The Capital Markets Authority (CMA) has today announced that it has approved EABX Limited to operate as an Over-The-Counter (OTC) Securities Exchange. CMA has also bestowed upon EABX the recognition as a Self-Regulatory Organization (SRO).
This approval follows EABX’s adherence to Section 20 of the Capital Markets Act and Regulations 3 to 13 of the Capital Markets (Licensing Requirements), 2002. Additionally, compliance with Section 18B of the Capital Markets Act played a pivotal role in securing the green light from the CMA.
Over-the-counter securities exchanges differ from formal securities exchanges in their operational manner. Unlike traditional exchanges, OTC markets facilitate direct negotiations between traders, conducted through bilateral interactions and dealer networks. Notably, modern OTC markets operate digitally, with all transactions occurring electronically rather than within a physical location.
In awarding EABX with the status of a Self-Regulatory Organization, the CMA acknowledges the company as an entity organized to regulate the operations, standards of practice, and business conduct of its members and their representatives. This regulatory oversight is designed to uphold investor protection and safeguard the broader public interest.
Source: @PressReleaseKe
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