Trading (Part V) Flashcards
What is a portfolio transaction?
An off book transaction which -
1. Has a minimum value of R15 million; and
2. Comprises at least 10 different equity securities none of which exceeds 25% of the total value of the portfolio.
Under what circumstances may the Director: Market Regulation instruct members to enter an on book or off book trade without having received a formal request to do so by any member?
If in his opinion a trade –
1. materially impacts the integrity or transparency of the market or the correctness of the statistics.
What is a late trade?
The transaction is:
1. Executed by a member acting on behalf of a client, in fulfilment of any order already entered into the JSE equities trading system, and where either the buyer or the seller is a foreign professional market participant or
2. Executed by a member for a professional market participant, in fulfilment of an order received prior to the end of the closing auction call session, at a price which can only be established after the closing auction call session or
3. Executed by a member for or on behalf of a professional market participant, in fulfilment of an order received after trading hours, where the counterparty is a foreign professional market participant or
4. Executed by a member as a principal for its own account where the counterparty is a foreign professional market participant.
What is a delta trade?
A transaction where a member trades as a principal with another member, who also trades as a principal, in a single equity security where the transaction transfers the delta hedge from one member to another member in respect of a derivative transaction which has been reported to either the JSE derivative trading system or the derivative trade recording system referred to in the directives.
With reference to Block Trades how often will the JSE publish the assignment of equity securities to their Average Daily Value Tier?
Quarterly, unless exceptional circumstances justify one or more equity securities being allocated to a different tier by the JSE prior to the next quarterly publication.
Define “hidden order”
Means an order submitted to the central order book where the order is not visible to other members and may execute in full or in part against eligible visible orders or other hidden orders.
Who may grant permission to or instruct the respective members to execute a trade cancellation?
The Director: Market Regulation.
Under what exceptional circumstances will a trade cancellation be considered?
If the trade meets at least the following requirements:
1. the request is received by the Director: Market Regulation within 20 minutes from the time of the erroneous trade; and
2. the price of the trade or trades for which the trade cancellation is requested is 5% or more away from the reference price at the time that the erroneous order was placed; and
3. the difference between the aggregate value of the trades that qualify in terms of rule 6.50.2.2 and the value that would have resulted had such trades been executed at the reference price is R50 000 or more; or
4. the quantity of shares traded exceeds 5% of the equity security in issue.
During what period may a member execute transactions in pre-issued securities?
During the period permitted by the JSE.
On what terms and conditions will settlement be made in transactions effected during the period of pre-issued trading if the listing is approved?
On the same terms as all other transactions in equity securities.
