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The comprehensive rulebook governing trading, listing, and market activities on the National Securities Exchange Of Somalia
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Contact UsNSES maintains a comprehensive set of regulations that govern all aspects of exchange operations, from trading activities and membership requirements to listing standards and market surveillance.
Ensuring fair, orderly, and transparent markets through clear rules and active surveillance
Safeguarding investor interests through stringent regulations and information disclosure
Promoting efficient market operations through standardized procedures and advanced systems
Maintaining alignment with international standards while addressing local market needs
NSES regulations are organized into distinct categories covering all aspects of exchange operations
Access comprehensive rulebooks and regulatory documents for NSES markets
| Document Title | Version | Last Updated | Description | Action |
|---|---|---|---|---|
NSES Trading Rules | 2023.1 | January 2023 | Comprehensive rulebook governing trading activities on the National Securities Exchange Of Somalia | Download |
NSES Membership Rules | 2023.2 | March 2023 | Requirements and obligations for firms seeking and maintaining membership with NSES | Download |
Listing Requirements and Procedures | 2022.3 | November 2022 | Standards and procedures for companies to list securities on NSES markets | Download |
Market Surveillance Procedures | 2023.1 | February 2023 | Procedures for monitoring and ensuring integrity of trading on NSES markets | Download |
Clearing and Settlement Rules | 2022.4 | December 2022 | Rules governing the clearing and settlement of securities transactions on NSES | Download |
Stay informed about the latest changes to NSES regulations and rules
April 15, 2023
Enhanced obligations and incentives for designated market makers to improve liquidity
Read Full UpdateMarch 1, 2023
Updated corporate governance requirements for listed companies reflecting international best practices
Read Full UpdateFebruary 10, 2023
Implementation of advanced monitoring systems to detect market abuse and manipulation
Read Full UpdateJanuary 5, 2023
Updated capital adequacy standards for member firms to enhance market stability
Read Full UpdateTools and guidance to help market participants comply with NSES regulations
Practical guidance documents for understanding and implementing regulatory requirements
Access resourcesComprehensive checklists to verify compliance with key regulatory requirements
Access resourcesTraining programs and materials to help staff understand and apply NSES regulations
Access resourcesFind answers to common questions about NSES regulations
NSES regulations are reviewed and updated on a regular basis to ensure they remain effective and responsive to changing market conditions. Major rule books typically undergo a comprehensive review annually, with amendments published as needed throughout the year. The exchange also conducts periodic assessments to identify areas requiring adjustment based on market developments, technological changes, or emerging risks. Before implementing significant regulatory changes, NSES releases proposed amendments for public comment, allowing market participants to provide feedback. This approach ensures that regulatory updates are well-informed and balance the needs of various stakeholders while maintaining the core objectives of market integrity and investor protection.
NSES employs a multi-faceted approach to enforce its regulations. The exchange operates a robust market surveillance system that monitors trading activities in real-time to identify potential rule violations. When potential violations are detected, the Regulatory Enforcement Department conducts investigations and may impose sanctions ranging from warnings to substantial fines, trading restrictions, or membership suspension/termination in severe cases. All member firms are subject to regular compliance inspections to verify adherence to NSES rules. The exchange also maintains a Disciplinary Committee composed of industry experts and independent members to adjudicate contested enforcement actions. This comprehensive enforcement framework ensures the integrity of NSES markets and maintains investor confidence.
NSES regulations operate within the framework of Somalia's national securities laws and are designed to complement the broader legal structure. While national securities laws establish the fundamental legal framework for the capital markets, NSES regulations provide more detailed and market-specific rules for exchange operations. The Somali Securities and Exchange Commission (SSEC) oversees NSES and must approve significant rule changes before implementation. This ensures regulatory consistency while allowing NSES the flexibility to establish detailed operational rules. In case of any conflict, national securities laws take precedence over exchange regulations. This hierarchical regulatory structure provides both clarity and comprehensive coverage of all aspects of securities trading in Somalia.
NSES actively seeks input from market participants when developing or revising regulations through several channels. The exchange regularly publishes proposed rule changes for public comment, typically allowing a 30-60 day period for stakeholders to submit feedback. NSES also maintains several advisory committees composed of representatives from various market segments, including broker-dealers, listed companies, and institutional investors, which provide ongoing input on regulatory matters. Additionally, the exchange holds annual regulatory forums where participants can discuss emerging issues and potential regulatory responses. Market participants can also submit suggestions for regulatory improvements directly to the NSES Regulatory Affairs Department at any time. This inclusive approach ensures that NSES regulations reflect market realities and stakeholder needs.
NSES regulations are developed with close reference to international standards and best practices, making them broadly comparable to those of established international exchanges. The exchange benchmarks its regulatory framework against those of leading markets while adapting requirements to Somalia's specific market conditions and development stage. NSES is also an affiliate member of the International Organization of Securities Commissions (IOSCO) and aligns its regulations with IOSCO principles. For cross-border activities, NSES has established regulatory cooperation agreements with several regional and international exchanges. This approach ensures that NSES maintains a regulatory environment that is internationally compatible – facilitating cross-border investment – while remaining appropriately calibrated to the unique characteristics of the Somali market.
Our regulatory affairs team is available to provide guidance on NSES regulations and compliance requirements
