Trading_B Flashcards
Define “Agricultural Derivatives”
Means those commodity securities which are derivative instruments and the financial terms of which are determined
by an underlying agricultural product, which is physically settled in terms of the derivatives rules
Define “order”
An instruction from a client to buy or sell equity securities or an instruction to amend or cancel a prior instruction to
buy or sell equity securities.
Define “order entry application”
Any system, software or program operated by a member which facilitates electronic submission of orders to a
member trading application and which complies with such requirements as the JSE may from time to time prescribe in
the directives.
Define “on-book trade”
Means a transaction in equity securities executed by a member on the central order book of the JSE equities trading
system.
Define “pre-issued trading”
Transactions effected in pre-issued securities in accordance with the rules.
Define “pre-issued securities”
Entitlements to equity securities the listing of which on the JSE has been approved but where the listing becomes
effective only after a number of conditions have been fulfilled on or before the commencement date of official
trading.
Define “price monitoring extension session”
An extension to an auction call session which occurs when the indicative auction price is a specified percentage or
more away from the reference price.
Define “professional client” in relation to a member.
- another authorised user;
- a bank;
- a long-term or short-term insurer registered as such under the Long-term Insurance Act, 1998 or the Short-term
Insurance Act, 1998, respectively; - a person outside the Republic who -
a. as a regular feature of the person’s business, renders a service similar to a “securities service” as defined in
section 1 of the Act or conducts the business of a bank or a business referred to in paragraph (c); and
b. is registered, licensed, recognised, approved or otherwise authorised to render the service or conduct the
business referred to in paragraph (d)(i) by a foreign regulator with functions similar to those of the Registrar,
the Registrar of Banks or the Registrar of Long-Term or Short-Term Insurance; - any person who is mandated to manage assets and who has confirmed to the satisfaction of the member that
the market value of the assets managed by the person will exceed R1 billion at all times during the rendering of
securities services to the person; - any other client, who has confirmed to the satisfaction of the member that they will have assets of which the net
asset value will exceed R20 million at all times during the rendering of securities services to the client, but who is
not -
a. a natural person;
b. a pension fund organisation as defined in section 1 (1) of the Pension Funds Act, 1956;
c. a friendly society referred to in the Friendly Societies Act, 1956;
d. a medical scheme as defined in section 1(1) of the Medical Schemes Act, 1998.
Define “reference price”
The last auction or automated trade price or the previous closing price, whichever is the most recent, or in the
absence of a last auction and automated trade price or a previous closing price, a price as determined by the JSE.
Define “registered securities trader”
An employee of a member, registered with the JSE and who is authorised by such member to enter and execute
orders through, and report trades to, the JSE equities trading system on behalf of such member.
Define “off-book trade”
A transaction in equity securities negotiated off the central order book and submitted by a member to the JSE equities
trading system.
Define “non published off book trade”
An off book trade or transaction which is not published to the market.
