Bahrain Financial Exchange

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Bahrain Financial Exchange
BahrainFinEx.gif
Founded January, 2009
Headquarters Bahrain
Key People Arshad Khan managing director and CEO; Craig Hewett Chief Business Officer
Website http://www.bfx.bh/

The Bahrain Financial Exchange (BFX), on the Persian Gulf island kingdom of Bahrain, will commence trading in September 2010 on around a dozen contracts including sukuk and other Islamic financial instruments. BFX is owned by electronic trading exchange developer Financial Technologies India and is marketing mostly to Middle-East investors and will compete with the established Bahrain Stock Exchange.

Background

The BFX is regulated by the Central Bank of Bahrain (CBB) to trade a range of asset classes including stocks, bonds, commodities, forex, derivatives and Islamic-finance products such as sukuk. It was established in Bahrain as an officially registered corporation in January 2009 but actual public trading of listed securities was delayed by its owner anmd operator, {{Financial Tecnologies India Ltd]], following the financial crisis of late 2008. According to its own website,[1]the BFX will begin trading in the first quarter of 2010 but earlier reports expected that date to be postponed further until late 2010.[2]

In August 2009 BFX announced it would establish its exchange-trading operations in property on the Bahrain Financial Harbor, a self-contained working community aimed at the financial services industry in the Manama district of the island.[3] Two months later, in October 2009, BFX announced it had joined the International Islamic Financial Market (IIFM), a global body representing insitutions aiming to grow the Islamic finance market worldwide.[4]

Key people

In February 2010, the exchange named Arshad Khan as managing director and CEO of BFX and BFX Clearing and Depository Corporation.[5]

Also, Tawfiq Ismail Al Alawi was named as a member of the board as an independent non-executive board director.

BFX Chief Business Officer Craig Hewett has been responsible for all the commercial development of the exchange, including products, sales and marketing. He previously worked with the London Metal Exchange (LME) in business development and marketing, rising to the post of deputy commerical director.[6] Hewett is an MBA graduate of Newcastle University (U.K.) and has also taught at the Chartered Institute of Marketing.

Latest news

  • The BFX recently signalled its intention to attract the listed shares of equity issuers from Jordan and Syria, where BFX officials have identified a large potential base not targeted by other major exchanges in the region.[7]

Gulf-state issuance markets have recently been stymied by the 2008 financial crisis and by the recent default of developer Dubai World.

References

  1. BFX Home page. Bahrain Financial Exchange.
  2. MCX group's overseas venture may get delayed. Rediff.com.
  3. Pioneering exchange to set up BFH base. Gulf Daily News.
  4. Bahrain Financial Exchange (BFX) becomes IIFM member. Arabian Business.
  5. Bahrain Financial Exchange Makes Key Appointments. Bahrain Financial Exchange.
  6. Craig Hewett, Chief Business Officer. Bahrain Financial Exchange.
  7. BFX woos Jordan equity issuers. Gulf Daily News.
  8. BFX appointed member of AAOIFI. TradeArabia.com.
  9. Financial Tech to launch 3 international exchanges in 2010. Business Standard.