Contents - Execution

Transcription

Contents
7.
Argentina
44.
Greece
81.
Morocco
118. Uganda
8.
Armenia
45.
Guatemala
82.
Namibia
119. Ukraine
9.
Australia
46.
Guernsey
83.
Nepal
120. UAE
10.
Austria
47.
Honduras
84.
Netherlands
121. United Kingdom
11.
Azerbaijan
48.
Hong Kong
85.
New Zealand
12.
Bahamas
122. USA Amex
49.
Hungary
86.
Nigeria
13.
Bahrain
123. USA Chicago
50.
Iceland
87.
Norway
14.
Bangladesh
51.
India - Mumbai
88.
Oman
124. USA NASDAQ
15.
Barbados
52.
India - National
89.
Pakistan
16.
Belgium
53.
Indonesia
90.
Palestine
17.
Bermuda
54.
Iran
91.
Panama
18.
Bolivia
19.
Bosnia &
Herzegovina
55.
Ireland
92.
Paraguay
56.
Iraq
93.
Peru
20.
Botswana
57.
Israel
94.
Philippines
21.
Brazil
58.
Italy
95.
Poland
22.
Bulgaria
59.
Jamaica
96.
Portugal
23.
Canada
60.
Japan - Tokyo
97.
Qatar
24.
Cayman Islands
61.
Japan - Osaka
98.
Romania
25.
Chile
62.
Jordan
99.
Russia
26.
China - Shanghai
63.
Kazakhstan
100. Saudi Arabia
27.
China - Shenzhen
64.
Kenya
101. Serbia
28.
Colombia
65.
Kuwait
102. Singapore
29.
Costa Rica
66.
Kyrgyz Republic
103. Slovakia
30.
Croatia
67.
Latvia
104. Slovenia
31.
Cyprus
68.
Lebanon
105. South Africa
32.
Czech Republic
69.
Lithuania
106. South Korea
33.
Denmark
70.
Luxembourg
107. Spain
34.
Ecuador
71.
Macedonia
108. Sri Lanka
35.
Egypt
72.
Malawi
109. Swaziland
36.
El Salvador
73.
Malaysia
110. Sweden
37.
Estonia
74.
Maldives
111. Switzerland
38.
Fiji
75.
Malta
112. Taiwan
39.
Finland
76.
Mauritius
113. Tanzania
40.
France
77.
Mexico
114. Thailand
145. Pipeline,
International Stock
Exchange
41.
Georgia
78.
Moldova
115. Trinidad & Tobago
146. Direct Edge, BATs
42.
Germany
79.
Mongolia
116. Tunisia
43.
Ghana
80.
Montenegro
117. Turkey
147. PureTrading/
CNQ Exchange
125. USA National
126. USA New York
127. Uruguay
128. Uzbekistan
129. Venezuela
130. Vietnam
131. West African
Exchange
132. Zambia
133. Zimbabwe
135. ECN, ATS & Dark Pools
137. NYSE Arca
138. EuroTLX -TLX
139. Liquidnet
140. ITG POSIt
141. Primex Trading
141. Bloomberg
Tradebook
142. NexTrade
142. NASDAQ Trader
143. Instinet, Instinet Chi-X
144. NYFI, Track ECN
Global Broker Focused Upon
Investors New Expectations
The professional excellence of the team combined with business principles of integrity and transparency gives Société Générale Corporate and
Investment Banking a competitive edge, appreciated by all our most demanding clients.

Customer Focus – Customer commitment is at the core of our business, our sales traders stay involved throughout the entirety of the
execution process, providing timely and pertinent feedback to keep you informed.

Comprehensive Liquidity Access – SG CIB utilises numerous sources of liquidity, ranging from over 60 traditional market venues to dark
pools, crossing networks, multi-lateral trading facilities such as Chi-X, as well as our own internal flow.

Capital Commitment – SG CIB has a strong franchise in capital bidding with extended means for consistent pricing on all large caps and on
mid-cap stocks, depending on underlying liquidity.

Ethical Business Principles – In line with our principals of transparency and integrity, SG CIB does not conduct proprietary trading within the
cash equity division, nor does it engage in pre-hedging or front-running.

Leading Market Share Across the Globe – Ranked 1st
on Euronext for the 7th consecutive year in 2007 with an
8.5% market share, SGCIB also holds leading position on
other European markets such as the Virt-X (3rd), Spain
(3rd), Xetra (6th), Italy (6th), NordicEx (8th) and UK (9th). In
addition, SG CIB has impressive market share in the US
(5%) Japan (8%), Hong Kong (5%) amongst others.

Small and Mid-Cap Expertise – SMC dedicated desks
are staffed with professionals with in depth real estate and
small and mid cap knowledge.
SG CIB has brought together and simplified its wide range of
execution services into a single, integrated offering - the Quantum
service. The techniques you employ in your trading strategies
vary from day to day, market to market and stock to stock. The
Quantum service provides a single, integrated portal giving access
to all our equity trading products. Through this portal we provide
integrated sales and support in conjunction with our traditional
broking desks to give you the overall service you need.
Global Programme Trading – When it comes to implementing investment decisions across the globe, SG CIB programme trading experts understand
the needs of our customers. As a core business, programme trading flows account for 45% of cash equity daily volumes

Smart Execution – Minimised market impact associated with fair pricing policy sets us apart.

24-hour Global Reach – An integrated worldwide platform of 35 professionals based in Europe, Asia and the Americas.

Unique Facilitation Capabilities – Using advanced quantitative models, SG CIB offers portfolio-level facilitation.

Wide Range of Benchmarks – VWAP, TWAP, Open, Close, With Volume, Implementation Shortfall, as well as tailor-made algorithms for
specific strategies such as US corporate buy back.

Comprehensive Trade Reporting – Advanced pre-trade, detailed execution and comprehensive post-trade analyses. Execution reports can
be sent via the FIX protocol or custom file formats.
Direct Market Access – SG CIB has invested heavily to provide investors with a seamless access to global equity marketplaces. Working with SG CIB,
investors keep complete control of their orders, executing anonymously, securely and efficiently within the largest liquidity pools in the industry.

Global Reach – access over 30 markets across Europe, Asia and the Americas.

Flexible Solution – through major third party Order Management Systems (OMS), Execution Management Systems (EMS) and FIX network
providers as well as proprietary front-end systems.

Safe Execution Channel - trading controls to protect against “fat fingers” and pricing mistakes, whilst not compromising speed of performance.

Quick and Reliable Access – on-going upgrades and optimisation to meet low latency demands.

Preserved Confidentiality – segregated technology platform, not visible to other execution or sales trading desks.

All inclusive Execution Service – Dedicated service desks in each region provide support.
Algorithmic Trading - SG CIB delivers a mature, comprehensive set of sophisticated algorithms continuously updated and fine-tuned for local markets
to give you the best of breed tools. The product aims to reduce market impact, improve performance versus your benchmark, and provide anonymity
and efficiency for your orders.

Ease of Access – available through most major OMS systems and easy to incorporate into propriety front-end applications. Optional routing
through our programme desk if required.

Premier Service and Support Model – Using advanced monitoring systems, a range of parameters check real-time performance of your
orders, whilst maintaining anonymity.

Confidentiality and Signalling – segregated architecture supported by separate trading teams. We incorporate logic to reduce signalling risk
to the market. Algorithmic orders are not advertised.

Global Access to Liquidity – Option to design an algorithm that will fit your specific objectives and trading style, as well as work with your IT
providers to deploy bespoke customisations.
The Global Equity
24 hour Business Day
10:00
NEW ZEALAND
17:00
10:00
JAPAN
9:00 11:00
KOREA
16:00 - 16:12 Closing Auction
09:00
11:00 & 15:00 Two Closing Auctions
12:30 15:00
14:50
TAIWAN
09:00
SINGAPORE
09:00
CHINA
16:00
AUSTRALIA
11:30
10:00
HONG KONG
14:00
12:30
09:30
13:25
17:00
13:00 15:00
14:30 16:00
12:30
09:55
INDIA
15:30
10:30
RUSSIA
18:30
SOUTH AFRICA
09:00
BELGIUM
09:00
DENMARK
09:00
FINLAND
10:00
NETHERLANDS
09:00
PORTUGAL
08:00
SWEDEN
09:00
FRANCE
09:00
17:30
UK
08:00
16:30
SPAIN
09:00
17:30
IRELAND
08:00
16:30
SWITZERLAND
09:00
GERMANY
09:00
NORWAY
09:00
ITALY
09:05
16:50 16:50 - 17:00 Closing Auction
16:50 - Random Close
18:20
17:30
16:30
17:20
17:20
17:30 17:30 - 17:35 Closing Auction
16:20
17:25
09:15
AUSTRIA
17:30
16:50
17:30
10:30
GREECE
16:30
10:00
BRAZIL
16:55
CANADA
9:30
16:00
USA
9:30
16:00
New York Time
Paris Time
London Time
Tokyo Time
17
18
19
20
21
22
23
24
1am
2
3
4
5
6am
7
8
9
10
11
12
13
14
15
16
23
24
1am
2
3
4
5
6am
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
22
23
24
1am
2
3
4
5
6am
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
6am
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1am
2
3
4
5
Countries
Futures Information
Main Contract Trading Exchange Trading Times Contract Size
Tick Size Contract Months Expiration Day Reuters Bloomberg Merval Index Futures
Buenos Aires Stock Exchange
12:00 - 19:00
ARS 1 x Index
ARS 1 equals 1 index points
Monthly, up to 12 months ahead
The last business day of the contract month
<0#MEF:>, nearest month <0#MEFd:> /
<0#MAR:>, nearest month <0#MARd:>
MM (Month Code)(Last Number of Year) <Index>
Argentina
GMT -3hrs (-2hrs DST)
Internet: www.bolsar.com
Email: [email protected]
Primary Exchange
Buenos Aires Stock Exchange
Brief History
Continuous Open-outcry Auction Trading System
The first short-lived exchange to be established in Argentina was the
Bolsa Mercantil, set up by Bernardino Rivadavia in 1822. The Bolsa
de Commercia de Buenos Aires, founded in 1854, was set up by 118
businessmen and a number of brokers. Today there are several other
stock exchanges in Argentina but the Bolsa de Comercio de Buenos Aires
(BCBA) remains the largest.
Transactions must be matched on the floor. The securities and instruments
traded are: equities, government and corporate bonds, forwards on
stocks and government bonds, options on stocks, government bonds
and indices, index futures and repos. The MVBA guarantees transactions
between brokers. Clearing and settlement is carried out by the MVBA
with the assistance of the CVSA. A special guarantee ensures payment
to brokers’ clients made by cheques issued by the MVBA. Buyers and
sellers must pay the MVBA fee, stock exchange fee and a negotiable
brokerage commission.
Trading System
The Buenos Aires Stock Exchange has developed a comprehensive
computer trading system called SINAC. Traders enter buy and sell
orders through workstations in their offices. The system then matches
transactions based on the rules of the Exchange.
Continuous Trading System
The continuous market (bonds) and the dealer market (shares) were
merged into this system. Transactions can be closed on or off-exchange
(at the dealer’s offices) but must be reported immediately to the Exchange.
The price may not differ by more than 1.5% from a reference price.
The securities traded are: equities (a selected set of listed stocks) and
government and corporate bonds. Transactions between dealers and
clients may be cleared and settled by the dealers themselves but may also
be cleared using the MVBA facilities. Trades cleared through the MVBA
are guaranteed. No special guarantee for clients exists. No commission
is paid by brokers and sellers since it is included in the bid/ask spread.
Dealers (brokers) pay MVBA and stock exchange fees monthly. A fixed
amount, independent of the amount traded, is charged.
Circuit Breakers
There are no circuit breakers or daily price movement limits.
Taxes, Market Charges & Compulsory Commissions
Broker’s commission: Negotiated
Stock Market Fee: 0.06%
Stock Exchange Fee: 0.0351%
Taxes & Regulations Affecting Foreign Investors
The Foreign Investment Act has been modified and now puts foreign
investors on a similar footing to Argentinean Investors. There is no
capital gains tax on shares obtained by individuals’ resident in Argentina
or by individuals, corporations, trusts or their successor’s non-resident
in Argentina.
Money Repatriation Procedures in Argentina
Main Indices
Board Lots
Merval 25 Index
1
BURCAP
GENERAL
Official Trading Hours
Monday - Friday
Floor Trading:
11:00 - 17:00
Continuous Trading:
11:00 - 17:00
Computer-Assisted Trading:
11:00 - 17:00
Currency
Argentine Peso (ARS)
Clearing and Settlement
T+3 Business Days
Currency Exchange
USD1 = ARS3.1605
EUR1 = ARS4.7951
On 7th March 2005 Argentinean authorities implemented a system that
allows money repatriation through Merval Communication 11.374. Since
Argentina implemented the so-called “corralito”, the only way to take
money out of Argentina was through an ADR conversion. This method
was nothing more than a loophole that market participants found as a way
around the Argentinean law that strictly prohibited any money repatriation.
This ADR conversion procedure was widely used over 3 years. By the end
of 2004 the Argentinean government made a statement saying that it was
fully aware of the situation, and was ready to take action on it.
As a result the Argentinean government implemented the “contra cables”
(versus wire) system. A so-called, “cable” line was created for all local
stocks and bonds. These lines are traded in USD’s and are fungible with
the regular Argentinean peso lines. According to this law, any proceeds
coming from the sale of a “cable” line are subject to be taken out
of Argentina.
Market Size
as of February 2008
Market Capitalisation:
USD54.1bn
Average Daily Trading Value:
USD29.6m
Armenia
Futures Information
None
GMT +4hrs (DST +5hrs)
Internet: www.armex.am
Primary Exchange
Armenian Stock Exchange
Brief History
The Armenian Stock Exchange (Armex) was registered in February
2001 by 22 brokerage and investment firms. Trading on the exchange
opened in July 2001. Foreign currency exchange trading was launched on
15th November 2005. In 2007 the Armenia Stock Exchange was purchased
by the OMX Group and now forms part of the NASDAQ OMX Group.
Trading System
Trading is effected through the electronic-trading system ‘Armex Plaza’.
As a result of OMX’s purchase of the ASX, the exchange will begin the use
of OMX’s trading system during 2008.
Commission fees range from 0.75% for transactions of shares listed on
lower (C2) listing tier to 0.1% for upper (A) listing tier.
Listing Tier
Fee Charged to
Each Party
Fee Charged to
Market Maker
A
0.1%
0.05%
B
0.2%
0.1%
C1
0.3%
0.15%
C2
0.75%
0.375%
A fee of 0.1% of the transaction amount shall be charged from each party
for any major transaction carried out on the exchange.
Withholding tax is levied on dividends, interest and any other income
paid to non-residents at a rate of 10%, subject to double tax agreements
with Armenia.
Main Indices
Currency
None
Armenian Dram (AMD)
Monday - Friday
T+2 Business Days
Equities and Corporate bonds:
12:30 - 13:30
Currency Exchange
Market Size
2007
USD102.75m
Average Daily Turnover:
USD1.4m
USD1 = AMD307.000
EUR1 = AMD466.118
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size
Contract Months Expiration Day Reuters Bloomberg SFE SPI 200 Index Futures and Options
Australian Stock Exchange (www.asx.com.au)
09:50 - 16:30 and 17:10 - 08:00 Sydney Time
Price quoted at the number of points with a
min price movement of 1 index point = AUD10
1.0
Mar, Jun, Sep & Dec Cycle
The last business day of the contract month (The
3rd Thursday of the contract month, unless
otherwise specified by the ASX)
<0#YAP:>, nearest month <0#2YAP:> (floor)
<0#1YAP:> (SYCOM), contract details <SFE/YAP>
XP (Month Code)(Last Number of Year) <Index>
Australia
GMT +9hrs (+11hrs DST)
Internet: www.asx.com.au
Primary Exchange
Australian Stock Exchange
Brief History

Additional Market Information
The Australian Stock Exchange Ltd (ASX) was formed in 1987 through
a special act of parliament amalgamating Australia’s six state-based
stock exchanges. In 1998, ASX became the first exchange in the world
to simultaneously demutualise and list on itself. On 25th July 2006 the
Sydney Futures Exchange Corporation Limited merged with the Australian
Stock Exchange Limited to form the Australian Securities Exchange
Limited (ASX). In October that year the ASX began the replacement of the
Stock Exchange Trading System (SEATS) with CLICK XT, known as the
Integrated Trading System (ITS).

Performance Improvements

Access to a multiple international stock market system
Since 2006 trading has been conducted on a system called CLICK XT ITS
that was designed by OMX Technology. This system allows trading of all
ASX products on a single, integrated platform. All orders are automatically
processed and it also offers new opportunities for contingent trading and
new order types. CLICK XT ITS performs more transactions per second
than the previous system and allows up to 5 orders per transaction. This
system is used for all ASX activities; ASX equities, fixed interest, warrants,
options and futures markets. The features of the ITS system include:

Automated Order Processing

Improved Order and Trade History

Enhanced Combination Trade Reporting Functionality

Fast Order Entry Window
Board Lots
S&P/ASX 200 Index
1
Currency
Monday - Friday
Australian Dollar (AUD)
Normal Trading: 10:00 - 16:00
T+3 Business Days
Pre-open Prior to Closing:
16:00 - 16:10
Currency Exchange
Closing Single Price Auction:
16:10 - 16:12
EUR1 = AUD1.62190
After Hours Adjust: 16:12 - 18:50
Market Size
as of February 2008
USD1.158tr
USD6.51bn
Australia imposes a 10% withholding tax on interest paid to non-residents
unless an exemption has been granted by the taxation authorities for
interest paid on widely distributed debentures outside Australia.
Fully Franked dividends (dividends that Australian companies pay taxes
on) paid to non-resident investors in Australian-resident companies are
not subject to dividend withholding tax. Unfranked dividends are subject
to 30% dividend withholding tax, which is generally reduced to 15% if
the investor is resident in a country with which Australia has a doubletaxation agreement.
While non-residents will not pay any tax on the franked amount of
dividends, they will not get a refund of the imputation credits attached to
the dividends.
In addition there are dividend-streaming rules which prevent companies
offering investors the choice to substitute other dividends for franked
dividends. Australian dividend withholding tax and underlying company
tax may be creditable against the non-resident’s tax liability in its
home jurisdiction.
Main Indices
Opening: 10:00 - 10:09
Brokerage rates on share market transactions have been negotiable since
1984. Some full-service broking organisations can charge between 0.1%
and 2% commission depending on the size of the transaction.
Trading System
Pre-Opening: 07:00 - 10:00
USD1 = AUD1.07530
Cross Selling Equity & Short Selling
Since 1st October 2002, participating organisations of the ASX have been
able to short-sell an approved ETF without entering into a script-lending
arrangement. These guidelines allow the short-selling party to initiate a
trade (shorting on the downtick) to gain an immediate execution. The
normal short-selling margin requires a margin cover of 20%, if the sale
of each approved security exceeds 10% of the capital issued, then the
investor must provide additional margin cover of 100% to their broker.
Daily short selling reporting will apply. An order is short if the seller does not
have a presently exercisable and unconditional right to vest the security
in the buyer. A sale is not considered short if the seller has borrowed
securities prior to the sale.
Crossings are strictly regulated by the ASX Market Rules. The regulations
are formulated to protect retail investors and ensure the integrity of the
marketplace. Only brokers may cross.
The broker may be acting on behalf of buying and selling clients, or acting
on behalf of a client on one side of the trade and as principal (i.e., trading
for themselves) on the other. The Broker cannot act as principal on both
sides of the trade.
Austria
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg GMT +1hrs (+2hrs DST)
Internet: www.wienerborse.at
Primary Exchange
Wiener Börse
Austrian Index Futures
Austrian Futures & Options Exchange (OETOB)
Mon - Fri; 09:00 - 17:30
EUR10 x Index point
0.1 point
Next 3 months in Mar, Jun, Sep, Dec cycle
3rd Friday of the expiry month
<0#ATX:>, nearest month <ATXc1>, contract details
<OTB/ATX>
AX (Month Code)(Last Number of Year) <Index>
Brief History
The Vienna Stock Exchange was founded in 1771. From the middle of
the 19th century to the beginning of World War I it was the main capital
market of Middle and Eastern Europe and from 1918 to 1938 it had
gained international importance as an equity market for the nations of the
Austro-Hungarian Empire. From 1938 to 1945 the Stock Exchange was
under German law and administration. Reopening on 15th November 1948
the Vienna Stock Exchange initially served mainly as a domestic financial
market; however foreign investment firms now account for over 50% of
trading. In 2005, Wiener Börse was the first exchange worldwide to enter
into a product cooperation agreement with the Shanghai Stock Exchange.
At the end of 2005, the two exchanges started the joint publication of the
CNX (China Traded Index), which contains 30 Chinese blue chips.
Trading System
In November 1999 Wiener Börse introduced the trading system EQOS
(Electronic Quote and Order-Driven System) which is based on the
Deutsche Borse’s XETRA. This system enables electronic cross-border
securities trading.
The following types of securities are traded through EQOS: shares,
participation and investment certificates, profit-sharing certificates and
profit-sharing rights, debt securities. Warrants’ trading is via OMex, a fully
electronic trading system provided by OM Systems, which has been in
use for trading in standardised derivative products since 1991.
Circuit Breakers
Circuit Breakers are activated with 15% deviation from the previous
closing price. Also activates when receiving price sensitive information or
when there is any technical problem in the system.
Brokerage fees from the sale of shares on Wiener Börse are set as follows:
Fee Rate
Minimum Fee
Maximum Fee
Agent
4.00bps
1.8EUR
90EUR
Principal
4.00bps
1.8EUR
90EUR
Market Maker
2.00bps
2.0EUR
36EUR
Persons who are neither domiciled nor have their customary place of
residence in Austria (persons subject to limited tax liability) are not required
to pay taxes on interest from debt securities.
There are no regulations in Austria preventing short selling. However, on
settlement day (of the sell) there has to be sufficient holdings in the account
to cover the settlement of the sale. This means that the settlement date
of the buy can not be later than Settlement Date of the Sell. Buy-ins for
non-settlement can take place as soon as SD+1. No uptick rules apply
in this market.
10
Main Indices
Board Lots
ATX (Austrian Traded Index)
1
Tick Size
Monday - Friday
0.01 Euro
Opening Auction: 09:30 - 09:20
Continue: 09:20 - 17:30
Closing: 17:30 - 17:33
Market Size
Currency
Euro (EUR)
as of February 2008
T+3 Business Days
USD211.2bn
Currency Exchange
USD647m
USD1 = EUR0.65845
Azerbaijan
Futures Information
None
GMT +4hrs
Internet: www.bse.az
Primary Exchange
Baku Stock Exchange
Brief History
The Baku Stock Exchange (BSE) is the sole organised market for securities
in Azerbaijan and officially opened for trading on 3rd October 2001. It is a
Closed Joint Stock Company whose shareholders are leading Azeri and
foreign banks and investment companies. The share of one shareholder in
BSE capital is equal to AZN60,000 (USD68,965). The supreme decision
making authority of the exchange is the General Shareholders Meeting
which elects members of the supervisory council.
The withholding tax on interest and dividends is 10%. Under the
Regulations of the State Committee for Securities, non-residents may
invest into T-bills.
Legal and physical bodies (banks, investment funds, broker firms) involved
in professional activities on the security market, with special permission
(licences) of the State Committee for securities under the auspices of the
President of Azerbaijan Republic, can become members of the BSE.
Trading System
Trading is effected through an automated trading system.
Currently only stocks of pre-listed companies are traded.
IPO commission for state securities ranges from 0.025% to 0.6%. On the
secondary market the rate of commission is 0.0125%. The commission
rate for T-bills is 0.15% of the transaction amount. The commission rate
for corporate securities is 0.05% of the transactions volume.
Main Indices
Currency
None
Azerbaijani New Manat (AZN)
Monday - Friday
T+0; DVP
Pre-Opening: 09:15 - 11:00
First and Second Markets:
11:00 - 15:00
Market Size
Currency Exchange
USD1 = AZN0.85
EUR1 = AZN1.2836
as of February 2008
USD1.49m
Board Lots
1
11
Bahamas
Futures Information
None
GMT -5hrs
Internet: www.bisxbahamas.com
Primary Exchange
Bahamas International Securities Exchange
Brief History
Trading in equities in The Bahamas dates back to the 1980s, from
which time an informal over-the-counter market for publicly traded
equities operated. The Securities Industry Act was passed in 1999 and
the Securities Industry Regulations followed in 2000. The legislation
is consistent with international norms. The BISX was established as a
company in September 1999 and in May 2000 successfully launched its
domestic market for the listing and trading of local public companies. BISX
launched its international segment with the opening of its mutual funds
facility in April 2001.
Trading System
Trading is conducted through the BATS Market (Bahamas Automated
Trading System) via off-floor terminals at brokers’ offices, with backup facilities provided at BISX’s premises. All orders are exposed to the
market via the electronic trading system except for intra-family gifts and
inheritance transfers validated by agreed procedures.
Securities listed on the Exchange are traded using automated matching
of orders. The BISX trading system permits a variety of order types,
with orders matched on a price, source and time priority during regular
continuous trading. A pre-opening period permits accumulated orders to
be matched using a volume-maximisation algorithm. The trading system
permits the use of variable settlement periods, so that the seller and buyer
can state a settlement period at the time of order, which may be accepted
by counter-parties prepared to accept the given settlement period. This
settlement period is used as an additional parameter in the trade-matching
algorithm, after price and time priority. BISX intends to move towards real
time gross settlement once the necessary clearing system technology is
introduced in the banking system.
Brokerage: Brokerage fees are set by each BISX member firm individually
and disclosed to all investors.
Main Indices
Currency
BISX All Share Index
Bahamian Dollar (BSD)
Transaction Levy: For domestic securities USD5 for each buy or sell
transaction. Where multiple transactions occur from each completed buy
or sell order, matched per trading session: Minimum of USD5 + 0.1 cents
x number of shares, to a maximum of USD15.
Monday - Friday
T+3 Business Days
The Bahamas permits non-resident foreign investors who make
investments in The Bahamas to repatriate capital, together with any gains.
The Bahamas does not levy tax on dividends and capital gains for either
domestic or foreign investors.
10:00 - 12:00
Market Size
as of February 2008
USD3.98bn
Average Daily Value: USD24m
Board Lots
1
12
Currency Exchange
USD1 = BSD1
EUR1 = BSD1.3354
Bahrain
Futures Information
None
GMT +3hrs
Internet: www.bahrainstock.com
Primary Exchange
Bahrain Stock Exchange
Brief History
There are five markets supported by the trading system:
During the late 1970s and early 1980’s, following the collapse of the
unofficial stock market in Kuwait (known as Souq Almanakh), Bahrain,
along with the other economically booming oil-producing countries in the
Gulf, realised the need for an organised stock market. In 1987 the Bahrain
Stock Exchange (BSE) was established, and started operations two years
later in June 1989.
1.
The regular market
2.
The IPOs Market (the market in which shares of a company
are traded for the first time following its listing on the exchange.
3.
The Special Orders Market (min. BHD500,000)
4.
Mutual fund market
5.
Bond market
In July 2004 the Bahrain Stock Exchange (BSE) officially launched two
new indices - the Bahrain All Share Index and Esterad and in July 2005
BSE officially launched the Dow Jones Bahrain Index. In July 2007 the
BSE removed the odd lots market from the trading platform, allowing all
traders full access to the market system. To aid the long-term development
of the region’s capital markets the Exchange has signed a cross listing
agreement with several other exchanges including The Muscat Securities
Market (MSM) and the Egypt Capital Market Authority, whilst in 2007 the
BSE signed a co-operation agreement with the London Stock Exchange
which formalised their existing strong ties. Foreign brokerage firms have
been allowed to operate independently in Bahrain since 2003.
Trading System
The Exchange has adopted an Automated Trading System known as
‘ATS’. It gives traders the ability to trade directly from their computer
through a link to the trading engine.
The trading workstation is one of the key elements of the ATS, simplifying
the process of order entry and other exchange activities. It can be used
to process orders, manage trades, monitor activity, monitor a selected
market by order or price, determine outstanding and traded positions,
print reports and download market information.
Brokers input their bids and offers into the system until they match.
The mechanism for which the price of equities is determined is
as follows:
1.
The best price (price priority)
2.
Source of Order
3.
Time of order priority
4.
Cross priority
5.
Random factor priority
Brokers on the trading floor receive orders from their offices and then
record them manually on the appropriate trading board for execution. Offmarket transfers are not permitted except in very limited circumstances.
Circuit Breakers
Price fluctuation is fixed to a maximum of 10% either way from the last
closing. This rule only applies to shares. There are no restrictions on
Mutual Funds and Bonds.
Main Indices
Currency
BHSE All Share Index (Esterad
Index, Dow Jones Bahrain Index)
Bahraini Dinar (BHD)
Broker commission is negotiable but for equities it is normally 0.275% with
a minimum of BD3. The commission for Bonds is calculated at a rate of
0.05% with a minimum of BHD1.
T+2 Business Days
The Exchange calculates its commission at the rate of 20% of the brokers’
total commission.
Pre-Open: 09:15 - 09:30
Currency Exchange
Open: 09:30 - 12:30
USD1 = BHD0.3769
There is no tax levied on foreign investors. GCC nationals can own and
trade up to 100% in the issued shares of Bahraini joint-stock companies
and non-GCC citizens up to 49%. The Minister of Commerce may increase
this percentage by a Resolution to be passed by him. Bahrain Flour Mills
Co and Delmon Poultry Co have been exempted. Foreign security holders
are legally entitled to all the benefits prescribed by law for the ownership
of securities in domestic joint stock companies.
Sunday - Thursday
Market Size
as of February 2008
USD24.3bn
Average Daily Value: USD9.02m
EUR1 = BHD0.5720
13
Bangladesh
Futures Information
None
GMT +6hrs
Internet: www.dsebd.org
Primary Exchange
Dhaka Stock Exchange
Brief History
The Dhaka Stock Exchange (DSE) was incorporated in 1954 as the East
Pakistan Stock Exchange and started formal trading in 1956. In 1962 it
was renamed as the Dhaka Stock Exchange Limited. On-line automated
trading commenced in August 1998.
Trading System
Trading is automated using the Tandem Electronic Securities Architecture
(TESA). TESA’s screen-based trading system supports fully automated
trading, manual trading and hybrid markets. The system can function as
an order-driven (electronic order matching), a quote-driven (market-maker
based) or a hybrid (elements of both) market. All features commonly
associated with electronic trading are incorporated into the system. TESA
conducts trading in four phases:

Pre-Opening: traders enter orders for participation in the opening
and/or inclusion in the book. No trading takes place.

Opening: The Opening is a pure, single-price auction. All buy and all
sell orders are compared and matched.

Continuous Trading: During this phase, participants enter orders
and immediate execution or for inclusion in the book. Automatic
matching and execution takes place based on best price/first-in,
first-out trading rules.

