Chapter 7 - Trading Flashcards
What information must a listed company provide within 3 months of year end?
- Annual Accounts
- 5 year comparison
- Cash Flows
How frequently must listed companies on ADX issue financial statements?
Quarterly
What are the ADX Trading hours?
8am - 2pm
How many individuals may enter an ADX trading booth?
3 Broker’s Reps and an Ops Manager
May an investor enter a trading booth?
No, never
What does a broker require before entering an order on the system?
Written note of the authorisation from the relevant customer
What happens if an ADX Broker executes an invalid trade?
The ADX takes and sells the securities to reverse the trade. Proceeds compensate the customer. Any shortfall is made up by the broker.
What is the cut off for a broker to correct/challenge the balance of trading statements before settlement?
5pm
What happens if an ADX broker is overdrawn on its settlement account?
- Settlement bank covers the trades initially
- Then ADX triggers the bank guarantee of the broker to pay the Settlement Bank
What must a Customer Agreement Form for a Broker client include?
Risk Disclosure Statement
What three records must be maintained by ADX Brokers?
- New Customer Agreement Form
- Portfolio Record
- Security Cross Reference
By what time must banks submit bids for Central Bank CDs?
10:30-11:30am
Results announced 12:30pm same day
What tenors does the CB issue CDs in?
1 week - 5 years
What are the DFM Trading hours?
9: 30-13:00 Sat-Thurs
9: 30-10am is Pre-Open - orders but no execution
May a brokerage firm trade in its own securities on behalf of Directors?
No
What are the Board Lots on DFM?
1 share per transaction
What are the tick sizes for DFM?
AED 0.05 for shares over AED10
AED 0.01 for shares under AED10
How are orders matched on the DFM?
By Price, then by Time
What priority is given to orders with special conditions on the DFM?
Secondary priority to regular orders
What are the two types of price orders available?
- Limit order
- Market order
What are the 5 options for timing on orders?
- Day order
- Good till week
- Good till month
- Good till date
- Open order
What are the 5 options for fill conditions on orders?
- All or none
- Whole or none
- Fill or KIll
- Minimum Fill
- Minimum Block
