Section 2 Definitions

Question 1

Strike price:

Answer 1

The price or yield at which the person with a long position in an option contract is registered has the right to buy or sell the underlying instrument of the option contract.

Question 2

SWIFT

Answer 2

Society of Worldwide Interbank Financial Telecommunications

Question 3

Trade: to buy or sell derivatives securities whether by means of the ATS or off-ATS

Question 4

Standard lot size

Answer 4

The NUMBER of a particular exchange contract that is traded in a single trade as determined by the JSE

Question 5

SRO oversight committee

Answer 5

Means the JSE BOARD SUB-COMMITTEE responsible for overseeing the ISSUER REGULATION and MARKET REGULATION FUNCTIONS of the JSE

Question 6

Trader

Answer 6

An employee of a trading member AUTHORISED BY THE JSE and who is REGISTERED BY SUCH TRADING MEMBER in terms of the derivatives rules to trade either for the member’s own account or on behalf of clients, or both

Question 7

Trustees

Answer 7

Trustees of the Fidelity Fund

Question 8

Trading member

Answer 8

A sub-category of authorised user of the JSE, REGISTERED TO TRADE IN EQUITY DERIVATIVES MARKET or the COMMODITY DERIVATIVES MARKET or both under derivatives rules.

Question 9

‘‘safeguarding’’

Answer 9

the activities performed by an authorised user—
(a) for the purposes of holding securities or funds in custody on behalf of another person
(b) where the authorised user is accountable to another person for a third party’s holding of securities or funds in
custody on behalf of that other person, and includes the administration of matters incidental to those securities or funds

Question 10

‘‘securities services’’

Answer 10

(a) the buying or selling of securities for own account or on behalf of another person as a business, a part of a business
or incidental to conducting a business;
(b) the use of the trading system or infrastructure of an exchange to buy or sell listed securities;
(c) the furnishing of advice to any person;
(d) the custody and administration of securities by a participant or nominee;
(e) the management of securities and funds by an authorised user;
(f) clearing services; or
(g) settlement services

Question 11

‘‘stockbroker’

Answer 11

a natural person who is a member of the South African Institute of Stockbrokers;