Trading_E

Question 1

Under what exceptional circumstances will a trade cancellation be considered? (5)

Answer 1

If the trade meets at least the following requirements:
1. the request is received by the Director: Market Regulation within 20 minutes from the time of the erroneous trade; and
2. the price of the trade or trades for which the trade cancellation is requested is 5% or more away from the
reference price at the time that the erroneous order was placed; and
3. the difference between the aggregate value of the trades that qualify in terms of rule 6.50.2.2 and the value that
would have resulted had such trades been executed at the reference price is R50 000 or more; or
4. the quantity of shares traded exceeds 5% of the equity security in issue.

Question 2

During what period may a member execute transactions in pre-issued securities?

Answer 2

During the period permitted by the JSE.

Question 3

On what terms and conditions will settlement be made in transactions effected during the period of pre-issued trading
if the listing is approved?

Answer 3

On the same terms as all other transactions in equity securities.

Question 4

What are the consequences if a listing of pre-issued securities does not commence on the intended commencement
date of official trading?

Answer 4

Every transaction will be null and void ab initio and neither the member nor a client will have recourse against the JSE
or a member.

Question 5

Under what circumstances may the Director: Market Regulation declare an unreasonable transaction void?

Answer 5

Where, for a lack of clarity in the published information available at the time of the transaction a member deals in a
quantity or at a price which in his opinion is unreasonable.

Question 6

During a trading halt, may a member:
1. trade that equity security;
2. delete orders in that equity security from the central order book.

Answer 6

1. No.
2. Yes.

Question 7

What is a non-exchange traded derivative instrument?

Answer 7

A derivative instrument not listed on a licensed exchange.

Question 8

To which system must non-exchange traded derivative instruments be reported and how frequently?

Answer 8

To the derivatives trade recording system on a daily basis.

Question 9

Itemise 10 items of information which the non-exchange traded derivative instrument register must contain. (5)

Answer 9

Need to remember 10 out of the 17

1. Deal date.
2. Trade number.
3. Contract number.
4. Purchase or sale.
5. Type of option - put or call.
6. Type of option - American or European.
7. Grantor/writer.
8. Quantity.
9. Description of financial instrument.
10. Strike price.
11. Strike date and time.
12. Settlement date.
13. Premium.
14. Premium settlement date.
15. Other party.
16. Dealt as principal or agent.
17. Date sold, exercised or lapsed.

Question 10

Whose approval must a member obtain to access and utilise JSE systems?

Answer 10

Market Controller.

Question 11

What is a TSP required to do in order to utilise the services of and access JSE systems?

Answer 11

Enter into and sign agreements and adhere the requirements and specifications of such agreements.

Question 12

In addition to the details that are required by the JSE equities trading system to facilitate the proper entry of an order
or an off book trade, what must an order or an off book trade submitted to the JSE equities trading system contain in
order to facilitate proper disclosure to clients and effective regulation of transactions by the JSE?

Answer 12

1. Capacity (principal or agent)
2. Client or stock account number to which any associated trades will be booked
3. Minimum execution size (MES) in respect of a hidden order
4. Trader group
5. Trader identification number