Post Closing: Closing prices are calculated and disseminated to
market participants. Day orders and other orders whose term has
expired are cancelled and returned to their originators.
Circuit Breakers
Stocks have individual circuit breaker bounds. The level of permitted
fluctuation is calculated regularly and is freely available on the
official website.
Members of the Exchange are entitled to a maximum brokerage
commission of 1% of the market value of the securities sold or bought
through them.
Main Indices
Currency
DSE General Index
Bangladesh Taka (BDT)
All Share Price Index
Saturday - Thursday
There is no capital gains tax on the sale of shares/securities for local or
foreign investors. For non-resident foreign companies, dividend income
is taxed at the rate of 15%. The rate for non-resident individuals is 25%.
With the exception of a few reserved sectors, foreign investors are free
to invest in Bangladesh in any industrial entity. Non-residents are free to
invest in shares/securities quoted on the Stock Exchange. They may also
invest in IPOs.
Continuous Trading:
10:00 - 14:00
Market Size
as of February 2008
USD12.01bn
USD30.9m
Board Lots
The most common board lots are
lots of 50 shares
14
Transactions of A and B category
shares are settled on T+3
Business Days and cleared on
T+5. Transactions of Z category
shares are settled on T+4 and
cleared on T+7
Currency Exchange
USD1 = BDT68.675
EUR1 = BDT104.21
Barbados
Futures Information
None
GMT -5hrs
Internet: www.bse.com.bb
Primary Exchange
Barbados Stock Exchange
Brief History
The Barbados Government passed the Securities Exchange Act 1982/44
in 1982. The Securities Exchange of Barbados came into being with the
proclamation of this Act in June 1987. In April 1991 the stock exchanges
of Barbados, Jamaica and Trinidad and Tobago began the cross-trading of
listed securities; the first step towards the creation of a regional securities
market. The BSE is an association of Member-Brokers, operating a Central
Marketplace for trading securities.
There is no capital gains tax however it is recommended that inflows of
foreign currency for investment be registered through the Central Bank of
Barbados in order to facilitate easy repatriation of dividends and capital.
There are fees attached to exchange control approval.
Trading System
In July 2001 the BSE switched from manual, open auction outcry to
electronic trading. On 1st November 2002 the brokers commenced remote
trading from their own locations.
The BSE charges 0.25% either side of the transaction. Brokers’
commission is not regulated and therefore varies based on the services
rendered, typically it is 2% and declines with the size of the order.
Non-nationals and Barbadians who are permanently residing abroad must
obtain exchange control approval to trade securities. Caricom residents
are treated as nationals. Property Transfer Tax and Stamp Duty are waived
if securities are traded on the Exchange.
Main Indices
Barbados Stock Exchange
Settlement day is T+3 on net
settlement basis. Stocks traded
on Tuesdays, Wednesdays and
Fridays are settled by the Real
Time Gross Settlement System
(RTGS) through the Central Bank
of Barbados
Local Share Index
Monday - Friday
Pre-Opening: 09:00 - 10:00
Trading Session: 10:00 - 13:00
Market Size
as of February 2008
Currency Exchange
USD1 = BBD2.000
EUR1 = BBD3.0267
USD18.87bn
Currency
Barbadian Dollar (BBD)
15
Belgium
Internet: www.euronext.com
Primary Exchange
Euronext Brussels
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg BEL20 Index Futures
Euronext Brussels Derivatives Markets
Mon - Fri; 08:15 - 09:00 (pre-opening),
09:00 - 17:30 (CET)
EUR10 x Index
0.1
Cycle of 1, 2, 3, 6 months (according to the Mar,
Jun, Sep, Dec cycle)
The first business day after the last trading day
<0#BFX:>, nearest month <BFXc1>, contract details
<BFX/BFX1>
BE (Month Code)(Last Number of Year) <Index>
Brief History
The Brussels Stock Exchange was formed by a merger between the
Antwerp and Brussels stock exchanges in January 1998. In March 1999,
Brussels Exchanges was formed as a result of the integration of the Belgian
Futures and Options Exchange (BELFOX), the Brussels Stock Exchange
and the CIK (National Depository). Brussels Exchanges merged with its
partners to form Euronext in September 2000, which is now known as
NYSE Euronext.
All persons who acquire or transfer securities representing 5% (or a
multiple of it) of the voting rights in a Belgian company listed on an EU
exchange must declare their holding to the company and to the Banking,
Finance and Insurance Commission. The declaration has to be made, at
the latest, on the day after the change of ownership.
Trading System
The Euronext Trading Technology System (NSC) and Centralised Order
Book (COB) is used across all the Euronext Cash Market locations.
Trading on the Euronext Cash Market is based on two mechanisms:
continuous trading and auctions. The most liquid securities are traded
continuously during market sessions. Less liquid securities can be traded
continuously with the aid of a liquidity provider, or exclusively in auctions.
Liquidity providers are dealers (members entitled to trade exclusively
for their own account) that have undertaken, with the approval of the
relevant market operator, to improve liquidity in a particular security. Trade
reporting for off-orderbook trades can be done through Euronext’s Trade
Confirmation System (TCS), which can be accessed via the web or via
standard means.
During continuous trading, orders are matched and executed on a time/
price priority. During auctions phases, market orders have priority over
limit orders. Likewise, market-to-limit orders take precedence over limit
orders with a limit equal to the auction price. Cross trades can be effected
outside of the COB. If this is done out of opening hours then a client’s
permission must be sought and the price cannot be more than ±1%
from the last traded price. In the COB, cross trades can be made only for
securities traded continuously.
Cross Selling Equity and Short Selling
There are no specific rules for the short selling of equities however each
regulatory authority in each country has its own specifications, short selling
is allowed but rarely occurs.
In the Central Order Book, cross trades can be made only for Securities
traded continuously and within the market best bid / ask spread at the
time of execution. Up tick rules do not apply.
Tick Size
A specific fixed tick size of EUR0.005 will be implemented for certain stocks
traded above EUR10. The tick size for all other trades is listed below.
Price (Euros)
From
To
Tick Size
0
0.2500
0.0005
0.251
2.500
0.001
2.505
10.000
0.005
>10.01
-
0.01
Block trades can be executed outside of the COB if there are equal to or
exceed certain size thresholds or Normal Block Amount (NBA).
Main Indices
Board Lots
BEL20
1 (minimum order size 10)
Circuit Breakers
Currency
A 10% difference from the static reference price which is reset every time
the market breaks its upside/downside threshold; this is the last closing
price for the opening. Trading resumes after a 4-minute halt. If the traded
price deviates more than 2% from the last traded price, the market stops
for 1 minute.
Monday - Friday
Euro (EUR)
Opening Auction Phase:
07:45 - 09:00
Continuous Trading: 09:00 - 17:30
Pre-Closing Auction Phase:
17:30 - 17:35
Cash market trading fees for members are based on a harmonised
package structure for all Euronext Cash Markets. The package structure
was introduced on 1st January 2004 for the Euronext Amsterdam, Brussels
and cv Paris Cash Markets and adopted by Euronext Lisbon in November
2004. The current product-driven fee structure has been in place since
February 2005.
Trading at Last (TAL): 17:35 - 17:40
Clearing fees are charged to clearing members by the clearing house,
LCH. Clearnet, and include annual membership fees and variable fees that
depend on the member’s activity.
USD25.1bn (Euronext)
Members are free to charge their clients commission on a negotiable basis
in the majority of Cash Market locations.
16
Futures Information
Market Size
as of February 2008
USD3.73trn (Euronext)
T+3 Business Days
Currency Exchange
USD1 = EUR0.65845
Tick Sizes
Euronext has introduced a
single tick size of €0.01 on
Euronext Cash Market (except
for the NextTrack and Bonds
Segments), for all limit prices
Bermuda
Futures Information
None
Internet: www.bsx.com
Primary Exchange
Bermuda Stock Exchange
Brief History
The Bermuda Stock Exchange (BSX) was established in 1971, primarily
as a domestic equities market. However as the island’s international
financial sector grew so too did the Exchange and in 1992 the company
was restructured into a de-mutalised, for-profit entity. The Exchange has
been granted “approved stock exchange status” under Australia’s Foreign
Investment Fund taxation rules and effective from 1st September 2005
the BSX was granted designated investment exchange status by the
United Kingdom’s Financial Services Authority. On December 4th 2007
the BSX was designated as a Recognised Stock Exchange by the UK’s
HM Revenue and Customs which was requested due to the exchanges’
growing international presence in the off-shore market. The BSX also offers
a “Mezzanine Market”, which allows development stage companies the
opportunity to list on a recognised international stock exchange without
having to commit to a full IPO.
Brokerage: Brokerage fees are negotiable.
Trading System
The BSX runs a fully electronic trading system, BEST (Bermuda Electronic
Securities Trading system). BEST is based on a central order book system
which allows trading members to trade securities on an equal real-time
‘first come, first served’ basis. Once executed, trade information is
forwarded electronically to the major information dissemination systems
of Bloomberg and Reuters for global distribution.
BEST’s system design supports tight integration with the BSX’s future
electronic settlement facility, the Bermuda Securities Depository (BSD).
Main Indices
Board Lots
BSX/RG Composite Index
The board lot size of a stock
on the BSX is set at 100 shares
in the regular market. Odd Lot
orders are entered in a separate
odd lot market - an order may
have a maximum of 99 shares
Monday - Friday
Pre-Opening:
08:30 - 09:00
Normal Trading:
09:00 - 15:30
Currency
Market Size
as of February 2008
USD2.74bn
Average Daily Turnover: USD1m
For domestic securities, 0.1% of the amount of the consideration for each
purchase or sale of prescribed securities subject to a minimum of USD1
on each side.
For international securities, 0.01% of the amount of the consideration for
each purpose or sale of prescribed securities subject to a minimum of
USD7 on each side and a maximum per trade of USD70 on each side.
For crosses, USD0.70 per crossing subject to a minimum per crossing of
USD7 and a maximum per crossing of USD70.
Ad Valorem Stamp Duty: The provisions of the Bermuda Stamp Duties
Act 1976 do not apply to any instrument which relates to a transfer on sale
of a security which is listed on the BSX.
Bermuda operates completely free from all forms of taxation on both
profits and income or on any capital asset, gain or appreciation. There is
no stamp duty payable on the transfer of any securities listed on the BSX.
There is, however, a transaction levy payable to the BSX by each trading
member based on the value of each trade executed on the BSX.
Foreign investors are free of exchange controls in Bermuda and may
deal in any foreign securities without restriction. However, the purchase
by foreign investors of securities in companies incorporated as ‘local
companies’ and that carry out domestic business in Bermuda is limited to
a maximum aggregate of 40% of the issued share capital.
Bermudian Dollar (BMD)
All BSX transaction settlements
occur on a rolling T+3, DVP basis
Currency Exchange
USD1 = BMD1
EUR1 = BMD1.5186
17
Bolivia
Futures Information
None
GMT -4hrs
Internet: www.bolsa-valores-bolivia.com (Spanish text only)
Email: [email protected];
[email protected]
Primary Exchange
Bolivian Stock Exchange
Brief History
The Bolivian Stock Exchange (BBV) was established in April 1979 to
channel resources into the economy in an orderly, efficient and transparent
fashion, but did not commence operations until 1989 due to the economic
and political problems Bolivia was going through during the early 1980’s.
The Comisión Nacional de Valores (CNV), a government institution
established to regulate, supervise and watch over capital market
institutions, was created in August 1979. In March 1998, the Securities
Market Act was approved by parliament.
Trading System
In March 2007 the exchange replaced open-outcry trading with an
electronic trading system.
Equities
Value of Transaction (USD)
Commission
1 to 500,000
0.200%
500,000 to 2,000,000
0.180%
2,000,001 to 5,000,000
0.170%
5,000,001 to 10,000,000
0.160%
10,000,001 to 20,000,000
0.130%
20,000,001 to 40,000,000
0.100%
40,000,001 and more
0.085%
Fixed income securities (buy/sell
and repos)
0.005%
Main Indices
The 1998 Securities Market Law provided important tributary incentives. It
abolished the 12.5% tax on the remittance of money outside the country.
It also eliminated taxes on capital gains generated from the transactions
of stocks at the Bolivian Stock Exchange.
None
1
Clearing and settlement of
dematerialised instruments is
carried out by the ‘Entidad de
Depósito de Valores EDV’. The
Central Securities Depository
began partial operations
in October 2004 with the
dematerialisation of securities
owned by institutional investors,
the clearing and settlement
of securities and instruments
that are not dematerialised is
performed at the Exchange.
The first trade with
dematerialised securities took
place in February 2005
Currency
Currency Exchange
Equity:
10:45 - 11:30
Fixed Income Securities:
10:45 - 11:30; 15:00 - 15:45
Market Size
as of February 2008
Market Capitalisation: USD2.3bn
Board Lots
Bolivian Boliviano (BOB)
USD1 = BOB7.5400
EUR1 = BOB11.4397
18
Bosnia and
Herzegovina
Futures Information
None
GMT +1hr
Internet: www.sase.ba
Primary Exchange
The Sarajevo Stock Exchange
Brief History
The Sarajevo Stock Exchange (SASE) was founded in 2001 by eight
brokerage firms and official trading commenced on 12th April 2002.
Trading System
Trading is conducted through the electronic trading system BTS (Berzni
˘ Sistem). Stock exchange transactions may only be conducted
Trgovacki
by SASE members. Trading is based on the automated processing of
orders entered into the system.
Brokerage Fees on the SASE range between 0.5% and 1.5% of the trade
value. The Securities Registry charges 0.07% of trade value.
Taxation & Regulations Affecting Foreign Investors
Foreigner ownership is limited to 49% of the equity in enterprises engaged
in the production and sale of arms, ammunition, explosives for military
use, military equipment and public information.
There are no restrictions on the repatriation of profits.
Main Indices
Board Lots
BIFX
1
SASX- 10
Monday - Friday
Pre-Open:
09:00 - 10:0x (x = 0 - 5 min)
Currency
Konvertibilna Marka (BAM)
T+3 Business Days
Continuous Trading:
10:0x - 13:00
Currency Exchange
Market Size
EUR1 = BAM1.96155
as of February 2008
USD1 = BAM1.27283
USD10.6bn
USD3.6m
19
Botswana
Futures Information
None
GMT +2hrs
Internet: www.bse.co.bw
Primary Exchange
Botswana Stock Exchange
Brief History
The Botswana Stock Market (BSM) commenced trading in June 1989.
At that time there was no formal stock exchange, although Stockbrokers
Botswana Ltd, the only stockbroker in Botswana, acted like a stock
exchange. In September 1994 the legislation to transform the BSM into a
full stock exchange was passed by Parliament. Trading on the Botswana
Stock Exchange (BSE) commenced in November 1995.
Trading System
Trading is conducted twice a day via a call-over system at 09:00 and at
15:00, Monday to Friday.
Stockbrokers Botswana Ltd acts as agent between the buyer and seller.
The broker remains independent and does not take a position. The broker
matches both buyer and seller and charges both a commission.
Commission on Purchase and Sale of Shares:
Value of Transaction (BWP)
Commission
0 - 50,000
2.0%
50,000 - 100,000
1.5%
Over 100,000
1.0%
Handling Fee on Purchase and Sale of Shares: BWP15 per bought
note; BWP10 per sold note.
Commission on Purchase of Domestic Bonds: BWP100 per BWP1m
nominal or part thereof (no handling fee is charged on domestic bonds).
Capital gains on listed shares are tax free. Withholding tax on dividends is
calculated at a rate of 15% and dividends are paid net of this. Therefore
dividend income received by shareholders is not subject to taxation.
There are no restrictions on the ownership of listed companies by foreign
investors and exchange controls were fully abolished in 1999.
Main Indices
Currency
Domestic Companies index
Botswana Pula (BWP)
Foreign Company Index
All Company Index
Monday - Friday
09:00 - 15:00
Market Size
as of February 2008
USD83.7bn
Board Lots
There are no designated board
lots; however, the minimum
trading lot at the BSM is 100
shares. Odd lots trade with no
price differential
20
T+5 Business Days
Currency Exchange
USD1 = BWP6.5189
EUR1 = BWP9.8926
Futures Information
Tick Size Contract Months Expiration Day Reuters Bloomberg Bovespa Stock Index Futures
Bolsa de Mercadorias E Futures (BMF)
Mon - Fri; Pre-expiration 09:00 - 17:00,
expiration day 10:00 - 13:00
BRL1.00 x index
5
Even numbered months as authorised by BM&F
Wednesday closest to the 15th day of the delivery month
<0#IND:>, nearest month <INDc1>, contract details
<BMF/IND>
BZ (Month Code)(Last Number of Year) <Index>
Brazil
Internet: www.bovespa.com.br
Primary Exchange
São Paulo Stock Exchange/Bovespa
Brief History
Trading System
In August 1890 Emílio Rangel Pestana founded the São Paulo Free
Exchange and introduced security trading based on European traditions.
In 1895 the institution’s name was changed to the São Paulo Public Funds
Exchange. In 1935 it was changed again to the Official São Paulo Stock
Exchange, at which time the Exchange became partially independent
under the direct responsibility of the State Financial Secretariat. In 2000
the Brazilian Stock Markets were reorganised at a nationwide level. Under
this model, the São Paulo Stock Exchange/Bovespa is the only Brazilian
centre for the trading of equities and of private fixed-income securities. The
Rio de Janeiro Stock Exchange/BVRJ, in turn, is responsible for managing
the market for the electronic trading of public debt securities.
On 3rd October 2005, Bovespa discontinued its trading floor and all trades
now take place exclusively through the electronic trading system MEGA
BOLSA.
As the result of a corporate restructuring, since 28th August 2007
BOVESPA has no longer been a not-for-profit institution and now operates
as a joint stock corporation. As a consequence, BOVESPA Holding was
created which has, as fully owned subsidiaries, the São Paulo Stock
Exchange (BVSP) - responsible for the operations by the stock exchange
and the organised over-the-counter markets - and the Brazilian Clearing
and Depository Corporation (CBLC), providing settlement, clearing and
depository services.
On 27th March 2008 BOVESPA agreed to merge with the Brazilian
Mercantile and Futures Exchange. If the merger receives shareholder
approval the new bourse shall be called ‘The New Exchange’ and shall be
the world largest securities exchange in terms of market value.
The MEGA BOLSA trading system processes buy or sell orders
electronically. Therefore, the whole process has become more fair and
transparent, allowing investors, brokerage houses and vendors to view all
orders in real time via internet or private networks. 99.5% of orders placed
on MEGA BOLSA take less than a second to be processed, currently, the
average time stands at 0.62 seconds per order. MEGA BOLSA counts on
a monitoring scheme to measure the system’s performance. That means it
is possible to track and identify an eventual problem, in case the response
time does not meet the standard. It is worth mentioning the solution also
allows statistical treatment of data.
Brazil has two general classes of equities; Common (ON): which grant
voting rights at the company’s general meetings and Preferred (PN): which
give preference to receive profits or refund of capital in case the company
is dissolved. However, preferred stocks do not grant voting rights or
restrict them. Short selling is not permitted.
Circuit Breakers
10% and 15% down in the BOVESPA index; trading resumes in 30
minutes and 1 hour, respectively.
Transaction Fee: 0.035%.
Main Indices
Board Lots
Ibovespa
Round lots of units which vary
from 100 - 100,000 in the
amount of underlying shares
Monday - Friday
Pre-Opening Auction:
09:45 - 10:00
Continuous Trading Session:
10:00 - 17:00
Closing Auction: 16:55 - 17:00
After Market: 17:30 - 19:00
Market Size
as of February 2008
USD1.28trn
Average Daily Trading Value:
USD3.35bn
Tick Size
R$ 0.01
Currency
Brazil Real (BRL)
T+3 Business Days
Currency Exchange
USD1 = BRL1.69100
In order to trade in Brazilian market foreigners must obtain a CVM number
(the Brazilian Securities and Exchange Commission) number.
Since March 2000, both individual and institutional investors may invest in
Brazilian Capital Markets, exempt from taxation. There is no tax on capital
gains from the purchase and sale of stocks on the cash market, or on
earnings resulting from trading on the options and futures market.
The tax rate on income (interest fees, agio – premium or discount and
profit participations) earned by investment companies, investment funds
and managed portfolios is 15%. Investors from countries where the
applicable income tax rate is equal to or higher than 20% are exempt
from capital gains tax. Capital gains obtained by investors from countries
where the applicable income tax rate is lower than 20% (known as ‘tax
havens’) are subject to the same taxation regime established for investors
resident or domiciled in Brazil (which is 15% on earnings resulting from
stock trading on the cash market, 15% on earnings resulting from trading
on the options and futures markets and 15% on earnings from fixed
income investments).
EUR1 = BRL2.56255
21
Bulgaria
Futures Information
None
Internet: www.bse-sofia.bg
Primary Exchange
Bulgarian Stock Exchange - Sofia
Brief History
Other Instruments
The Bulgarian stock exchange was first established in 1914 under the
Kings Decree No.7, however its operations ceased due to World War II. The
equity market was re-established in November 1991 and started trading
in May 1992. During the following two years some 20 stock exchanges
sprang up across the country, functioning in a completely unregulated
environment. The adoption of the Stock Exchanges and Securities Act in
July 1995 led to a process of stock exchange consolidation.
Trading System
The Bulgarian Stock Exchange System (BSE Workstation) is a fully
automated system designed to provide market transparency, liquidity, price
discovery and allow for future market growth. It was launched in October
2000 and is based on the NASDAQ quotation system. It is an order- and/
or dealer-driven trading system with multiple market-makers. In 2003 the
BSE successfully implemented a system for electronic processing of buysell orders through the Internet, named COBOS. COBOS gives authorised
and secure access to the BSE trading system in real time. It allows BSE
members’ clients and participants on the unofficial market to enter orders
and to transact after receiving a confirmation from the broker. Currently
orders are matched automatically according to time and price priority.
Customer orders have priority of execution at the same price over BSESofia members’ orders.
The Bulgarian Stock Exchange-Sofia JSC and Deutsche Boerse AG signed
on 30th October 2007 a Framework Agreement for the implementation
of the electronic trading system Xetra at the BSE. According to the
agreement Deutsche Boerse AG will organise the trading and will assume
the technological market control of it. The commencement of trading on
Xetra is planned for mid-2008. This powerful platform will give Bulgarian
participants access to 17,000 financial instruments listed on Xetra as well
as assisting the further integration and internationalisation of the global
capital markets.
Circuit Breakers
The daily limit on price movements on the Official Market has been set at
±15% from the previous closing price. Price limits on the Free Market are
±45% (30%) from the previous closing price. To provide for more active
trading, entering of orders set out of these price limits is permitted, but
only in the cases and within the procedure specified in the BSE Rules
and Regulations.
Commission
Government Securities
0.005%
Corporate and Municipal bonds and
depository receipts on bonds
0.01%
Block and other registered trades
0.1%
From January 2005, dividends and liquidation proceeds payable by
residents to both resident and foreign entities are subject to a 7%
withholding tax.
Short selling is not permitted.
Main Indices
Board Lots
SOFIX, (BG40)
1
Currency
Monday - Friday
Bulgarian Lev (BGN) (Euro from
January 2010 and currently
pegged at €1=1.95583 leva)
Regular Trading (auctions):
09:30 - 13:00
Disclosure of OTC transactions:
09:30 - 14:00
Trades in Government Securities:
09:30 - 14:00
Value of Transaction (BGN)
Commission
(Orders (bids & asks) might be
entered in the trading system
from 9am till 4pm)
Up to BGN25m inclusive
0.1% of nominal stock transactions
value from both sides
Market Size
Above BGN25m up to BGN75m
inclusive
BGN25,000 plus 0.05% on the
balance above BGN25m
Above BGN75m
BGN50,000 plus 0.01% on
the balance above BGN75m
Shares
22
Value of Transaction (BGN)
as of February 2008
USD19.8bn
T+2 Business Days
Currency Exchange
USD1 = BGN1.2853
EUR1 = BGN1.9558
Futures Information
Tick Size Contract Months Expiration Day Reuters Bloomberg S&P / TSE Canada 60 Index Futures
Montreal Futures Exchange (MSE) http://www.m-x.ca/
Mon - Fri; 09:35 - 16:15
CAD200 x Index
0.1 point
Mar, Jun, Sep & Dec
3rd Friday of the contract month
<0#SXF:>, nearest month <SXFc1>, contract details
<MON/SXF>
PT (Month Code)(Last Number of Year) <Index>
Canada
GMT -5hrs (+4hrs DST)
Internet: www.tsx.com
Primary Exchange
TSX Group
Brief History
Circuit Breakers
The Toronto Stock Exchange was founded in 1852 by the Association
of Brokers. The exchange was formally incorporated by an act of the
Legislative Assembly of Ontario in 1878. In the 1970’s, the TSX was
the first exchange in the world to develop a computerised system
to trade some of its stocks. In 1997 the TSX closed its trading floor in
favour of electronic trading which made the TSX the largest exchange
in North America to migrate to a floorless trading environment. In 1999
the Canadian stock market industry changed significantly with the TSE
becoming the sole market for the preferred stocks or senior equities, whilst
the Montreal Exchange (MX) became the sole market for derivatives. In
June of the same year the membership of the TSX also voted in favour of
demutualising the Exchange, making it a for-profit entity. The merger of
the Vancouver, Alberta and Winnipeg bourses allowed the forming of a
junior equity market for fledgling companies looking to raise equity capital.
In 2001 this newly formed group was purchased by the TSX Group and
is now known as the TSX Venture Exchange. In December 2007 the TSX
and the MX announced a merger of the two main Canadian exchanges
under one authority to be called the TMX Group.
10%, 20% and 30% declines in the Dow Jones Industrial Average. The
numerical points are decided each quarter, using the average closing
from the preceding month. Without a set designation, TSE oversees the
pending for each name.
Trading System
The exchange has been fully automated since 2000. In November 2007
TSX launched a new trading system called TSX Quantum, which operates
on both the Toronto Stock Exchange and the TSX Venture Exchange.
This system offers increased liquidity, faster trading speeds, improved
reliability, increased capacity for the markets and decreased trading fees.
As with its predecessor, TOREX TSX Quantum is a remote, electronic,
order driven system. The Montreal exchange continues to handle all
derivative products.
Main Indices
Tick Size
S&P/TSX 60 Index
0.01
S&P/TSX Composite Index
Monday - Friday
Currency
Canadian Dollar (CAD)
Continuous Trading:
09:30 - 16:00
T+3 Business days
Extended Session:
16:15 - 17:00
Currency Exchange
Market Size
EUR1 = CAD1.48845
USD1 = CAD0.98590
as of February 2008
Commission rates vary from firm to firm and are negotiable based on
the size of the order. Most brokers charge a minimum commission per
transaction of around CAD75.
Domestic investors receiving dividends from taxable Canadian corporations
are entitled to a dividend tax credit which favours dividend income over
interest on earned income. Capital gains (minus losses) are taxed on only
half the amount received and at the ordinary rate of income tax.
Foreign investors receiving Canadian dividends have a 25% withholding
tax deducted at source unless they are residents of a country which
has concluded a double-taxation treaty with Canada, in which case the
withholding tax is usually 15%. Capital gains received by foreign investors
are not subject to Canadian capital-gains tax.
Short selling is permitted in the market only on an up or an even tick. TSX
will book market short orders at the best possible execution price at all
times until execution or expiry. A facility that allows users to bypass the
short sale rules under a few specific circumstances is also provided by
the TSX: a long position currently exists and you receive an order to sell a
larger position, a Market-on-Close (MOC) order, a VWAP order, or a trade
on an ETF (Exchange Traded Fund).
Basis Cross, VWAP Cross and Contingent Cross’s are available in the
regular session and during the extended session. They may only be
entered as a boardlot trade. Basis and VWAP crosses will not set last sale
price. A Special Trading Session (STS) Cross is available only during the
extended session (16:15 - 17:00); it can only be printed at the last sale
price, cannot change the last sale price and may only be entered as a
boardlot trade.
A member firm must obtain prior approval of the exchange before
executing a trade or cross that will cause, during the course of a single
trading session, a change in price away from the prevailing bid & offer
of more than CAD1 (for stocks prices <CAD20) or CAD2 for stocks
priced >CAD20.
USD2.03trn
USD7.4bn
Board Lots
Trading price per unit
$0 - 0.10
1,000 units
$0.10 - 0.99
500 units
$1.00 and above 100 units
23
Cayman Islands
Futures Information
None
GMT -5hrs
Internet: www.csx.com.ky
Primary Exchange
Cayman Islands Stock Exchange
Brief History
The Cayman Islands Stock Exchange (CSX) commenced its operations in
July 1997. It was established under the Stock Exchange Company Law
1996 (‘the Law’) as a private limited company. The Exchange is wholly
owned by the Cayman Islands Government. Under the Law, the CSX has
the sole and exclusive right to operate one or more securities markets in
the Cayman Islands.
The Exchange operates a true offshore market. The listing and membership
rules have been designed to meet international standards as well as the
needs of its specialist products. The main feature of the Exchange is its
flexibility in dealing with listing applications. The CSX is not bound by any
EU directive in this regard and can offer a quick but regulatory-sound
service to its customers.
In 1999 the Exchange was granted approved organisation status by the
London Stock Exchange (LSE), so that stocks listed on the CSX are eligible
for trading on the LSE International Equity Market and can be quoted on
SEAQ International.
The CSX is also an affiliate member of IOSCO, a correspondent emerging
market of the WFE, an affiliate member of the ISG (Intermarket Surveillance
Group) and a member of the European Securitisation Forum.
In March 2004 the CSX was granted the status of ‘Recognised Stock
Exchange’ by the UK’s Inland Revenue, enabling interest on securities
listed on the CSX to be paid without deduction of UK Tax.
Trading System
In conjunction with Bloomberg Financial Markets the CSX has developed
a fully electronic trading platform and dedicated news wire service. The
trading facility is order driven, displaying a buy and sell price throughout the
trading day. Orders are displayed on-screen through the central system and
trades are executed automatically when buyers and sellers are matched.
To assure comprehensive protection for all market participants, the CSX
has a market surveillance system to monitor all market transactions.
The CSX Bloomberg pages are divided into two sections. The trading
pages provide the CSX trading facility. The company information pages
contain descriptive information, including financial and other price
information about CSX listed issues. Real time orders can be accessed
via the CSX trading pages on Bloomberg. The pages show a composite
page with the best bid and ask orders available, the last traded price and
the daily volume for each listed security.
None.
The Cayman Islands is entirely free from any type of taxation on profits,
income, inheritance, capital gains or corporate taxes. There is no stamp
duty levied on the transfer of any securities. There is no distinction between
foreign and domestic investors in terms of taxation.
Foreign investors may deal freely in any foreign securities without
restriction. However, for Cayman-registered companies that do not carry
exempt status, the 40:60 rule applies. Thus only 40% of the shares in
issue can at any given time be owned by a foreign investor.
24
Main Indices
Currency
None
Cayman Dollar (KYD)
Monday - Friday
T+3 Business Days
09:30 - 16:00
Market Size
as of February 2008
USD55.8bn
Currency Exchange
USD1 = KYD0.82
EUR1 = KYD1.2439
Chile
Futures Information
None
Internet: www.bolsadesantiago.com
Primary Exchange
Santiago Stock Exchange
Brief History
The Santiago Stock Exchange was founded in 1893 and has been
operating without interruption ever since. It is a member of the International
Federation of Stock Exchanges (FIBV), and the Hispanic Federation of
Stock Exchanges (FIABV).
Brokers’ Commission: Commission is freely negotiable and usually
ranges between 0.35% and 1%.
Trading System
Shares are now traded by electronic order-driven matching system
(Telepregón). Floor trading is split into three sessions, and alternates
throughout the day with what is called High Presence Telepregón (when
most, if not all, brokers are involved). Low Presence Telepregón (a reduced
number of brokers) continues for the whole trading day.
Stock Exchange Fees: Calculated on the amount of the transaction.
They are established by the Santiago Stock Exchange and vary according
to the type of instrument being traded.
Value Added Tax (IVA): Both brokers commission and exchange fees are
subject to a 19% Value Added Tax (IVA).
Exchange Fees: Stocks, CFI and Share Rights: 0.50% maximum,
decreasing according to the volumes traded and the trading activity of
the client.
Telepregón: Electronic system for automatic execution of price-compatible
bid and ask offers of equities, currency, options, futures and investment
funds quotas (CFI).
Trading Floor (Pregón): prices are determined by the interaction of bid
and ask offers shouted by brokers. For trading equities, currency, options,
futures and investment funds quotas (CFI).
Transfer of securities is exempt from tax. Broker’s commission and
Exchange fees are subject to Value Added Tax (IVA), equivalent to 18%.
Electronic Auction: equities are traded under the ‘concurrent auction’
mode. There are four transaction stages. In the first one, operators enter
sale offers. In the second stage, interested parties are allowed to select
the offers they want to make bids on. The third stage is the auction, where
interested parties make bid offers. In the final stage, the system awards
sale offers to the best bids.
Secondary Market
Capital Gains

Investment in High Presence Stocks: capital gains are exempt from
tax for all investors.

Investment in Low Presence Stocks: capital gains obtained by nonresident investors are subject to 15% Capital Gains Tax.

Investment in the Market for Emergent Companies: capital gains
obtained from investments in this Market are exempt from tax
payment until 2006 for all investors.
Dividends
Main Indices
Board Lots
General Stock Prices Index
(IGPA)
1

In the case of resident investors, dividends are taxed as revenue.

In the case of non-resident investors, dividends are taxed at a rate
of 15%. The First Category Tax already paid by issuer companies
constitutes a credit for the final payment of the tax.
Value Added Tax (IVA)
Selective Price Index (IPSA)
Currency
Inter-10
Chilean Peso (CLP)
Value Added Tax applies to the majority of purchases / sales at the rate
of 18%.
Import Duties and Taxes:
Monday - Friday
T+2 Business Days
Since 2003 Chile has had a general tariff of 6%.
Pre-Opening Session:
09:00 - 09:30
Currency Exchange
Telepregnón (Continuous
Electronic Trading System):
09:30 - 17:30
EUR1 = CLP689.795
USD1 = CLP454.650
Not permitted due to tax issues.
Pregnón (Open Outcry On
Trading Floor): 09:30 - 17:30
Market Size
as of February 2008
Market Capitalisation: USD210bn
USD221m
25
China - Shanghai
GMT +8hrs
Internet: www.sse.com.cn
Primary Exchange
Shanghai Stock Exchange
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Contract Months Expiration Day Reuters Bloomberg Hang Seng China Enterprises Index (HSCEI) Futures
(H-shares Index Futures)
Hong Kong Futures Exchange (http://www.hkex.com.hk/)
09:45 - 12:30, 14:30 - 16:15
HKD50/1
Spot month, the next calendar month, and the next
two calendar quarter months (i.e. quarterly months
are Mar, Jun, Sep & Dec)
The first business day after the last trading month
<0#HRI:>, nearest month <HRIc1>,
contract details <HFE/HRI>
HC (Month Code)(Last Number of Year) <Index>
Brief History
The first stock market in China was formed in Shanghai in 1891 to facilitate
trade. It operated until the Japanese occupation of Shanghai in 1941
and it briefly resumed operations after World War Two until the Cultural
Revolution forced its suspension.
Income tax is levied on the part of dividends that exceed the bank
rate for the same maturity at a rate of 20%. There is no withholding
tax for institutional and QFII investors. There is no capital gains tax
at present.
The Shanghai Stock Exchange (SSE), founded in November 1990, began
trading securities in December of the same year. It was the first securities
exchange in mainland China. The Exchange is a non-profit-making legal
entity with a membership system. Over recent years the market has
experienced rapid growth, for example between November 2006 and
November 2007 the total market capitalisation grew by 340%.
Short selling is currently not allowed. Crossing has to be put through the
exchange and must be at least 500,000 shares or US$300,000 at a price
between the daily high/low.
Trading System
The SSE is a centralised marketplace. All transactions on the trading
floor are matched automatically by a computerised system. Trading
is continuous. Buying or selling orders given by clients or member
companies are entered into the computerised system by the floor traders
through terminals on the trading floor or at member firms. The computer
system will automatically match orders according to the principles of price
and time priority, trading at a speed of more than 8,000 transactions per
second. The SSE owns a 3,600m2 trading floor, the largest in the Asia
Pacific region. In addition, it operates the largest domestic satellite and
optical communication network with connects SSE with more than 5,000
trading terminals. The trading system allows for block, auction and tender
orders. Block trades and crossing can be done without opening up to
outside participation and have to be reported at least 5 minutes before
the market close. Short selling is prohibited but turn-around trades are
allowed on the same day.
Chinese stocks are available in Hong Kong as ‘H’ shares and the U.S.
as ‘N’ shares. They also have to obtain an investor ID code, Shanghai
codes are 9-digits long starting with “C9900xxxxx”. Shares are settled
in cash, in New York, in USD. ‘B’ shares are not traded on Chinese or
U.S. holidays.
Main Indices
Board Lots
Shanghai 50 Index
Based on lots of 100 shares or
its round sum multiples as a unit,
Odd lots of less than 100. Shares
can be sold during trading time
but cannot be bought
The Shanghai Stock Exchange will be using Xetra technology as the core
element of its new trading platform. This is currently under construction.
Shanghai 180 Index
Circuit Breakers
SHSE-SZSE 300 Index
The circuit breakers are activated with 10% fluctuation from the static
reference price for normal stocks, i.e. the last closing price and 5% for
stocks under special treatment.
For bonds the average commission is 0.1% of the transaction value. For
shares commission is charged at 38bps. The SSE takes 0.011% of these
set commissions.
The stamp duty of securities trading in both A shares and B shares is 0.3%
for both buyers and sellers.
Shanghai Securities
Composite Index
Monday - Friday
Chinese Yuan (CNY) also referred
to as the Renminbi (RMB)
Centralised Competitive Pricing:
09:15 - 09:25
A Shares: T+1, B Shares: T+3
Business Days
Consecutive Bidding:
09:30 - 11:30 & 13:00 - 15:00
Market Size
as of February 2008
USD3.13trn
USD21bn
26
Currency
Currency Exchange
USD1 = CNY7.1036
EUR1 = CNY10.7756
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Contract Months Expiration Day Reuters Bloomberg Hang Seng China Enterprises Index (HSCEI)
Futures (H-shares Index Futures)
Hong Kong Futures Exchange (http://www.hkex.com.hk/)
09:45 - 12:30; 14:30 - 16:15
HKD50 per index point
Spot month, the next calendar month, and the next
two calendar quarter months (i.e. quarterly months
are Mar, Jun, Sep & Dec)
The first business day after the last trading month
<0#HRI:>, nearest month <HRIc1>,
contract details <HFE/HRI>
HI (Month Code)(Last Number of Year) <Index>
Brief History
The Shenzhen Stock Exchange came into operation on 1st December
1990. Automated trading started in 1992 and now trading is fully electronic
with computer and satellite network connecting members from all over
the country. Transaction is dematerialised and settlement done at T+1 in
book-entry form. At the end of 2005, there were 544 companies listed on
SSE, and market capitalisation reached CNY1.104trn (USD2,044bn).
There are two independent markets, traded in different currencies.
The A shares market, traded in Renminbi, is offered to local investors,
and qualified foreign institutional investors since the end of 2002. The B
shares market, traded in Hong Kong dollars, is open to foreign investors
and local individuals.
Trading System
Trading is electronic and computerised. It is order-driven, based on pricetime priority. Buy-and-sell orders are put into the Exchange’s system
through remote terminals at broker offices. Real-time quotations are sent
nationwide through satellite and fixed-lines. Investors can trade either
through their brokers or do their own on-line trading. The minimum trading
lot is one share and block trading is implemented for orders of 50 million
shares or more for a single stock. To curb excessive price volatility, a stock
is allowed to move 10% up or down compared with the previous closing
price, establishing a 20% price range within a trading session.
China - Shenzhen
GMT +8hrs
Internet: www.szse.cn
Primary Exchange
Shenzhen Stock Exchange
Crossing has to be put through the exchange and must be at least 50,000
shares at a price between the daily high/low or between previous closing
price +20 spreads. Block trades and crossing can be done without opening
up to outside participation and have to be reported at least five minutes
before the market close. Short selling is prohibited but turn-around trades
are allowed on the same day.
Commission: Floating commission with an upper limit of 0.3% on both
sides with a bottom limit of CNY5. In addition, CSRC and exchange levy
are imposed.
Stamp duty: From 24th January 2005 the stamp duty of securities as both
A-Shares and B-Shares was reduced from 0.2% to 0.1% for both buyers
and sellers.
SE Fee: HKD50
Clearing Fee:
0.05% (max HKD500)
Transaction Levy: 0.0341%
Foreign investors may hold B shares. All settlements and income receipts
on B shares are in HKD with no repatriation difficulty.
Under the policy implemented in December 2002, qualified foreign
institutional investors may also participate in the A-share market with
certain specifications. Capital gains are not subject to taxation.
Foreign investors may hold B shares. All settlements and income receipts
on B shares are in HKD with no repatriation difficulty.
There is no withholding tax for institutional and QFII investors.
Main Indices
Board Lots
Shenzhen B Share Index
100 units
SHSE-SZSE 300 Index
Monday - Friday
Short selling is currently not allowed.
Currency
Chinese Yuan (CNY) also referred
to as the Renminbi (RMB)
Opening Auction:
(09:25 - 09:30), 09:30 - 11:30,
13:00 - 15:00
(No closing auction)
B Shares: T+3 Business Days
Market Size
Currency Exchange
USD1 = CNY7.7344
USD2.1bn
EUR1 = CNY10.3293
A Shares: T+1 Business Days
27
Colombia
Futures Information
None
GMT -5hrs
Internet: www.bvc.com.co (Spanish text only)
Primary Exchange
Colombia Stock Exchange
Brief History
On 3rd July 2001 the Bolsa de Bogota, Bolsa de Occidente (in Cali) and
Bolsa de Medellin merged to form the Colombian Stock Exchange (Bolsa
de Valores de Colombia). The Colombian Stock Exchange (CSE) has
its main offices in Bogota with regional operations in the cities of Cali
and Medellin.
Trading System
The CSE has an electronic trading system MEC (Colombian Electronic
Market) used for trading shares, fixed income and other securities. The
Colombian Stock Exchange also uses a martillo (auction) system for
trading shares based on the open/outcry floor trading system. All shares
must be recorded in the national securities register. There is also another
electronic system to register the OTC market, called Inverlace.
Commission rates are freely negotiable, but are subject to VAT at 15%.
Local Tax: 0.06%.
Stamp duty is currently 1%; however this will fall to 0.5% from 1st January
2009 and will be abolished in 2010.
For foreign investors with no domicile or residence in Colombia, only
income whose source can be located in Colombia is taxed. This does
not include rent, occasional income or income from the sale of shares
registered in a Colombian stock exchange which do not exceed 10%
of the shares in circulation of the respective company, during a single
tax year.
Article 254 of the Tributary Status alludes to the possibility of discounting
in Colombia taxes paid in other countries, a right which is only granted,
in general practice, to Colombian nationals. Special rules apply to certain
dividends paid by companies located in countries with which Colombia
has integration agreements, permitting the discount in Colombia of the tax
paid in the country of origin on these dividends.
Main Indices
as of February 2008
Short selling is not permitted.
Currency
Monday - Friday
Colombian Peso (COP)
BVC (Normal Trading)
Renta Variable: 09:00 - 13:00
Foreign Exchange: 08:00 - 18:30
OPCFs: 08:00 - 15:00
Register Inverlace*
(Normal Trading)
08:00 - 20:00
*An electronic system to register OTC market
transactions
The Colombian stock exchanges
also use a martillo (auction)
system for trading shares. For
this, the CSE uses the open
outcry floor trading system. All
shares must be recorded in
the national securities register.
Subasta is equivalent to auction
28
Market Size
Indice General de la Bolsa de
Valores de Colombia IGBC,
Indicator de Rentabilidad
del mercado electronico
colombiano MEC
USD96.1bn
USD65m
The CSE in cooperation with
the Inter-American Development
Bank is developing a project to
establish a central clearing-house
that will cover compensation
risks. Clearing and settlement
occurs on a T+3 Business
Day basis
Currency Exchange
USD1 = COP1839.50
EUR1 = COP2790.89
Costa Rica
Futures Information
None
GMT -6hrs
Internet: www.bnv.co.cr (Spanish text only)
Primary Exchange
National Stock Exchange (Costa Rica)
Brief History
The Bolsa Nacional de Valores, SA (BNV) began operating the first security
market in Costa Rica and Central America in August 1976.
Costa Rican residents and foreign investors have the same tax treatment,
and there are no restrictions for capital repatriation.
Trading System
A 5% withholding tax is applied to dividends of registered and traded
shares at the BNV, and a 15% withholding tax is applied to dividends of
unregistered shares or those which have not been traded at the BNV.
The exchange operates on- and off-book trading facilities. On book
facilities are completely automated, using a central order book system
developed in-house. The market model includes market makers for key
components of the yield curve.
There are no legal restrictions on foreign investors in Costa Rican
listed companies.
An off-book facility has been created for large block trades, which are
negotiated bilaterally and registered with the exchange without the need
to be exposed to other market participants. All trades are published to the
market by the exchange.
There is full trade transparency for trade’s on- and off-book and for trades
carried out by local brokers through other exchanges. This regime is
overseen by the exchange.
In the primary market for public debt, no commissions can be charged.
The commission structure for secondary market transactions in Costa Rica
is a competitive one, with commissions being set entirely by negotiation
between the broker and the client.
Main Indices
Currency
BNV Index
Costa Rican Colon (CRC)
Monday - Friday
Spot-Price Transactions:
payment and delivery of
securities must be made before
the end of the day following the
transaction, i.e T+1 Business
Days. Fixed term transactions
- up to 360 days
Primary Market: 08:00 - 12:45,
14:00 - 18:00
Secondary Market:
09:00 - 12:20, 15:30 - 16:00
Market Size
as of February 2008
Average Daily Volume: USD175m
Currency Exchange
USD1 = CRC496.105
EUR1 = CRC752.690
29
Croatia
Futures Information
None
Internet: www.zse.hr
Primary Exchange
Zagreb Stock Exchange
Brief History
Tick Size
The Zagreb Stock Exchange (ZSE) is the only registered stock exchange in
Croatia. Its modern history started in 1991, but its roots date back to 1918,
when a group of entrepreneurs set up the Zagreb Stock & Commodity
Exchange. Although its activities were severely affected by the Great
Depression and in 1931 equity trading was abandoned, commodities
trading continued throughout World War II. In 1946, the exchange was
closed by the Communist regime.
Price (CZK)
Price
Tick Size
0 - 200
0.01
200 - 1000
0.1
over 1000
1.00
When the market reopened in 1991 trading was conducted in an opencry system which was replaced by an electronic system in 1995 which
allowed remote access to the market place. Today, the ZSE has 47
shareholders and 40 members. The Prerequisites for ZSE membership
include: compliance with the Securities Law, licensing with CROSEC and
acceptance of ZSE rules.
In 2007 the Croatian Financial Market consolidated with the merger of the
ZSE with the Varazdin Stock Exchange.
Trading System
Since the 23rd November 2007 a new trading system has been operational
on the ZSE provided by the OMX Group. The X-Stream system is designed
to process 200,000 transactions per day or 5,000 per second and
replaced the MOST trading system. X-Stream provides real-time, online
access for brokers from remote terminals. The only real-time data feed
service provided by the ZSE is the ZSE Monitor, which can be accessed
via an online subscription.
Brokers charge fees for handling Stock Exchange transactions, but these
fees are not officially prescribed and range between 0.4% and 2% of the
transaction’s value. There is no stock-transfer tax in Croatia.
Taxes in Croatia include Corporate Income Tax 20% (withholding 15%)
Income Tax (15 - 45%), Dividends are entitled to pay VAT at the rate
of 10%.
Croatia adheres to the international agreements avoiding double taxation.
Double taxation agreements exist with the following countries: Belgium,
China, Czech Republic, Cyprus, Denmark, Egypt, Great Britain, Finland,
France, Germany, Hungary, Italy, Malaysia, Netherlands, Norway,
Philippines, Poland, Romania and Sri Lanka.
Foreign investments in securities are not limited or subject to special
restrictions. Foreign investors are guaranteed unrestricted transfer of
profits and the unrestricted transfer of capital.
Main Indices
Currency
Croatian Zagreb CROBEX
Croatian Kuna (HRK)
Monday - Friday
T+3 Business Days
10:00 - 16:00
Market Size
as of February 2008
USD30.13bn
USD543.2m
Board Lots
1
30
Currency Exchange
USD1 = HRK4.7922
EUR1 = HRK7.2710
Cyprus
Futures Information
None
Internet: www.cse.com.cy
Primary Exchange
Cyprus Stock Exchange
Brief History
Users of the system fall into three categories:
The Cyprus Stock Exchange started its operations as a legal entity in
the form of a public corporation body in March 1996, by virtue of The
Cyprus Stock Exchange Laws and Regulations, which had been passed
by the House of Representatives in 1993 and 1995 respectively. In 2006 it
launched a common platform with the Athens Stock Exchange. With the
adoption of the Euro on 2nd January 2008 the Cyprus Pound ceased to be
the legal tender. As such the nominal value of shares was converted from
CP£0.05 to €0.09.

