In order to meet its objectives, the AFSA requires an open, transparent and co-operative relationship between itself and all the supervised Authorised Market Institutions who obtained a license to carry on either of the Market Activities of Operating an Investment Exchange and Operating a Clearing House.
The AFSA is tasked with the supervision of all Authorised Market Institutions, and conducts this supervision according the AIFC Authorised Market Institutions Rules (AMI).
Supervision is conducted in two ways:
o Off-site supervision consists of continuous monitoring of regulatory reporting as set by rules and in accordance with a set agreed upon communications protocol.
o On-site supervision consists of applying a risk-based approach to supervision, our interactions with Authorized Market Institutions are designed to be proportionate to complexity and the types of regulated activities conducted, including any observations highlighted by the off-site supervision processes.
Various regulatory functions that an Authorised Market Institution must perform, in relation to admitting Securities to trading, operating an Official List and enforcing its Business Rules, are verified and assessed by AFSA.
Where an approval is required, such as all modifications to Business Rules, AFSA will review and comment when necessary before recommendations to approve the requested amendments are presented to the relevant decision making AFSA Committees
The application of the rules in AMI is as follows:
• Chapter 1 contains introductory provisions applicable to all Authorised Market Institutions.
• Chapter 2 contains rules and guidance applicable to all Authorised Market Institutions.
• Chapter 3 contains additional rules and guidance applicable to Authorised Investment Exchanges.
• Chapter 4 contains additional rules and guidance applicable to Authorised Clearing Houses (including Authorised Central Counterparties).
