Trading (Part IV) Flashcards
What are members accessing JSE systems at all times required to do?
- Maintain and enforce appropriate security procedures which are designed to prevent unauthorised persons from having access to any JSE systems, member trading applications or client applications.
- Have the necessary resources to ensure that any data sent to or received from JSE systems does not interfere with the efficiency and integrity of the equities market or the proper functioning of the JSE systems.
When and who reports off book trades to the JSE trading system?
- In the case of an off book trade between two members, the members must agree on which member will initiate the submission of the trade to the JSE equities trading system.
- Off book trades executed during trading hours must be submitted to the JSE equities trading system without delay.
- Off book trades executed after trading hours must be submitted to the JSE equities trading system within 45 minutes of the commencement of the off book trade reporting session on the next business day, with the exception of non-published off book trades which must be submitted to the JSE equities trading system before 10h00 on the next business day.
What is a block trade?
A block trade is a transaction where a member trades as an agent or a principal in a single equity security and the transaction comprises at least the specified minimum value determined by the JSE according to the Average Daily Value tier attributable to that security, as set out in the directives.
Define “BBE codes”
Means the Broad-Based Black Economic Empowerment Codes
Off book transactions do not have to be executed through the central order book. What type of off-book transactions may validly be reported to the JSE equity trading system?
- Block trades (BT).
- Book Build (BK).
- Corporate finance transactions (CF).
- Portfolio transactions (PF).
- Late trades (LT).
- Exercise of warrants (WX).
- Exercise of traded options (TX).
- Exercise of options (OX).
- Off order book principal trades (OP).
- Give-up trade (GU).
- Next day cancellation of on book trade (LC & NC).
- Delta trades (OD).
What is an off order book principal trade?
An off order book principal trade is a transaction where a member trades as a principal in a single equity security with a foreign professional market participant
Which types of off book transactions are not published?
- Give up trade.
- Exercise of options.
- Exercise of warrants.
- Exercise of traded option.
- Delta trades.
- Next day cancellation of a non-published off book trade.
What are the criteria for Block Trades?
In order for a transaction in an equity security to qualify to be submitted to the JSE equities trading system as a Block trade in terms of rule 6.40.2 the transaction must comprise at least the value specified in the table below, according to the Average Daily Value Tier to which that security is assigned by the JSE:
Average Daily Value Tier Minimum Block Trade Size (R)
1 30 000 000
2 25 000 000
3 20 000 000
4 15 000 000
5 10 000 000
6 7 000 000
7 4 000 000
8 2 000 000
9 1 000 000
10 1 000 000
What is a bookbuild trade?
A Transaction where a member trades in a single equity security as an agent or a principal with another member in order for the second member or its clients to participate in a bookbuild. The member managing the bookbuild must advise the Director: Market Regulation of the bookbuild prior to reporting a bookbuild trade
What is a corporate finance transaction
An off book transaction which:
1. Must be entered into in writing.
2. Requires public notification in the press; and
3. Complies with the requirements of transaction categories 1 or 2 of Section 9 of the Listing Requirements of the JSE.