Traders who are responsible for buying and selling securities on
behalf of the members or their clients or on their own.

Trading firm managers who are responsible for supervising and
monitoring all trading activities within the firm.

Supervisors, who are responsible for monitoring and supervising the
stock market.
Trading System
The Common Trading Platform has been fully operational since October
2006. All shares are traded electronically through the OASIS system,
which supports the trading of equities, fixed income and derivatives
products. Trading is order driven, although market makers may exist for
certain shares. Depending on the market segment, the trading procedure
may be a combination of continuous automatic matching of orders and
of call auctions (Big Cap, Medium & Small Cap markets), or a sequence
of multiple call auctions (Special Financial Characteristics and Surveillance
markets). Trading at the Volume Weighted Average Price (VWAP) is
possible after the daily closing auction for the Big Cap market, whereas
trading at close price may be performed for the other market segments.
Members of the Exchange as well as investors are informed about real time
data regarding the full depth of the market, i.e. the quantity of securities to
be bought or sold at each price for each security.
Transactions prices (open-high-low-close-volume), closing entry and sell
quotations, as well as a number of sectoral indices are faxed to the media
one hour after market close.
Commissions at the CSE are liberalised and can be agreed upon between
members and their clients. The CSE charges 0.01% on the total value of
the transaction, which is payable by each party and central depository
charges 0.03% on the daily value of transactions.
There is no tax on interest or dividends for individuals. There is also no tax
on capital gains on listed stocks for individuals.
Main Indices
Currency
CSE General Index
EURO (EUR)
FTSE/CySE 20 Index
(FTSE med 100 Index)
Monday - Friday
10:00 - 17:00
Market Size
The settlement cycle for both
Contractual and TFT transactions
is defined as T+3
Foreign investors are allowed to trade securities registered in the Cyprus
Stock Exchange. In general, there are no ceilings for foreign investment
in listed stocks. However, a number of laws establish ceilings or other
restrictions for non-EU investors in certain business sectors, such as
media, education, real estate, construction, travel, shipping and fishing.
Additionally, the acquisition of 10% or more of a bank’s share capital by
any person, Cypriot or foreign, requires prior approval of the Central Bank
of Cyprus.
Cross Selling & Short Selling
Short selling is prohibited at the CSE. A transaction cannot be cleared and
settled unless valid certificates of ownership or certain other documents
accepted by the Exchange are provided in order to prove the ownership
of securities.
Currency Exchange
USD1 = EUR0.65845
as of February 2008
USD24.03bn
Board Lots
1
31
Czech Republic
Internet: www.pse.cz
Primary Exchange
Prague Stock Exchange
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg Czech Traditional Index Futures
Mon - Fri; 08:00 - 16:00
EUR10 per Index point
0.1 point
Next 3 months and last month of following quarter
3rd Friday of the expiry month
<0#ATX:>, nearest month <ATXc1>, contract details
<OTB/ATX>
VR (Month Code)(Last Number of Year) <Index>
Brief History
The origins of the first exchange in Prague go back to the 1850s when foreign
exchange and currencies were the principal trading products. An exchange,
trading securities and commodities was established in 1871. The volumes
traded at the exchange fluctuated considerably and in 1938 official trading
was suspended. After World War II trading was not resumed and in 1952 the
exchange was abolished. Trading recommenced in April 1993.
A trader pays the exchange 0.25% for the purchase or sale of an unquoted/
unlisted stock, while the charge for quoted shares and bonds is on half of that
0.25 percent.
Trading System

In general, dividends paid abroad are subject to 15% withholding tax,
unless a double tax treaty provides otherwise.

The income tax for legal entities and corporate income is 24%. Private
individuals are exempt from this type of tax provided the period between
the acquisition and sale of the securities does not exceed six months.
Trading Under the Market for Shares and Bonds Supporting System
(SPAD). - SPAD uses market makers (MM). A MM is an Exchange member
with a contract to act with the Exchange as a MM for issue(s) chosen by the
MM. There are no limits on nos. of MMs per issue / issues per MM. Trading in
SPAD works in 2 phases: open & closed. Trades may be contracted within the
allowable spread ( best bid/ offer prices) and expanded by 0.5% both ways.
If the arithmetic midpoint of the allowable spread deviates by >20% from the
arithmetic midpoint defined at the start of the open phase, and doesn’t return
to within the spread in 2 mins from the crossing over point, a 15 min break
occurs. In the break, transactions of the issue can’t be concluded in SPAD. If
at least 3 mkt makers apply for quotation in the break, the allowable spread will
extend by another 10% after the break, up to the max defined limited of ± 50%.
A break will happen every time the next 10% spread level is exceeded.
Security Owners are Subject to Two Forms of Taxation:
Short selling is possible but the stock must be borrowed in the market as
securities must be on the seller’s SCP account for delivery on settlement date.
Back to back trades are possible but these instructions must be prioritized
accordingly. There are no uptick rules applicable in the market.
The closing price for securities traded in SPAD equals the mid-point of the
allowable spread at the moment the SPAD open phase closes at 16:00.
SPAD Closed Phase - In the closed phase MMs are neither obliged to
quote nor conclude trades. Trades can be concluded in the framework of the
allowable spread, defined by the best quotation at the time the open phase
was closed, expanded by 5% both ways. If instructions put in the AOS at this
phase are not matched, they expire when the phase is closed.
Trades concluded during both phases are Exchange trades and they can be
settled anywhere from T+1 up to T+15. It is not possible to conclude block
trades in securities classified for trading in SPAD with the exception of trades
with value exceeding the set limit.
Auction Regime Under Automatic Trades - Auction trading is based on
cumulating buy / sell orders in securities up to a single moment of time; the
outcome being to fix the price for an issue. The price may vary by 5% from the
closing price quoted on the previous day and must be rounded so as to fit the
respective quotation step. The objective is to achieve maximum value (volume)
of securities transacted. No time priority principle is applied. Settlement is T+3.
Continual Regime Under Automatic Trades - This is for securities in trading
groups 1 and 3 (linked to auction). Opening price is equal to the price fixed for
the securities under the auction. A closing quoted price under the continual
regime is only fixed for security issues assigned to Trading group 1 and is the
price of the last trade contracted under the continual regime. If no trade in the
issue has been contracted, the closing quoted price is the opening quoted
price. For security issues assigned to Trading group 3, this is not a price-fixing
segment. Continual regime trades settle T+3. The min marketable unit set for
the continual regime is a lot (fixed at one piece of any security).
Block Trades - A trade registered in the PSE’s trading system where at least
1 of the parties is an Exchange member, the focus of the trade is securities
issue. The price per piece or the total CZK value of a block trade, the number
of securities and settlement date have been agreed. The price of the concluded
trade is not tied to the previous day’s closing price and is not limited by any
% spread. A block trade must satisfy the min. value requirement, fixed at:
CZK1 for shares and units. Settlement of exchange trades contracted at the
Prague Stock Exchange is provided by subsidiary Univyc. Univyc aims to fully
implement delivery versus payment (DVP), i.e. to ensure that DVP for securities
against is irrevocable, complete and simultaneous.
32
Main Indices
Currency
PX Index
Czech Koruna (CZK)
Monday - Friday
See trading system explanation
09:15 - 16:00
(No Opening/Closing auction)
Publication of official price list
at 17:00
Market Size
as of February 2008
USD52.4bn
USD180m
Board Lots
The minimum tradable unit under
the continual regime is a lot. The
size of a lot is fixed at one unit for
all securities.
Currency Exchange
USD1 = CZK16.5430
EUR1 = CZK25.1135
Futures Information
Tick Size Contract Months Expiration Day Reuters Bloomberg KFX Index Share Index Future
Copenhagen Stock Exchange
Mon - Fri; 09:00 - 16:50
100 x KFX Index
More than or equal to 0 but less than 0.10 = 0.01.
Greater than or equal to 0.10 = 0.05
1, 2, 3, 6 & 9 months in the quarterly cycle (Mar, Jun, Sep & Dec)
3rd Friday of the expiration month or if not a trading
day, the previous trading day
<0#KFX:>, nearest month <KFXc1>, contract details
<CPH/KFX>
KX (Month Code)(Last Number of Year) <Index>
Brief History
Trading in securities at the Copenhagen Stock Exchange (CSE) dates back
to the late 17th Century, when merchants acted as brokers and bankers.
The first proper stock exchange law was passed in 1919, amended
in 1930 and again in 1972. In January 1997, the Copenhagen Stock
Exchange and Stockholmsbörsen signed a co-operation agreement to
create a strategic alliance, NOREX. This was expanded to include the Oslo
SE and Iceland SE during 2000. On 9th February 2005 the Copenhagen
Stock Exchange became part of the OMX Group. During 2007 NASDAQ
and Dubai Borse were involved in a takeover battle for OMX. In January
2008 it was announced that Borse Dubai was to buy OMX and would
then sell it to NASDAQ, in return the Borse Dubai gained a 20% state
in NASDAQ.
Trading System
SAXESS – Joint Trading System
The members of the NOREX Alliance use the SAXESS trading system.
The Exchanges in Copenhagen and Stockholm have traded their listed
shares in the SAXESS system since June 1999. In October 2000, the
Copenhagen Stock Exchange transferred bonds to SAXESS. The Iceland
Stock Exchange moved trading in bonds and shares to SAXESS at the
same time. In November 2000 Swedish bonds were also moved to
SAXESS. The system opened for trading in Oslo in May 2002. SAXESS
is a single cross-border trading system with one set of trading rules.
Derivatives trading is conducted through OMX’s CLICK trading system
and voice broking. The SAXESS trading system offers continuous trading
from 09:00 to 17:00. The system operates with automatic matching,
which means that transactions are executed when the prices of the orders
Main Indices
Currency
OMX C20
Danish Kroner (DKK)
Monday - Friday
T+3 Business Days
Continuous Trading:
09:00 - 16:50
Closing Call: 16:50 - 17:00
Market Size
Currency Exchange
USD1 = DKK4.90920
EUR1 = DKK7.44990
Denmark
GMT +1hr (+2hrs DST)
Internet: www.omxgroup.com/nordicexchange
Primary Exchange
Nordic Exchange in Copenhagen
to buy and the orders to sell match or overlap. Best price takes priority
and orders entered in the order book first take priority over orders entered
later. A transaction is always executed at the price of the existing order.
Commission collected by brokers as the result of the sale of shares are
a matter of negotiation between broker and client, but usually range from
0.025% to 0.15% of market value.
Foreign investors are exempt from all taxes in Denmark. An exception is
a 28% holding tax on dividends on account for non-residents. Should a
double-taxation agreement exist between Denmark and the country in
which the investor resides, the non-resident may apply for a refund of the
tax, or part thereof.
There are no specific rules for the short selling of equities. Short selling
is legally permitted in Denmark, but it is not practiced and there are no
established rules for the implementation of such transactions or for the
collateral required. No uptick rules apply in this market.
Board Lots
Shares must be at least one round lot, the value of which must amount to
approximately DKK20,000 for KFX shares / DKK10,000 for liquid shares
/ DKK5,000 for less traded shares and unit trust certificates. As you can
never trade less than one share, shares with market values above these
limits will have a lot size corresponding to the market value of one single
share. The number of shares included in a round lot will be reviewed at
regular intervals so that they reflect the present level of prices.
Security
Round Lot
Nordea
500
Danske Bank
100
Novo Nordisk B
50
Lundbeck
200
Tick Sizes
as of February 2008
OMX C20 Companies
USD1.12trn (OMX)
Stock Price (DKK)
Tick Size
USD7.68bn (OMX)
0 - 4.99
0.01
5.00 - 9.95
0.05
10.00 - 49.90
0.10
50.00 - 249.75
0.25
250.00 - 499.50
0.50
500.00 - 4999.00
1.00
5.000.00 - 19.990.00
10.00
20.000.00 and above
100.00
33
Ecuador
Futures Information
None
GMT -5hrs
Internet: www.mundobvg.com/www.bolsadequito.com
[email protected]
Primary Exchange
Quito Stock Exchange/Guayaquil Stock Exchange
Brief History
In March 1969 the National Congress issued Law No. 111, which
authorised the president to establish stock exchanges in the country
controlled by the Superintendency of Companies. Corporaciòn Financiera
Nacional (a public institution) was authorised to participate as promoter
and shareholder. In July 1969 a presidential decree established two
exchanges: one in Quito and one in Guayaquil.
Trading System
Deals are settled during floor trading and on the electronic trading
system. The operations are registered on a panel and published in the
Daily Bulletin. When a trade occurs the Stock Exchange issues a written
contract, which is signed by the director. There are three basic types of
operation: spot, which must be paid for within 48 hours of the value date;
operations, which can be paid for three to five days after the transaction;
and term operations. The Exchange inaugurated its electronic system,
designed by the Chicago Stock Exchange, in June 1995. The electronic
system allows brokers to conduct real-time transactions. Once a deal is
closed the system also informs its subscribers of the closing price and
the number of shares traded. The electronic system is currently used for
trading in shares and fixed income.
The securities listed on the Guayaquil Stock Exchange can be traded
through floor trading, electronic trading or via an auction session.
Commissions for traders are open. The exchange charges for shares are
0.1% - these charges are on the effective value per each trade.
Foreign and national investors receive the same treatment. Foreign
investors may own up to 100% of equity and enjoy the same rights as
Ecuadorian private investors in nearly every sector.
Main Indices
Currency
IPECU
US Dollar (USD)
Monday - Friday
Electronic Trading System
Equities: 09:30 - 15:30
The Quito Stock Exchange has
a clearing department. The
Exchange’s Treasury Department
receives securities and delivers
the requisite amount of money.
Settlement takes place at T+0,
T+1, T+2, T+3, T+4 and T+5 to
T+9, T+180
Floor Trading Session:
15:30 - 16:00
Market Size
2007
Board Lots
1
34
Ecuadorian Sucre (ECS)
Currency Exchange
USD1 = ECS25000
EUR1 = ECS37930
Egypt
Futures Information
None
Internet: www.egyptse.com
Primary Exchange
Cairo and Alexandria Stock Exchange
Brief History
From their inception in the late 1890s, the Cairo and Alexandria Stock
Exchanges (CASE) reflected the performance of an economy which was
based solely on private ownership and enterprise which met the financial
needs of the business sector. However in 1961, following an era of
economic boom and development, the market collapsed as a result of
nationalisation. It was reinstated in 1993 after a comprehensive capitalmarket law was enacted (Law No 95 for 1992).
Trading System
The trading system of the Cairo and Alexandria Stock Exchanges witnessed
a gradual evolution from an open outcry system prior to 1994 to an
automated order-driven system available at both the Cairo and Alexandria
Stock Exchanges. Trading takes place either on the exchange or Over the
Counter (OTC) which is the venue for trading unlisted securities.
Trading is effected through a fully automated system and is continuous.
The Cairo Stock Exchange is linked by computer to the Alexandria Stock
Exchange and both operate as a single market. The EFA trading system
became operational in the first quarter of 2001.
Primary Dealers System
CASE completed the Primary Dealers System which became effective as
of 4th July 2004. The main function of the Primary Dealers would be to
underwrite the initial offering of the government securities in the primary
market and to act as market makers in the secondary market.
The Primary Dealers System has made the local bond market more
competitive and has enhanced its liquidity. As of December 2005, there
were 11 Treasury bond issues with values ranging from EGP1bn to
EGP5bn and maturities ranging from three to 20 years.
Intra-Day Trading Rules
In August 2005, the Capital Market Authority (CMA) issued Decree No. 24,
which introduced the intra-day trading concept to the Egyptian market for
the first time. According to the rules, member firms wishing to carry out
intra-day trading transactions must first obtain a licence from the CMA
and deposit a minimum of EGP5m in one of the clearing banks in order
to meet the settlement of these transactions. Member firms can only
trade within the limits of four times the amount deposited at the clearing
bank. Moreover, the volume of daily transactions made by one investor,
according to this system, should not exceed 1/10,000 (one over ten
thousand) of the company’s listed securities on CASE.
For listed securities fees are levied at 0.012% of the value of each side of
the transaction with a maximum amount of LE5,000.
For unlisted securities or Over the Counter market, the fees are levied at
0.1% of the value of each side of the transaction, with a maximum amount
of LE5,000.
Foreign and National investors receive the same treatment. There are no
taxes levied on dividends or capital gains.
There are no restrictions on foreign investment or profit repatriation.
Main Indices
Currency
CASE 30 Index
Egyptian Pound (EGP)
Sunday - Thursday
The system is based upon
Delivery versus Payment,
whereby MCDR acts as the
Clearing House between the
buying and selling member firms,
regarding their paper and funds
settlements as follows:
Continuous Trading:
11:30 - 15:30
(No opening or closing auction)
Market Size
as of February 2008
USD149.8bn
USD599.62m
Board Lots
1
(i) T+0 for securities traded by
the intra-day Trading System
(ii)T+1 for government bonds
that are traded through Primary
Dealers System
(iii) T+2 for all other securities
Currency Exchange
USD1 = EGP5.4812
EUR1 = EGP8.3143
35
El Salvador
Futures Information
None
GMT -5hrs
Internet: www.bves.com.sv (Spanish Text Only)
Primary Exchange
El Salvador Stock Exchange
Brief History
La Bolsa de Valores de El Salvador (BVES) is the only authorised institution
for the Salvadorean stock exchange market. It came into existence in
September 1989 and began operations three years later in April 1992.
Primary Market
BVES provide the trading platforms used by the authorised broking
firms. More than 70 firms trade as members of the Salvadorean Stock
Exchange Market.
In December 1994 the Exchange implemented electronic currency trading
(SINEDI). Commercial banks, foreign-exchange houses, member firms
and the central bank trade the USD and the SVC.
Exchange: 0.125% seller, 0.0625% buyer annualised.
Broker/Client: as negotiated.
Secondary Market
Exchange: 0.0625% annualised.
Repos
Exchange: 0.25% annualised.
BVES is a member of important regional associations, such as BOLCEN
(Association of Stock Exchanges of Central America), and the FIAB (LatinAmerican Federation of Stock Exchanges). BVES has signed strategic
co-operation agreements with the stock exchanges of Guatemala,
Honduras, Costa Rica and Panama, and has collaboration agreements
with exchanges in Spain and Mexico.
Trading System
Brokers trade repos from the floor. Electronic trading began in June 2002.
Foreign exchange is traded electronically.
Congress approved Decree no. 780 which exempts investors from the
payment of tax on dividends and capital gains. VAT of 13% was introduced
in September 1993, which affects commissions only. There is a 10%
withholding tax on interest for local and foreign investors in the case of
corporations only.
Equity Market
Exchange: Exchange: 0.03125% annualised on the Compromised
Value.
Main Indices
Currency
None
US Dollar (USD)
Monday - Friday
Primary Market: 09:15 - 09:30
Market Size
Settling and Clearing is based
on physical settlement after
the netting of trades by the
Exchange. Each deal must be
settled by 15:30 on the day of
trade unless otherwise agreed
upon by both buyer and seller
Currency Exchange
USD28.2m
USD1 = SVC8.752
Secondary Market:
08:30 - 15:30
Reportos Market: 10:00 - 11:15
2007
36
Salvadoran Colon (SVC)
EUR1 = SVC13.2786
Estonia
Futures Information
None
Internet: www.baltic.omxnordicexchange.com
Primary Exchange
Tallinn Stock Exchange
Brief History
Trading System
A foreign currency and securities exchange was launched in Tallinn in
1920 but was closed in 1941 after the Soviet occupation of Estonia.
All members of the Norex Alliance of Scandinavian and Baltic exchanges,
including Stockholm, Helsinki, Copenhagen, Oslo and Reykjavik
exchanges, use the same trading systems; SAXESS for shares bonds
warrants ext and CLICK for derivatives. Numerous transactions are
executed using automatic matching, where bid and ask orders are
automatically matched for a trade when the bid and ask price correspond.
All brokers have the same picture of the market situation simultaneously
since all information from cash and derivative trading is relayed in real time.
The trading system has the following features besides the common ones
(negotiation of trades): Transactions can be made simultaneously with
securities traded in on different exchanges; Multiple types of transaction
orders can be used (limit order, market order, etc.).
Following the restoration of independence in 1991, Estonia undertook the
task of creating a securities market from scratch. The Exchange opened
for trading in May 1996 with 11 securities listed. In April 2001 the Finnish
HEX Group acquired strategic ownership in the TSE. Trading in Estonian
securities through the HEX trading system was launched on 25th February
2002. In 2003 HEX Group and Swedish stock exchange operator OM
Group announced a merger, to form OMX which owns and operates the
six exchanges in the Nordic Exchange.
On 27th September 2004 the Helsinki Tallinn and Riga Stock Exchanges
harmonised their cash markets by adopting the SAXESS cash trading
system already used by the Stockholm Stock Exchange.
During 2007 NASDAQ and Dubai Borse were involved in a takeover battle
for OMX. In January 2008 it was announced that Borse Dubai was to buy
OMX and would then sell it to NASDAQ, in return the Borse Dubai gained
a 20% state in NASDAQ.
The official trading currency of the Tallinn Stock Exchange trading system
is the euro.
The companies listed on the TSE are divided between the following lists:

Main List for blue-chip companies with several years of operating
history, established financial position, and market value at least
EUR4m.

Investor List, or I-List, for mid-size companies with stable operations
and consolidated positions, and market value EUR1m.

Free Market (Pre-List) for short-term listing needs, or preliminary
listing before the actual listing.

Bonds List for bonds, convertibles, etc.
Tallinn, Riga and Vilnius stock exchanges have a transaction fee charged
as a percentage of the value of the trade fee per each party to the trade or
as a fixed fee per each party to the trade.
Main Indices
Board Lots
OMX Tallinn All-Share (OMXT)
BALTIX (OMX)
1
Monday - Friday
Pre-trading Session:
08:30 - 09:45
Pre-opening Auction Period:
09:45 - 10:00
Opening Auction: 10:00
Trading Period: 10:00 - 13:50
Pre-Closing Auction Period:
13:50 - 14:00
Closing Auction: 14:00
After-Market Trading:
14:05 - 14:30
Market Size
as of February 2008
USD1.12trn (OMX)
USD7.68bn (OMX)
Tick Size
0.01 Euro
Currency
Estonian Kroon (EEK) however
trading on the TSE is conducted
in Euros
In most cases capital gains derived from securities transactions and
interest payments to non residents are not taxed in Estonia. Income tax at
a rate of 21% (20% from 1st January 2009) must be withheld on dividend
payments from resident corporations made to non-resident companies.
A double-taxation treaty between the Republic of Estonia and another
state where the corporation has its tax domicile may reduce that rate
(usually to 15 percent). Non-resident corporations that own at least
20 percent share of a resident corporation that makes a dividend
distribution and non-resident individuals are not taxed on the receipt of
dividend payments.
Automatically matched trades are
always settled on the third day
after the trade (T+3) Negotiated
deals in Tallinn and Vilnius stock
exchanges may also have a
settlement day between T+1
(inclusive) and T+6 (inclusive) if
agreed so separately
Currency Exchange
USD1 = EEK10.3119
EUR1 = EEK15.673
37
Fiji
Futures Information
None
GMT +12hrs
Internet: www.spse.com.fj
Primary Exchange
South Pacific Stock Exchange
Brief History
The establishment of a Stock Exchange was under consideration as
far back as 1970 when exploratory work was undertaken by the Fiji
Development Bank. The Suva Stock Exchange was formed in 1978 and
was a wholly-owned subsidiary of the Fiji Development Bank. In 1993 the
shareholding was restructured to allow increased participation of financial
institutions in the development and strengthening of SPSE. To compliment
its ambitions to become the leading securities exchange in the south
pacific islands, the exchange changed its name to the South Pacific Stock
Exchange (SPSE).
Trading System
Trading is effected by means of a call market. In the open outcry, licensed
brokers respond with buy and sell orders during the trading sessions at
specified times. The “market caller” calls out a listed company’s name. The
caller matches orders strictly according to price/time priority. Unmatched
orders remaining at the end of a call market session are carried forward to
the next call session. The transactions are paper-based and call sessions
occur on a physical trading floor.
Commission rates are negotiable. The average cost is 2.5% of
the consideration.
Non Resident withholding tax applies for foreign investors.
Prospective Developments
The SPSE plans to:

Automate trading, clearing and settlement.
Main Indices
Currency

Remove scripts and make all trades script less.
KSPX Index
Fijian Dollar (FJD)

