Trading (Part III) Flashcards
Define “pre-issued securities”
Entitlements to equity securities the listing of which on the JSE has been approved but where the listing becomes effective only after a number of conditions have been fulfilled on or before the commencement date of official trading
Define “price monitoring extension session”
An extension to an auction call session which occurs when the indicative auction price is a specified percentage or more away from the reference price.
Define “professional client” in relation to a member.
- another authorised user;
- a bank;
- a long-term or short-term insurer registered as such under the Long-term Insurance Act, 1998 or the Short-term Insurance Act, 1998, respectively;
- a person outside the Republic who -
a. as a regular feature of the person’s business, renders a service similar to a “securities service” as defined in section 1 of the Act or conducts the business of a bank or a business referred to in paragraph (c); and
b. is registered, licensed, recognised, approved or otherwise authorised to render the service or conduct the business referred to in paragraph (d)(i) by a foreign regulator with functions similar to those of the Registrar, the Registrar of Banks or the Registrar of Long-Term or Short-Term Insurance; - any person who is mandated to manage assets and who has confirmed to the satisfaction of the member that the market value of the assets managed by the person will exceed R1 billion at all times during the rendering of securities services to the person;
- any other client, who has confirmed to the satisfaction of the member that they will have assets of which the net asset value will exceed R20 million at all times during the rendering of securities services to the client, but who is not -
a. a natural person;
b. a pension fund organisation as defined in section 1 (1) of the Pension Funds Act, 1956;
c. a friendly society referred to in the Friendly Societies Act, 1956;
d. a medical scheme as defined in section 1(1) of the Medical Schemes Act, 1998.
Define “reference price”
The last auction or automated trade price or the previous closing price, whichever is the most recent, or in the absence of a last auction and automated trade price or a previous closing price, a price as determined by the JSE.
Define “registered securities trader”
An employee of a member, registered with the JSE and who is authorised by such member to enter and execute orders through, and report trades to, the JSE equities trading system on behalf of such member
Define “off-book trade”
A transaction in equity securities negotiated off the central order book and submitted by a member to the JSE equities trading system.
Define “non published off book trade”
An off book trade or transaction which is not published to the market.
Define “volatility auction call session”
The auction call session which occurs if an order is entered that would execute at a price that is equal or greater than a percentage, as specified by the market controller, away from the reference price.
Are all transactions in equity securities by a member required to be conducted through the central order book of the JSE equities trading system?
Yes, unless the transaction meets the criteria set out for off book trades.
What are the requirements for a person who seeks to be registered with the JSE as a registered securities trader?
- He must satisfy the fit and proper requirements.
- Must have passed the Registered Securities Trader examination prescribed by the JSE.
