Official DocumentVersion 1.0

BMX Rulebook

The binding constitution of the Botswana Mercantile Exchange, setting out the rules, rights, and obligations of Members, Participants, and all stakeholders.

Download Full Rulebook (PDF)Browse Chapters

15 Chapters

18 Schedules

104 Pages

NBFIRA Approved

Chapters Schedules Download

Framework

Rulebook Chapters

The BMX Rulebook is organized into 15 chapters covering all aspects of exchange operations.

Chapter I

Preliminary

Purpose, legal basis, interpretation, and definitions governing the Exchange.

Binding constitution of BMX
Subordination to Botswana law
Definitions of key terms (Member, Participant, Client, etc.)

Chapter II

Governance & Oversight

Structure of the Exchange, Board responsibilities, and committee functions.

Board of Directors oversight
Rules & Product Committee (RPC)
Risk Committee (RC)

Chapter III

Membership & Participants

Categories of membership, admission criteria, rights, and obligations.

Trading Members (TMs)
Clearing Members (CMs) & General Clearing Members (GCMs)
Non-Clearing Members (NCMs)

Chapter IV

Trading Rules

Order types, matching algorithms, price discovery, and market conduct.

Price-Time priority matching
Order types (Market, Limit, Stop, Iceberg, Pegged)
Opening and Closing Auctions

Chapter V

Clearing & Settlement

CCP novation, margin requirements, and settlement finality.

Central Counterparty (CCP) novation
Initial Margin (IM) and Variation Margin (VM)
Delivery-versus-Payment (DvP)

Chapter VI

Delivery, Warehousing & Logistics

Physical delivery framework, warehouse receipts, and logistics.

Digital Warehouse Receipts (WHRs)
Approved Warehouse Operator (AWO) licensing
Grading and assay standards

Chapter VII

Position Limits & Market Conduct

Speculative limits, accountability rules, and prohibited practices.

Spot-month and all-months position limits
Hedge exemptions
Prohibition of spoofing, layering, wash trades

Chapter VIII

Risk Management & Collateral

Margin models, eligible collateral, and Default Fund structure.

99% confidence level margin models
Eligible collateral (Cash, Govt securities, Bank guarantees)
Haircut schedule

Chapter IX

Disciplinary & Enforcement

Investigation procedures, sanctions, and appeal rights.

Market Surveillance Department investigations
Disciplinary Committee hearings
Range of sanctions (fines, suspension, termination)

Chapter X

Fees, Charges & Incentives

Membership fees, transaction fees, and rebate programs.

Membership application and annual fees
Transaction fees (0.02%–0.10% of notional value)
Clearing and settlement fees

Chapter XI

Technology & Cybersecurity

System resilience, security standards, and disaster recovery.

Multi-factor authentication (MFA) required
Encryption standards (TLS 1.2+, AES-256)
4-hour incident reporting requirement

Chapter XII

AML/CFT & Client Protection

Anti-money laundering, sanctions compliance, and asset segregation.

Customer Due Diligence (CDD) requirements
Enhanced Due Diligence (EDD) for PEPs
Suspicious Transaction Reports (STRs) to FIU

Chapter XIII

Emergency Powers

Extraordinary measures for market crises and system failures.

Trading halt and circuit breaker authority
Settlement extensions
Alternative delivery arrangements

Chapter XIV

Cross-Border Participation

Remote membership, foreign warehouses, and clearing linkages.

Remote Member admission criteria
Foreign warehouse recognition
Cross-border delivery corridors

Appendices

Supporting Schedules

Detailed technical standards, procedures, and policies that supplement the main chapters.

Schedule I

Manifest Error Policy

Procedures for cancelling or adjusting erroneous trades

Schedule II

Eligible Collateral & Haircuts

Acceptable collateral types and valuation discounts

Schedule III

Default Management & Auction Procedures

Porting, liquidation, and default waterfall process

Schedule IV

Membership Application Pack

Application forms, declarations, and supporting documents

Schedule V

Warehouse & Delivery Manual

Operational standards for Approved Warehouse Operators

Schedule VI

Quality Certification & Assay Protocols

Grading standards and assayer obligations

Schedule VII

Market Data Policy

Data licensing, fees, and usage restrictions

Schedule VIII

Cybersecurity Baseline Controls

Minimum security controls for Members

Schedule IX

Fee Schedule

Complete list of fees, rebates, and penalties

Schedule X

Connectivity & Conformance Testing Guide

Technical requirements for system access

Schedule XI

AML/CFT & Sanctions Guidance

Detailed compliance procedures

Schedule XII

Client Asset Protection Standards

Segregation, reconciliation, and custody rules

Schedule XIII

Emergency Playbook

Crisis management procedures

Schedule XIV

Remote Membership Standards

Cross-border membership requirements

Schedule XV

Cross-Border Warehouse & Delivery Protocols

International delivery framework

Schedule XVI

Clearing Linkage & MoU Templates

CCP cooperation and regulatory agreements

Schedule XVII

Transitional Arrangements & Pilot Programs

Phased implementation and experimental features

Schedule XVIII

Glossary of Terms

Complete definitions of key terms

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The BMX Rulebook is the binding constitution of the Botswana Mercantile Exchange. All Members, Participants, and service providers are required to comply with these Rules. This document is for informational purposes only. The official Rulebook takes precedence.