Encourage and introduce dual listing.
Monday - Friday
T+3 Business Days
The SPSE has set up a Central Registry known as SPSE Central Share
Registry. The SPSE plans to expand to other South Pacific Island Countries
(excluding Australia and New Zealand).
SPSE also plans to have dual listings with recognised Stock Exchanges
in due course.
10:30 - until last price is matched
Market Size
as of February 2008
Market Capitalisation: USD549m
38
Currency Exchange
USD1 = FJD1.4986
EUR1 = FJD2.2734
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Contract Months Expiration Day Bloomberg OMXH25 Index Futures
Nordic Exchange in Helsinki
Mon - Fri; 07:50 - 22:00
EUR10 per HEX25 index point
The three nearest months within the cycle Mar, Jun,
Sep & Dec
3rd Friday of the expiration month, if that is an
exchange trading day; otherwise, on the exchange
trading day prior to that Friday.
OT (Month Code)(Last Number of Year) <Index>
Finland
Internet: www.omxgroup.com/nordicexchange/
Primary Exchange
Nordic Exchange in Helsinki
Brief History
Trading System
The Helsinki Stock Exchange (HSE) was founded in 1912. There had been
stock exchange activity in Helsinki since the 1860s, but it lacked proper
organisation and regulation. From 1935 the HSE was a so-called ‘silent’
exchange with an electro-mechanical quotation board.
As a general rule, all banking days are also market days at the Helsinki
Stock Exchange.
The HSE and the Finnish securities market underwent major changes in
the 1980’s with a complete re-organisation, new improved set of rules and
regulations, a fully automated trading system and legislation concerning
the whole of the securities market. In 1998, Helsinki Exchanges and
Finnish Central Securities Depository Ltd merged into one group, the
parent company of which was Helsinki Exchanges Group Oyj (HEX
Group). In addition, Helsinki Exchanges began cooperation with Eurex
AG in derivatives trading. In 2001, the HEX Group became a majority
shareholder (62%) in the TSE Group consisting of the Tallinn Stock
Exchange and the Estonian Central Securities Depository.
In June 2002, the HEX Group acquired a majority shareholding of the Riga
Stock Exchange and the Latvian Central Depository. In September 2003
HEX and OM merged to create an integrated Nordic and Baltic market
for listing trading, clearing settlement and depository of securities. The
operations of the group merged, OMX are based on two divisions: OMX
Exchanges and OMX Technologies. Through OMX Exchanges, OMX offers
access to 75% of the Nordic and Baltic securities market.
During 2007, NASDAQ and Dubai Borse were involved in a takeover battle
for OMX. In January 2008 it was announced that Borse Dubai was to buy
OMX and would then sell it to NASDAQ, in return the Borse Dubai gained
a 20% state in NASDAQ.
Main Indices
Board Lots
OMX Helsinki All-Share (OMXH)
Varies from 20 to 5,000
OMXH25 Index
HEX Portfolio Index
Monday - Friday
10:00 - 18:20
(closing call 18:20 - 18:30)
Market Size
Currency
Euro (EUR)
Trading in shares, bonds, warrants, premium bonds, convertibles and
depository receipts on the Nordic Exchange is done through OMX’s
SAXESS trading system, while derivatives trading is done through
OMX’s CLICK trading system and voice broking. Numerous transactions
are executed using automatic matching, where bid and ask orders are
Circuit Breakers
15% change from the previous closing price. The limit is often widened
when volatile. The circuit breaker can also be activated at the Managing
Directors discretion or the company’s request from the MD.
Helsinki Stock Exchange also has a two-fold transaction fee charged for the
number of trades and turnover value. HSE though charges fees per executed
order while the other OMX exchanges charge fees per transaction.
Foreign investors are exempt from taxes in Finland except for the
withholding of tax on dividends. This tax is withheld at 29 percent but
is often reduced by a double-taxation treaty between Finland and the
investor’s nation. Interest income from bonds received by foreign investors
is not taxed in Finland. Profit gained by a foreign investor from the sale of
Finnish securities is not subject to capital gains taxation in Finland.
There are no specific rules for the short selling of equities; there is no up
tick rule.
Crossing is allowed within the bid-ask. For trades bigger than €500,000,
quoting outside the bid-ask is allowed.
T+3 Business Days
Currency Exchange
USD1 = EUR0.65845
as of February 2008
USD1.12trn (OMX)
USD7.68bn (OMX)
Tick Size
Prices up to EUR10, tick size is
EUR0.01 and for over EUR10 it
is EUR0.10
39
France
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg GMT +1hr (+2hrs DST)
Primary Exchange
Euronext Paris
Brief History
The Paris Bourse was established in the 19 Century and was a separate entity
until it merged with its partners to form Euronext in September 2000. In 2007
the New York Stock Exchange (NYSE) merged with Euronext to form NYSE
Euronext.
th
Trading System
The Euronext single cash electronic trading system, NSC, is used across
all the Euronext Cash Market locations. NSC is a centralised, order-driven
market with a single centralised electronic order book and uniform market
rules for all European and non-European equities. A worldwide standard in
trading technology, NSC is based on an open architecture allowing customised
solutions using the standard international formats of MMTP and FIX, and
incorporating the reliable and secure communications protocol of a TCP/IP
transport layer.
Trading on the Euronext Cash Market is based on two mechanisms: continuous
trading and auctions. The most liquid securities are traded continuously during
market sessions. Less liquid securities can be traded continuously with the
aid of a liquidity provider, or exclusively in actions. Liquidity providers are
dealers (members entitled to trade exclusively for their own account) that have
undertaken, with the approval of the relevant market operator, to improve
liquidity in a particular security. Trade reporting for off-order book trades can
be done through Euronext’s Trade Confirmation System (TCS), which can be
accessed via the web or via standard means.
With the possible emergence of MTFs and Internal Markets, MiFID puts pressure
on the Regulated Markets. In order to keep as much liquidity as possible,
EURONEXT changed the order book priority, to favour matching of the offers
from the same member (in replacement of the current “regular” (First-in - First
Out Rule). This new priorities rule gives the members the ability to leverage their
market share and gives a strong premium to the main members.
Circuit Breakers
10% change from the static reference price reset every time the market
breaks its upside/downside threshold; this is the last closing price for the
opening. Trading recommences after the 4 minute halt. If the traded price
deviates more than 2% from the last traded price, the market stops for
1 minute.
Cash market trading fees for members are based on a harmonised package
structure for all Euronext Cash Markets. The package structure was introduced
on 1st January 2004 for the Euronext Amsterdam, Brussels and Paris Cash
Markets and adopted by Euronext Lisbon in November 2004, one year after its
migration to the NCS trading system. The current product-driven fee structure
has been in place since February 2005.
Clearing fees are charged to clearing members by the clearing house, LCH.
Clearnet, and include annual membership fees and variable fees that depend
on the member’s activity.
Members are free to charge their clients commission on a negotiable basis n
the majority of Cash Market locations.
French investors settling in France are required to pay 19.6% of the commission
as an extra VAT charge.
Non-residents may freely buy and sell French and foreign securities traded in
France by opening an account with an exchange member firm or an authorised
intermediary. Funds and securities credited to this account may be exported at
any time to the country of their choice.
Non-residents are not subject to capital gains tax and their trades are not subject
to stamp duty. Dividends from French securities are subject to withholding tax
40
CAC 40 Stock Index Futures
Euronext Paris
Mon - Fri; 08:00 - 20:00
EUR10 x futures quoted index
EUR5
3 spot months, 3 quarterly maturities and
2 half-yearly maturities (Mar & Sep)
16:00 on the last business day of the maturity month
<0#FCH:>, nearest months <0#1FCH:>, contract
details <MAT/FCH1>
CF (Month Code)(Last Number of Year) <Index>
at 25%, 16% for interest and 33% for royalties. Due to international tax treaties
signed by France these rates may be reduced.
For French companies, the gross dividend (net dividend + avoir fiscal) may
differ according to the type of shareholder. Bloomberg uses a tax credit rate of
10%, applicable to institutional shareholders resident in France.
Other sources may quote a 50% rate applicable to individual investors in
France. Effective as of March 3rd 2003, the French ministry of Finance revised
the tax credit rate from 15% to 10%. As of 2005, there is no dividend tax (avoir
fiscal supprime) for France.
Non-residents may freely buy or sell all listed French and foreign securities
listed on the Euronext Paris Bourse. They may freely open an account at a
French bank or with a French broker. French or foreign securities bought by
non-residents may either be held in a current account in the buyer’s name at
the financial institution of their choice or exported at any time.
Short Selling is permitted in the French market. No uptick rules apply.
Tick Size
A specific fixed tick size of €0.005 will be implemented for certain stocks traded
above €10. The tick size for all other trades is listed below.
Price (EUR)
From
To
0
Tick Size
0.2500
0.0005
0.251
2.500
0.001
2.505
10.000
0.005
>10.01
-
0.01
Main Indices
Board Lots
CAC40 Index
SBF120
SBF250
Monday - Friday
Pre-Opening: 07:15 - 09:00
Continuous Trading:
09:00 - 17:30
Pre-Closing:
17:30 - 17:35
Trading at Last (TAL):
17:35 - 17:40
Market Size
as of February 2008
Currency
Euro (EUR)
Post-trade services, including
clearing, are processed through
the systems of LCH. Clearnet,
formed from the merger in
December 2003 of Clearnet
and the London Clearing House
(LCH) and Euroclear settles
trades on a T+3 basis
Currency Exchange
USD1 = EUR0.65845
Georgia
Futures Information
None
GMT +4hrs
Internet: www.gse.ge/
Primary Exchange
Georgian Stock Exchange
Brief History
The Georgian Stock Exchange (GeSX) was founded in January 1999 and
in January 2000 the National Securities Commission of Georgia licensed
it as a stock exchange. Settlement and clearing is carried out by the
Georgian Securities Central Depository. In November 2007 the GeSX
began the process of demutualisation.
Trading System
Trading is conducted through the fully automated Exchange Trading
system. Orders are entered remotely by brokers and are matched on a
strict time-price priority.
Brokerage fees are negotiable. Dividends and interest income are taxes at
10% at the source whilst capital gains are 20% for corporates and 12%
for individuals.
There are no restrictions to foreign participation.
Main Indices
Currency
None
Georgian Lari (GEL)
Monday, Wednesday, Friday:
T+1 Business Days
Continuous Auction:
13:00 - 13:35, 13:40 - 14:15
Currency Exchange
Market Size
as of February 2008
USD1 = GEL1.513
EUR1 = GEL2.72156
USD1.33bn
41
Germany
Internet: www.deutsche-boerse.com
Primary Exchange
Deutsche Börse
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg DAX Index Futures
EUREX Deutschland (www.eurexchange.com)
Mon - Fri; 07:50 - 22:00 (CET)
EUR25 x index
0.5 point equals EUR12.50
Nearest 3 months of the Mar, June, Sep & Dec cycle
3rd Friday of expiration month or previous
exchange trading day
<0#FDX:>, nearest month <FDXc1>, contract details
<DTB/FDX1>
GX (Month Code)(Last Number of Year) <Index>
Brief History
The fixing of exchange rates for nine currencies by 82 merchants at
the autumn fair in September 1585 is considered to be the date of the
foundation of the Frankfurt Stock Exchange (FWB). Initially, most stockexchange transactions were in bills of exchange but towards the end
of the 18th Century regular trading in bonds and promissory notes had
begun. The first exchange list of the FWB was printed in 1625. The first
dividend-yielding shares to be traded were those of the Austrian National
Bank, issued in 1820. Meetings originally took place in the open air; later
they were held in the Haus Braunfels on the Liebfrauenberg. In 1843 the
Exchange moved to its own building, the Old Exchange, near Paulskirche.
In 1879 the new Stock Exchange was inaugurated. In 1993 Deutsche
Börse AG was established and in January 2000 Deutsche Börse Clearing,
the clearing and settlement organisation of Deutsche Börse Group, was
merged with Cedel International to form Clearstream.
Short selling is permitted and is subject to rules are already defined by
German law.
Crossing is allowed off-exchange. For large block trades, DB offers a
block crossing facility called ‘Xetra XXL’. It provides a closed order book
where large orders are matched during predefined times (several times per
day) at the currently existing midpoint price of the conventional Xetra order
book. Trades generated on XXL are considered “on-exchange” trades.
In Germany, exchange transactions must be settled within two days. An
investor who sells short and is unable to deliver the securities before this
time must borrow them from another party. He is then obliged to buy the
securities and return them to the lender before the loan period or the repo
agreement expires. No uptick rules apply.
Trading System
Trading is executed on the Xetra 8.1 electronic trading system in parallel
with the trading floor via open outcry. In floor trading, independent lead
brokers determine the prices. Each security is supported by a lead broker,
who fixes bid and ask prices and either executes incoming orders in
accordance with the price discovery rules or manages them in an order
book until they are executed or deleted or expire. Less liquid securities
can thus also be traded efficiently on the trading floor. Electronic trading
accounts for the vast majority of domestic equity trading in Germany and
as such the electronic trading system is regularly upgraded (November
2007 was the last occasion). Deutsche Börse also offers private and
institutional investors best execution in around 245,000 securities on
both the Xetra system and the trading floor via Xetra BEST. Through Xetra
BEST orders are fully executed with a price improvement compared to the
Xetra order book a without fixed clearing fees at the best price possible,
thereby reducing implicit and explicit costs.
FWB Frankfurter Wertpapierbörse (Frankfurt Stock Exchange) is by far the
largest of the eight German stock exchanges as it handles about 96%
percent of the trade in German shares. Private investors, in particular, enjoy
many benefits on the trading floor: on the Frankfurt Stock Exchange, they
can trade in some 90,000 certificates, reverse convertibles and warrants
– with high standards of transparency and price quality.
Circuit Breakers
Activated when the maximum price range deviation is breached. The
static price is the maximum percentage deviation of a reference price,
generally the last-held auction price. All trade halts and suspensions are
decided by DBAG.
The Official Exchange Brokers of the Frankfurt Stock Exchange charge
fees for the brokerage of exchange transactions.
For Shares, warrants, subscription rights as well as securities quoted per
unit (certificates) the fee is 0.8% of their official share price.
For German investors all dividends are subject to a withholding tax of
25%. All dividends distributed to foreign investors (non-residents) are also
subject to the flat withholding tax of 25%. In order to avoid double taxation
most international conventions reduce this to 15%.
42
Main Indices
Board Lots
DAX
1
HDAX
Monday - Friday
Xetra (electronic trading)
Normal Trading
09:00 - 17:30
Floor Trading: 09:00 - 20:00
Market Size
as of February 2008
USD1.86trn
USD24.3bn
Currency
Euro (EUR)
T+2 Business Days
Currency Exchange
USD1 = EUR0.65845
Ghana
Futures Information
None
GMT +0hr
Internet: www.gse.com.gh
Primary Exchange
Ghana Stock Exchange
Brief History
Foreign Investment
The Ghana Stock Exchange (GSE) was incorporated in July 1989 as a
private company limited by guarantee under Ghana’s Companies’ Code,
1963 (Act 179). The Exchange was given recognition as an authorised
stock exchange under the Stock Exchange Act 1971 (Act 384) in October
1990 and trading on the floor of the Exchange commenced in November
1990. Its status was changed to public company limited by guarantee
in 1994.
Exchange Control permission has been given to non-resident Ghanaians
and foreigners to invest through the Exchange without prior approval.
However, one external resident portfolio investor (whether individual or
institutional) can hold only up to 10% of any security approved for listing
on the Exchange. Furthermore, the total holdings of external residents in
one listed security shall not exceed 74%. Holdings above the 10% and
74% limits require prior exchange control approval. Ghanaians resident
abroad and foreigners resident in Ghana, though, may invest without any
limit. All capital gains, interest or dividends refunds and related earnings
can be repatriated freely.
GSE is a private sector initiative and is not funded by the government. GSE
currently has 16 stockbroking firms licensed to deal on the Exchange.
Trading System
Trading is carried on the floor of the Exchange under the Continuous
Auction Trading system (CAT). Trading is done in lots of 100 shares.
The commission rates for shares are a maximum of 2.5% of value of
transaction and a minimum 1.5% of value.
There is a 10% withholding tax on dividend income for all investors, both
local and foreign. Capital gains on investments in listed securities are
exempt from tax until after December 2010. There is no stamp duty.
Main Indices
Currency
GSE All Share Index
Ghana Cedi (GHC)
Monday - Friday
Settlement after trading
among brokers is done within
T+3. The seller is responsible
for the authenticity of all
documents delivered
Pre-Opening Period:
09:30 - 10:00
Market Opens for Continuous
Trading: 10:00 - 12:00
Market Size
as of February 2008
USD13.4bn
Currency Exchange
USD1 = GHC9785
EUR1 = GHC14845.31
43
Greece
Internet: www.ase.gr/
Primary Exchange
Athens Stock Exchange
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg ASE-20 Index Future
Athens Derivative Exchange (www.adex.ase.gr)
Mon - Fri; 10:00 - 17:00
EUR5 x 1 Index Point
0.25 Index point or EUR1.25 per contract
3rd nearest consecutive months and then the 3
nearest quarterly months (Mar, Jun etc.) not included
The expiration day is the 3rd Friday of the expiration
month, at 13:50 (local time). If that is a holiday, the
expiration day is the preceding Greek trading day.
<0#ATF:>, nearest month <ATFc1>, contract details <ADE/ATF1>
AJ (Month Code)(Last Number of Year) <Index>
Brief History
Cross Trades
The Athens Stock Exchange was established in 1876. The rules and
regulations governing the Exchange were based on the French Code
de Commerce.
Minimum value for such transaction has to be 600.000 euro.
The Athens Exchange and the Athens Derivatives Exchange, both
subsidiaries of Hellenic Exchanges, merged in September 2002 to form
Athens Exchange SA (ATHEX). In 2006 it launched a common platform
with the Cyprus Stock Exchange.
Value of Transaction (EUR)
% Deviation from Last Price
>€600,000 - €1,173,881.14
0
€1,173,881.15 - €2,347,762.28
5
> €2,347,762.29
10
Trading System
All shares are traded electronically through the OASIS system, which
supports the trading of equities, fixed income and derivatives products in
the Athens Exchange (ATHEX).
Trading in ATHEX equities market is order driven, although market makers
may exist for certain shares. Depending on the market segment, the trading
procedure may be a combination of continuous automatic matching of
orders and of call auctions (Big Cap, Medium & Small Cap markets), or
a sequence of multiple call auctions (Special Financial Characteristics
and Surveillance markets). Trading at the Volume Weighted Average
Price (VWAP) is possible after the daily closing auction for the Big Cap
market, whereas trading at close price may be performed for the other
market segments.
Circuit Breakers
18% deviation from the previous closing price. Limits do not apply in the
first three days of a company’s listing on the exchange. Depending on
the market segment, restrictions exist on the price fluctuations of shares
during a trading session (ceiling/floor), which may lead to trading stops.
These fluctuation limits may be static or dynamic. No fluctuation limits
exist for bonds prices.
Brokerage commissions are freely negotiated between transacting parties.
ATHEX charges a fee of 0.02% on the daily transaction value. Clearing is
charged at a rate of 5bps of the transaction value. Registration fee of
0.06% on buys and a tax of 0.15% on sells.
There is 35% taxation only on company profits; investors will receive
all dividends tax-free. For foreign investors the tax relief still holds. The
taxation, however, of dividends and other income depends on existing
bilateral tax agreements between Greece and the country of residence
of the foreign investor. There is no capital gains tax in Greece. Income
from government-issued fixed-interest securities is taxed at 10%. All sale
transactions are taxed at 0.15%.
There are no restrictions on foreign investors investing in Greek securities.
They may freely buy and sell securities listed on the stock exchange and
they can, without any restrictions, take out the capital invested in securities
when liquidated, plus any capital gains and dividends which result from
their investments.
Short Selling and Margin Trading have been legalised on the Athens Stock
Exchange. The uptick rule mean that the price of the short sale trade must
be higher than the previous trading price.
44
Main Indices
Board Lots
FTSE/Athex 20
The majority of securities trade
in units of 10
Monday - Friday
Currency
Continuous Trading (Big cap):
10:30 - 16:30
Euro (EUR)
Continuous Trading (Mid cap;
Small cap):14:00 - 16:30
Call Auctions (for special financial
characteristics - surveillance):
14:00; 15:30; 16:30
Market Size
as of February 2008
USD231.8bn
USD767m
T+3 Business Days
Currency Exchange
USD1 = EUR0.65845
Guatemala
Futures Information
None
GMT -6hrs
Internet: www.bvnsa.com.gt (Spanish text only)
Primary Exchange
Bolsa de valores Nacional (Guatemala)
Brief History
The Bolsa de Valores Nacional was established towards the end of 1986
through a resolution of the Ministry of Finance.
Trading System
The Exchange trades through open outcry and an electronic matching
system known as INFOBOL. Information is dispersed using the
INFO-SINEDI System.
Commissions are liberalised and are agreed between Exchange members
and their clients.
Taxation and regulations for foreign investors are the same as for national
investors. Capital gains are taxed at a rate of 10%.
Main Indices
None
Market Size
as of February 2008
USD777.7m
Monday - Friday
Reportos
Currency
Electronic matching:
08:00 - 14:00
Electronic Bidding:
15:00 - 15:15
Open Outcry Bidding:
14:45 - 15:00
Guatemala Quetzal (GTQ)
US Dollar (USD)
Settlement Date is T+0
Open Outcry Matching:
14:30 - 14:45
Currency Exchange
Primary Market
EUR1 = GTQ11.6676
USD1 = GTQ7.69150
10:00 - 11:00, 15:00 - 16:00
Secondary Market
Electronic: 10:00 - 10:30,
15:00 - 16:00
Open Outcry: 12:00 - 13:00
45
Guernsey
Futures Information
None
GMT +0hrs (+1hr DST)
Internet: www.cisx.com
Primary Exchange
Channel Islands Stock Exchange
Brief History
Investor Protection Details
The Channel Islands Stock Exchange, (CISX) was incorporated in March
1998 as a company limited by guarantee with shares, and was officially
opened on 26th October 1998. The CISX’s mission is to be the premier
offshore stock exchange in the European time zone. The CISX is based in
Guernsey and has focused on the following core product areas:
The Exchange is regulated by the GFSC and is licensed to operate as
an investment exchange under the Protection of Investors (Bailiwick of
Guernsey) Law 1987.

Investment funds, both open and closed ended.

Specialist debt, including structured debt, Eurobonds and Special
Purpose Vehicles.

Primary and secondary listings of securities issued by domestic
companies (that is, companies that are incorporated in the
Channel Islands).

Primary and secondary listings of securities issued by
overseas companies.

Channel Islands Depository Receipts (CIDRs).
The Exchange is responsible for members’ compliance with its Rules
and for regulation, surveillance and enforcement of the Rules. However,
it is not responsible for the financial control and capital adequacy of firms
which are members of the Exchange. It relies instead on regulation by the
member’s regulatory body (e.g. the GFSC in Guernsey, FSA in the UK,
etc.). In the case of a Listing Member which is not authorised / licensed
by a regulatory body, the Exchange relies on that member’s recognition by
the recognised professional body of which they are a member.
The Exchange Listing Rules have been designed to meet two key
objectives: compliance with international standards for listings and ease
of understanding.
Trading System
The CISX’s screen-based trading platform is based on Reuter’s Triarch
network installed at their headquarters in St Peter Port, Guernsey.
The key features of the trading system are as follows:

An electronic bulletin board on which Market Makers may input twoway prices and brokers may enter orders in real time.

All trading is done by telephone (consideration will be given to screen
based trading in the longer term).

Trades are reported to the Exchange using the electronic bulletin
board and published within three minutes of execution.

Information on all quotes, orders and trades is stored at the
Exchange, both to facilitate market surveillance and to provide a
historical record.
Main Indices
Currency
None
News concerning companies listed on the Exchange is disseminated on
the Reuters system, as and when it is received during the trading day.
British Pound (GBP)
Guernsey Pound

Listed investment funds provide revaluations and bid and ask
prices on a regular basis. This information is disseminated on pages
branded as the Exchange.
Pre-trading (order and quotation
amendment): 08:00 - 09:00

Information feeds are provided to information distributors.

Information is also made accessible to the general public through the
press and electronic media.

£0.50 per trade payable by both buyer and seller.
None.
46
Monday - Friday
Continuous Trading:
09:00 - 16:30
Market Size
as of February 2008
Trading in the shares of local
companies may be settled via
Crest or Crest Residual
Currency Exchange
USD1 = GBP0.50435
EUR1 = GBP0.76405
Honduras
Futures Information
None
GMT -6hrs
Internet: www.bcv.hn (Spanish text only)
Primary Exchange
Bolsa Centroamericana de Valores
Brief History
The Bolsa Centroamericana de Valores (BCV), S.A., received legal
authorisation to begin operations by means of the approval in the
Agreement Number A.L. 0090/93. The statutes of the BCV were published
in the official Gazette on 5th May 1993. The BCV began operations in
September 1993.
Corporate Legal Framework:
Trading System
100% foreign ownership is acceptable under Honduran law. Joint-venture
corporations organised under Honduran law can take any of the following
forms: Sociedad Anonima (corporation); Sociedad Anonima de Capital
Variable (corporation), the only type of legal framework under which a
corporation can buy back its own stock; Sociedad de Responsabilidad
Limitada (limited partnership).
Stock transactions are conducted in the trading room, to which only
stockbrokers and the general manager or his representative and other
auxiliary personnel of the Exchange have access during trading sessions.
The trading floor is open for each session for the time set by the Exchange
and transactions are conducted in the presence of the general manager or
his representative. Stock market sessions are held every business day.
Primary Market
Private sector financial: Minimum 0.30%
Private sector non financial (terms up to 360 days): Minimum 0.30%
Private sector non financial (terms over 360 days): Flat 360 days
Secondary Market
Private sector (terms up to 360 days): 0.15% to each
buyer and seller
Private sector (terms over 360 days): Flat 0.15% to each
buyer and seller
Main Indices
None
Daily transactions of must be
liquidated on the day they
are made and are acceptable
only on the Primary Market.
Liquidation is made in cash and
the transfer of stock certificates
is conducted as soon as the
issuer presents them to the
Exchange, within 48 hours of the
transaction being conducted.
Liquidation of government issued
paper liquidated directly with the
Central Bank of Honduras is T+0
Monday - Friday
08:30 - 16:30
Market Size
2007
USD2.8bn
Currency
Honduran Lempira (HNL)
Currency Exchange
USD1 = HNL18.895
EUR1 = HNL28.6656
47
Hong Kong
GMT +8hrs
Internet: www.hkex.com.hk
Primary Exchange
HKEx
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg Hang Seng Index Futures
Hong Kong Futures Exchange
Mon - Fri; 09:45 - 12:30, 14:30 - 16:15
HKD 50 (HSI 100 Future HKD 1000)
1 point equal to HKD50 (HSI 1 100 Future 0.1point
equals HKD10)
Spot, next and the next 2 calendar quarter months
The first business day after the last trading day
<0#HSI:>, nearest month <HSIc1>, contract details
<HFE/HSI> (HSI)
HI (Month Code)(Last Number of Year) <Index>
(Main Hang Seng Index)
Brief History
Securities trading began in Hong Kong in 1866 although the first exchange
was not formed until 1891. In 1914 the name changed to Hong Kong Stock
Exchange from the Association of Stockbrokers in Hong Kong. In 1921, a second
exchange was formed called the Hong Kong Stockbrokers Association.
The two exchanges merged in 1947. In the late 60’s and early 70’s three more
regional exchanges were formed. Prompted by a market crash in 1973 a group
was formed that led to the unification of all four exchanges into the present day
HKEx on 7th July 1980.
HKEx went public in June 2000 following the completion of the merger of the
securities and futures exchanges in March 2000.
Dividends are regarded as having been paid out of taxed profits and are not
subject to further taxation. There is no capital gains tax.
There are no restrictions on foreign investment except for companies involved
in television broadcast where there is a limit of 49% for institutions and 10%
per individual.
Trading System

A short seller is obliged to notify the broker that the sale is short and
provide an Assurance that the “cover” is in place. The broker has an
obligation to maintain the documentary records (including Bloomberg
messages and telephone tape recordings) of the Assurance for not less
than one year).

When sending the order to the exchange the broker is obliged to flag the
order as a “Short-Sell.”

A short sell must be executed at a price NOT below the best current
Ask Price.

No broker is allowed to conclude any short selling order by entering into
a cross-trade, all short sell trades must be traded through the exchange
system under auto-matching.
The trading system of the Exchange is order-driven. During the pre-opening
Session, the system accepts at-auction and at-auction limit orders only. During
the Continuous Trading Session, the system accepts limit, enhanced limit and
special limit orders, with an option for an ‘All or Nothing Qualifier’ that confines
the order to be either executed immediately in full or rejected, without being
written in the central book.
Trading is conducted through terminals in the trading hall of the Exchange or
through the off-floor trading devices at exchange participants’ offices.
Stocks are traded on a continuous auction screen based matching system
(AMS). The best bids/offers are shown, followed by each subsequent spread
with the maximum deviation being 9 spreads from the previous nominal. The
maximum order size for auto-match stocks is 600 board lots. The maximum
number of outstanding orders per broker ID in the System is 2,000 while the
number of orders in each order queue is also 2,000. Orders are continuously
executed in strict price and time priority. An order entered into the system
at an earlier time must be executed in full before an order at the same price
entered at a later time is executed. Odd lot and special orders are quoted
at a discount to the prevailing market price. Each spread shows the volume
at price and the broker. Offshore crosses are allowed. Buy-ins are automatic
after T+4. Under normal operation environment, the closing price of a stock is
determined by taking the median of 5 nominal prices in the last minute of the
Official Trading Hours. The system will take up 5 snapshots on the nominal
prices at 15-second interval starting from 15:59.
There are particular rules for the trading of the exchange should a typhoon
signal number 8 or above or a Black Rainstorm be announced. Please see the
website for more details.
Circuit Breakers
There is no set designation. SEHK intervenes when thought necessary. Also, each
listed company may appeal to SEHK to halt trading for its desired duration.
Board Lots
Range from 100 to 50,000 shares with no set rule, but the most common lots
are 100, 400, 500, 1000 and 2000. Odd lots can be sold but at a discount to
the market price. Odd lot buys are not advised.
Brokerage: Since 1st April 2003 brokerage has been freely negotiable between
brokers and their clients.
Transaction Levy: A transaction levy of 0.004% is charged per side of the
consideration of a transaction.
Trading Fee: The trading fee applied at the SEHK is at the rate of 0.005% per
side of the consideration of a transaction.
Transfer Deed Stamp Duty: Independent of the quantity of shares traded,
the Government levies a transfer deed stamp duty of HKD5.00, payable by the
seller, on each new transfer deed.
Ad Valorem Stamp Duty: Unless stated otherwise, all securities listed on the
Exchange are subject to a stamp duty at a rate of 0.1% on the value of the
transaction, on both the buyer and the seller.
48
Futures Information
Short Selling
Naked short selling on the Hong Kong Stock Exchange is a criminal offence.
Short Selling is legal if “covered” and is subject to additional legal requirements
set out below:
Market Spreads
Bid/Offer
(HKD)
Spread
(c)
Bid/Offer
(HKD)
Spread
(c)
Bid/Offer
(HKD)
Spread
(c)
>0.01 - <0.25
0.001
>5 - <100
0.050
>1000 - <2000
1.000
>0.25 - <0.50
0.005
>100 - <200
0.100
>2000 - <5000
2.000
>0.50 - <2
0.010
>200 - <500
0.200
>5000 - <9995
5.000
>2 - <5
0.025
>500 - <1000
0.500
Main Indices
Currency
Hang Seng Index
Hong Kong Dollar (HKD)
Monday - Friday
All Exchange Trades must be
settled on T+2 Business Days
Pre-Open: 09:30 - 10:00
Continuous Trading:
10:00 - 12:30, 14:30 - 16:00
(No closing auction)
Market Size
Market Capitalisation: USD2.2trn
Average Daily Value: USD4.3bn
Board Lots
Range from 100 to 50,000
shares with no set rule, but the
most common lots are 100, 400,
500, 1000 and 2000. Odd lots
can be sold but at a discount to
the market price. Odd lot buys
are not advised
Currency Exchange
USD1 = HKD7.8158
EUR1 = HKD10.4376
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg BUX Index Futures
Budapest Stock Exchange
Mon - Fri; 09:05 - 16:40
HUF10 x BUX Index
0.5 Index points
One year ahead of the Mar ¼ cycle and the
18‑month & 24-month Jun & Dec
The last trading day
<0#BUX:>, <BUD/BUX1>
UO (Month Code)(Last Number of Year) <Index>
Hungary
Internet: www.bse.hu
Primary Exchange
Budapest Stock Exchange
Brief History
Hungary’s stock market reopened in 1990, having been closed for the
previous 42 years. The reorganisation of the Hungarian securities market
started at the beginning of the 1980’s. At the initiative of the banks and
financial institutions, which were playing an active role in the bond market,
an agreement on trading in securities was signed in 1987. This agreement
formalised existing practices into rules and was the beginning of the
process which led to the foundation of the Budapest Stock Exchange
(BSE). The legal framework for the Exchange’s operation was created
by the Securities Act VI of 1990 on the public offering of securities
on the Stock Exchange. Based on almost 10 years of experience in
securities trading, the Exchange was founded in June 1990. In 2004
the BSE became a full member of the Federation of European Securities
Exchanges. In spring 2004 an investor group consisting of international
banks and Wiener Borse AG acquired a majority ownership in the BSE.
Due to the integration of the activities of the Budapest Stock Exchange
and the Budapest Commodity Exchange, commodity trading on the BSE
commenced on the 2nd November 2005.
Transaction fees on the exchange are 0.15% of the transaction value.
Brokerage fees vary depending upon the level of service provided and
the type of security traded. Typically fees for dealing in shares are around
0.25% for institutional clients and in the range of 0.25% to 1.0% for
retail clients.
Trading System
The BSE launched its Multi Market Trading System (MMTS) in November
1998. As a result, floor trading came to an end and the prompt (or cash)
market is now only operated through remote trading. The Futures Market
was transferred to the MMTS system in September 1999. The Options
Market of the BSE was introduced in February 2000.
There is no general restriction under Hungarian law regarding foreign
business participation and investment in Hungary, but foreign participation
in certain strategic activities (such as defence and energy) is limited. Foreign
contributions or foreign purchases of shares in Hungarian companies
are required to be made in convertible currency or from a convertible
foreign account.
The corporate tax rate is 16%, plus a 4% solidarity tax. Capital gains
in Hungarian companies are added to regular income. The rate of tax
imposed on capital gains is identical to the tax on regular company
income. Individuals pay 25% for capital gains and other investment
income. 20% tax rate is paid on capital gains from sale of shares in EU
and OECD markets. Dividend income from shares in EU stock exchanges
is taxed at 10%. Interest income is taxed at 20%. A 20% withholding tax
on distributed cash dividends must be withheld and paid by the entity
distributing the dividend. This tax may be wholly or partly reclaimed by
a foreign recipient if an applicable tax treaty concluded with Hungary
provides for a reduced or zero rate.
Short selling is not a recognised market practice in Hungary.
Main Indices
Currency
BUX Index, Central European
Stock Index (CESI)
Hungarian Forint (HUF)
Monday - Friday
T+3 Business Days
Pre-Market: 08:30 - 09:00
Currency Exchange
Opening Auction: 09:00, 09:02
USD1 = HUF175.730
Free Period: 09:02 - 16:30
EUR1 = HUF266.398
Market Size
as of February 2008
USD40.9bn
USD181.6m
49
Iceland
Futures Information
None
GMT +0hrs
Internet: www.omxnordicexchange.com
Primary Exchange
Nordic Exchange in Iceland
Brief History
The Iceland Stock Exchange was established in 1985 as a joint venture
of several banks and brokerage firms on the initiative of the Central Bank.
Trading began in 1986 in T-bonds, which was the dominant component
in trading up until 1993. In 1990, housing bonds (mortgage-backed
securities with a State guarantee) were listed. The first equities were listed
in 1990. In 1998, the Icelandic parliament passed a new law on securities
exchanges, abolishing the monopoly and requiring the exchange in Iceland
to change its legal status from a self-governing foundation to a limitedliability company. The year 1999 was the exchange’s first year of operation
as a limited company, and in July 1999 the exchange received its licence
for exchange operations. In mid-2002, the owners of the exchange
in Iceland and the Icelandic Securities Depository (ISD) established
Eignarhaldsfelagid Verdbrefathing hf. In November 2006, OMX and the
owners of Eignarhaldsfelagid Verdbrefathing hf. (EV) completed a share
purchase agreement and thus the exchange in Iceland joined OMX Nordic
Exchange. Since January 2008 Iceland Stock Exchange has been part of
the NASDAQ OMX group.
Trading System
ICEX uses the SAXESS trading system developed by OM Technology
in Stockholm. SAXESS is an order-based system, in which orders are
automatically executed when price and volume match. Information on
reported off-exchange trades is also displayed in the system. Information
is presented in real-time on the traders´ screens in the form of order books,
market briefs, trade information, index information and various reports. All
market players receive market information simultaneously.
SAXESS is a state-of-the-art trading system with capacity for handling
more than 2000 orders per second. It gives member firms access to a
number of functions that support and facilitate trading, such as linked
orders, average price matching, etc. It is designed to carry out trading in not
only equities and bonds but also in a wide range of financial instruments.
Thus, it offers the member firms on the respective NOREX exchanges
equal and easy technical access to the Nordic securities markets.
Dividends are taxed at a withholding rate of 10% for individuals and 15%
for corporations. Since December 2005 no capital taxes have been levied
on net capital in Iceland, neither for individuals nor businesses. Banking
and the operation of other financial institutions are exempt from VAT
(otherwise 24.5%).
The taxes on dividends and capital gains are withholding taxes, applied
at source. Foreign investors who verify their obligation to pay taxes other
countries may be exempted from the payment of taxes on interest and
capital gains.
50
Main Indices
Currency
ICEX-15
Icelandic Krona (ISK)
Monday - Friday
Only the settlement banks can
participate in the netting process
for security trading.
The settlement cycle is T+1
Market Size
Currency Exchange
10:00 - 15:23
as of February 2008
USD1.12trn (OMX)
USD7.68bn (OMX)
USD1 = ISK66.27
EUR1 = ISK100.6377
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg BSE 30 Share Index
Bombay Stock Exchange
Mon - Fri; 09:30 - 15:30
INR50 x Index
0.1 Index points
3 quarterly month cycle
Last Thurs of delivery month, if holiday then
previous day
<0#BIF:>, <BIFc1>, <BSE/BIF>
SH (Month Code)(Last Number of Year) <Index>
India - Mumbai
GMT +5.5hrs
Internet: www.bseindia.com
Primary Exchange
Bombay Stock Exchange
Brief History
Circuit Breakers
The Stock Exchange, Mumbai (BSE), was established in 1875 as ‘The Native
Share and Stockbrokers Association’, and is the oldest exchange in Asia.
The capital markets in India came into prominence in the late 1980’s with the
boom in equity prices. Practically every security issued by corporates in India is
listed at BSE. The exchange demutualised on the 29th June 2007.
10%, 15% and 20% up or down in the BSE Sensex or the NSE S&P CNX Nifty.
A 10% movement will result in a 1-hour market halt, 15% a 2-hour halt and in
the case of a 20% movement trading shall be halted for the remainder of the
day. These percentages would be translated into absolute points of the Index
variation on a quarterly basis.
Trading System
Tick Size
Trading takes place through a fully electronic trading system known as BOLT
(BSE Online Trading), which was commissioned in 1995. This system, which
is essentially order-driven, facilitates efficient processing, automatic order
matching and faster execution. The trading system displays on a continuous
basis, scrip and market-related information required to support traders.
Information includes best five bids and offers, last traded quantity and price,
total buy and sell depth (irrespective of rates), open, high, low and close
price, total number of trades, volume and value, and index movement. Other
company-related information is also displayed. As soon as an order is matched,
the confirmation of the trade is generated online. Online and offline reports are
available to members for orders entered and pending, and trades executed.
The order matching logic is based on best price and time priority.
Trading in scrips listed on the Exchange is done with the tick size of 5 paise.
However, in order to increase the liquidity and enable the market participants
to put orders at finer rates, the Exchange has reduced the tick size from 5
paise to 1 paise in case of units of mutual funds, securities traded in “F” group
and equity shares having closing price up to Rs. 15/- on the last trading day of
the calendar month. Accordingly, the tick size in various scrips quoting up to
Rs.15/- is revised to 1 paise no the first trading day of month.
Local Tax
0.125%
The closing price of scrips is computed by the Exchange on the basis of
weighted average price of all trades executed during the last 30 minutes of the
continuous trading session. However, if there is no trade recorded during the
last 30 minutes, then the last traded price of a scrip in the continuous trading
session is taken as the official closing price.
Stamp duty
0.01%
Along with a Digitally Signed Electronic Contract note system the BSE has also
introduced the world first centralised exchange based Internet Trading System,
BSEWEBx.com. This allows investors anywhere in the world to trade on BSE.
Main Indices
BSE Sensitive Index
(SENSEX 30)
Monday - Friday
Continuous Trading:
09:55 - 15:30
Pre Close: 15:40 - 15:50
current price. (However trading in
physical segment is not open to
Institutional investors. Institutions
are allowed to sell physical
securities provided the security
is not connected to both / one of
the depositories)
Tick Size
Currency
Market Size
Indian Rupee (INR)
USD1.61trn
T+2 Business Days
USD1.89bn
Currency Exchange
Board Lots
EUR1 = INR60.57265
Equities: In the dematerialised
segment, a board lot is one
share. Physical shares: 5, 10, 50
and 100 shares, odd lots can be
sold, typically at a discount to
Brokerage is negotiable but is subject to a ceiling of 2.5% of the contract value.
To trade in India the beneficial owner of the shares needs to register with
the Securities & Exchange Board of India (SEBI) as an FII. Once they have
been registered as an FII they will be able to open a Custodian Account
and be issued with an NSDL number which is required for settling
all transactions.
A foreign institutional investor (FII) (investing on own behalf) or a sub
account can hold up to 10% of paid-up equity capital of any company. All
FII and their sub-accounts taken together cannot acquire more than 24%
of the paid up capital of any Indian company. Indian companies can raise
the above mentioned 24% ceiling to the sectoral cap/statutory ceiling as
applicable by passing a resolution by the board of directors, followed by
a special resolution made by the board of directors and its general body
to that effect.
In the case of investments in the secondary market, the following additional
conditions apply:

The foreign institutional investor shall transact business only on the
basis of taking and giving deliveries of securities bought and sold
and shall not engage in short selling in securities.

No transactions on the Stock Exchange shall be carried forward.

