Trading_D Flashcards
What are the criteria for Block Trades?
In order for a transaction in an equity security to qualify to be submitted to the JSE equities trading system
as a Block trade in terms of rule 6.40.2 the transaction must comprise at least the value specified in the
table below, according to the Average Daily Value Tier to which that security is assigned by the JSE:
Average Minimum
Daily Block Trade
Value Size (R)
Tier
1 30 000 000
2 25 000 000
3 20 000 000
4 15 000 000
5 10 000 000
6 7 000 000
7 4 000 000
8 2 000 000
9 1 000 000
10 1 000 000
What is a bookbuild trade?
A Transaction where a member trades in a single equity security as an agent or a principal with another member in
order for the second member or its clients to participate in a bookbuild. The member managing the bookbuild must
advise the Director: Market Regulation of the bookbuild prior to reporting a bookbuild trade
What is a corporate finance transaction?
An off book transaction which:
1. Must be entered into in writing.
2. Requires public notification in the press; and
3. Complies with the requirements of transaction categories 1 or 2 of Section 9 of the
Listing Requirements of the JSE
What is a portfolio transaction?
An off book transaction which -
1. Has a minimum value of R15 million; and
2. Comprises at least 10 different equity securities none of which exceeds 25% of the total value of the portfolio.
Under what circumstances may the Director: Market Regulation instruct members to enter an on book or off
book trade without having received a formal request to do so by any member?
If in his opinion a trade –
1. materially impacts the integrity or transparency of the market or the correctness of the statistics.
What is a late trade? (8)
The transaction is:
1. Executed by a member acting on behalf of a client, in fulfilment of any order already entered into the JSE
equities trading system, and where either the buyer or the seller is a foreign professional market participant or
2. Executed by a member for a professional market participant, in fulfilment of an order received prior to the end
of the closing auction call session, at a price which can only be established after the closing auction call session
or
3. Executed by a member for or on behalf of a professional market participant, in fulfilment of an order received
after trading hours, where the counterparty is a foreign professional market participant or
4. Executed by a member as a principal for its own account where the counterparty is a foreign professional market
participant.
What is a delta trade?
A transaction where a member trades as a principal with another member, who also trades as a principal, in a single
equity security where the transaction transfers the delta hedge from one member to another member in respect of a
derivative transaction which has been reported to either the JSE derivative trading system or the derivative trade
recording system referred to in the directives.
With reference to Block Trades how often will the JSE publish the assignment of equity securities to their Average
Daily Value Tier?
Quarterly, unless exceptional circumstances justify one or more equity securities being allocated to a
different tier by the JSE prior to the next quarterly publication.
Define “hidden order”
Means an order submitted to the central order book where the order is not visible to other members and may
execute in full or in part against eligible visible orders or other hidden orders.
Who may grant permission to or instruct the respective members to execute a trade cancellation?
The Director: Market Regulation.
