Trading (Part VI)

Question 1

What are the consequences if a listing of pre-issued securities does not commence on the intended commencement date of official trading?

Answer 1

Every transaction will be null and void ab initio and neither the member nor a client will have recourse against the JSE or a member.

Question 2

Under what circumstances may the Director: Market Regulation declare an unreasonable transaction void?

Answer 2

Where, for a lack of clarity in the published information available at the time of the transaction a member deals in a quantity or at a price which in his opinion is unreasonable.

Question 3

During a trading halt, may a member:
1. trade that equity security;
2. delete orders in that equity security from the central order book.

Answer 3

1. No.
2. Yes.

Question 4

What is a non-exchange traded derivative instrument?

Answer 4

A derivative instrument not listed on a licensed exchange

Question 5

To which system must non-exchange traded derivative instruments be reported and how frequently?

Answer 5

To the derivatives trade recording system on a daily basis.

Question 6

Itemise 10 items of information which the non-exchange traded derivative instrument register must contain

Answer 6

1. Deal date.
2. Trade number.
3. Contract number.
4. Purchase or sale.
5. Type of option - put or call.
6. Type of option - American or European.
7. Grantor/writer.
8. Quantity.
9. Description of financial instrument.
10. Strike price.

Question 7

Whose approval must a member obtain to access and utilise JSE systems?

Answer 7

Market Controller.

Question 8

What is a TSP required to do in order to utilise the services of and access JSE systems?

Answer 8

Enter into and sign agreements and adhere the requirements and specifications of such agreements.

Question 9

In addition to the details that are required by the JSE equities trading system to facilitate the proper entry of an order or an off book trade, what must an order or an off book trade submitted to the JSE equities trading system contain in order to facilitate proper disclosure to clients and effective regulation of transactions by the JSE?

Answer 9

1. Capacity (principal or agent)
2. Client or stock account number to which any associated trades will be booked
3. Minimum execution size (MES) in respect of a hidden order
4. Trader group
5. Trader identification number

Question 10

If an order submitted to the JSE equities trading system by a registered securities trader was not received or initiated by that registered securities trader but was instead received or initiated by another employee of the member, such as a sales trader or a portfolio manager, what must the member ensure that it records?

Answer 10

The identity of the other employee who received or initiated the order.