The transaction of business in securities shall be only through
stockbrokers who have been granted a certificate by the SEBI.
5 paise
Closing Auction: 15:50 -16:00
as of February 2008
USD1 = INR40.28500
The taxation of income of Foreign Institutional Investors from securities or
capital gains arising from their transfer, for the present, is as under:

The income received in respect of securities is taxable at the rate
of 20%;

Income by way of long-term capital gains arising from the transfer of
the securities is taxable at the rate of 10%;

Income by way of short-term capital gains arising from the transfer
of the securities is taxable at the rate of 30%.
Crossing is permitted but shot selling is not permitted.
51
India - National
GMT +5.5hrs
Internet: www.nseindia.com
Primary Exchange
National Stock Exchange of India
Futures Information
Tick Size Contract Months Expiration Day Reuters Bloomberg S&P CNX NIFTY Futures
National Stock Exchange
Mon - Fri; 09:55 - 15:30
INR100 x Index
0.05 Index points
3 quarterly month cycle
Last Thursday of delivery month, if holiday then
previous day
<0#NIF:>, <NIFc1>, <NSI/NIF>
NZ (Month Code)(Last Number of Year) <Index>
Brief History
For Regular Market and depository deals
The National Stock Exchange of India Ltd (NSE) was incorporated in
November 1992 and was recognised as a stock exchange in April 1993.
NSE was the first Indian exchange to introduce dematerialised trading in
December 1996.
In the case of failure to give delivery: At the highest price prevailing in the
NSE from the first day of the relevant trading period till the day of closing
out or 20% above the official closing price on the auction day, whichever
is higher.
Trading System
NSE operates a nationwide, fully automated screen based trading system
known as the National Exchange for Automated Trading System (NEAT).
NEAT provides a uniform trade response time of less than 1.5 seconds
and can handle up to 5m trades per day. NSE has also put in place
NIBIS (NSE’s Internet Based Information System) for online real-time
dissemination of trading information over the internet.
The Exchange provides a facility for screen-based trading with automated
order matching. The whole process of trading to clearing and settlement
is automated. The trading system uses the NEAT (National Exchange for
Automated Trading) software as the front-end and Stratus mainframe as
its back-end. The system trades through an online nationwide Wide Area
Network (WAN) connected by VSATs and leased lines.
The first phase of the day is the pre-open phase where traders’ orders
participate in arriving at the opening price of the day. All the orders in this
phase match at the opening price of the day if they fit into the price-time
priority. The matching takes place in batch mode. The next phase of the
market is the ‘open’ phase where continuous matching of orders takes
place provided they satisfy the matching criteria. The system is order
driven and conceals the identity of all parties. The trading system operates
on a price-time priority. All orders received on the system are sorted with
the best priced order getting the first priority for matching, i.e. the best
buy order matches the best sell order. Similar priced orders are sorted
on time, i.e. early orders get priority over later ones. Orders are matched
automatically by the computers. Where an order does not find a match it
remains in the system and is displayed to the whole market, until a fresh
order comes in or this order is cancelled or modified.
The maximum brokerage chargeable by trading member in respect of
trades effected in the securities admitted to dealing on the CM segment of
the Exchange is fixed at 2.5% of the contract price, exclusive of statutory
levies like, SEBI turnover fee, service tax and stamp duty. However,
brokerage charges as low as 0.15% are also observed in the market. A
trading member is required to pay the exchange transaction charges at
the rate of 0.035% of the turnover.
Board Lots
S&P CNX Nifty 50
Equities: In the dematerialised
segment, a board lot is one share.
Physical shares: 5, 10, 50 and
100 shares, odd lots can be sold,
typically at a discount to current
price. (However trading in physical
segment is not open to Institutional
investors. Institutions are allowed
to sell physical securities provided
the security is not connected to
both / one of the depositories)
Monday - Friday
Continuous Trading:
09:55 - 15:30
Pre-Closing: 15:40 - 15:50
Closing Session: 15:50 - 16:00
Market Size
as of February 2008
USD1.345trn
See Bombay Stock Exchange.
USD4.9bn
Tick Size:
Short selling is allowed subject to the following:
5 paise
Shortages Handling and Close-out Procedures
All shortages not bought-in are deemed closed out at the highest price
between the first day of the trading period till the day of squaring off
or closing price on the auction day plus 20%, whichever is higher. This
amount is credited to the receiving member’s account on the auction payout day.
52
Main Indices
Currency
Indian Rupee (INR)
T+2 Business Days
Currency Exchange
USD1 = INR40.28500
EUR1 = INR60.57265
Indonesia
Futures Information
None
GMT +7hrs
Internet: www.idx.co.id
Primary Exchange
Indonesia Stock Exchange (IDX) or Bursa Efek Indonesia (BEI)
Brief History
In 1912, under Dutch colonial government rule, Indonesia’s first stock
exchange was set up in Batavia. The Exchange closed during the First World
War and then reopened in 1925. The Batavia exchange operated alongside
parallel bourses in Semarang and Surabaya until 1942, when the archipelago’s
occupation by Japanese Imperial Forces caused trading to cease. In 1952,
seven years after Indonesia declared its independence, the exchange was
reopened in Jakarta, trading stocks and bonds issued before the war by Dutch
enterprises. However, in 1956, nationalisation once again brought trading to
a halt. The exchange reopened in 1977 and commenced automated trading
in 1995. In 2007 the Surabaya Stock Exchange was merged into the Jakarta
Stock Exchange. As a result the Indonesia Stock Exchange was formed.
Trading System
All stocks are traded on the Jakarta Automated Trading System (JATS) is an
integrated system covering settlement and central custody and providing realtime information. JATS has the capacity to process up to 150,000 transactions
a day with the possibility of increasing capacity up to 500,000 transactions a
day. All stocks are traded on a continuous on the JATS order-driven market
auction screen based system.
Trading at the JSX can only be done by JSX Members who are already registered
as the Members of the Indonesian Clearing and Guarantee Corporation (KPEI).
Brokerage companies then execute their orders.
There are two market places for trading since the removal of foreign lines;
namely the regular market and the crossing boards. Trading at the Regular
Market and Cash Market is based on fixed lot and fixed time of the continuous
auction market mechanism. In the Regular and Cash Markets, trades are done
in “round lots”, which are the minimum units of trades that can be executed.
However, trades in the Negotiated Market can be carried out without using this
criterion. Consequently, trades in the Negotiated Market are often executed in
“odd lots”. The regular market shows all of the bids/offers, followed by each
Main Indices
Board Lots
The Composite Share
Price Index
500. Odd lots can be sold
by designated dealers who
trade odd lots in particular
stocks, the price given is the
prevailing market price ± and
is reported net
Monday - Thursday:
Pre-Opening: 09:10 - 09:25
Pre-Opening Price Forming:
09:25:01 - 09:29:59
Currency
subsequent spread to the dealers on the exchange floor. But the brokerage
house dealers can only see the best bid/offer. Single trades of more than
200,000 shares are recorded as block trades. Crossing is allowed but must
be reported. Turnaround trades are permitted. To encourage market liquidity, in
February 2004, the JSX implemented pre-opening trading.
In January 2008 the IDX announced that it had chosen OMX as the provider of
its new trading system. The new system will be implemented for stock trades at
the end of 2008 and will be followed in the next two years by the trading system
for derivatives and bonds.
Market spreads
Everything is IDR25.
Price Limits
The system determines a floor and ceiling for stock’s offer price that is inputted
in the Jakarta Automated Trading System (JATS). The system automatically
rejects orders or buy/sell offers that exceed the parameter.
Price (IDR)
Price Limits
<100
50%
>100 - <500
35%
>500 - <2500
30%
>2500 - <5000
25%
5000
20%
Sales Tax
0.1%
Transaction Levy
0.043%
VAT duty
0.01% (usually absorbed
by local broker)
Under the JSX regulations, stockbrokers should charge a commission fee of
no more than 1% of the value of the transaction to either a buyer or a seller.
Commission fee is negotiable. Brokers have to pay a transaction fee of 0.03%
of the total transaction to the Exchange and a security deposit of 0.01% of
the value per guaranteed transaction managed by PT Kliring dan Penjaminan
Efek Indonesia (PT KPEI). For each security sold, there is a 0.1% sales tax of
the value of the transaction. In addition, for each transaction, the government
imposes VAT at the rate of 10% of the commission fee.
Indonesian Rupiah (IDR)
2nd Session: 13:30 - 16:00
Friday:
T+3 Business Days
1st Session: 09:30 - 11:30
Currency Exchange
USD208.8bn
Foreign shares for the banking sector will not start trading until 49% of
ordinary shares are owned by Indonesians. There are no restrictions on the
remittance of foreign currency into Indonesia and there are also no restrictions
on the repatriation of sale proceeds or dividends to a foreign investor. Foreign
investors are not subject to capital gains taxation, but they are subject to a
20% withholding tax on dividends deducted by the company or a lower rate if
there is a tax treaty between Indonesia and the country of the foreign investor.
Individual domestic investors are subject to a withholding tax of 20% (final) and
any capital gains are treated as income and taxed at the progressive personal
tax rate. Income Tax on gains of Indonesian listed securities is limited to 0.1 %
of transaction value.
USD665m
1st Session: 09:30 - 12:00
2nd Session: 14:00 - 16:00
Market Size
as of February 2008
USD1 = IDR9063.0000
EUR1 = IDR13750.5
There are no specific regulations prohibiting short selling in Indonesia as long as
there are sufficient shares available for delivery on settlement date.
53
Iran
Futures Information
None
GMT +3.5hrs (+4.5hrs DST)
Internet: www.iranbourse.com
Email: [email protected] (International Affairs)
Primary Exchange
Tehran Stock Exchange
Brief History
The Tehran Stock Exchange (TSE) was established in 1966 and commenced
operations in April 1967. The activities of the TSE continued to grow until
the Iranian Revolution of 1979. With a different political ideology controlling
Iran, an increased public sector reduced the need for private capital and
for the next decade the TSE entered a period of standstill.
In 1989 at the end of the Iran-Iraq conflict trading on the TSE entered a
growth phase following the first post-war Budget Act (enacted in March
1989) which heavily promoted the private sector’s role in the revival of the
economy, primarily through privatisation of state owned entities and for
channeling capital into the appropriate sectors of the economy.
In 2006 the Iranian Government passed the Capital Markets Law under
which the TSE was privatised and the Supervision and operation of the
exchange was separated into the Securities and Exchange Council and
The Securities and Exchange Organisation respectively.
Trading System
The Automated Trading System (ATS) of the TSE was implemented on
1st September 1994 and all listed securities have been traded through
the ATS since then. The TSE is a continuous open auction market where
buy and sell orders are placed by member broker firms and matched in
accordance with the price priority and time priority rules.
Commission fees for buying and selling shares are 0.4% of the value of
transactions paid by both buyers (40%) and sellers (60%) to a maximum
of 100 Million RLS.
Service Charge is 0.14% of the value of the transaction paid by both
buyers (40%) and sellers (60%) to a maximum of 100 Million RLS.
The sellers pay 0.5% tax at source.
Circuit Breaker
Board Lots
TSE All Share Price Index (TEPIX)
1
TSE-50 Index
According to TSE riles the price fluctuation is fixed to a maximum of 2%
either way from the last closing.
Continuous Trading:
09:00 - 12:30
No tax is levied on capital gains. There is 22.5% tax levied on dividends.
This means that shareholders are exempted from dividend tax which is
calculated and paid by the companies themselves.
The new by-law for Foreign Portfolio Investment (FPI) was approved by
the government in June 2005. Under this new bylaw, foreign investors can
participate in the TSE for the first time. Initially, however, some limitations
have been imposed on foreign investors:
54
Main Indices

Foreign investors may own a maximum of 10 percent of each
listed company.

Foreign investors may not withdraw their main capital and capital
gain for the first three years of their investment.

Repatriation is possible once a year under current regulations.
Saturday - Wednesday
Currency
Iranian Rial (IRR)
T+3 Business Days
Pre-Opening:
08:30 - 09:00
Currency Exchange
Market Size
EUR1 = IRR14014.21
as of February 2008
USD48.7bn
USD26m
USD1 = IRR9237.500
Ireland
Futures Information
None
Internet: www.ise.ie
Primary Exchange
Irish Stock Exchange
Brief History
The Irish Stock Exchange (ISE) has been in existence since 1793. From
1973 the Irish Stock Exchange was a member of the International Stock
Exchange of Great Britain and Ireland (now called the London Stock
Exchange). However in 1995 it broke the link with London and with the
introduction of the Stock Exchange Act, the Central Bank was appointed
as overall supervisor of the Irish Stock Exchange and its member firms. In
1995 the ISE also became a limited company.
Commissions in the equities and gilts markets are negotiable. There is a
1% stamp duty (transaction tax) on equity purchase. From 1st October
2007 intermediary relief is available to recognised intermediaries for the
purposes of Irish Stamp duty which include member firms of the exchange.
More information is available on the ISX website.
There are no significant taxation distinctions between domestic and
foreign investors.
Trading System
All equities are traded on the Exchange using the Exchange’s electronic
trading system ISE Xetra. Equities can be traded on the Exchange by
way of the Order book or OTC. All trades are reported to ISE Xetra and
information in relation to these trades is disseminated directly to the market
using the Exchange’s data feeds.
The system is the product of a strategic alliance between the Irish Stock
Exchange and Deutsche Börse. Through this alliance, the ISE operates
an electronic trading system for Irish equities on a special segment of the
Xetra trading platform in Frankfurt.
Circuit Breakers
If the price movements for individual shares exceed certain volatility
bounds, the system will intervene to cease continuous trading. The
system then defaults to an auction phase for the particular share for a
short period of time.
The standard Capital Gains Tax rate in Ireland is currently 20%. In calculating
a chargeable gain or loss on an individual Irish security, investors are
usually entitled to subtract the cost of the securities, broker’s commission
and stamp duty from the proceeds received. In addition an investor is
entitled to increase the cost of the securities by inflation (indexation) if the
securities had been held for a period of at least 12 months.
Dividends are subject to an advance corporate tax of 40% paid by the
issuing company. Non-Irish investors are exempt from capital gains earned
through the sale of quoted shares, but must pay capital gains taxes on
unlisted shares in companies which earn their income from land in Ireland,
mining or mineral rights in Ireland and exploration or production on the
Irish Continental Shelf.
There are no specific rules with regards to short selling.
Cross selling is allowed.
Main Indices
Board Lots
ISEQ Index
1
Currency
Monday - Friday
Euro (EUR)
Pre-Trading:
06:30 - 07:50
Opening Auction:
07:50 - 08:00
Continuous Trading:
08:00 - 16:28
T+3 Business Days
Currency Exchange
USD1 = EUR0.65845
Closing Auction:
16:28 - 16:30
Post-Trading:
16:30 - 17:15
Market Size
as of February 2008
USD140.5bn
Average Daily Turnover: 545.8m
55
Iraq
Futures Information
None
GMT +3hrs )
Internet: www.isx-iq.net
Primary Exchange
Iraq Stock Exchange
Brief History
The Baghdad Stock Exchange was suspended following the US led
invasion of Iraq in 2003. The Iraq Stock Exchange (ISX), was established
on 18th April 2004 and began trading on 24th June 2004. It is organised
as a non-profit entity that is owned by its members, the Brokers. It is
regulated by the Iraq Securities Commission.
Trading System
Since February 2008 trading has been conducted on the ISX Electronic
System. Here orders are entered by brokers via 50 computer terminals
and are automatically matched in time-price priority. Trading is conducted
on Mondays and Wednesday.
Commissions on the market are negotiable.
The ISX has been open to foreign investors since 2nd August 2007.
However investors must register with a broker.
Main Indices
Currency
None
Iraqi Dinar (IQD)
Monday and Wednesday
T+3 Business Days
10:00 - 12:00
Market Size
as of February 2008
USD1.703bn
56
Currency Exchange
USD1 = IQD1229.4
EUR1 = IQD1894.62
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Tel Aviv 25 IX FT
Tel-Aviv Stock Exchange
Sun - Thu; 10:30 - 18:00
ILS100 x Index level
ILS10
Issued every three months, on Jan, Apr, Jul and Oct
Last Friday of expiration month
Israel
Internet: www.tase.co.il
Primary Exchange
Tel-Aviv Stock Exchange
Brief History
Regular trading in securities in Israel dates back to 1935 when an unofficial
organisation was established at the initiative of the Anglo-Palestine Bank
Ltd. In 1953 the Tel-Aviv Stock Exchange Ltd (TASE) was incorporated
as a public company. The TASE has been fully automated since 1999.
From 2000 the Dual Listing Law took effect, allowing companies listed
in London or the USA to dual-list on the TASE without any additional
regulatory requirements.
Trading System
All stocks are traded on TACT (Tel-Aviv Continuous Trading), an orderdriven and integrated trading platform of the Tel Aviv Stock Exchange’s
equity, fixed income and derivatives markets. It is adapted from a system
that was developed by the Chicago Stock Exchange and implemented
in stock exchanges worldwide. In the pre-opening phase opening price
fluctuations are limited to 35% in each direction from that day’s base
price. Orders entered into the system can be changed or cancelled
up to 15 minutes before the end of this phase. The opening phase is
randomly between 09:45 and 09:50. At this phase an opening price is set
for each security. Prices and transactions are discovered by multilateral
trading (auction).
Price fluctuation in the continuous phase is unlimited. The continuous phase
ends randomly with a calculation of the closing price, a weighted average of
the prices of the trades executed in the last 30 minutes of this phase. The
closing price phase from 17:15 to 17:30 begins as soon as the continuous
phase ends randomly. Trading in this phase is also bilateral, order-driven
and continuous, but has one other prominent feature in that the share’s
price cannot be changed. TASE members have direct access to trading.
Similarly to the way prices are displayed in the UK and South Africa, all
stocks are quoted not in the main currency of shekels but in agorots
(100agorots = 1shekel).
There is also a 45 minute halting of trade in a company’s securities on
the day that the company produces price-sensitive data, so that the
information can be widely disseminated.
Circuit Breaker
TASE have implemented several circuit breakers to protect investors. On
the TA-25 when there is a ±8% change in the TA-25 index relative to the
base index there will be a temporary halt for 45 minutes. If after the trading
suspension there is another ±8% change there shall not be another halt.
If there is a ±12% change trading shall be suspended until the end of the
day. When an essential announcement is published regarding a security,
a 45-minute trading suspension occurs. During the pre-opening phase
the maximum price fluctuations in equities and in convertible bonds
is ± 35%.
Commission rates charged by members are left to the discretion of
each member.
On 1st January 2003, a 15% capital gains tax was imposed on Israeli
investors as well as a 10%-15% tax on interest payments. Corporate tax is
fixed at a rate of 27%. Capital gains on securities held by Israeli residents
abroad are currently 25%. Non-resident investors are exempt from these
new taxes.
Main Indices
Board Lots
TA 100 Index
The seller (or buyer) is obliged to
trade at least in the minimum lot
(about USD5,000), unless they
have also announced that they
wish to sell (or buy) more lots at
the set price. Small lots (orders
under USD5,000) cannot be
traded via the auction structure:
they must be executed during
the opening call stage
TA 25 Index
Sunday - Thursday
Pre-Opening: 08:30 - 09:45
Continuous Trading:
09:50 - 17:15
Market Size
as of February 2008
USD225.3bn
USD605m
Currency
New Israeli Shekel (ILS)
T+1 business days
Equities, Index Linked Noted (ILN) bonds, and T-bills can be sold short
on the TASE. A short sale is permitted only if all the conditions specified
below have been complied with:

The security sold is a share or a bond that is not convertible.

The seller first borrowed from a lender or from a lending member the
quantity of securities which he is about to sell short, and the lender
or the lending member, as the case may be, agreed to the lending
in writing.

Members must mark the orders submitted by them to the member.
Members will make certain that the particulars of every matching
order, including the particulars of the security, the quantity of the
security for carrying out the transaction and the price limit for carrying
out the transaction, all are identical with the particulars of the opposite
matching order submitted by the other client, with whom the transaction
was agreed.
Currency Exchange
USD1 = ILS3.65600
EUR1 = ILS5.55295
57
Italy
Internet: www.borsaitalia.it
Primary Exchange
Borsa Italiana
Main Contract Trading Exchange Trading Times Contract Size Contract Months Expiration Day Reuters Bloomberg S&P/MIB Futures Index
Milan Stock Exchange
Mon - Fri; 09:00 - 17:40
5 EUR x index
March quarterly basis
3rd Friday of the delivery month
<0#IFX:>, FIB30 cash & futures <0#MIB30:>,
nearest month <IFXc1>, contract details <MIL/IFX1>
ST (Month Code)(Last Number of Year) <Index>
Brief History
The year 2008 marks the bicentennial of the Borsa Italiana. On 16th January
1808 a vice-royal decree promulgated by Eugenioo Napolenone officially
inaugurated the “Borsa Di Commercid” (commodities exchange) in Milan.
Throughout the 19th and 20th Centuries various exchanges were set up
in Italian cities with notable exchanges in Genoa, Florence, Venice and
Rome. However during the 20th Century the markets consolidated with
Milan becoming the dominant exchange. Following a programme of major
reforms affecting both the stock market and the activity of intermediaries,
a national computerised order-driven trading system was introduced in
November 1991 and all securities listed on Milan and on other stock
exchanges, were gradually transferred to the new system. The process to
list all securities electronically was completed in 1994. In 1997 The Milan
stock exchange was privatised and The Borsa Italiana was founded and
is responsible for the organisation and management of the Italian Stock
Exchange. On 10th October 2007 the London Stock Exchange completed
its takeover of the company.
Capital gains accrued by private domestic investors from non-substantial
holdings (< 2%) are subject to a definitive withholding tax of 12.5%.
Foreign investors are exempt from capital gains taxation both on cash
and derivatives instruments. Private domestic investors are subject to a
definitive 12.5% withholding tax (excluded for dividends linked to substantial
holdings). The taxpayer may opt for ordinary personal taxation.
Trading System
The electronic trading system is regulated and managed by Borsa Italiana
and cash instrument trading platforms are run by SIA, the IT provider
which manages the exchange data processing facilities. The system is
supported by a network which links all authorised securities firms located
throughout Italy and also abroad. It enables trading in real-time of all
securities independently of physical location. All the markets organised
and managed by Borsa Italiana operate as electronic trading systems on
the basis of specifically designed market microstructure characteristics.
The Stock Exchange trading day is organised in three main phases:
opening auction (pre-auction, validation and opening), continuous
trading, and closing auction (pre-auction, validation, closing). For some
instruments, the daily session is followed by the After Hours Market (18:00
until 20:30 on MIB30 and MIDEX shares, Nuovo Mercato shares and
covered warrants).
After the closing auction phase a 20 minute time period starts during
which no new orders may be entered and the system computes official
prices as the weighted average of prices of all contracts. Securities are
subject to a 5 minute suspension every time the new price varies by more
than 10% with respect to the reference price or by more than 5% against
the previous price in the same session.
During official Trading Hours it is possible to execute trades outside the
regulated market only if the following two conditions hold: the customer
has authorised the intermediary in advance to execute trades outside
regulated markets, and execution of trades outside regulated markets
allows a better price to be obtained. Block trading is allowed for orders
above the minimum block size defined by CONSOB that varies – according
to the average trading volume – from EUR150,000 to EUR1.5m. All trades
within 15 seconds to the market authorities, and Borsa Italiana must
disclose them to the public after 60 minutes.
In late 2008 the LSE plans to integrate the Italian, UK and international
equities markets on TradElect, creating the largest European
liquidity pool.
Commission fees are negotiable.
58
Futures Information
There is no stamp duty on securities transactions on regulated markets.
There are no specific rules with regards to short selling however settlement
has to be met at T+3 unless otherwise specified with the counterparty.
Approved intermediaries may execute cross trades, using a special crossorder function, by matching two orders of opposite sign for the same
quantity, provided:


the orders correspond to customer orders.
the execution price is between the best bid price and the best ask
price on the book at the time of entry, excluding such prices.
Tick Size
Price (EUR)
Stock Price
Tick Size
0 - 0.25
0.0001
0.25 - 1
0.0005
1 - 2.0
0.001
2.0 - 5.0
0.0025
5.0 - 10
0.005
Main Indices
Board Lot
S&P/MIB
1
Currency
Monday - Friday
Euro (EUR)
Opening Auction:
09:00 - 09:05
Continuous Trading:
09:05 - 17:25
After Hours 18:00 - 20:30
Market Size
as of February 2008
USD959.1bn
USD8.41bn
T+3 Business Days
Currency Exchange
USD1 = EUR0.65845
Jamaica
Futures Information
None
Internet: www.jamstockex.com
Primary Exchange
Jamaica Stock Exchange
Brief History
The Kingston Stock Market Committee was established in 1961 under the
auspices of the Bank of Jamaica in order to coordinate and organise the
growing level of trading activity in government and corporate bonds and
equities. The Committee consisted of stockbrokers and the investment
officers of the commercial banks. From these origins the Jamaica Stock
Exchange (JSE) evolved, and was incorporated with limited liability under
the Companies Act of Jamaica in 1968, commencing operations in 1969.
The commission to be charged is agreed between broker and client. All
commissions, including those charged on corporate bonds, loan stock
and block transactions, were deregulated in 1994. There is a Jamaican
Stock Exchange Levy of 0.15625% on either side of the transaction.
A GCT of 15% is charged on commission as well as the Jamaica Stock
Exchange levy.
Trading System
Full electronic trading using the SUNRISE Automated Trading System
came into operation in February 2000. There is a price determination
phase on the pre-open, but the closing price of a security depends upon
the last trade in the primary market.
Block trades are possible as long as the price is ±5% from the last regular
traded price. They have no minimum volume requirements and can only
be done within one stock broking firm and where there is no change in
beneficial ownership.
Odd lots must be traded between the best bid/offer or at any price
in the event that there has been no bid/offer during the previous
24 trading sessions.
Withholding Tax on Dividends was abolished in April 2002. There is no
capital gains tax. Direct and Portfolio investment is welcome and free of
any bureaucratic inconvenience.
Dividends are subject to a 10% withholding tax depending on any double
taxation treaties between Jamaica and the other party’s country. Effective
1st April 2002, there is no withholding tax on dividends. There is no capital
gains tax.
Tick Size
Price Range (JMD)
Tick Size (JMD)
Common, preferred stock, rights
and warrants
0.01
Bonds
Par to 4 decimal places (100.0000)
Circuit Breakers
Trading in a security is halted for 15 minutes on a 15% rise or fall in its
prices. If upon resumption of trading there is an additional 5% decline or
increase in the price or in volume traded then trading of that security will
be suspended for the remainder of the day.
Main Indices
Board Lots
Jamaica Stock Exchange
Market Index
1
JSE All Jamaica Composite Index
Currency
JSE Select Index
Jamaican Dollar (JMD)
Monday - Friday
T+3 Business Days
Continuous Trading:
09:30 - 13:30
Currency Exchange
Market Size
EUR1 = JMD108.252
as of February 2008
USD1 = JMD71.3500
59
Japan - Tokyo
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg GMT +9hrs
Internet: www.tse.or.jp/english
Primary Exchange
Tokyo Stock Exchange
Nikkei 225 Index Futures / Nikkei 300 Index Futures
Osaka SE
Mon - Fri; 09:00 - 11:00,12:30 - 15:10,
16:30 - 19:00 (Tokyo time)
¥1000 x Index
10
Business day before 2nd Friday of contract month
5 quarterly months (Mar, Jun, Sep and Dec Cycle)
<0#JNI:>/<0#JNW:>, nearest <JNIc1>/<JNWc1>,
details <OSE/JNI>/<OSE/JNW>
NK (225), NE (300) (Month Code)(Last Number of Year) <Index>
Brief History
Foreign Shareholdings
The Tokyo Stock Exchange Co Ltd was established in 1878. In 1943, as
an emergency measure to control the wartime economy, Japan’s 11 stock
exchanges were consolidated into one Semi-government Corporation
called the Japan Securities Exchange. Activity was suspended in August
1945. In 1948 the new Securities and Exchange Law (Shoken Torihiki Ho)
was enacted. The trading floor was closed in April 1999.
According to Japanese law, certain airline stocks, broadcasting stocks
and NTT Corp have aggregate foreign ownership limits (33.33%, 20% &
20% respectively). When reached foreign investors can still buys shares
but cannot register them in their name. There is no official warning if these
limits are close.
The Tokyo Stock Exchange absorbed the Hiroshima and Niigata stock
exchanges on 1st March 2000. The Tokyo Stock Exchange demutualised
on 1st November 2001.
Trading System
The Tokyo Stock Exchange market operates as a continuous auction,
where buy and sell orders interact directly with one another. All orders,
whether limit or market orders, are placed by broker/dealer trading
participants and matched in accordance with the price priority and time
priority under the supervision of the Exchange. Under the price priority rule,
a selling (buying) order with the lowest (highest) price takes precedence.
Under the time priority rule, an earlier order takes precedence over others
at the same price. Once transactions have been completed, the results
are transmitted immediately to the terminals of the trading participants’
computer systems.
Minimum price fluctuations (JPY)
Price per share
Minimum price
fluctuations
Price per share
Minimum price
fluctuations
up to
2,000
±1
up to
1 million
1,000
up to
3,000
5
up to
20 million
10,000
up to
30,000
10
up to
30 million
50,000
up to
50,000
50
up to
30 million
100,000
up to
100,000
100
Maximum Price Fluctuations (JPY)
Short selling must not be conducted at a price that is equal or below
the most recently published price (“most recent price”), unless the most
recent price exceeds the immediately previous price, in which case short
selling at the most recent price is permitted.
Under cross dealing, the securities company first places the sell or buy
order on the market, and if no other securities company that is a member
of the exchange makes a corresponding buy or sell order, the securities
company only then match the first order with an opposite order that the
securities company has also received.
A securities company has orders both for sale and purchase of the same
issue, said securities company may carry out a cross dealing. Under
cross dealing, the securities company first places the sell or buy order
on the market, and if no other securities company that is a member of
the exchange makes a corresponding buy or sell order, the securities
company only then match the first order with an opposite order that the
securities company has also received, to complete the deal.
Main Indices
Board Lots
Tokyo stock price index (TOPIX)
The number of shares per unit
is determined by the issuing
company, ranges from 1 to
3,000 shares.
Price Move Price Move Price Move Price Move Price Move Price Move
<100
30 <2k
300 <30k
3k <200k 300k <3m
400k <30m
4m
<200
50 <3k
400 <50k
4k <300k
40k <5m
500k <50m
5m
Monday - Friday
<500
80 <5k
500 <70k
5k <500k
50k <10m
1m >50m
10m
<1k
100 <10k
1k <100k
10k <1m
100k <15m
2m
<1.5k
200 <20k
2k <150k
20k <2m
300k <20m
3m
Circuit Breakers
Daily price limits are based on stocks previous closing prices. For detailed
information regarding these limits please visit www.tse.or.jp/english/rules/
equities/dstocks/index.html
The brokerage commissions of all listed securities and futures/options
contracts have been liberalised since the end of 1999.
AM Pre-Open: 08:00 - 09:00
PM Pre-Open: 12:05 - 12:30
AM Opening Auction: 09:00
PM Opening Auction: 12:30
AM Continuous Trading:
09:00 - 11:00
PM Continuous Trading:
12:30 - 15:00
AM Closing Auction: 11:00
PM Closing Auction: 15.00
Market Size
as of February 2008
Capital Gains Tax for foreign (non residents) is from January 2008 now
15% (from 7%). Taxes on Dividends are 15% from 1st April 2008 (from
7%) again for non residents. Income tax is 15% for non residents.
The Securities Transfer Tax and the Exchange Tax were abolished on
1st April 1999.
60
USD28.7bn
Currency
Japanese Yen (JPY)
T+3 Business Days.
Currency Exchange
USD1 = JPY102.925
EUR1 = JPY258.195
Futures Information
Main Contract Nikkei 225 Index Futures / Nikkei 300 Index Futures
Trading Exchange Osaka SE
Trading Times Mon - Fri; 09:00 - 11:00 / 12:30 - 15:10; 16:30 - 19:00 (JST)
Contract Size ¥1000 x Index
Tick Size 10
Contract Months Five contract months: Mar, Jun, Sep and Dec Cycle
Expiration Day Business day before the 2nd Friday of each contract month
Reuters <0#JNI:>/<0#JNW:>, nearest <JNIc1>/<JNWc1>, details
<OSE/JNI>/<OSE/JNW>
Bloomberg NK (225), NE (300)(Month Code)(Last Number of Year)<Index>
Japan - Osaka
GMT +9hrs
Internet: www.ose.or.jp/e
Primary Exchange
Osaka Securities Exchange
Brief History
Trading System
In 1878 the Osaka Stock Exchange was established as a profit-making
corporation. In 1943, as a wartime emergency measure, Japan’s then
11 stock exchanges were consolidated into one semi-government
corporation, the Japan Securities Exchange. The Osaka Stock Exchange
became its Osaka division. This unified Exchange, however, suspended
operations at the end of the war in August 1945 and was finally dissolved
in April 1947. In 1948 the new Securities and Exchange Law was
enacted with the principal object of establishing a system of fair trade
in securities and the protection of investors. Under this law the Osaka
Securities Exchange was established in 1949 as a non-profit-making
membership organisation.
The new Trading system was launched on 27th February 2006. All trading
in listed stocks are made through a fully automated computerised trading
system except for the OptiMark Market.
In July 2001 the OSE launched the ETFs (Exchange Traded Funds)
Market and in December 2001 OSE established a market for investment
companies to invest in ventures, mainly unlisted companies. The OSE
initiated trading in an ETF based on FTSE Japan Index on 4th July 2002,
and futures contracts based on Dow Jones Industrial Average, MSCI
JAPAN Index and the FTSE Japan Index on 15th July 2002.
A new clearing system for derivatives trading was introduced in February
2005 this was followed a year later with a new trading platform for all
other products.
Market bids or offers have precedence over all other quotations. Among
limited-price bids or offers, the highest bid and the lowest offer have
precedence in all transactions on the Exchange. Where bids or offers have
the same prices, the earliest have priority over the others.
Transactions in futures and options are also executed through a fully
automated computerised trading system.
Minimum Price Fluctuations
Please refer to the Tokyo Stock Exchange page.
Maximum Price Fluctuations
Please refer to the Tokyo Stock Exchange page.
Commission rates are freely negotiable.
Please refer to the Tokyo Stock Exchange page for full details.
Main Indices
Board Lots
Osaka SE Hercules Index
Mainly 1000 (78% of all listed)
for stocks with a par of ¥50
(a number trade in lots of 100).
Par values of ¥500 trade in lots
of 100 (17%), Par value stocks
(¥5k- ¥50k) trade as single
shares. Odd lots are sold back
to the company by the
client’s custodian
Monday - Friday
AM Pre-Open: 08:00 - 09:00
PM Pre-Open: 12:05 - 12:30
AM Opening Auction: 09:00
PM Opening Auction: 12:30
AM Continuous Trading:
09:00 - 11:00
PM Continuous Trading:
12:30 - 15:10
Currency
Japanese Yen (JPY)
AM Closing Auction: 11:00
PM Closing Auction: 15:10
Market Size
Currency Exchange
as of February 2008
USD1.48bn
T+3 Business Days
USD1 = JPY102.925
EUR1 = JPY258.195
61
Jordan
Futures Information
None
Internet: www.exchange.jo
Primary Exchange
Amman Stock Exchange
Brief History
The Amman Stock Exchange (ASE) came into being on 11th March 1999.
This was a major step in the comprehensive reform of the capital market
in Jordan. The Jordanian Government initiated the reforms by adopting
the Securities Law of 2002 with the aim of bringing the operation of the
securities industry up to international standards.
Trading System
The Amman Stock Exchange implemented its electronic trading system
(ETS) in March 2000. Trading on the ASE takes place on an automated,
order-driven system. Brokers trade on the system remotely (from
their offices).
Trading takes place on a continuous basis for quoted equity stocks traded
on all market segments, as well as for bonds and units in mutual funds.
Brokers enter buy and sell orders into the trading system. The system then
matches those orders to produce a trade.
A new trading system called NSV V900 is due to be implemented
during 2008.
Commissions for trading in equities on the first, second or third markets vary
depending on whether stocks are traded “In the Floor” or “Off the Floor”.

“In the Floor” commission totals 0.0014% which comprises 0.005%
for the Jordan Securities Commission, 0.0005% for the Amman
Stock Exchange and 0.0004% for the Securities Depository Centre.

