervision is carried out in accordance with, but not limited to, the following AIFC legal and regulatory instruments:

• AIFC Financial Services Framework Regulations
• AIFC General Rules
• AIFC Authorized Market Institutions Rules
• AIFC Multilateral and Organised Trading Facility Rules
• AIFC Conduct of Business Rules

AFSA’s supervisory framework includes:

• Ongoing Compliance with conduct requirements, systems and controls, risk management, and market integrity obligations.
• On-site Supervisory thematic inspections tailored to the complexity and activities of the AMI.
• Reporting and Disclosure requirements on regular reports and notifications on key activities, financial status, and any material changes.
• Market Surveillance on the functioning of trading systems and practices to prevent market abuse and ensure fair access.
• Governance and Internal Controls ensuring AMIs have sound governance frameworks, including appropriate board oversight and internal audit functions.
• Cooperation and Enforcement exercising enforcement powers in cases of non-compliance.

Reporting Obligations

AMIs and MOTF are required to submit the following reports to AFSA in accordance with the AIFC Financial Services Framework Regulations (FSFR) and AMI Rule 5:

• Quarterly Management Reports providing updates on governance, risk management, and compliance matters within 1 month after the end of the respective quarter;
• Annual Audited Financial Statements to be submitted within 4 months following the end of the financial year;
• Forward-Looking Estimates including anticipated income, expenditure and cash flow and estimated balance sheet showing its position as it is anticipated at the end of each financial year at least 15 days before the beginning of each financial year;
• Event-Based Notifications covering significant events, breaches, complaints, or any changes affecting the AMI’s operations;
• Annual report on Controllers to be submitted within 4 months of financial year end;
• AML returns to be submitted within 2 months after the end of its financial year.

Governance and Compliance

AMIs and MOTFs must:

• Maintain Effective Governance Structures ensuring clear roles, responsibilities, and accountability within the organization.
• Implement Robust Risk Management Frameworks identifying, assessing, and mitigating risks affecting operations and financial stability
• Ensure Compliance with Business Rules adhering to internal rules governing trading, clearing, and settlement activities.

An AMI and MOTF must deal with AFSA in an open and co-operative manner and promptly notify AFSA of any significant events or activities, relating to the AMI or MOTF – regardless of where they occur – that AFSA would reasonably expect to be informed about.

Supervision Fees:
Annual Supervision fees for AMIs are set out in AIFC Fees Rules Schedule 6.

Highlights for potential participants:

For more detailed information, please refer to the AIFC Fees Rules.