The DFSA Rulebook Price Stabilisation Module (PRS)

PRS/VER7/04-18 

1. INTRODUCTION 

1.1  Price Stabilisation Rules 

1.1.1

These Rules constitute the prescribed Price Stabilisation requirements for the purposes of Article 64(1) of the Markets Law 2012. 

Guidance  

1. The Rules in PRS prescribe the circumstances in which Price Stabilisation of an Eligible Security is permitted and the conditions which attach to such conduct.  

2. The Rules in PRS are designed to protect market integrity by helping to maintain an orderly market for Eligible Securities (thereby avoiding volatility and market disruption) and enhance market confidence.   

3. These Rules operate as a defence from the Market Misconduct provision set out in Article 54 of the Markets Law 2012.  The Market Misconduct provisions are relevant to any conduct which may affect DIFC markets or users of DIFC markets.  Prima facie, the stabilisation of a price of a Security is market manipulation. However, Article 64(1) provides limited statutory relief for the initial period of trading. This defence is available, in relation to Eligible Securities, to a Person who can demonstrate that his behaviour is in accordance with thes...