“Off the Floor” commission totals 0.002% which comes solely from
the Securities Depository Centre with a lower limit of 0.25JOD.
For both types of market there will also be the brokerage firms own
commission, which is calculated according to the market value.
There are no restrictions on the repatriation of proceeds of sale of
securities, or income from them.
A 10% tax on distributed dividends was removed as of 1 January 2002.
There is no tax on capital gains.
st
Jordan has double taxation treaties with Egypt, France, India, Indonesia,
Malaysia, Poland, Romania, Tunisia, Turkey, Yemen and, collectively, the
members of the Council of Arab Economic Unity.
According to the Non-Jordanian Investment Regulation No. 54 of 2000
issued pursuant to Article (24) of the Investment Promotion Law No. 16 of
1995, no ceiling exists on non-Jordanian ownership of companies listed
at ASE.
Main Indices
as of February 2008
Average Daily Volume:
USD104.5m
Sunday - Thursday
Bonds and Mutual Funds:
09:30 - 09:35
Opening Session: 09:35
First and Second markets: Pre-Opening Session:
09:30 - 10:00
Block Trades: 12:00 - 12:15
62
Market Size
ASE Share Price Index
Currency
Jordanian Dinar (JOD)
T+2 Business Days
Currency Exchange
USD1 = JOD0.7085
EUR1 = JOD1.0747
Kazakhstan
Futures Information
None
Internet: www.kase.kz/eng
Primary Exchange
Kazakhstan Stock Exchange
Brief History
The Kazakhstan Stock Exchange (KASE, previously named the
Kazakhstan Interbank Currency and Stock Exchange) was founded
in November 1993 on the basis of an earlier established Center of
Interbank Currency Transactions (Currency Exchange) of the State
National Bank of the Republic of Kazakhstan. The main stimulus to create
KASE was the introduction of the national currency, the Kazakhstan,
on 15th November 1993. From September 1997 KASE began trades of
corporate securities.
None.
Exchange levy of 0.1% on buys.
In 2001 KASE became a shareholder of the Kyrgyz Stock Exchange. In
October 2003 KASE, with its new subsidiary company ‘eTrade.kz’ LLP,
launched the ‘eTrade.kz’, an internet-trading system.
Trading System
Bidding at KASE takes place according to the bidding schedule approved
by the management of KASE and based on ‘The Rules of Exchange
Bidding’. Bidding is based on applications which can be submitted
verbally or in writing. Both verbal and written applications are fixed on
the electronic indicator panel. Reception of applications starts 30 minutes
before bidding and continues up to the end of the trade session. A broker
may change the conditions of an application during the session. Bidding
takes place based on the system of automatic conclusion of transaction.
The transaction is fixed on the electronic indicator panel at the moment
when the seller’s and buyer’s prices match.
Main Indices
KASE Index
Settlements on listed securities
transaction concluded at KASE
are carried out through the
Central Depository on a T+0
basis. Settlements on Unlisted
corporate securities are carried
out by participants at the place
and time stated in the certificate
Monday - Friday
Equities and Corporate Bonds:
11:30 - 17:00
Market Size
as of February 2008
Currency Exchange
USD1 = KZT120.6950
EUR1 = KZT183.0810
Currency
Kazakhstan Tenge (KZT)
63
Kenya
Futures Information
None
GMT +3hrs
Internet: www.nse.co.ke
Primary Exchange
Nairobi Stock Exchange
Brief History
The Nairobi Stock Exchange (NSE) was established in 1954, when Kenya
was still a colonial territory, as a voluntary association of stockbrokers
registered under the Societies Act. It started off with six stockbroking firms
and 50 listed companies. After fast initial growth the Exchange stagnated
in the post-independence years. Recently it has shown signs of recovery
due to strong government support and investor awareness. In 1989 the
Capital Markets Authority (CMA) was set up by the government to facilitate
and oversee the orderly development of capital markets.
Trading System
In September 2006 the Nairobi Stock Exchange implemented the
Automated Trading System (ATS) which was constructed by Millennium
Information Technologies (MIT) of Colombo, Sri Lanka. The replaced the
floor-based open-outcry system.
Although commissions are fully negotiable, industry practice is that the
highest commission chargeable is 1.78%, applicable to amounts up to
KES100,000; above KES100,000, commissions are fully negotiable
subject to a maximum of 1.5%.
Brokerage Commission and Other Costs
Consideration
(Transaction value)
Stockbroker Commission
CMA transaction levy
NSE transaction levy
CDSC transaction levy
CMA Investor Compensation Fund
NSE Investor Compensation Fund
Total cost to Investor
Up to
KES5,000,000
Above
KES5,000,000
1.78%
0.12%
0.12%
0.06%
0.01%
0.01%
2.10%
1.68%
0.12%
0.12%
0.06%
0.01%
0.01%
2.00%
Corporate and Treasury bond transactions
The only commission levied on bonds is the stock brokerage commission:
minimum is KES500. A 0.0625% commission of the value of the
transaction is chargeable on amounts up to KES50m. Commissions for
amounts above KES50m are fully negotiable.
Currency
NSE 20 Share index
Kenyan Shilling (KES)
Monday - Friday
T+5 Business Days
10:00 - 13:00
Currency Exchange
Market Size
USD1 = KES67.71
The interests of foreign investors are protected by the Foreign Investment
Protection Act. Exchange controls have been repealed.
USD14.bn
EUR1 = KES102.758
Foreign investors have been allowed on the NSE since January 1995.
Foreign investors are allowed to hold a maximum of 75% of the total
capital issued by a Kenyan-controlled firm on the NSE. Foreign investors
are not allowed to buy stock in a company controlled abroad, unless such
stock was bought from another already existing overseas stockholder or
was in a new share issue.
Board Lots
Listed securities are exempt from stamp duty, capital gains tax and valueadded tax. Withholding tax on dividends is 5% for residents and 10% for
non-residents.
64
Main Indices
An authorised dealer may only
trade and deal in minimum lots
of KES5m and any trades below
this amount must be transacted
through stockbrokers
Kuwait
Futures Information
None
GMT +3hrs
Internet: www.kuwaitse.com
Primary Exchange
Kuwait Stock Exchange
Brief History
The Kuwait Stock Exchange (KSE) was established in 1983. All trading
operations of the Exchange were suspended on the Iraqi invasion of
Kuwait on 2nd August 1990. The Kuwaiti Stock Exchange recommenced
trading in September 1992. In January 2003 the Kuwaiti Ladies Trading
Hall was opened making the KSE the first stock exchange in the world to
offer such a facility.
Shares of companies are listed according to its category in sectors.
Nine Sectors were listed in this respect. These are as follows:
1. Banking Sector
2. Investment Sector
3. Insurance Sector
4. Real-Estate Sector
Trading System
5. Industrial Sector
The bilingual Arabic-English KATS (Kuwait Automated Trading System)
system allows brokerage firms to match volume and prices instantly and
publishes deals within seconds. Only nationals of the Gulf Co-operation
Council (GCC) countries (the United Arab Emirates, Oman, Qatar, Kuwait,
Bahrain and Saudi Arabia) may trade directly in listed concerns. Others
may participate indirectly through two listed mutual funds.
6. Services Sector
Dealers sit at stalls and cubicles set up by brokerage firms around the
edge of the hall and use their own trading screens to conduct business.
Investors sit in the former trading floor and watch price quotations,
volume movements and company financial data on non-trading computer
screens. When they want to buy or sell they go to the brokerage stalls and
place an order.
KATS is also the first automated trading system in the world designed to
be fully operational in the Arabic language.
Main Indices
Currency
The Kuwait Stock Exchange
Index
Kuwaiti Dinar (KWD)
Forward Close: 13:15
The assets and liabilities of
traders, whether shares or funds,
are netted each day with each
broker they trade through. At
the end of the trading period
(Saturday to Wednesday) the
account position is automatically
cleared. A statement of account
is issued for each trader with
each broker, showing all activities
and transactions for the period
Market Size
Currency Exchange
Order Acceptance: 08:50
Pre-Auction: 08:59
Open and Continuous Trading:
09:00 - 12:30
Forward Quote Entry: 12:32
Forward Quote Entry: 12:55
as of February 2008
USD219.7bn
USD1 = KWD0.2724
7. Food Sector
8. Non Kuwaiti Companies Sector
9. Funds
The commission paid by investors is 0.125% up to KWD50,000 in value
and 0.1% for any transaction value in excess of KWD50,000.
Ticks and Trade Units
Share Price in Fils
Changing Price in Units
No. of Shares
0.5 : 50
0.5
51 : 100
1
80,000
40,000
102 : 250
2
20,000
255 : 500
5
10,000
510 : 1,000
10
5,000
1,020 : 2,500
20
2,500
2,520 : 5,000
20
1,000
5,050 : 9,900
50
500
Amiree Decree Law No. (10) for 1999 was issued to regulate the direct
investment of foreign capital in Kuwait. An investment committee was
established to promote investment opportunities in the country as well
as offering incentives to foreign investors and to facilitate the elimination
of all obstacles a foreign investor may face. This law decree has
provided guarantees for foreign investors to preserve ownership rights in
their enterprises.
Amiree decree No. (20) for 2000 permits foreign investors to own shares
in existing Kuwaiti companies or those that may be established in
the future.
Ministerial resolution No. (205) for year 2000 outlines the regulation of
investment activity in shares for non-Kuwaitis. Financial accounts have
been opened at the Kuwait Clearing Company by non-Kuwaiti investors
as a prelude to dealing in Kuwaiti shares.
EUR1 = KWD0.4135
65
Kyrgyz Republic
Futures Information
None
GMT +5hrs
Internet: www.kse.kg (Russian Text Only)
Primary Exchange
Kyrgyz Stock Exchange
Brief History
The Kyrgyz Stock Exchange (KSE) was founded in 1994. The first trades
in stocks and its official opening took place in May 1995 while the
privatisation process was in full swing.
Until 2000 the exchange functioned in the form of a non-profit organisation
with a total membership of 16. In May 2000 the KSE was transformed into
a joint stock company and the exchange acquired a large shareholder
and a partner in the form of the Istanbul Stock Exchange. In 2001 the
Kazakhstan Stock Exchange became a shareholder.
Trading System
Trading on the KSE is effected through the electronic trading system,
which has been operational since May 2003.
Commission Rates for the Primary Market
Value issued
(KGS)
Rate
Discount
Below 20m
0.16%
0%
Between 20m
and 50m
0.14%
25%
50m and above
0.12%, maximum
KGS100,000
25%, if the volume traded
is between KGS50m and
KGS100m. 40% if the volume
traded is 100m and over
Commission Rates for the Secondary Market
Value issued
(KGS)
Rate
Discount
Below 10m
0.20%
0%
Between 10m and 50m
0.20%
25%
Between 50m and 100m
0.18%, maximum KGS120,000
25%
Between 100m and 300m
300m and above
Main Indices
Currency
KSE Index
Kyrgyz Som (KGS)
50%
50%
Monday - Friday
T+3 Business Days
Market Size
Taxes
as of February 2008
Local
Foreigners
Cash Dividends
0%
10%
Interest Income
10%*
10%
Capital Gains
20%
30%
*not applied to the interest received by commercial banks for state securities
66
09:00 - 18:00
USD106.8m
Currency Exchange
USD1 = KGS36.39
EUR1 = KGS55.1827
Latvia
Futures Information
None
Internet: www.lv.omxgroup.com
Email: riga@omxgroup
Primary Exchange
Riga Stock Exchange
Brief History
The Riga Stock Exchange (RSE) was established in December 1993 and
the first trading session took place in July 1995. In 2002 the Riga Stock
Exchange acquired the Latvian Central Depository (the holder of the
registrar for public securities and also operating a securities settlement
system). The resulting group was taken over by OMX Group. OMX
Exchanges is the largest securities market in Northern Europe and consists
of Stockholm Stock Exchange, Helsinki Stock Exchange, Copenhagen
Stock Exchange, Tallinn Stock Exchange, Riga Stock Exchange and the
Vilnius Stock Exchange. Following the merger of the HEX Group and OM
Group and the decision of the merged identity to join the NOREX alliance,
the RSE also became part of NOREX.
On 27th September 2004 the Helsinki, Tallinn and Riga stock exchanges
harmonised their cash markets by adopting the SAXESS cash trading
system already used by the Stockholm Stock Exchange. During 2007
NASDAQ and Dubai Borse were involved in a takeover battle for OMX. In
January 2008 it was announced that Borse Dubai was to buy OMX and
would then sell it to NASDAQ, in return the Borse Dubai gained a 20%
state in NASDAQ.
Automatically matched trades shall be charged at 0.5% of transaction
value per each side to a maximum of LVL max LVL 30. Where participants
have joined the Liquidity Provider Programme the charge shall be 0.025%
of transaction value, to a maximum of LVL 30.
In general, taxes from income gained in Latvia by non-residents are
collected by tax withholding. The tax rate from dividend payments to
non-residents is 10% and from interest payments it is also 10%, if the
exemptions provided by law or double taxation treaty do not provide other
rate or exemption from taxation. All payments made to low-tax or tax-free
countries or territories are subject to withholding tax of 15%.
Trading System
depository receipts on the Nordic Exchange is conducted through
OMX’s SAXESS trading system, while derivatives trading are done
through OMX’s CLICK trading system and voice broking. Numerous
transactions are executed using automatic matching, where bid and
ask orders are automatically matched for a trade when the bid and ask
price correspond.
Main Indices
Currency
BALTIX
Latvian Lat (LVL)
OMX Riga All-Share (OMXR)
Monday - Friday
Pre-Opening Auction Period:
09:45 - 10:00
T+3. Negotiated deals may have
a settlement day between T+0
(inclusive for local members,
exclusive for cross-members)
and T+40 (inclusive)
Trading Period: 10:00 - 13:50
Currency Exchange
Pre-Closing Auction Period: 13:50 - 14:00
USD1 = LVL0.4601
EUR1 = LVL0.6971
After-Market Trading: 14:05 - 14:30
Market Size
as of February 2008
USD1.12trn (OMX)
USD7.68bn (OMX)
67
Lebanon
Futures Information
None
Internet: www.bse.com.lb
Primary Exchange
Beirut Stock Exchange
Brief History
The Beirut Stock Exchange was founded on 2nd July 1920. At that time
the exchange dealt mostly in gold and foreign exchange. The exchange
suspended operations in 1983, due to war, with 45 companies registered
on the trading floor. On 22nd January 1996 the exchange was reopened
for trading.
Commission is charged on each buying or selling transaction carried out
in any of the official or secondary markets.
Trading System
All securities are traded on a screen based price fixing system
First Stage: The brokers transmit and enter the orders in the Stock
Exchange’s computerized trading system which is
put at their disposal within the pricing system without
meaning in any case the completion or execution of
the trading operations. The brokers can also declare
explicitly at this stage their direct transactions outside
the Stock Exchange.
Commission Rate (%)
0 - 100,000
0.04%
100,001 - 1,000,000
0.025%
1,000,001 - 5,000,000
0.01%
5,000,000+
0.0001%
There is a 10% flat income tax, and 5% dividend tax. Capital gains on the
transfer of companies’ shares are tax free.
Second Stage: The buying and selling orders, which are registered
separately for each security, are compared
electronically, and the price is fixed if the comparison
authorises it.
Third Stage: In case of a difference between the buying and selling
orders at the equilibrium price, the brokers may enter
additional orders at the “equilibrium price” and only
in the opposite trend of the imbalance in order to
reduce the imbalance.
Fourth Stage: The number of traded securities in the Stock
Exchange (except for the direct transactions carried
out outside the pit), the fixed price and the trading
terms shall be declared for every security.
Fifth Stage: A final list of executed orders shall be printed. A list
of the direct transactions executed by every broker
outside the pit and accepted shall also be printed,
with the determination of the payment and delivery
terms. The list shall be transmitted by the Stock
Exchange to the authorized body to carry out the
payment and delivery operations.
Main Indices
Currency
BLOM Stock Index (BSI)
Lebanese Lira/Pound (LBP)
Monday - Friday
T+3 Business Days
The orders which have not been executed in the
Stock Exchange during the pricing session are
cancelled from the trading system.
Market Size
USD1 = LBP1512
USD10.9bn
EUR1 = LBP2293.023
Sixth Stage: Stocks can be issued with three tranches of shares, ownership of A shares
is restricted to Lebanese nationals while B shares are open to Lebanese
and foreign investors. Sale of A and B shares are subject to prior approval
of the central bank. Free dealing is allowed in C shares, listed on the
stock exchange.
68
Volume of Trade (USD)
09:30 - 12:00
Currency Exchange
Lithuania
Futures Information
None
Internet: www.lt.omxgroup.com
Email: vilnius@omxgroup
Primary Exchange
Vilnius Stock Exchange
Brief History
The National Stock Exchange of Lithuania (NSEL) was established in
September 1992 and held its first trading session a year later. In 1998,
it converted from a non-profit organisation to a public limited company.
In 2003 the name of the exchange was changed to the Vilnius Stock
Exchange (VSE) and in December 2003 the Privatisation Commission
approved a proposal for the sale of 54.47% of the shares of the Exchange.
In May 2004 OMEX purchased 44.3% of the shares of the VSE and
32% of the shares of the Central Securities Depository of Lithuania. On
30th May 2005, the VSE started trading on the SAXESS platform.
There are no fixed commissions imposed by laws or rules. The rates
charged by brokers generally range from 0.3% for large transactions to
1.20% for single small trades.
OMX was formed in 2003 following the merger of Finnish exchange
operator HEX Group and OM Group of Sweden. OMX owns and operates
the six exchanges in the Nordic Exchange. During 2007 NASDAQ and
Dubai Borse were involved in a takeover battle for OMX. In January 2008
it was announced that Borse Dubai was to buy OMX and would then sell it
to NASDAQ, in return the Borse Dubai gained a 20% state in NASDAQ.
Trading System
Trading on the VSE is order-driven, screen-based, centralised and
dematerialised. Trading in shares, bonds, warrants, premium bonds,
convertibles and depository receipts on the VSE is conducted through
OMX’s SAXESS trading system, while derivatives trading is done through
OMX’s CLICK trading system and voice broking. Numerous transactions
are executed using automatic matching, where bid and ask orders are
since all information from cash and derivative trading is relayed in
real time.
From the 1st January 2008, with the aim of reducing members’ fees to
investors the VSE reduced their trading fees. As such the fees for manual
trades on the VSE were reduced from 0.05% to 0.03% with a maximum
fee of EUR 140. The fee for trades executed in the WSE automatch
market will be reduced from 0.05% to 0.045%. The minimum fee will be
the equivalent of EUR 0.30 in the local currency.
In general, the income of non-resident corporations and individuals
without permanent establishments are tax-exempt if derived from the sale
or other transfer into ownership of securities. The dividend payments to
non-resident corporations are taxable at a rate of 15%, if the exemptions
provided by law or double taxation treaty do not provide other rate or
exemption from taxation. The interest on corporate bonds (excluding
government bonds issued on international financial markets) payable
to non-resident corporations is subject to a 10% tax. The dividend
payments and interest payable to non-resident individuals are taxable
at a rate of 15%, if the exemptions provided by law or double taxation
treaty do not provide other rate or exemption from taxation. The capital
gains received by non-resident individuals and corporations acting in
Lithuania through permanent establishments are generally taxed at a
15% tax rate.
Short selling is not permitted in Lithuania.
Main Indices
Currency
OMX Vilnius Index
Lithuanian Litas (LTL)
Monday - Friday
T+3, Negotiated deals in Tallinn
and Vilnius stock exchanges
may also have a settlement day
between T+1 (inclusive) and T+6
(inclusive) if agreed so separately
Opening (Single Price Auction):
09:25 - 09:30
Continuous Trading:
10:00 - 14:00
Market Size
as of February 2008
USD1.12trn (OMX)
Currency Exchange
USD1 = LTL3.4528
EUR1 = LTL3.4528
USD7.68bn (OMX)
69
Luxembourg
Futures Information
None
Internet: www.bourse.lu
Primary Exchange
Luxembourg Stock Exchange
Brief History
The law concerning the creation of a trade exchange was enacted in 1927
and the Stock Exchange was incorporated as the ‘Société Anonyme de
la Bourse de Luxembourg’ the following year. The first session of the
Stock Exchange was in May 1929. Quotation of international bonds in
the currency of issue began in April 1969 and gold trading was introduced
in March 1981. The first quotation of shares in the currency of issue
was in December 1981. The first remote member was admitted to the
Exchange in June 1998. More recently, the Euronext-Luxembourg Stock
Exchange cross-membership and cross-access agreement was signed in
November 2000.
On 22nd March 2007, Euronext and the Luxembourg Stock Exchange
announced the signature of a Masters Agreement for mutual cooperation.
This agreement will lead to the creation of a European Economic Interest
Grouping (EEIG). Since the second quarter of 2007, all securities listed on
the Luxembourg Stock Exchange have been available on NSC, the single
pan-European trading platform used by all Euronext cash markets. This
will give Euronext members’ access to nearly 40,000 instruments traded
on the Luxembourg Exchange, including 29,000 bonds issued by more
than 4,000 entities in over 100 countries.
Trading System
On 2nd May 2007 the Luxembourg Stock Exchange migrated all securities
listed on the regular market and the Euro MTF market to the NSC trading
platform of Euronext, this replaced the ‘Système Automatisé de Marché
– SAM’ which had been in used since 1996.
Brokerage fees are fully negotiable.
Dividends are subject to a 20% withholding tax. The reduced treaty rate is
15% with the exception of the US and Greece where the reduced rate is
7.5%. Capital gains earned through the sale of shares on the Luxembourg
Stock Exchange are not taxed.
There are no restrictions on investment by non-residents, whether they are
individuals or legal entities. Equities may be purchased by non-residents
and proceeds may be repatriated. Non-residents may open a bank
account in Luxembourg without governmental authorisation.
Main Indices
Currency
LuxX Index
Euro (EUR)
Monday - Friday
T+3 Business Days
09:00 - 17:35
Market Size
as of February 2008
An investment fund may carry out shot selling subject to the following
rules and regulations:
70

Aggregate commitment (i.e. unrealised losses) in terms of short
selling may not exceed 50% of assets.

Other-party risks per lender may not exceed 20% of assets.

A fund may invest up to 10% of its assets in short positions of
unlisted securities, provided such securities are listed.

A fund may not sell short more than 10% of the same type of
securities issued by the same issuer.

Short positions on securities issued by the same body may not
exceed 10% of assets and/or the commitment on such securities
may not exceed 5% of assets.
USD1.1m
Currency Exchange
USD1 = EUR0.65845
Macedonia
Futures Information
None
Internet: www.mse.org.mk
Primary Exchange
Macedonian Stock Exchange
Brief History
The Macedonian Stock Exchange was founded in September 1995 and
commenced trading on 28th March 1996, as a central marketplace for
trading in securities and the first organised stock exchange in the history
of the Republic of Macedonia.
The MSE was founded as a joint-stock company. Since 1997, under
the new Law on Issuance and Trading in Securities, MSE members can
only be legal entities (brokerage houses) whose sole activity is trading
in securities, with headquarters in the Republic of Macedonia. All MSE
members must be licensed for trading in securities by the Macedonian
Security and Exchange Commission.
In 2001 the MSE started to operate on a for-profit basis. Shareholders
may be any domestic or foreign however shareholding per entity is limited
up to 10% of the MSE outstanding shares.
Trading System
Since April 2001 the Macedonian Stock Exchange has operated an
electronic trading system (BEST) that was provided by the Ljubljana
Stock Exchange.
BEST (Bourse Electronic System for Trading) is a computer assisted
information system, which enables entry, modification, halt and removal of
orders, automated matching of orders and concluding trades, supervision
of orders and trades, as well as survey of information on trading and on
listed securities.
Trading is remote from the MSE members’ premises. MSE members may
enter into BEST a market order or different types of limit orders. Trading
is based on the automated processing of orders entered into the system.
All securities (listed on the Official market or admitted on the unofficial
market) are included in the daily continuous trading (from 10:00 to
12:00) at varying prices – if the price of different orders equals, trade is
automatically concluded. BEST has a special pre-opening session based
on the call market (from 09:00 to 10:00), but this phase is not obligatory
for all securities traded at the MSE.
In general, prices of the securities traded within the BEST are determined
completely freely in accordance with the current market demand and
supply. However, in order to protect the investors and obtain updated
information from listed companies certain limits on price fluctuations have
been introduced.
Circuit Breakers
± 10% of basic price.
Brokerage Fees: These are fully negotiable and vary from 0.3 to 1.3% on
the consideration of each contract (minimum and maximum limits exist).
Stock Exchange Fee:
Up to consideration of MKD500,000 – 0.6%;
MKD500,001 –
0.40% on consideration
of each contract;
MKD1,000,001 - 5,000,000 –
0.20% on the consideration
of each contract;
MKD500,000,000 and above –
0.1%.
Main Indices
Currency
MBI-10
Macedonian Denar (MKD)
Monday - Friday
T+3 Business Days
Fixing Phase: 09:00 - 10:00
Trading Phase: 10:00 - 12:00
Market Size
as of February 2008
USD3.98bn
Currency Exchange
USD1 = MKD40.5450
EUR1 = MKD61.5027
Domestic and foreign entities have an equal position when doing business
in Macedonia. Legislation allows full repatriation of profits.
As of 1st January 2008 the Government of Macedonia has introduced a
flat tax rate of 10%. Corporate income tax as well as capital gain tax for
2008 is 10% for naturalised citizens. Macedonians and foreign nationals
receive a 30% incentive on the tax basis when calculating the tax on
capital gains.
Foreign legal entities pay taxes on capital gains acquired while trading in
the Republic of Macedonia, in accordance with their home country tax
legislation laws. This is done for the purpose of avoiding double taxation
as per the bilateral agreement between Macedonia and the country
in question.
There are no special taxes, charges or duties and there is no stamp duty
imposed on trading in securities.
71
Malawi
Futures Information
None
GMT +2hrs
Internet: www.mse.co.mw
Primary Exchange
Malawi Stock Exchange
Brief History
The Malawi Stock Exchange was founded in 1994 but did not commence
operations until November 1996. Prior to the listing of the first company, the
major activities that were being undertaken were the provision of a facility
for secondary market trading in Government of Malawi bonds namely,
Treasury Bills and Local Registered Stocks. The regulatory legislation of
the Stock Exchange will be the Securities Act, which is in its draft form
awaiting passing into law by Parliament.
Trading System
The order to buy or sell a security is placed with the broker in person, by
fax or phone. The broker records details such as the name of the investor,
date and time of placing the order and price specification.
Orders are then matched. When a trade is successfully matched, a
broker’s contract note is issued to the investor within 24 hours. At the time
of placing a selling order, the broker receives from the investor the share
certificate and a signed transfer form. It is the responsibility of the broker
to ensure that the documents are genuine.
Commission on Purchase and Sale of Shares
Value of Transaction
Commission
MWK0 - MWK50,000
2.0%*
MWK50,001 - MWK100,000
1.5%*
Over MWK100,000
1.0%*
* Plus 20% surtax on commission paid
There is a 10% withholding tax on dividend distributed. Interest on treasury
bills and local registered stocks is subject to a border tax at source of 15%
for foreign investors and withholding tax of 20% for local investors. Capital
gains tax is applicable at marginal rate of 30% subject to an exempt
amount of MWK10,000 if shares are disposed off within 12 months.
Company tax is 30%. There is no stamp duty.
There are no investment restrictions on any of the instruments listed on the
exchange, except for foreign ownership limits, which should not exceed
10% per individual investor and 49% in aggregate. This rule does not
apply to foreign majority shareholders at listing, which carry on as before.
Main Indices
Currency
The Malawi Domestic Share
Index
Malawian Kwacha (MWK)
The Malawi Foreign Share Index
The Malawi All Share Index
T+7 Business Days
Currency Exchange
Monday - Friday
USD1 = MWK140.4800
09:00 - 12:00
EUR1 = MWK213.0907
Market Size
as of February 2008
72
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Contract Months Expiration Day Reuters Bloomberg KL Composite Index
Malaysia Derivatives Exchange
Mon - Fri; 08:45 - 12:45, 14:30 - 17:15
MYR50 x Index
Spot, next & next 2 calendar quarterly months
Last business day of contract month
<0#KLI:>,near mth<KLCIc1>,<KLO/KLI>
IK(Mon Code)(Last No of Year) Index>
Brief History
Although Malaysia has had a regulated marketplace for securities since
the founding of the Malaysian Stock Exchange in 1960, the Kuala Lumpur
Stock Exchange (KLSE) in its present form was established in 1973. Bursa
Malaysia Securities Clearing, a wholly owned subsidiary of the Exchange,
clears and settles all KLSE trades. In addition, the Malaysian Central
Depository (CDS) provides depository services.
Trading System
All stocks are traded on a continuous auction screen based system
(SCORE / WinSCORE). The best bids / offers are shown, followed by each
subsequent spread. Orders are matched at each level by using a time
priority basis. At the end of each session the prices are fixed by matching
trades using a ‘call market’ system. Prices cannot fluctuate by more than
30% from the previous close in a single trading session. Investors must
open a CDS account before trading and this number must be quoted
before trading, clients can start trading without the number as long as the
number is received by T+1.
Circuit Breakers
The Circuit Breaker is triggered when the KLCI declines by 10%, 15% and
20% below its closing index of the previous market day.
Commission rates for all trades are negotiable subject to a cap of 0.7%
and a minimum handling charge of MYR12 per contact for securities and
MYR2 for loan instruments.
Malaysia
GMT +8hrs
Internet: www.bursamalaysia.com
Primary Exchange
Bursa Malaysia
Clearing Fee – On Market: 0.03% of transaction value (payable by
both buyer and seller) with a maximum of MYR1,000.00 per contract.
No minimum.
Clearing Fee – Direct Business: 0.03% of transaction value (payable by
both buyer and seller) with a maximum of MYR1,000.00 and minimum
of MYR10.00.
Stamp Duty: MYR1 per MYR1,000 or fractional part of value of securities
(payable by both buyer and seller), subject to a maximum of MYR200 per
contract for all trades.
Market Spreads
Bid/Offer
Spread
Bid/Offer
Spread
Bid/Offer
Spread
<1
0.5
5 - 9.95
5
25 - 99.75
25
1 - 2.99
1
10 - 24.90
10
>100
50
3 - 4.98
2
Cross selling is allowed with a deviation of up to 15% of the VWAP, above
that approval is required from the exchange. Cross selling in the market is
technically not allowed, but it is allowed off market.
There is currently no short selling on The Kuala Lumpa Stock Exchange
A non-resident stockholder receives the full amount of the dividend, less
corporate tax of 28%. There is no capital gains tax in Malaysia.
A government body, the Foreign Investment Committee, is responsible for
the regulation of assets, acquisitions, mergers and takeovers of companies
and businesses in Malaysia.
Main Indices
Currency
FIC approval is required for any of the following:
Kuala Lumpur Composite Index
(KLCI)
Malaysian Ringgit (MYR)

Acquisition of more than 15% by a single foreign interest.

Aggregate of more than 30% from several foreign interests.
T+3 Business Days

Take-over/control of businesses in Malaysia by any foreign interest.
Monday - Friday
Morning Session: 09:00 - 12:30
Currency Exchange
Afternoon Session: 14:30 - 17:00
USD1 = MYR3.20400
Market Size
EUR1 = MYR4.85515
as of February 2008
USD801.9m
Board Lots
100
Odd Lot
Odd lots are traded on the
“odd lot” board or transacted
by private negotiation through a
direct business transaction
73
Maldives
Futures Information
None
GMT +5hrs
Internet: www.maldivesstockexchange.com.mv/
Primary Exchange
Maldives Stock Market
Brief History
The Maldives Stock Exchange (MSE) was established on 14th April 2002.
Originally it was operated by the Capital Market Development Authority,
however since 28th January 2008 the MSE was licensed as a private
sector exchange regulated under the Maldives Securities Act by the
Capital Market Development Authority (CMDA).
Trading System
Trading is conducted on the Securities Trading Floor (STF). Orders are
faxed to the STF from a dedicated fax line at the dealing companies. The
orders are then entered into the order book and are matched with existing
opposite types of orders which have the best price. Pending orders are
required to be matched in the following sequence:
1. Best Price;
2. Within Price, by time priority.
Brokerage Fees for investing on the MSE are as follows:

Rf.50,000 and below = 3% (1.5% from buyer and 1.5% from seller).

Rf.50,000 – 100,000 = 2% (1% from the buyer and 1.5% from
the seller).

Rf.100,000 and above = 1% (0.5% from the buyer and 0.5% from
the seller).
There is also a Trade Processing fee of 1% from every transaction charged
by CDMA (0.5% from the buyer and 0.5% from the seller).
There are no direct taxes for foreigners in the Maldives. The banking and
hotel industries are the only corporate taxpayers in the Maldives, where
they pay 9.1% of their profits in tax.
Main Indices
None
as of February 2008
USD814.1m
Monday - Friday
Average Daily Turnover: USD3k
Currency
Continuous Trading Session:
09:00 - 12:00
Closing Session:
12:00 - 12:30
Close Trade Session:
12:30 - 13:00
Post Closing Session:
13:00 - 14:00
74
Market Size
Rufiyaa (MVR)
T+2 Business Days
Currency Exchange
USD1 = MVR12.95945
EUR1 = MVR20.44172
Malta
Futures Information
None
Internet: www.borzamalta.com.mt
Primary Exchange
Malta Stock Exchange
Brief History
The idea of a stock exchange in Malta originated in 1969 but the project
lay dormant for almost 20 years until, in early 1988, the Minister of Finance
set up an advisory committee. The first trading session took place in 1992.
Originally trades were conducted through a manual call-over system.
However since July 1996 the MSE has used a fully electronic trading
system. From May 1998 daily trading was introduced and the exchange
moved towards remote off-the-floor trading.
Trading System
Stocks are traded by the Malta Automated Trading System (MATS), which
is provided by OMX. This is a screen-based order matching system,
which consists of a pre-opening, an opening and a continuous trading
stage. During the pre-opening stage there is a session for put-throughs
(which must be within the bid/offer range of the previous trading day) and
block trades.
The commission rates charged by stockbrokers have been liberalised. As
a general guide the rates of commission range between a maximum of
1.5% to a minimum of 0.25% depending on volume traded.
All transfers of listed securities are exempt from the payment of capital
gains tax. No stamp duty is payable with regard to transactions.
Main Indices
Currency
The Malta Stock Exchange Index
Euro (EUR)
Monday - Friday
T+3 Business Days
Pre-Open: 09:30 - 10:45
Continuous Trading:
10:45 - 12:30
Currency Exchange
USD1 = EUR0.65845
Close: 12:30
Market Size
as of February 2008
USD355k
75
Mauritius
Futures Information
None
GMT +4hrs
Internet: www.stockexchangeofmauritius.com/
Primary Exchange
Stock Exchange of Mauritius
Brief History
Company shares have been traded in Mauritius in a market environment
since the 19th Century. However, with the rapid development during the
1980’s, the government decided that a modern stock exchange was
necessary to fully develop the financial services sector.
For securities traded on the equity board and debt board crossing
is carried out during the continuous session of the operating hours of
the ATS.
In 1988 the government passed legislation to cater for the setting up of the
Stock Exchange Commission (SEC), the regulatory body which controls
and supervises the Stock Exchange of Mauritius Ltd (SEM). The stock
market has been opened to foreign investors since 1994.
Trading System
Since June 2001 trading has been computerised through the Stock
Exchange of Mauritius Automated Trading System (SEMATS). Trading in
securities is no longer floor-based but is conducted through dedicated
trading workstations located at stockbroking companies and linked
by communication lines to the SEM trading engine. The SEMATS also
incorporates internet trading facilities, which will enable investors to follow
the stock market on a real time basis. Through the SEM’s web page,
investors can access iNET, the internet-based routing mechanism, assess
the market situation and place orders to their stockbrokers. These orders
will be validated by the stockbrokers and transmitted to SEM’s trading
system for matching.
Once the BOM confirms that funds settlement has occurred, the
CDS transfers the shares between the securities accounts of the
respective clients.
Value of Transaction
(MUR)
Stockbroking
Company (%)
SEM
(%)
SEC
(%)
CDS
(%)
Total
(%)
Not exceeding 3m
0.75
0.25
0.05
0.20
1.25
Main Indices
Currency
Over 3m up to 6m
0.70
0.25
0.05
0.15
1.15
Mauritian Rupee (MUR)
Over 6m up to 10m
0.60
0.25
0.05
0.15
1.05
Stock Exchange of Mauritius
Index (SEMDEX)
Over 10m
0.50
0.25
0.05
0.10
0.90
Monday - Friday
Tax-free Dividends and Capital Gains

There is no tax on dividends paid by a company listed on the Stock
Exchange of Mauritius or by a subsidiary of that company.

Gains or profits derived from the sale of units or of securities listed
on the Official List and the Development & Enterprise Market of the
Stock Exchange of Mauritius are not taxed.
Foreign Investment
Foreign investors do not need approval to trade shares, unless investment
is for the purpose of legal or management control of a Mauritian company
or for the holding of more than 15% in a sugar company. Foreign investors
benefit from numerous incentives such as revenue on sale of shares can
be freely repatriated and dividends and capital gains are tax free.
76
T+3 Business Days
Equities
Currency Exchange
Pre-Opening: 09:00 - 10:00
USD1 = MUR27.3500
Opening: 10:00
EUR1 = MUR41.4954
Continuous: 10:00 - 12:30
Closing: 12:30
Market Size
as of February 2008
USD8.17bn
USD1.84m
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg Mexico Bolsa Index Future
Mercado Mexicano de Derivados
Mon - Fri; 07:30 - 15:00
10MXN x Index
1 point
March quarterly cycle
4th Tuesday of contract month
<0#IPC>, nearest month <IPCc>, contract details
<MXN/IPC1>
IS (Month Code) (last Number of Year) <Index>
Brief History
The Mexican Stock Exchange (Bolsa Mexicana de Valores – BMV) was
founded in Mexico City in 1894. The few shares that were listed in
the market’s early years were mainly banks and industrial and mining
companies. In 1996 the BMV-SENTRA Capitals trading platform (for
equities) was introduced.
During 2005 brokers introduced new electronic schemes for sending
orders (programme/algorithmic trading), which generated increased
demand on the trading system.
Mexico
Internet: www.bmv.com.mx
Primary Exchange
Mexican Stock Exchange
Market: Orders to be executed at the best price which is displayed in
the electronic book.
Price Limited: Orders with a price fixed by the client which are matched
at the same or better price than the limited price.
Price limited orders may remain in effect up to 30 calendar days.
The stock exchange fee is 0.055% and the commission is fully negotiable.
Trading System
All transactions on the Exchange are conducted via the BMV-SENTRA
Capitals automated system. Transactions are entered from terminals
located in each brokerage firms’ offices. Brokers may also register the
valuation prices of mutual funds and trade ‘odd lots’.
System Operators May Enter the Following Type of Order:
SE Fee: 0.055%.
Equity Market
Capital Gains
Exempt
Dividends (to Mexican
nationals)
Aggregate income and income tax (33%) paid by
the company will be accreditable
Dividends (to foreigners)
10%
At the Close (closing orders): Orders are only accepted if they are
related to full lots. These orders will be executed at the end of the trading
session at a closing price (quote) calculated by BMV. Only shares of high
and medium marketability are considered.
Foreign investors have access to all types of securities traded in the
Mexican securities market.
Cross Orders: If a broker is both the seller and the buyer for an order
involving the same security, the same quantity, and the same price they
can select the command ‘cross’ and the order and its characteristics
are transmitted to other users, so that they may participate in the trade,
according to established rules.
There are no restrictions on foreigners acquiring Free Subscription
Series (B shares) since these are not reserved exclusively for Mexican
nationals. In the past, investment in B shares was the most commonly
used mechanism through which foreign investors acquired shares of
Mexican companies.
Main Indices
Board Lots
Price and Quotations Index (IPC)
1
Mexico Index (INMEX)
Medium Capitalisation Index
(IMC30)
Currency
Since 1989 foreign-investment regulations have allowed foreigners to
acquire series A shares through a trust fund (Neutral Fund) presently
managed by NAFINSA, a Mexican development bank. NAFINSA then
issues CPOs to the foreign investor. These certificates grant the foreign
shareholder all pecuniary rights except voting rights. Foreign investors
may acquire series C or L stocks, which are shares with limited
voting rights.
Mexican Peso (MXN)
Short selling is only available to proprietary accounts of local brokers.
Short selling is prohibited for foreigners.
Monday - Friday
T+3 Business Days
08:30 - 15:30
Currency Exchange
Market Size
USD1 = MXN10.72750
USD389.8bn
EUR1 = MXN16.27780
USD513m
77
Moldova
Futures Information
None
Internet: www.moldse.md
Email: [email protected]; [email protected];
[email protected]; [email protected]
Primary Exchange
Moldova Stock Exchange
Brief History
Moldova Stock Exchange (MSE) was founded on 7th December 1994 and
opened for trading on 26th June 1995.
Trading System
The MSE trading system, implemented in October 1995, is an automated,
order-based system. There are two trading periods: the Open Price Period,
when the market price is determined but no matching is executed; and the
Market Price Period, where brokers enter market orders which constantly
matched on a time priority.
Brokers can enter in the system buy or sell orders. Buy orders are matched
with sell orders at a market price calculated for each specific security.
The order-based system allows investors to set a more realistic value of
securities and ensures a more transparent and fair market. The system is
automated. At present, the exchange has 56 workstations for brokers.
Today, shares of more than 500 privatized enterprises and commercial
banks are registered at the Stock Exchange. According to the MSE rules,
they all are included in the quotation list. Listing is separated into 3 tiers
according to general rules of length of existence, number of shareholders,
profitability and international auditing.
The MSE applies a trading fee at the rate of 0.35% - 0.175% per each
side of the transaction. There is also a trading fee for settling and clearing
of 0.1% - 0.05% per each side of the transaction.
Dividends of both residents and non-residents are taxed at 10%. The
capital gains tax in Moldova is 20%.
Main Indices
Currency
CNVM-32
Moldovan Leu (MDL)
Monday - Friday
T+3 Business Days
10:00 - 15:00
Market Size
as of February 2008
USD435.4m
78
Currency Exchange
USD1 = MDL11.0850
EUR1 = MDL16.8230
Mongolia
Futures Information
None
GMT +8hrs
Internet: www.mse.mn/en
Primary Exchange
Mongolian Stock Exchange
Brief History
In 1990 the public sector in Mongolia, as in other post-communist
countries, accounted for about 90% of GDP. The Mongolian Stock
Exchange (MSE) was created in 1991 to help facilitate the move from a
centrally controlled planned economy to the market system. Due to the
privatisation policy of Government, in 1992-1995, the 475 state-owned
industries were privatised and changed to company form. The securities
market is now open for domestic and foreign investors to trade. Following
the new Securities and Exchange Law, adopted in December 2002,
the MSE was reorganised as a profit making state-owned shareholding
company which is allowed to carry out legal business services.
The commission fee paid to a broker for either buying of selling securities
is designated by the MSE:
Trading System
A member securities company takes part in trading through its authorised
dealer. The client’s order is passed from the brokerage firm to the dealer
through a telecommunications link. The dealers in turn enter the orders
for execution into a computer network in the MSE trading hall. Orders
are automatically matched and executed. Trading is carried out on an
open and continuous basis. Orders are executed depending on price and
time priority.
Main Indices
Currency
General Index
Mongolian Togrog/Tugrik (MNT)
Top 20 Index
MSE Composite Index
Monday - Friday
11:00 - 12:00
Market Size
as of February 2008
USD112.6m
Area
Commission Rate
Province 1% to 7% of value traded
City 1% to 5% of value traded
The Stock Exchange charges 1% of the total turnover of the day.
A foreign investor may, in accordance with the laws of Mongolia, purchase
shares or other securities of any business entity which is operating within
the territory of Mongolia. All investors are subject to a 10% tax on earnings
from dividends, whilst capital gains tax ranges from 10-25% depending
on amount.
All trades are settled in the
Securities clearing house
and Central Depository on a
T+1 basis
Currency Exchange
USD1 = MNT1172.500
EUR1 = MNT1778.682
79
Montenegro
Futures Information
None
Internet: www.nex.cg.yu; www.montenegroberza.com
Email: [email protected]; [email protected]
Primary Exchange
Montenegro Stock Exchange and
New Securities Stock Exchange
Brief History
There are two principal Stock Exchanges in Montenegro. The oldest is
the Montenegro Stock Exchange which was established in June 1993. It
was joined by the New Securities Stock Exchange (NEX) in 2001. Both are
located in the capital Podgorica.
Trading System
Trading on NEX is conducted through an Electronic Trading System which
was donated by the Ljubljana Stock Exchange and has operated since
March 2001. Orders are continuously entered into the system directly
by brokers from their trading stations where they can also monitor the
performance of the entire order book; the current average price, best bid
and best ask, close price and other significant trading data. This upgrade
of the trading system allows increased market integrity and surveillance,
increased capacity and increased liquidity.
Trading on the Montenegro Stock Exchange is conducted through the
Exchange Trading System. Orders are entered into the system and priority
is given to active buy orders with a higher price and among active sale
orders priority is given to active sale orders with a lower price.
Circuit Breakers
Fluctuations in price are limited to a movement of ±10% from the official
average price of the preceding trading day.
Commission fees are 0.08% of the trade value with a minimum fee
of €200.
Corporate Tax in Montenegro is between 15% and 20% depending on
the value. Non residents pay tax on capital gains at the rate of 15%,
through withholding.
Main Indices
Currency
NEX20
Euro (EUR)
MOSTE
Monday - Friday
MSX - Continuous Trading:
09:00 - 14:00
Market Size
as of February 2008
USD1.43m
80
T+3 Business Days
Currency Exchange
USD1 = EUR0.65845
Morocco
Futures Information
None
GMT +0hrs
Internet: www.casablanca-bourse.com
Primary Exchange
Casablanca Stock Exchange
Brief History
Methods of trading
The Casablanca Stock Exchange (CSE) was originally established as a
private stock exchange in 1929. Since the CSE was founded it has gone
through several major reforms. In 1948, the government took control
of the Stock Exchange and set up an open outcry trading system. This
structure was maintained more or less as such until 1993 when a major
CSE restructuring took place involving the creation of a regulatory body,
CDVM (Conseil Déontologique des Valeurs Mobilières) whose responsibility
is to protect investor’s interest and the fulfilment of listing requirements.
The 1993 reforms were amended and supplemented in 1996, defining the
various market players and introducing the rules and technical procedures
needed for the development of the Moroccan financial market. The Stock
Exchange was privatised in 1995 and a central depository came into
operation in 1998.
On the Central Market, securities are traded according to their liquidity:
Trading System
The electronic trading system (NSC) is an automated platform for the
management of stock-market trading sessions. It enables the automatic
routing of stock-market orders and the completion of transactions
according to predefined market rules.
All securities quoted on the Casablanca Stock Exchange are traded on
the electronic trading system using trading screens provided to brokerage
firms. Orders entered by dealers are automatically ranked by price limit
and by the chronological order by which they have been entered into the
order book.
Main Indices
Currency
MASI Float (Moroccan
All Share Index)
Moroccan Dirham (MAD)
MADEX Float (Moroccan Most
Active Shares Index)
Currency Exchange
Monday - Friday
USD1 = MAD7.5279
EUR1 = MAD11.4213

Least liquid shares are quoted on a fixing basis.

