Trading_C

Question 1

Define “volatility auction call session”

Answer 1

The auction call session which occurs if an order is entered that would execute at a price that is equal or greater than
a percentage, as specified by the market controller, away from the reference price.

Question 2

Are all transactions in equity securities by a member required to be conducted through the central order book of the
JSE equities trading system?

Answer 2

Yes, unless the transaction meets the criteria set out for off book trades.

Question 3

What are the requirements for a person who seeks to be registered with the JSE as a registered securities trader?

Answer 3

1. He must satisfy the fit and proper requirements.
2. Must have passed the Registered Securities Trader examination prescribed by the JSE.

Question 4

What are members accessing JSE systems at all times required to do?

Answer 4

1. Maintain and enforce appropriate security procedures which are designed to prevent unauthorised persons
   from having access to any JSE systems, member trading applications or client applications.
2. Have the necessary resources to ensure that any data sent to or received from JSE systems does not interfere
   with the efficiency and integrity of the equities market or the proper functioning of the JSE systems.

Question 5

When and who reports off book trades to the JSE trading system?

Answer 5

In the case of an off book trade between two members, the members must agree on which member will initiate the
submission of the trade to the JSE equities trading system.
Off book trades executed during trading hours must be submitted to the JSE equities trading system without delay.
Off book trades executed after trading hours must be submitted to the JSE equities trading system within 45 minutes
of the commencement of the off book trade reporting session on the next business day, with the exception of nonpublished
off book trades which must be submitted to the JSE equities trading system before 10h00 on the next
business day.

Question 6

What is a block trade?

Answer 6

A block trade is a transaction where a member trades as an agent or a principal in a single equity security and the
transaction comprises at least the specified minimum value determined by the JSE according to the Average Daily
Value tier attributable to that security, as set out in the directives.

Question 7

Define “BBE codes”

Answer 7

Means the Broad-Based Black Economic Empowerment Codes

Question 8

Off book transactions do not have to be executed through the central order book. What type of off-book transactions
may validly be reported to the JSE equity trading system?

Answer 8

1. Block trades (BT).
2. Book Build (BK).
3. Corporate finance transactions (CF).
4. Portfolio transactions (PF).
5. Late trades (LT).
6. Exercise of warrants (WX).
7. Exercise of traded options (TX).
8. Exercise of options (OX).
9. Off order book principal trades (OP).
10. Give-up trade (GU).
11. Next day cancellation of on book trade (LC & NC).
12. Delta trades (OD).

Question 9

What is an off order book principal trade?

Answer 9

An off order book principal trade is a transaction where a member trades as a principal in a single equity security with
a foreign professional market participant.

Question 10

Which types of off book transactions are not published?

Answer 10

1. Give up trade.
2. Exercise of options.
3. Exercise of warrants.
4. Exercise of traded option.
5. Delta trades.
6. Next day cancellation of a non-published off book trade.