According to the Securities Law, services entailing securities may only be performed by:
- a brokerage house which has obtained an operational license from the Commission
- an authorizedbank, in accordance with the Law on Banks as amended, which has obtained an operational license from the Commission;
- a subsidiary of a foreign brokerage house which has obtained an operational license from the Commission;
The conditions for acceptance into MSE membership are regulated by MSE’s membership rules.
Pursuant to Article 3 of MSE’s membership rules, the conditions for acceptance of the authorized market participant into the MSE membership are as follows:
- to be registered in the Trade Register as a brokerage house, bank or subsidiary of a foreign brokerage house;
- to have a license for operations with securities issued by the Securities and Exchange Commission;
- to be in compliance with the MSE laws and acts;
- to be both organizationally and technically equipped, especially regarding the member connecting to the BEST system;
- to be a member of the authorized Securities Depositary;
- to have a minimum of two full-time authorized brokers;
- to have the approval of the managing body to accept the Statute, these Rules, and the MSE acts, and to commit to adhering to and implementing them as necessary;
- to have both nominal capital and liquid capital in accordance with the Law, and to have the exposure coefficient stipulated by the Securities and Exchange Commission (if the authorized participant operated more than one year prior to the day of submitting the application for membership);
- to meet other criteria stipulated by the Securities and Exchange Commission;
- to meet other criteria stipulated by the MSE in accordance with the MSE acts.
The MSE is obliged to allow any authorized market participant, who is registered in the Trade Register and meets the requirements of paragraph 1 of this article and the provisions of these Rules, to become a member of the MSE.
The authorized participant who intends to become an MSE member submits a written application to the MSE for acceptance into membership, whereby the form and content of the application are set in Attachment 1 as an integral part of the MSE’s Membership Rules.
The Board of directors of the MSE makes the decision regarding acceptance into the MSE membership of any authorized market participant who meets all membership requirements.