Shares with average liquidity are quoted on a multi-fixing basis.

Most liquid shares are quoted on a continuous basis.
The share price used for the calculation of indices and the dissemination
of information is the last share price dealt.
The Casablanca Stock Exchange monitors transactions on a daily basis.
It can temporarily suspend transactions in any stock or limit the fluctuation
of share prices, if it deems it necessary in the interests of the market.
Commissions are set by the Casablanca Stock Exchange. The rates
of commissions charged by the Casablanca Stock Exchange were
overhauled in 2006. The fees are now 0.1% for dealing, excluding
10% VAT.
There are no restrictions on foreign investment. Repatriation of capital
gains and income is free of any exchange-control restrictions. There
is no capital gains tax but a 10% withholding tax on dividends and on
interest income is applicable to foreign shareholders and foreign owners
of debentures.
T+3 Business Days
Continuous Trading:
09:00 - 15:25
Market Size
as of February 2008
USD89.9bn
81
Namibia
Futures Information
None
Internet: www.nsx.com.na
Primary Exchange
Namibian Stock Exchange
Brief History
The first Namibian Stock Exchange was founded in Lüderitz in southern
Namibia at the start of the 20th Century, as the diamond rush brought
hundreds of prospectors to the desert and whole towns sprung up.
However within a few years, the rush was over and the exchange closed.
In 1990 Namibia gained independence from South Africa. At this time
the Government and 36 leading businesses agreed to open a Stock
Exchange. The Namibian Stock Exchange (NSX) remains a not for
profit company.
Trading System
Since 1998, the NSX has had an integrated computer system handling
trading, broker client accounting and transfer services. The NSX
introduced new trading and information dissemination systems, JSE
SETS and InfoWiz, on 13th May 2002. The JSE Securities Exchange South
Africa and the London Stock Exchange both use these systems which
are known internationally as SETS (Stock Exchange Trading System) and
LMIL (London Market Information Link).
The systems permit the application of customised rules to different market
segments. The NSX is now able to introduce certain trading practices
which are unique and suitable for its market, but which may not be suitable
in a large market such as the JSE.
In compliance with international practice, NSX closing prices are now
calculated on a last trade price basis rather than higher bids or lower offers
in the market, thus improving fairness and market integrity in determining
closing prices. The full depth of the market order book is displayed,
ensuring more transparency in the market.
The charges for dealing are a percentage of the deal amount. The
brokerage rates include a transaction levy of 10% of brokerage paid to the
NSX and a 0.04% levy by namfisa.
Main Indices
Currency
NSX Overall Index
Namibian Dollar (NAD)
Dealing charges: Equities
NSX Local Index
Transaction (NAD)
Commission
Deals up to 10,000
1.00%
Monday - Friday
Portion up to 20,000
0.85%
0.65%
Summer Time: 09:00 - 17:00
5 minutes variation at the close
0.55%
Portion up to 5m
0.40%
5m and above
0.35%
A 10% tax is deducted from dividends paid to persons not residing in
Namibia. Double-taxation agreements with certain countries may provide
for a lower rate. Non-residents who invest in Namibia are not charged tax
on interest earned. There is no capital gains tax and there is no tax on
dealing (marketable securities tax). There are no general restrictions on
foreign investment.
82
Winter Time: 08:00 - 16:00 with
5 minutes variation at the close
Market Size
as of February 2008
T+5 Business Days
Currency Exchange
USD1 = NAD7.6975
EUR1 = NAD11.676
Nepal
Futures Information
None
GMT +5.75hrs
Internet: www.nepalstock.com
Primary Exchange
Nepal Stock Exchange
Brief History
The history of the Exchange can be traced back to 1983. With the
enactment of the Securities Exchange Act 1983 the former Securities
Exchange Centre started trading securities on an ad hoc basis. This
system continued until 1993.
The rate of brokerage on equity transactions ranges from 1 to 1.5%
depending on the traded amount.
Equity Transactions
The Securities Exchange Centre was converted into the Nepal Stock
Exchange in June 1993. It started trading through licensed members
in an organised way in January 1994 with 25 broker members and
six market makers.
Value of Transaction (NPR)
Rate %
Up to 25,000
1.5
Between 25,001 and 50,000
1.4
Between 50,001 and 100,000
1.3
Trading System
Between 100,001 and 500,000
1.2
NEPSE has adopted an open outcry system under which transaction of
securities is conducted on the open auction principle on the trading floor.
The buying broker with the highest bid will post the price and his code
number on the buying column, while the selling broker with the lowest
offer will post the price and code number on the selling column of the
quotation column. The market maker quotes their bid and offer price
on their own board before the floor starts. Once the bid and offer price
match, contracts between the buying and the selling brokers or between
the brokers and market makers are concluded on the floor.
Between 500,001 and 1,000,000
1.1
1,000,000 and over
1.0
Main Indices
Currency
NEPSE Index
Nepalese Rupee (NPR)
Monday - Friday
T+3 Business Days
Regular Trading: 11:00 - 13:00
Odd Lot Trading:
Monday: 14:00 - 15:00
Friday: 11:00 - 12:00
Minimum commission is NPR15. In addition, NPR10 can be charged as service charge.
There is no difference in the treatment of domestic and foreign investors.
All income is taxable. Investments through secondary markets, however,
are restricted to foreign investors.
Currency Exchange
USD1 = NPR64.0240
EUR1 = NPR97.1180
Market Size
as of February 2008
83
Netherlands
Primary Exchange
Euronext Amsterdam
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg Amsterdam Index Futures
Euronext Liffe Amsterdam
Mon - Fri; 08:00 - 17:30
Euro200 x Index
0.05
Cycle of 1, 2, 3, 6, 9, 12 months
Until 16:00 on the 3rd Friday of the contract month
<0#AEX:>, nearest month <AEXc1>, contract details
<AEX/AEX1>
EO (Month Code)(Last Number of Year) <Index>
Brief History
Non-residents: depends on tax treaties.
Amsterdam was home to the world’s oldest official stock market which
began trading at the beginning of the 17th Century. The United East India
Company was the first company in the world to be financed by the issuing
of shares to the public, and throughout the 18th Century Dutch investors
played a dominant role in financing foreign investments in both public
and private sectors. In September 2000, Amsterdam Exchanges merged
with the exchanges of Brussels and Paris to form Euronext, now called
NYSE Euronext.
Dividends are subject to a 25% withholding tax. This tax is reduced for
residents of countries having tax treaties with The Netherlands. There is
no withholding tax on income from bonds and there is no capital gains tax.
Foreigners may freely trade in Dutch securities. There are no exchange
control restrictions on the repatriation of capital and earnings. Dividends
paid on Dutch shares are transferable to non-residents in the currency of
their country or in any other currency.
Trading System
The Euronext single cash electronic trading system, NSC, is used across
all the Euronext Cash Market locations. NSC is a centralised, orderdriven market with a single centralised electronic order book and uniform
market rules for all European and non-European equities. A worldwide
standard in trading technology, NSC is based on an open architecture
allowing customised solutions using the standard international formats of
MMTP and FIX, and incorporating the reliable and secure communications
protocol of a TCP/IP transport layer. The NSC system is the most widely
used system of its kind in the world today, and versions of the NSC are
operational at the exchanges of Toronto, Montreal, Sao Paolo, Warsaw, the
Chicago Mercantile Exchange and the Singapore Mercantile Exchange.
Trading on the Euronext Cash Market is based on two mechanisms:
continuous trading and auctions. The most liquid securities are traded
continuously during market sessions. Less liquid securities can be traded
continuously with the aid of a liquidity provider, or exclusively in actions.
Liquidity providers are dealers (members entitled to trade exclusively
for their own account) that have undertaken, with the approval of the
relevant market operator, to improve liquidity in a particular security. Trade
reporting for off-order book trades can be done through Euronext’s Trade
Confirmation System (TCS), which can be accessed via the web or via
standard means.
Tick Size
A specific fixed tick size of EUR0.005 will be implemented for certain stocks
traded above EUR10. The tick size for all other trades is listed below.
Price (EUR)
From
To
Tick Size
0
0.2500
0.0005
0.251
2.500
0.001
2.505
10.000
0.005
>10.01
-
0.01
There are no specific rules for the short selling of equities however each
regulatory authority in each country has its own specifications. Although
permitted in the Netherlands, short selling is rarely practised. Uptick rules
do not apply in the Central Order Book, cross trades can be made only
for Securities traded continuously and within the market’s best bid/ask
spread at the time of execution.
Main Indices
Board lot
Circuit Breakers
AEX Index
10% from the static reference price which is reset every time the market
breaks its upside/downside threshold; which is the last closing price for
the opening. Trading then resumes after a 4-minute halt. If the traded price
deviates more than 2% from the dynamic reference price, the last traded
price, the market halts for one minute.
Currency
Pre-Opening: 07:15 - 09:00
Euro (EUR)
Pre-Closing: 17:30 - 17:35
package structure for all Euronext Cash Markets. Members are free to
charge their clients commission on a negotiable basis in the majority of
Cash Market locations.
17:35 - 17:40
For individuals who are not engaged in an enterprise and who are not
performing other activities in respect of the shares which are beyond
the scope of regular portfolio investment activities, income derived from
investments is fixed at a deemed yield of 4% of the net value of the assets
as at 1st January and 31st December, which is subject to a 30% tax. The
economic value of the investments is therefore taxed at 1.2% per year.
Capital gains are generally not taxable. Dividends paid by a resident
company are subject to dividend tax of 25% which may be set off against
the income tax due. There is no withholding tax on interest.
84
Futures Information
Continuous Trading:
09:00 - 17:30
Market Size
as of February 2008
T+3 Business Days
Currency Exchange
USD1 = EUR0.65845
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg FoX15 Index Futures
Sydney Futures Exchange
07:45 - 15:15 (Sydney)
NZD10 x Index
1
Mar, Jun, Sep & Dec up to 4 quarter months ahead
16:30 on the 2nd to last business day of the
contract month
<0#NTP:>, nearest month <NTPc1>, contract
details <NFE/NTP1>
ZI (Month Code)(Last Number of Year) <Index>
New Zealand
Internet: www.nzx.com
Primary Exchange
New Zealand Exchange (NZX)
Brief History
The first stock exchanges in New Zealand opened during the Gold Rush in
the 1870s, however the majority lasted only as long as the gold reserves.
With increasing autonomy and eventually independence from the UK the
stock exchanges consolidated and grew towards the end of the 19th and the
start of the 20th Century. The Stock Exchange Association of New Zealand
was formed in 1915 and in 1974 all the remaining regional exchanges were
amalgamated into the New Zealand Stock Exchange (NZSE). In 1991 the
regional trading floors were closed and in 1998 the trading system was
fully automated. Today NZX operates its national screen-based trading
and settlement system and associated administrative functions from its
offices in Wellington. The New Zealand Stock Exchange demutualised
on 31st December 2002 and was renamed NZSE Limited, replacing the
former corporate body which operated under the realm of Sharebrokers’
Amendment Act 1981. Shares in NZSE commenced trading on
10th July 2003.
Commission rates are negotiable. There is no stamp duty payable in New
Zealand on the transfer of debt or equity securities.
Trading System
In July 2007 the NZSE introduced a new trading system called GlobalVision
which is provided by developers Trayport. This replaced the previous
FASTER system and offers a more efficient way of Trading on the New
Zealand Market. GobalVision offers a real-time fully electronic securities
exchange, incorporating trading, settlement and registration, as well as
the recording of market information, databases and support information
services. The system allows brokers to enter bids and offers into a terminal
based in their individual offices. Bids and offers are captured on a timepriority basis at each successive price level. GlobalVision has the capacity
for 8,000 trading screens around the world.
Non-resident withholding tax (NRWT) is imposed on dividends paid
to non-resident. The rate is 30% for dividends which is reduced to
15% for residents of countries with a double taxation agreement with
New Zealand.
An overseas person requires consent from the Overseas Investment
Commission when they wish to control 25% or more of a business or
property in New Zealand worth more than NZ$50m, land over 5 hectares
and/or worth more than $10m, any land on most off shore islands and any
land over 4 hectares adjoining certain sensitive areas.
Non-residents are allocated imputation credits but they cannot, under
current arrangements, use them to reduce their New Zealand tax bill. In
September 1993 the New Zealand Government implemented legislation
to place foreign and local investors on a more equal footing by reducing
double taxation for non-resident portfolio investors, i.e. those with less
than a 10% holding in a company.
Tax is payable on the aggregate of cash received plus any ‘foreign
dividend withholding payment’ tax credits attached to the dividend. The
liability is then reduced by a credit for the ‘foreign dividend withholding
payment’. Where dividends are reinvested in the form of shares, the tax
base for non-resident withholding tax will include the amount of the cash
dividend foregone.
Main Indices
NZX 50 Index
NZX 15
NZX 50 Portfolio Index
Monday - Friday
Enquiry: 08:00 - 09:00
09:00 - 10:00
Normal Trading: 10:00 - 16:45
Market Size
as of February 2008
USD44.9bn
Currency
New Zealand Dollar (NZD)
T+3 Business Days
There is a penalty charge if no delivery on settlement day. Short sales are
not permitted if the transaction will amount to more than 10% of the total
number of shares issued.
Crossing is allowed onshore but must be reported to the exchange.
Offshore crosses are not allowed. Trades can be put through the market
but the price has to be within the bid/offer spread unless over USD3m or
concerns a non-resident.
Board Lots
Share Price
Lot
USD1 = NZD1.25570
NZD0 - 0.25
2,000
EUR1 = NZD1.89265
NZD0.26 - 0.50
1,000
NZD0.51 - 1.00
500
NZD1.01 - 2.00
200
NZD2.01 - 5.00
100
NZD 5.01 - 10.00
NZD5.01 - 10.00
NZD10.01 and over
25
Pre-Close: 16:45 - 17:00
Currency Exchange
Adjust: 17:00 - 17:30
Enquiry: 17:30
Short selling is allowed subject to rules and specifications of the
regulatory authority.
85
Nigeria
Futures Information
None
GMT +1hr
Internet: www.nigerianstockexchange.com
Primary Exchange
Nigerian Stock Exchange
Brief History
The Nigerian Stock Exchange (NSE) was established as a securities trading
exchange in 1960, the same year Nigeria gained its independence from
Great Britain. The Exchange started with 19 securities listed for trading
recording a total market capitalisation of NGN4.3m.
In October 1999, the Johannesburg Stock Exchange and the NSE signed
a memorandum of understanding for cross-border listing of securities. An
estimated 47% of all securities held in the Nigerian stock market are held
by foreign institutional investors.
Trading System
Securities’ trading on the Nigerian Stock Exchange is carried out on the
Automated Trading System. The dealing members are all connected to a
trading engine, which executes market orders in less than 2 seconds.
The trading platform has a facility for remote or off-site trading which has
been fully operational on the regional trading floors, allowing brokers in
the regions to trade online in real time with their counterparts on the main
trading floor in Lagos.
The Nigerian Stock Exchange has implemented a fully remote trading
capability. This allows brokers to trade on the trading floor, using the
Internet, from sites anywhere in the world. The Nigerian Stock Exchange
website, permits brokers and investors to monitor the market in real time,
make investment decisions and enter orders from remote locations.
Brokerage Fee:
1% to 2.75%
Stamp Duty:
0.075%
Securities and Exchange Commission Fee: 1%
The Nigerian capital market was deregulated in 1993 and in 1995 the
Federal Government of Nigeria abrogated all the laws that restricted
foreign participation in the stock market.
Foreign institutions and individuals are taxed on their Nigerian income only.
Corporate tax is generally charged at 30% based on total profit, whilst
individuals are taxed up to 25%. A 10% withholding tax is deducted from
dividend payments to companies and individuals. Capital gains are taxed
at 10%.
A member firm can only conduct a short-sell in its own books or on behalf
of a client to a market price that is higher than the official bid price in the
security. This does not apply for market makers, provided that the short
sell follows from the obligations the member has as a market maker. The
short sell shall be supported by a securities borrowing transaction. All
short sells have to be reported to the OSE latest by 19:00 on trade date.
The member firm shall in addition report the accumulated volume of all
stock borrowed the last trade date every week. ‘Covered’ short sales are
allowed in an uptick situation.
86
Main Indices
Currency
The Nigerian Stock Exchange
Nigerian Naira (NGN)
Common Stocks (All Share)
Index
T+3 Business Days
Monday - Friday
Currency Exchange
Trading Hours:
10:00 - 12:00
USD1 = NGN117.0250
Market Size
as of February 2008
USD107.2bn
EUR1 = NGN177.5117
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg OBX Index Future
Oslo Stock Exchange
Mon - Fri; 08:00 - 15:20 (Oslo)
NOK100 x Index
Tick size is 0.01 when futures price is less than 0.1; 0.05
when futures price exceeds or equals 0.1; and 0.25
when the futures price exceeds or equals 4.0.
All 12 months in 1,2 & 3 month terms
3rd Thurs of expiration month
<0#OBX:>, nearest month <OBXc1>, contract details
<OSL/OBX>
OI (Month Code)(Last Number of Year) <Index>
Brief History
Norway’s first exchange, Christiania Stock Exchange, was officially opened
on 15th April 1819. Shares and bonds were not common in Norway prior
to 1880 when an initiative was taken to establish a stock exchange in
the nation’s capital. The Exchange’s activity was very modest, with prices
fixed once a month in the presence of the city’s two brokerage houses.
Weekly fixings were not introduced until after World War I, and daily fixings
started in 1922. Trading became fully electronic in 1999 when the trading
floor was discontinued. After 182 years as a self owned and non-profit
organisation, Oslo Børs became a public limited company on 22nd May
2001. The Exchange is also a member of the NOREX Alliance and adheres
to the same regulatory framework as the OMX stock markets.
Trading System
Trading on the SAXESS platform commenced in May 2002. The trading
platform allows remote membership and has an electronic order book
with automatic matching. There is no floor trading. All shares are quoted
and traded continually. In the free-trade period all trades in individual
shares must be at least 1 trading block (approximately NOK10,000)
in size. Official trading takes place from 09:00 to 16:20 (17:20 from
1st September 2008), when a closing auction takes place. The auction is
finished at 16:30 (17.30 from 1st September 2008). The system, however,
is open from 08:15 to allow brokers to input buy-and-sell orders and to
register any trading which has taken place since the previous tradingday’s close. Trades which take place between authorised brokers outside
the Exchange must be registered in the system within five minutes of
completion. Trades which are completed outside official Trading Hours
must be registered before 09:00 the next trading day.
Norway
Internet: www.oslobors.no
Primary Exchange
Oslo Børs
On the 28th February 2008 the Oslo Borse started negotiation with
OMX regarding the deliverance of the new OMX trading system Genium
Trading. If the negations are successful, the new system will ready for use
in 2010.
Commission fees are negotiable. There are no other taxes.
Tick Size
Bid or Offer Price
Price Tick
0 - < 14.99
0.01
15 - < 49.90
0.05
50 - < 99.90
0.10
100 - < 249.75
0.25
250 - < 499.50
0.50
500 and above
1.00
Norwegian shareholders normally pay a 28% tax on capital gains arising
from share transactions.
Norwegian companies normally make one dividend payment per year, from
which withholding tax is deducted. Withholding tax varies from 0-25%,
depending on the taxation agreements in existence between Norway and
the country in question, but is 15% in most cases.
Main Indices
Board Lots
Oslo Børs Benchmark index
(OSBEX)
Oslo Børs Small Cap Index
Trading takes place in round lots
i.e. a round number of securities
representing a market value of
approximately NOK 10,000.
Members may also trade in
smaller lots, so-called odd lots,
on a separate board
Currency
Monday - Friday
Norwegian Krone (NOK)
Oslo Børs All-Share Index
(OSEAX)
Oslo Børs Mutual Fund Index
Pre-Trade: 08:15 - 09:00
Continuous Trade: 09:00 - 16:20
(from 1st September 2008
17:20 - 17:30)
Market Size
as of February 2008
A member firm can only conduct a short-sell in its own books or on behalf
of a client to a market price that is higher than the official bid price in the
security. This does not apply for market makers, provided that the short
sell follows from the obligations the member has as a market maker. The
short sell shall be supported by a securities borrowing transaction. All
short sells have to be reported to the OSE latest by 19:00 on trade date.
The member firm must in addition report the accumulated volume of all
stock borrowed the last trade date every week. ‘Covered’ short sales are
allowed in an uptick situation.
T+3 Business Days
Currency Exchange
USD1 = NOK5.21790
EUR1 = NOK7.90530
USD284.9bn
87
Oman
Futures Information
None
GMT +4hrs
Internet: www.msm.gov.om
Primary Exchange
Muscat Securities Market
Brief History
The Muscat Securities Market (MSM) was established in 1988 and
trading began in May 1989. The MSM secondary market consists of the
Regular, Parallel, Third and Bond sub-markets. The Regular Market is for
established companies with a history of profitability and sufficient liquidity.
The Parallel Market is for new companies, or companies which no longer
meet the requirements of the Regular Market. The Third Market has been
restructured with regard to listing requirements and trading. There will be
a specific place, time and a specific system for trading which will take
place on the market floor instead of the brokers’ offices as was previously
the practice.
The MSM is one of the most open Arab stock markets for foreign investors.
There are no taxes on dividends or capital gains, no restrictions on foreign
investors repatriating their profits, and the currency is freely convertible.
The market has used electronic trading since 1998.
Trading System
The exchange now uses the French ATOS Euronext trading system. This
system, which replaced the original electronic trading system introduced
in 1998, ensures that data and information are provided immediately for
the market. It also offers a facility to connect to the other exchanges in the
GCC and to add further trading instruments in the future.
Circuit Breakers
Trading is temporarily suspended if the stock fluctuates by 5% or more
from the previous day’s close.
Brokerage companies and investment banks dealing in the field of
securities may charge the client a commission ranging between 0.75%
as a maximum limit and 0.4% as a minimum limit of the market value for
each order for any amount from OMR1 to OMR100,000. This percentage
includes the broker’s commission and the MSM’s commission. The
MSM receives 20% of the maximum limit. Where the market value of the
order is more than OMR100,000 the charges are 20% of 0.5% of the
excess amount.
Currency
Muscat Securities Market Index
(MSM 30)
Omani Rial (OMR)
Sunday - Thursday:
T+3 Business Days
The minimum limit of the broker’s commission is OMR0.5 and the minimum
limit of the MSM commission is OMR0.2.
Pre-Open: 9:30 - 10:00
Currency Exchange
USD1 = OMR0.38495
Market Size
The Muscat Securities Market operates one of the most liberal stock
exchanges in the region. There are several incentives for foreign investment
on the MSM. Such as no tax on capital returns or profits, no restrictions on
capital profits or transfers, no restrictions on exchange processes, fixed
exchange transfers, low corporate profit tax, no prior permission required
for foreigners to invest in listed companies (where ownership of up to
100% is permitted) or investment funds. In Oman foreign ownership of up
100% is permitted, no personal income tax and a corporate tax holiday of
up to 10 years, amongst others.
88
Main Indices
as of February 2008
USD13.3bn
USD15.5m
EUR1 = OMR0.5839
Pakistan
Futures Information
None
GMT +5hrs
Internet: www.kse.net.pk
Primary Exchange
Karachi Stock Exchange
Brief History
On 18th September 1947, just one month after partition from India and
independence from Great Britain, The Karachi Stock Exchange (KSE)
was founded. It was converted and registered as a Company Limited
by Guarantee on March 10th 1949. In November 1991 the KSE-100
was introduced and is still the most generally accepted measure of the
exchange. In 1995 the KSE-100 was joined by the KSE All Share Index.
The KSE is currently in the process of demutualisation.
Brokerage on Sale and Purchase: Brokerage on transactions is freely
negotiable between the brokers and clients.
Trading System
Local Tax: 0.02%.
The Karachi Stock Exchange has introduced a computerised trading
system known as Karachi Automated Trading System (KATS) to provide a
fair, transparent, efficient and cost effective market for investors. Currently,
the exchange conducts one trading session from Monday to Thursday
and two sessions on Friday. Trading is divided into four distinct segments,
each of which has its own clearing and settlement procedure. These are:
T+2, Provisionally Listed Companies, Spot (T+1) Transactions and Future.
Internet-based trading was introduced in December 2004.
Stamp Duty/Registration: Stamp duty is charged at 1.5% of the face
value of the shares under the physical form of transfer. There is no stamp
duty for transfers settled through the Central Depository System; however,
there is a one time stamp duty at the rate of PKR0.01 per share at the time
of deposit of securities in the CDS.
Foreign investors are freely allowed to operate in the capital market without
any retention period.
Funds invested in the capital market are freely transferable along with
dividend income.
Foreign investors are treated on-par with local investors in tax treatment.
Off-market crosses are allowed, but they have to be reported by 15:00
and will appear as a tick on the following day’s trades. Crosses are a
significant part of the volume traded (currently 10-15%).
Local Investors: Capital gains on sale of listed securities are exempt
from income tax up to the year 2008. This exemption has been available
since 1974.
Currently the exchange conducts one trading session Monday to
Thursdays and two sessions on a Friday.
Foreign and non-resident investors have to pay withholding tax on their
dividends. If due to a double taxation treaty the stockholder can claim a
rebate, the custodian will have to be informed. Dividends are subject to
withholding tax at different rates. Where the recipient is a public company
or an insurance company, the rate is 5%. For others the rate is 10%.
However, where the company declaring the dividend is a power generation
entity the tax is withheld at 7.5% from recipients other than public and
insurance companies.
Circuit Breaker
The KSE has imposed a circuit breaker of 7.5% or Rs1.50 for upward
price fluctuation and 5% or Rs1 for downward price fluctuation.
Main Indices
Currency
KSE 100 Index
Pakistani Rupee (PKR)
Foreign investors are prohibited from short-selling. Cross selling is permitted.
KSE All Share Index
KSE 30 Index
Monday - Thursday
Pre-Open: 09:30 - 09:45
Open: 09:45 - 14:15
T+2 Business Days
Currency Exchange
USD1 = PKR62.68500
EUR1 = PKR95.1512
Friday:
Pre-Open: 09:15 - 09:30,
14:15 - 14:30
Open: 09:30 - 12:00,
14:30 - 16:00
Market Size
as of February 2008
USD68.7bn
USD42.1m
89
Palestine
Futures Information
None
Internet: www.p-s-e.com
Primary Exchange
Palestine Securities Exchange
Brief History
The Palestine Securities Exchange (PSE) was incorporated as a private
shareholding company in March 1995 with its Board of Directors elected in
the same year. The exchange is controlled by is the Palestine Development
& Investment Company (PADICO). PADICO aims to invest directly or
through subsidiary companies in diverse projects that will help rebuild the
economic infrastructure of the occupied Palestinian territories. The PSE
held its first session in February 1997. Shares of the listed companies are
mostly traded in Jordanian Dinars, whilst some are traded in US Dollars.
The PSE is the sole securities market in Palestine.
Trading System
PSE’s Stock Exchange Management System (SEMS) is a high-performance
automated trading system. Trading is order-driven under which share
trading originates from an order by a client, as either a market order or a limit
order. Order entry is conducted via remote terminals located at members’
offices throughout the region. The broker workstation provides the broker
with up-to-date market information, order status inquiries and reporting,
and user-friendly facilities to enter and manage orders. Instruments can be
traded and settled in different currencies. The trading system is capable
of trading several financial instruments, however currently only equities
are traded.
Circuit Breakers
± 5% movement from last closing price.
Commissions are imposed on both parties of the transaction and all fees
and commissions are subject to VAT.
PSE commission
0.002
Member commission
0.0047
Main Indices
Currency
CMA commission
0.0005
The Al-Quds Index
Jordanian Dinar (JOD)
Total
0.0072 (minimum 1JD)
None.
Sunday-Thursday
Pre-Open: 09:45 - 10:00
T+3 Business Days
Continuous Trading:
10:00 - 12:00
Currency Exchange
Pre-Close: 12:00 - 13:00
USD1 = JOD0.7052
Close: 13:00
EUR1 = JOD1.0756
Market Size
as of February 2008
Average Daily Volume: USD1.1m
90
US Dollar (USD)
Panama
Futures Information
None
GMT -5hrs
Internet: www.panabolsa.com
Primary Exchange
Panama Stock Exchange
Brief History
The Bolsa de Valores de Panama (Panama Stock Exchange Inc) started
operations in 1990. During the early 1970’s a group of securities brokers
had made a serious effort to set up a stock exchange, meeting for several
months and publishing the results of their trades, but this venture failed.
Decree No. 247 of July 1970 created the Comision Nacional de Valores
and this was modified by Decree No. 1 of 8th July 1999 which created the
National Securities Commission (SEC) and regulates the stock market in
Panama. Since the early 1990’s the exchange has helped facilitate growth
brought about by political reforms and economic stability.
There is no taxation on capital gains and interest income. There is a 10%
withholding tax on dividends.
The USD is the legal currency of Panama and all securities are issued and
traded in them. There are no restrictions on foreign ownership of local
corporations and no restrictions on capital repatriation.
Trading System
The Stock Exchange operates an electronic trading system with remote
trading terminals for all Stock Exchange seat holders. In certain special
circumstances where the electronic system fails, the BVP has adopted
open outcry trading norms for used on the Stock Exchange floor with
a physical presence of the participants. All trades in the Exchange are
carried out by individuals who have a licence issued by the SEC to act
as securities brokers. The securities brokers work for companies that
have bought the right to buy and sell securities or to have a seat on
the Exchange.
Brokers’ commission is negotiable within a range of 0.5 - 2% of the
transaction value.
Main Indices
Currency
BVPSI (BVP Index)
Panamanian Balboa (PAB)
US Dollar (USD)
Monday - Friday
10:00 - 15:00
T+2 Business Days
Market Size
Currency Exchange
as of February 2008
USD1 = PAB1.000
USD3.38bn
EUR1 = PAB1.5172
Average Daily Volume: USD2.3m
91
Paraguay
Futures Information
None
GMT -4hrs (-3 DST)
Internet: www.bvpasa.com.py (Spanish Text Only)
[email protected]
Primary Exchange
Asunción Stock Exchange
Brief History
The Asuncíon Stock Exchange (Bolsa de Valores y Productos de Asuncíon,
or BVPASA) was established in September 1977. Exchange operations
began in 1978 but it was inactive from 1982.
In 1991 Law 94/91 governing the capital markets in Paraguay was
promulgated. This law also created the National Securities Commission
(Comisión Nacional de Valores). The Exchange reopened in 1993.
Trading System
Trading on the Asuncíon Stock Exchange is by open outcry.
Exchange Transaction Fees
Instrument
Commission
Fixed incomes
0.025% of transaction value
Equities
0.15% of transaction value
Brokerage House Commission: Freely negotiable and each brokerage
house decides on its own policy on brokerage commission.
The legislation on foreign capital allows capital to enter and leave Paraguay
without difficulty. Foreign corporations doing business in Paraguay are
subject to the same tax rules as those applied to domestic business
entities. With the implementation of the new tax system, corporate income
will be subject to a 30% tax rate. In the case of reinvestment, the income
tax is reduced to 10%.
Main Indices
Currency
PDV General
Paraguayan Guarani (PYG)
PDV 20
Monday - Friday
11:00 - 15:00
Market Size
2007
Market Capitalisation: USD420m
92
T+2 Business Days
Currency Exchange
USD1 = PYG4605.00
EUR1 = PYG6986.71
Peru
Futures Information
None
GMT -5hrs
Internet: www.bvl.com.pe
Primary Exchange
Lima Stock Exchange
Brief History
The Electronic Trading System only allows the following types of firm bids:
The Lima Mercantile Exchange was established in the mid-19th Century.
In 1860 the institution was reorganised, adopting the name of the Lima
Commercial Exchange, until 1951 when it was renamed the New Commerce
Exchange. On 22nd September 1970, the current LSE was founded as a
non-profit civil partnership, in accordance with Decree Laws 18302 and
18350, issued by the governing military dictatorship. The Special General
Associates’ Meeting of 19th November 2002 resolved to convert LSE into
an equity for profit company, effective 1st January 2003.
Today: These are registered in the system only until the end of the same
day unless they are accepted or withdrawn during trading.
Trading System
The Electronic Trading System (ELEX), implemented in August 1995,
is a mechanism developed to facilitate trading operations on the Lima
Stock Exchange. This system has been developed under a client-server
model which optimises the handling of market information, and enables
brokerage firms to carry out trades remotely by interacting with the
Exchange’s central computer in real time through a personal computer
installed in their own office.
Stock Mode: Entry of Firm Bids - During this phase, from 09:00 to
09:30, stock brokers enter firm bids which cannot be withdrawn until after
the opening.
Trading: This is the period between 09:30 and 13:30, during which buying
and selling bids are entered and continuous transactions are traded on the
basis first of price and second of time.
Closing: Between 13:30 and 14:00 operations are effected at their
respective closing prices.
Permanent: These remain registered for an indefinite time, until they are
accepted, withdrawn or remain outside the margins of the market.
Immediate or Cancel: When these bids are entered, the system tries
to place them partially or completely. If placed partially, the system
automatically eliminates the balance and when not placed at all, the bid is
completely eliminated.
All or None: These bids must be applied integrally at the time they
are entered into the system; if this is not possible, the system eliminates
them automatically.
Price Fixing Over Time Bids: These bids remain in the Bid Register until
such time as they are applied, cancelled by the user or system because of
being outside market ranges or because they have expired.
The brokerage agency commission is a variable amount, freely negotiable
between brokers and their clients. A value added tax (VAT) of 18% is
applied to the sum of the brokerage agency commission plus the LSE fee,
settlement fund contribution and the CAVALI and CONASEV fees forming
the total cost for investors.
Equities
LSE fees Guarantee Settlement CAVALI CONASEV
Fund
Fund
Fees Contributions
Spot Market
0.0825%
0.0075%
0.005%
0.065%
0.05%
0.03%
0.0075%
0.005%
0.045%
0.05%
Day Trade
Main Indices
Market Size
General Index of the Lima Stock
Exchange (IGBVL)
as of February 2008
Selective Index of the Lima Stock
Exchange (ISBVL)
USD22.5m
Selective Perú-15 Index (ISP-15)
Monday - Friday
Pre-Opening: 09:00 - 09:30
Continuous Trading:
09:30 - 13:30
Closing Transactions:
13:30 - 14:00
The trading session for Peruvian
shares that are cross-listed on
exchanges in the US is extended
to 16:10
Currency
There is no distinction between residents and non-residents.
The tax rate on long-term capital gains in Peru is 30%. An income tax
of 4.1% is applied over dividends distributed by listed companies when
the decision to distribute dividends was taken by the company after
1st January 2003. Domestic institutional investors are exempt from this
tax. Dividends are subjected to a withholding tax at the rate of 4%.
Peruvian Nuevo Sol (PEN)
Short selling is permitted in Peru. Foreign and local investors are allowed to
execute transactions on equity transactions listed in the Tabla de Valores
Referenciales (TVR). Collateral must be 50% of the total amount of the
transaction during the period from trade date until purchase transaction or
securities lending is made.
T+3 Business Days
Currency Exchange
USD1 = PEN2.8895
EUR1 = PEN4.3839
The LSE is informed of all short selling transactions and will penalise
investors that do not comply with the collateral requirement. They will be
subject to a 5% penalty of the total amount of the transaction, which will
be part of the LSE guarantee fund.
93
Philippines
Futures Information
None
GMT +8hrs
Internet: www.pse.com.ph
Primary Exchange
Philippine Stock Exchange
Brief History
The Philippine Stock Exchange (PSE) was established in 1992 from the
unification of The Manila Stock Exchange (founded in 1927) and the
Makati Stock Exchange (founded in 1963). In March 1994 the one-priceone-market exchange was achieved through a successful computer
linkup between the two existing trading floors of the PSE, producing a
single open-and-close price for all traded stocks. In 2001 the PSE was
reorganised and transformed from a non-stock, member-governed
organisation into a shareholder-based, revenue-generating corporation.
In October 2007 the PSE revised the rules on short selling. Short selling is
defined as any sale with borrowed securities. According to the rules, short
selling is only allowed at a price higher than the last sale price except in
case of odd lot sales.
Board Lots and Price Ticks
Minimum Fluctuations
Board Lot
0.001 to 0.0024
0.0002
1,000,000
Trading System
0.0026 to 0.0050
0.0002
1,000,000
Trading is fully automated, using the Maktrade trading system. The two
trading floors use the single order-book system on where all orders are
posted and matched in one computer.
0.0055 to 0.0100
0.0005
1,000,000
0.0110 to 0.0250
0.001
100,000
0.0260 to 0.0500
0.001
100,000
0.0525 to 0.1000
0.0025
100,000
0.105 to 0.2500
0.005
10,000
0.2600 to 0.5000
0.01
10,000
0.5100 to 1.000
0.01
10,000
1.020 to 2.500
0.02
1,000
2.550 to 5.000
0.05
1,000
5.10 to 10.00
0.1
1,000
10.25 to 25.00
0.25
100
25.50 to 50.00
0.5
100
50.50 to 100.00
0.5
100
101.00 to 250.00
1
10
252.50 to 500.00
2.5
10
5
10
Investors must place their orders through stockbrokers licensed by the
Securities and Exchange Commission. Bid and ask prices are keyed into
the Maktrade system, and prioritising of orders takes place according
first to price and then to time (first entered = first done). The system was
modified to allow bond trading from 2001.
The minimum board lot and price fluctuation vary depending on the
movement of the market price of the security. The price of an issue moves
within a trading band of 505 ceiling and 40% floor base on the previous
day’s closing price or last posted bid price, whichever is higher.
The PSE prescribes the following charges.
Fees / Taxes
Price
505.00 and up
Seller
Buyer
Brokerage Commission (between 0.125% and 0.25% of
transaction cost + 12% VAT)
X
X
Securities Clearing Corporation of the Philippines Fee of
0.0001 x value of transaction
X
X
Transfer Fee of Php100.00 + 12% VAT
X
Cancellation Fee of Php20.00 + 12% VAT
X
Stock Transaction Tax (0.05bps value of transaction in lieu
of capital gains tax)
X
Main Indices
Board Lots
PSE Composite Index
Board lots vary with share price
and range from 10 shares to one
million shares. Any unit smaller
than a board lot is considered an
odd lot. Trading is done by board
lots and a maximum of five board
lots are allowed per trade
Monday - Friday
Pre-Open Period: 09:00 - 09:30
For citizens or resident alien individuals, cash and/or property dividend
earned on or after 1st January 2000 from a domestic corporation is taxed
at 10%. For non-resident alien individuals, cash and/or property dividend
from a domestic corporation is subject to an income tax of 20% on the
total amount thereof.
A tax reform law, Republic Act No. 8424, took effect on 1st January 1998.
Under this law, except in cases where tax treaties are in force, dividends
received from domestic corporations are subject to a withholding tax of
25% if the recipient is a non-resident individual not engaged in trade or
business in the Philippines, and 32% if the recipient is a non-resident
foreign corporation.
Foreign Investment is limited to 40% for public utilities, banks and
corporation in the natural resource sector. Foreigners cannot purchase
retail or mass media companies.
94
Calculation of Open Price/Start
of Regular Trading: 09:30
Regular Trading Hours:
09:30 - 12:00
Closing Time (end of regular
trading/calculation of closing
price, run-off time; trading at
closing prices): 12:00 - 12:10
Market Size
as of February 2008
USD93.6bn
USD115m
Currency
Philippine Peso (PHP)
T+3 Business Days
Currency Exchange
USD1 = PHP40.7450
EUR1 = PHP61.8183
Futures Information
Main Contract Trading Exchange Trading Times Contract Size WIG20 Futures Index
Warsaw Stock Exchange
09:00 - 16:30
PLN10 x index
Tick Size 1
Contract Months Expiration Day Bloomberg Three nearest months from the March quarterly cycle
Same as trading day
WI (Month Code) (Last Number of Year) <Index>
Poland
Internet: www.gpw.pl
Primary Exchange
Warsaw Stock Exchange
Brief History
Taxes, Market Charges & Compulsory Commissions:
The Warsaw Stock Exchange (WSE) in its current form started its operations
in April 1991 and since this date trade has been conducted electronically.
However, the history of Polish capital markets goes back to 1817 when the
first exchange was opened in Warsaw. Operations ceased with the onset
of World War Two and with the subsequent communist control, it was only
when democracy returned in the early 1990’s were economic and political
conditions suitable for the WSE to operate. The WSE has been a member
of the International Federation of Stock Exchanges since October 1994. In
May 1997, it received from the US Securities and Exchange Commission
the status of a designated offshore securities market. In June 1999, the
Exchange became an associate member of the Federation of European
Securities Exchanges. In February 2002, the Warsaw Stock Exchange and
Euronext signed an agreement on cross-membership and cross-access.
This agreement will allow WSE members to have access to Euronext
products and vice versa. Since Poland’s accession into the European
Union (May 2004), the Exchange is a regular FESE member.
The exchange does not determine brokerage commissions. However, the
standard rates for equities are 0.9% per USD5000 0.8% per USD10,000
and 0.6% per USD50,000. For bonds the commission rates are between
one third and half as much.
Trading System
Trading on the Warsaw Stock Exchange is order-driven, centralised and
paperless. In the WARSET system, introduced in November 2000, all
listed companies are divided into separate groups based on their liquidity
assessment. The most liquid stocks are traded in the continuous trading
system, while less liquid ones are allocated to the single-price auction
system. Stocks of one company may only be quoted in one system. Each
quotation system has its own schedule. Bonds and derivative instruments
are traded in the continuous system. For some securities, trading is
supported by market makers (animators). Large blocks of securities may
be traded off-session, without affecting retail market prices.
Main Indices
Board Lot
WIG20
1
Currency
Monday - Friday
Polish Zloty (PLN)
Opening Auction:
09:30
Official Trading Hours:
09:00 - 16:35
Continuous Trading for Futures
Market: 09:00 - 16:30
(09:00 - 16:35 for T-note futures)
The National Depository for
Securities settles all transactions.
The settlement system is based
on T+3 Business Days and
delivery versus payment system
Single Price Auction with Two
Auctions: 11:15, 15:00
Currency Exchange
Market Size
EUR1 = PLN3.5436
Foreign investors are subject basically to the same regulations as domestic
investors. However, their tax obligations are additionally regulated by
provisions of double taxation treaties. Poland has such treaties signed
with most European countries and developed countries outside Europe.
According to those agreements, as a rule, income derived by foreign
investors from the exchange in Poland is subject to taxation in the country
of residence (domicile). The investor must, however, present a relevant
certificate of residence for that. Otherwise, the income will be taxed in
Poland at a 19% rate.
Short selling is allowed on the Exchange for most liquid stocks, a list of
which is updated daily on the WSE website. Short selling is only available
to local brokers and is rarely practiced.
A cross sale can be made if:

