jse-terms

Question 1

Act

Answer 1

financial markets act 2012 (no 19 2012)

Question 2

auction call session

Answer 2

period of time when orders for an auction can be entered into and deleted from the central order book, there is not automated trading

Question 3

auction matching

Answer 3

the process of matching buy and sell orders according to a matching algorithm at the end of an auction call session

Question 4

auction trade

Answer 4

transaction matched automatically by the jse equities trading sustem resulting from an uncrossing at the end of an auction call session

Question 5

automated trade

Answer 5

transaction matched automatically by the jse equities trading system duing continuous trading

Question 6

average daily value

Answer 6

average value of daily trading in an equity security as calculated by the JSE

Question 7

bank restricted stock account

Answer 7

account for transaction of positions in equitiy securities where the member sells for his own account and where the member does not have the freedom to acquiree or dispose of said securities because of restrictions by an associated banking entity

Question 8

BDA system

Answer 8

broker dealer accounting system operated by the jse

Question 9

BEE act

Answer 9

broad based economic empowerment act of 2003 (noo 53 2003)

Question 10

bee compliant person

Answer 10

naturalistic person who fals within the ambit of definition (a) black people (b) juristic person who falls within the ambit of the definitions of BEE conrtolled company or (c) any other entity classified as BEE

Question 11

bee securities

Answer 11

securities required to be owned by a bee compliant person by the issuers

Question 12

beneficial owner

Answer 12

the person to whom the benefits of a security acrues including 1) right to divididends or interest payable, 2) right to exercise or caused to be exercised voting rights. c) righ to dispose equities and to benefit from the proceeds

Question 13

business day / day

Answer 13

any day except sat, sun or public holidays (other days jse is closed)

Question 14

central order book

Answer 14

order book of the JSE equities trading system in which automated trades and auction trades occur

Question 15

certified equity securities

Answer 15

equity securities evidenced by a certificate

Question 16

chief executive officer

Answer 16

person appointed by controlling body as CEO of the JSE

Question 17

client

Answer 17

any person to whom a member provides security services, includes a person who acts as agent for another

Question 18

client assets

Answer 18

jse authorised investments safegaurded by a member on behalf of a client

Question 19

compliance officer

Answer 19

the person appointed by a member in terms of the rules to assist board of directors and ensure a members compliance to the act, rules and directives

Question 20

contract note

Answer 20

in respect to executed trades: a) confirmation from member to client of such trades, b) on a members proprietary account, aggregate trades executed on said account

Question 21

controlled client

Answer 21

client/account holder on whose behalf a client is acting. funds and uncertificated equity securities are under the control of a CSP or settlement take place via CSDP of a member

Question 22

controlled client account

Answer 22

account reflecting equity securities and funds of a controlled client

Question 23

corporate action

Answer 23

action by an issuer or any other entity/third party which affects registered owner ito entitlement

Question 24

CSDP

Answer 24

central securities depository participant - accepted by the central securities depository as a participant

Question 25

CSP

Answer 25

custody services provider, authorised by the JSE to provide custody services

Question 26

dematerialisation

Answer 26

process of converting a certificated equity security into a uncertified equity security

Question 27

direct market access

Answer 27

process whereby an orer is received electronically by a TSP from the client and submitted electronically by the JSE

Question 28

employee

Answer 28

individual engaged by a member

Question 29

equity securities

Answer 29

jse listed securities traded on the JSE equities trading system

Question 30

failed trade

Answer 30

trade deemed failed by the settlement authority (SA), as neither the client, member or SA can ensure that the transaction will settle on the settlement date

Question 31

FAIS Act

Answer 31

financial advisory intermediate services act 2002

Question 32

financial intellegince centre act

Answer 32

financial intelligence centre act 2001 (38/2001)

Question 33

foreign client

Answer 33

client who does not reside in the republic

Question 34

foreign investment

Answer 34

JSE authorised: a) securities listed on external exchange, b) unit or other form of participation in a foreign collective investment scheme approved by refistrar of collective investment schemes ito sect 65 of collective investment schemes control act 2002, c) units of collective investment scheme registered in a foreign country, d) foreign funds intended for the purchase of such securities units or participation

Question 35

General restricted stock account

Answer 35

stock account where member is restricted in trading by: a) an ssociated bank or entity, b|) a lender of cash or another creditor rto whom equity is pledged as security,

Question 36

hidden order

Answer 36

order submitted to central order book where the order is not visible to other members