At least one exchange member submits a buy order and a sell order
for the same number of securities at the same price and with the
same settlement date.

The block has a value of:

–
At least PLN 3 Million -
for shares that are included in the
WIG20 index.
–
At Least PLN 1 Million - for shares traded in the continuous
trading system.
–
At least PLN 0.5 Million - for other securities.
The maximum difference between the security price in order and the last
price of this security from a trading session does not exceed 0.5%.
Tick Size
Stock Price (PLN)
Tick Size
0 - 4.9
1
5.0 - 20.9
5
21 - 100
10
101+
50
USD1 = PLN2.3355
as of February 2008
USD183.5bn
USD435m
95
Portugal
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size
Contract Months Expiration Day Reuters Bloomberg GMT +0hrs (+1hr DST)
Primary Exchange
Euronext Lisbon
PSI -20 Index Future
Euronext Lisbon
Mon - Fri; 08:00 - 16:35
EUR1 x Index
EUR1
Current month, following calendar month and the four
closest months of the Mar, Jun, Sep & Dec cycle
Business day immediately after last trading day
<0#PSI20:>, near month <PSI20c1>, spreads
<0#PSI20-:>, contract details <BDP/PSI20>
PP (Month Code)(Last Number of Year) <Index>
Brief History
Tick Size
The first modern regulations on broking activity in Portugal were published
in 1825. In 1859 the General Council of Commerce studied a proposal
to create a stock exchange for the negotiation of funds, separate from
the existing one on which goods and securities were traded. Many stock
markets emerged throughout Portugal but the Bolsa de Valores de
Lisboa e Porto (BVLP) was the most prominent. On 6th February 2002
the BVLP joined Euronext to form Euronext Lisbon which is now part of
NYSE Euronext.
A specific fixed tick size of €0.005 will be implemented for certain stocks
traded above €10. The tick size for all other trades is listed below.
Trading System
As of 7th November 2003, Euronext Lisbon has utilised that same trading
and clearing systems as those in the other markets of Paris, Amsterdam
and Brussels. All trades are conducted through the NSC system; within
this fully automated system highly-liquid securities are traded continuously,
whilst the less liquid securities are traded by auction.
Price (Euros)
From
To
Tick Size
0
0.2500
0.0005
0.251
2.500
0.001
2.505
10.000
0.005
>10.01
-
0.01
package structure for all Euronext Cash Markets. The package structure
was adopted by Euronext Lisbon in November 2004, one year after its
migration to the NCS trading system. The current product-driven fee
structure has been in place since February 2005.
Clearing fees are charged to clearing members by the clearing house,
LCH. Clearnet, and include annual membership fees and variable fees that
depend on the member’s activity.
Members are free to charge their clients commission on a negotiable basis
n the majority of Cash Market locations.
Securities transactions and income are subject to the following taxes:

Income Tax – IRS (individuals) or IRC (companies) – charged on
income and capital gains.

Stamp Duty – there is no stamp duty on securities transactions;
financial intermediary commissions are charged stamp duty at a flat
rate of 4%.
Board Lot
PSI 20
1
Currency
Monday - Friday
Euro (EUR)
Opening Auction Phase:
07:15 - 09:00
The tax rate on dividends for residents is 15% (withholding or income)
tax and 25% for non-residents on the full gross amount, plus a further
municipal tax of 2.5% payable by both residents and non-residents.
Continuous Trading:
09:00 - 17:30
Tax
IRS/IRC
IRS/IRC
ISD
Status
Resident
Non-resident
Resident/Non-resident
17:35 - 17:40
Rate
15%
25%
2.5%
Resulting net dividend will be different for residents and non-residents.
Implications for Foreign Investors
Foreign investment is regulated by Investimentos Comercio e Turismo
de Portugal (ICEP). There are no general restrictions on foreign holdings
and presently foreign investment is subject only to a simple notification for
statistical purposes to the ICEP within 30 days following the transaction.
96
Main Indices
Pre-Closing Auction Phase:
17:30 - 17:35
Market Size
as of February 2008
T+3 Business Days
Currency Exchange
USD1 = EUR 0.65845
Qatar
Futures Information
None
GMT +4hrs
Internet: www.dsm.com.qa
Primary Exchange
Doha Securities Market
Brief History
The Doha securities market was established on 26th May 1997 with the
aim of consolidating the financial and economic structure of the country.
It opened with an initial 17 companies listed on the exchange with a total
market capitalisation of USD1.65bn. Originally trades were manual, they
later turned semi electronic and were fully automated in 2002.
with the exchange and get an Investors Identification Number (NIN),
this can be completed through the official website and costs QR.100/-.
Currently, non-Qataris can trade in all listed shares from this date subject
to an ownership restriction of 25% of a listed company’s issued capital.
All non-Qatari investors are required to register with the exchange and get
a NIN number.
Trading System
Trades are conducted through a full automated order driven system called
the (ETS). Trades are completed using a remote system; however brokers
are required to have written authorisation before trade can be conducted.
The Central Clearing and Registration (CCR) is part of the DSM and holds
the register of share ownership. It logs stock transfers that are trading and
processes the clearing and settlement of stock. Q-Tel is the only stock at
present to trade scrip less.
Doha Securities Market Levy: 10% of brokers’ commission. The
commission amount for buying and selling transactions is QR.0.00275
for each QR.1000/-, a minimum charge of QR.30/- will be paid for
the commission.
There are no taxes imposed on profits whether allocated by money or
from the capital profits.
The Doha Securities Market opened its doors to non-Qataris on 3rd April
2005. All investors are required on the Doha Securities Market to register
Main Indices
Currency
DSM 20 Index
Qatari Riyal (QAR)
Sunday - Thursday
T+3 Business Days
Pre-Opening: 09:30 - 10:00
Open: 10:00 - 12:30
Close: 12:30
Currency Exchange
USD1 = QAR3.6362
EUR1 = QAR5.5189
Market Size
as of February 2008
USD53.9bn
97
Romania
Internet: www.bvb.ro
Primary Exchange
Bucharest Stock Exchange
Brief History
Trading in equities in Romania dates back to 1882. In 1948 the stock
market was left without any public companies due to the nationalisation
of the whole economy by the communist government and ceased to
function for almost fifty years. After the Romanian Revolution in 1989 the
economic and business leaders in Romania realised the need to raise
capital and encourage commercial activities, as such the Bucharest Stock
Exchange (BSE) recommenced its operations in November 1995. Initially,
the twenty four founding members of the Stock Exchange Association
were able to trade the shares of just six listed companies; however this
number has since grown to approximately 70 listed companies. The
exchange was fully automated in 1999. In December 2005, the Bucharest
Stock Exchange merged with the RASDAQ Electronic Exchange and as a
result Bucharest Stock Exchange became the operator of both markets;
the regulated market BSE and the alternative trading system RASDAQ. In
November 2006 the BSE signed a cooperation agreement with Wiener
Borse (WBAG) for joint dissemination of BVB data.
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Bloomberg
BET Index Future
Bucharest Stock Exchange
Mon - Fri; 09:30 - 16:30
RON1 x Index
0.1
Mar, Jun, Sep & Dec
Last Friday of the contract month
BET(Month Code)(Last Number of Year) <Index>
Rate (%)
Notes
Capital Gains Tax
16
Applicable to both residents and nonresidents
Dividends
10/15
10% applied to residents; 15% applied to
non-residents
Interest
10/15
10% applied to income related to term
deposits, deposit certificates, saving
instruments; 15% for other saving
instruments
Corporate Income Tax
16
Trading System
The ARENA trading system, introduced in 2001 (for bonds) and 2005 (for
shares and rights), is a flexible trading system with integrated modules for
clearing-settlement operations and for the registry. A share can be traded
in more than one market. They are:

Regular market (an order driven market, used for trading of blocks).

Odd-lot market (an order driven market, used for trading of a volume
of shares less than a block size).

Deal (negotiated market, large blocks of both shares and bonds).

Squaring Up markets (Buy-In, Sell-Out, used for completing
the settlement).

POF (Public Offering).

Unlisted.
The current settings of the BSE include. The price tick is set according to a
price’s range. The trading unit is set based on the market type as follows:
1 block = 500 shares in the Regular market (for most listed companies);
1 share in the Deal market; 1 share in the Odd-lot market (the volume
allowed is less than 1 block); 1 share in the Unlisted market.
Regulations regarding disclosure of take-overs, significant (5%),
controlling (33%), and majority holding interests (>50%) are provided by
the Securities and Exchange Law and by Regulations of the National
Securities Commission.
Circuit Breaker
Currency
Bucharest Exchange Trading
Index (BET)
Romanian Leu (RON)
Monday - Friday
Pre-Opening: 09:30 - 10:00
Continuous Trading:
10:00 - 14:15
Pre-Close: 14:15 - 14:30
Close: 14:30
Market Size
as of February 2008
Trading is limited to a variation of ±15% from the last close price.
USD 48.5bn
Trading fees for shares: In general the BSE charges 0.3% from the value
of a trade for the seller and 0.22% from the buyer involved in the trade.
When the trade is conducted through the deal market the fee becomes
0.2% from the seller and 0.12% for the buyer. The Romanian National
Securities Commission charge 0.08% of the value of the trade for every
buyer; for IPOs 0.1%; for other public offers 0.3%. Up to 8% on each
trade is to be paid by the client to the brokerage house; large investors
can negotiate lower rates.
98
Main Indices
T+3 Business Days
Currency Exchange
USD1 = RON2.4832
EUR1 = RON3.7689
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg Russia Traded Index Futures
Mon - Fri; 09:00 - 17:00
USD10 x index
0.10 point equal to USD1
Next 3 months and the last month of the following quarter
The working day following the last trading day
<0#RTX:>, nearest month (RTXc1>, contract details
<OTB/RTX>
RC (Month Code)(Last Number of Year) <Index>
Russia
Internet: www.rts.ru
Primary Exchange
Russian Trading System RTS
Brief History
The Russian Trading System (RTS) Stock Exchange was established in
1998 by leading dealer-broker companies and professional stock market
participants. Its mission was to consolidate regional securities markets into
an organised securities industry and to regulate OTC trading in Russia. Its
origins, however, trace back to the Russian Trading System – the first
electronic trading floor in Russia, introduced to the market in mid-1995.
RTS operates on a non-commission basis. The Russian government
charges a stamp duty at 0.3% on transfers of ownership of shares.
The RTS was the first market to introduce technological trading in Russia
and the first to issue recognised market regulations. Born as an electronic
OTC trading system, the RTS has developed into the benchmark of the
Russian Securities Industry.
Trading System
All trading on the RTS Stock Exchange is performed electronically. Only
RTS member companies can transact in the Trading System (on behalf of
their clients and on their own account). RTS members access the Trading
System through the RTS Plaza Workstation, a complex of software and
databases installed on their personal computers. The RTS Trading System
is a universal automated screen-based system, constituting both dealerdriven and order-driven markets. Traders input quotes into the system and
trades are either agreed over the phone or the system matches orders
according to a special algorithm and completes transactions. The Trading
System also provides for a trade reporting mechanism and an assets
control vehicle. 90% of trades executed in the RTS Trading System are
processed electronically through the RTS Electronic Agreements Centre,
a trade confirmation system for matching parameters of trades and digital
signing of purchase and sale agreements.
Main Indices
Currency
RTS Index
Russian Ruble (RUB)
Monday - Friday
T+3 Business Days but
depending on the issuer’s registry
can go to T+15
10:30 - 18:00
Market Size
as of February 2008
USD2.1bn
Taxation of foreign investors is in accordance with the Profit Taxation
Law. Regulation of foreign investors is in accordance with the Foreign
Investment Law. The standard rate of tax is 13% for a resident and 30%
for a foreign resident. Withholding taxes for foreign entities is 15% for
dividends and 20% for interest and royalties.
Central Bank approval must be obtained for the following; any investment
of over 50 million roubles; a foreign investment for the acquisition of in
excess of 50% ownership; investments in the defense industries (25%
limit of foreign ownership); or an investment in projects for the exploitation
of Russian’s natural resource (20% limit).
Short Selling in Russia is not a recognised market practice, though there
is no specific legislation to prohibit it.
Currency Exchange
USD1 = RUB24.0315
EUR1 = RUB36.4610
Tick Size
1RUB
99
Saudi Arabia
Futures Information
None
GMT +3hrs
Internet: www.tadawul.com.sa
Primary Exchange
Saudi Financial Market (TADAWUL)
Brief History
The Saudi stock market has its origins in the 1930’s when the first joint
stock company was established. The rapid economic expansion in the
1970s led to the establishment of a number of large corporations and
joint venture banks. Major share offerings were made to the public during
this period. Automated clearing and settlement was introduced in 1989,
followed by the trading platform, the Electronic Securities Information
System (ESIS), in 1990. In October 2001 the Tadawul system was
launched, replacing ESIS. Tadawul offers straight-through-processing,
with real-time settlement on a gross basis. In 2003 the Capital Market
Authority was established to oversee and regulate the market.
Trading System
In 2006 TADAWUL signed an agreement with OMX to replace the old
trading system with one designed by the Swedish firm. The new system
is similar to others designed by OMX and will offer the tadawul increased
speed, capacity and flexibility. The new systems, will display best 10
orders during the trading session. The best 5 price levels will be displayed
during the Pre-open session. The number of displayed price levels can be
increased at any time. No date has yet been set for its implementation.
The maximum commission is 0.0012 of the trade value executed by the
bank. The customer can negotiate a lower commission with the bank.
The minimum commission is SAR12 for any trade equal to, or less than,
SAR10,000. Commission is charged on executed trades only. There is no
charge on order submission, change or cancellation.
Non-Saudi Residents intending to open Trading Investment Portfolios,
regardless their nationalities, are obliged to have a legally valid residence
permit and they must have a bank account with a local Saudi Bank.
Main Indices
Currency
Tadawul All Share index (TASI)
Saudi Riyal (SAR)
100% of shares are settled in real
time i.e. T+0
Pre-Open: 10:00 - 11:00
Continuous Trading:
11:00 - 15:30
Pre-Close 15:30 - 16:30
Market Size
as of February 2008
Average Daily Volume: USD235m
100
Currency Exchange
USD1 = SAR3.7485
EUR1 = SAR5.6943
Serbia
Futures Information
None
Internet: www.belex.co.yu
Primary Exchange
Belgrade Stock Exchange
Brief History
The first exchange on the territories of the former Yugoslavia was
established in Belgrade in 1894. The old Belgrade Exchange operated
almost continuously until interrupted by World War II in April 1941 and
it was officially closed in 1953. In December 1989 the exchange was
re-established under the name The Yugoslav Capital Market - Belgrade.
The name Belgrade Stock Exchange was restored in May 1992. The
Belgrade Stock Exchange is a corresponding member of the World
Federation of Exchanges, and Federation of European Stock Exchanges
and a member of Federation of Euro-Asian Stock Exchanges.
Trading System
Securities can be traded on the exchange and OTC. Transactions can be
executed promptly or on-term. The exchange trading in shares, bonds and
other debt securities is carried out through the BSE trading information
system and electronic trading platform BELEX.
- A or B listing, or OTC trading - Single Auction Price, Continuous Trading
Method, and Minimum price method.
Members of the Belgrade Stock Exchange pay the following fees:

0.12% for selling or buying shares.

0.18% for block transactions in shares.

0.05% for block transactions in securities other than shares.

0.1% for secondary trade of debt securities from the Exchange Lists.
For Securities listed on the exchange market buying and selling of shares
on the A and B lists of the Belgrade Stock Exchange, the fee is 0.10% on
the value of the transaction.
Members of the exchange input orders to BELEX from their working
stations installed in the pits in the Trading Room of the exchange or
at their office location through remote trading. Orders are matched
by the criteria of price and time. Trading agreements are transmitted
to the Central Register and to the members of the exchange who
concluded transaction.
Foreign Legal entities may become Exchange members provided they
have established a brokerage company registered in Yugoslavia, have a
designated person(s) who will be authorised by the Exchange to trade
securities and have fulfilled the minimum capital requirements. There is
no discrimination in regulations regarding domestic and foreign investors;
the precondition for all foreign investments is respect of the principal
of reciprocity.
In the primary securities trading (public offer of securities in the process of
issuing), trading methods are: Proportional sale method, Continuous sale
method and multiply sale method.
Withholding tax on interest rates is 20%, withholding tax on dividend is
20% and withholding tax on capital gains is 14% for legal reasons and
20% for physical persons; tax on transfer of absolute rights is 0.3%.
Secondary trading in shares during trading sessions is organized by the
following trading methods, depending of the place of listing of the securities
There is no ceiling for foreign investments. Exceptions are defined by
Foreign Investment Law, including investment over 25% requiring approval
of competent bodies. Repatriation of capital is allowed with no limit.
Main Indices
Currency
BELEX15
Serbian Dinar (RSD), in
Montenegro Euro (EUR)
Monday - Friday
09:00 - 13:00
Market Size
USD5.64bn
T+3 Business Days
Currency Exchange
USD1 = RSD55.1303
EUR1 = RSD83.7095
101
Singapore
GMT +8hrs
Internet: www.sgx.com
Primary Exchange
Singapore Exchange (SGX)
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg STI Index Futures ETS
Singapore Exchange
Mon - Fri; 08:45 - 12:35, 14:00 - 17:15
SGD10 x Index
1
2 nearest serial months and Mar, Jun, Sep & Dec
months on a 1-year cycle
Second last business day of the contract month
<0#SST:>, nearest month <SSTc1>, contract details
<SIM/SST>
SD(Month Code)(Last Number of Year) <Index>
Brief History
The first trading of stocks in Singapore goes back to 1930 when the
Singapore Stockbrokers Association was formed. The Singapore
Exchange (SGX) was formed in December 1999 following the merger of
the Stock Exchange of Singapore (SES) and the Singapore International
Monetary Exchange Limited (SIMEX). This marked the birth of Asia Pacific’s
first demutualised, integrated securities and derivatives exchange.
Short selling is permitted. However investors are required to make
arrangements to borrow securities before selling short. If investors cannot
settle by the settlement date, he/she will be bought in.
On 23rd November 2000 SGX became the first exchange in Asia Pacific to
be listed via a public offer and a private placement.
In 2007 The London Stock Exchange chose the SGX as its strategic
partner in Asia.
Crossing is allowed, a member firm may cross a trade if it is above the
minimum size threshold (150,000 shares or SG$50,000). Cross trades
executed during Official Trading Hours have to be reported to the
Exchange within 10 minutes of execution. If executed after Official Trading
Hours, the member firm must report it in the first half hour of trading on
the following day.
Trading System
In 2006 the SGX replaced the CLOB trading system with SGX QUEST
(Quotation and Execution System for Trading). This system has been
used on the derivatives market since 2004 and now includes all securities
trading. The new system was constructed by OMX Technology which also
provides the technology for 16 different exchanges which will enhance the
connectivity between SGX and other markets. The system is described
as high speed, state of the art and allows remote access for market
participants as well as increased capacity and liquidity.
Brokerage rates are negotiable for all transactions on the SGX Securitises
Trading. However there are additional charges:

A clearing fee of 0.04% (maximum of HKD3095 and USD393).

Trading free of 0.75bps.

Goods and Services tax (GST) of 5% on brokerage and clearing fees.
Main Indices
There is no dividend tax or withholding tax on dividends paid to nonresidents. However tax at the prevailing corporate tax rate is deducted
from the gross dividends payable. Capital gains are not subject to
Singapore tax and capital losses are not deductible for Singapore tax
purposes. Corporate dividends that are paid (under both the new one-tier
system and old full-imputation tax system) to non-Singapore tax residents
are free from withholding tax.
Straits Times Index
No restrictions exist on the acquisition of foreign securities by residents
but dividends received from abroad are subject to income tax.
Pre-Closing Routine:
17:00 - 17:06
Foreign ownership is restricted only in certain companies; there are also
no limitations on the repatriation of income, capital and capital gains.
Market Size
Monday - Friday
Pre-Open Routine: 08:30 - 09:00
14:00 - 17:00
as of February 2008
USD468.8bn
Board Lots
Shares are mainly traded in
board lots of 1000 shares.
However, the trading of odd lots
is also allowed.
Effective 14 April 2003, the
“Odd Lot Market” was replaced
with “Unit Share Market”, which
enables the trading of odd lots in
th
102
any quantity less than one board
lot of the underlying share in the
Ready Market. Amalgamation of
trades between the Ready and
Unit Share markets is possible,
whereby trades executed
in the two markets for the
same underlying share can be
consolidated in a single contract.
Board lot trading on the existing
Ready Market is maintained
for those who wish to continue
trading in the designated board
lot sizes.
Currency
Singapore Dollar (SGD)
T+3 Business Days
Currency Exchange
USD1 = SGD1.39580
EUR1 = SGD2.1157
Slovakia
Futures Information
None
Internet: www.bsse.sk
Primary Exchange
Bratislava Stock Exchange
Brief History
Bratislava Stock Exchange (BSSE) was founded on the 15th March 1991
when Slovakia was part of Czechoslovakia. The BSSE commenced its
commercial activity in April 1993 three months after the Velvet Divorce
when Slovakia split from Czechoslovakia. It remains the primary securities
exchange in Slovakia.
Brokerage fees vary from 0.6% to 0.1% depending on the size of the
transaction. The BSSE fee for trading equals 0.08% of the volume
of the transaction; however it must not be less than 10SKK and more
than 10,000SKK.
Trading System
The trading of securities takes place via the Electronic Stock Exchange
Trading System (Elektronický Burzový Operacný Systém – EBOS).
The counter-parties to a transaction are Stock Exchange members.
Members place the orders to buy and the orders to sell by means of
EBOS workstations, which are located at their offices and have an on-line
connection to the Stock Exchange’s central computer. The members can
close electronic order book (i.e. price-setting) transactions, negotiated
deals and REPO transactions. They can also make a public offer to take
over a company.
There is a 15% withholding tax on dividends and interest. There is no
capital gains tax for non-residents. Non-residents may only purchase
bank shares if they have received permission from the National Bank.
Short selling and crossing are not banned by the Exchange’s legislation,
but they are not specified in the regulations.
Electronic Order Book Transactions
An electronic order book transaction is closed in the EBOS when an
order to buy and an order to sell are matched. Electronic order book
transactions can be closed in the following modules of EBOS: Auction
Trading; Continuous Trading; Market-maker Trading; Negotiated Deals.
For full details of these see the official website.
Main Indices
Currency
Slovak Stock Index
Slovak Koruna (SKK)
Monday - Friday
T+3 Business Days
Fixing (Auction Trading):
10:30 - 11:00
Currency Exchange
Continuous Trading:
11:00 - 14:00
USD1 = SKK21.4865
EUR1 = SKK32.5811
Market Size
as of February 2008
USD4.03bn
USD54.8m
103
Slovenia
Futures Information
None
Internet: www.ljse.si
Primary Exchange
Ljubljana Stock Exchange
Brief History
The Ljubljana Stock, Commodities and Foreign Exchange was established
in 1924. The Exchange was closed in 1941 due to World War II and
officially abolished in 1953. It remained closed for almost 50 years but was
the first Yugoslav stock exchange to be reopened when, in 1989, federal
laws were passed which opened the doors to the capital market and the
creation of stock exchanges. The Ljubljana Stock Exchange (LJSE) was
officially established in December 1989 by 33 banks. The first session
was held in March 1990 involving 14 brokers trading in 11 securities. On
1st January 2001 the existing official market segments A and B were merged
to form the Official Stock Exchange Market. In 2006, LJSE continued with
activities intended to further increase liquidity of the market. Thus, a new
mechanism of trading within the trading system was introduced, with the
securities being traded through liquidity providers. On 1st January 2007,
Slovenia became the first among the new Member States to adopt the
euro, due to its stable macroeconomic environment.
All shares listed on the LJSE are freely available to foreign investors
and repatriation of capital, dividends and other income is not subject to
any restrictions.
Trading System
Since October 2005 the Ljubljana Stock Exchange has traded on the
upgraded BTS trading system. Orders are continuously entered into the
system directly by brokers from their trading stations where they can
also monitor the performance of the entire LJSE order book; the current
average price, best bid and best ask, close price and other significant
trading data. This upgrade of the trading system allows increased market
integrity and surveillance, increased capacity and increased liquidity. The
LJSE continues to facilitate auction trading for less liquid stocks.
The general rate of tax in Slovenia is 22%, which shall fall by one percentage
point per year until 2010 when it shall be 20%. Dividends are subject to
a 15% tax. Capital gains tax is progressively lowered every five years of
ownership from 15% from five years, 10% from ten years and 5% from
fifteen years. After twenty years of ownership the tax rate becomes 0%.
Non-residents of Slovenia may also benefit from elimination of double
taxations through bi-lateral treaties between Slovenia and other countries.
Non-residents are required to register with a stockbroker and investors
must open a special custody account with a bank beforehand.
When a bidder alone or with the persons acting in concert reaches 25%
of the voting rights of a particular issuer, he is obliged to make a public
takeover bid for purchase of the rest of the shares.
Only members of the stock exchange (LJSE) are allowed to trade directly
on the organized market in Slovenia, whereas other entities may only trade
there through the mediation of member. Becoming a remote member of
LJSE is also possible.
Circuit Breakers
The new system also allows for trading to be suspended whenever trades
exceed the parameters decided by the LJSE, currently the rate is ± 3% of
the last day’s closing price.
Depending on the size of the amount traded the fees charged by the LJSE
normally range between 0.03% of the value of the transaction and 0.07%.
Brokerage commission is negotiable.
Main Indices
Currency
Slovene Stock Exchange Index
(SBI 20)
Euro (EUR)
Monday - Friday
09:30 - 13:00
Market Size
as of February 2008
USD26.6bn
USD12.7m
104
T+2 Business Days
Currency Exchange
USD1 = EUR0.65845
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg FTSE/JSE Top 40 Index Futures
South African Futures Exchange
Mon - Fri; 08:30 - 17:30
ZAR10 x Index
1
Mar, Jun, Sep and Dec cycle
15th of the month at 16:00
<0#ALS:>, nearest month <ALSc1>, contract details
<SFX/ALS>
AI (Month Code)(Last Number of Year) <Index>
South Africa
GMT +2hrs
Internet: www.jse.co.za
Primary Exchange
JSE Securities Exchange South Africa
Brief History
The JSE Securities Exchange South Africa was first established in 1887
just after the Witwatersrand gold fields were discovered and celebrated its
120th anniversary in November 2007. Since 1994 South Africa has been
in the process of reversing several decades of isolation from the rest of
the world and the securities exchange is no different. In November 1995
the JSE for the first time permitted ownership by foreign and corporate
members. In 1996 the open outcry trading floor was closed with trading
going fully automated from this date. In 2000 the Johannesburg Stock
Exchange changed its name to JSE Securities South. In July 2001, South
African Futures Exchange (Safex) became a division of the JSE.
Brokerage is fully negotiable between the investor and the JSE
member firm.
On 1st July 2005, after 118 years as a mutual association, the JSE
Securities Exchange demutualised and became JSE Limited, a limited
liability public company with a share capital.
In 2007 the JSE announced plans to create a pan-African exchange
by enabling investors to trade in shares from, initially, Ghana, Namibia,
Zimbabwe and Zambia before expanding to include more of the continent.
Trading System
The JSE trading system – JSE SETS – was implemented in May 2002.
JSE SETS was supplied by the London Stock Exchange on an Application
Service Provider basis. The JSE SETS order book is based on an order
matching system in which member firms display their bid (buying) and
offer (selling) orders to the market on an electronic order book.
Main Indices
Board Lots
JSE All-Share Index
1
Currency
Monday - Friday
South African Rand (ZAR)
Open Period: 08:30 - 08:35
Run-off: 17:00 - 18:00
Market Size
Currency Exchange
Insider Trading Levy:
0.0003%
STRATE Trading Fee:
0.005%
VAT, at a current rate of 14%, is payable by local investors on brokerage
charged in agency transactions. Dividend and interest payments are
exempt from South African income and withholding taxes for foreign
investors and are freely transferable to countries outside the Common
Monetary Area of Southern Africa.
There are no rules regarding short selling at the JSE. However, settlement
of transactions is contractual and on a five day cycle. Brokers are required
to ensure that their clients are able to meet this requirement before they
enter orders to sell. Therefore, if a client wishes to short sell he must have
arranged borrowing facilities before the sale takes place. There can be
substantial fines for not covering a short sell with either a borrow or back
to back transactions.
All transactions in securities shall only be conducted through the JSE
trading system, unless otherwise stipulated by the JSE. The JSE prioritises
orders first by price and then by time. This means that before a cross
can take place all orders in the order book that have a better price or
have time priority must be satisfied. The exceptions to this rule are certain
transactions known as reported trades that are defined in the JSE rules.
T+5 Business Days (however
the JSE is in the process of
cutting clearing and settlement
to T+3 which it plans to have
implemented by Q4 2008)
Continuous Trading:
09:00 - 16:50
Stamp Duty on Purchase: 0.25%
as of February 2008
USD1 = ZAR7.94680
USD719.1bn
EUR1 = ZAR12.0548
USD1.7bn
105
South Korea
GMT +9hrs
Internet: www.krx.co.kr
Primary Exchange
Korea Exchange
Brief History
On 27th January 2005, the Korea Exchange, Inc (KRX) was launched as
Korea’s single integrated exchange under the Korea Stock and Futures
Exchange Act. KRX was created through the merger of the Korea Stock
Exchange (KSE), the Korea Futures Market (KOFEX), the KOSDAQ Market
and the KOSDAQ Committee a sub-organisation of the Korea Securities
Dealers Association (KSDA). The KRX aims to transform itself from
a local exchange to one of the major financial markets in the world by
becoming a centralised securities and derivatives market with significant
trading volume.
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg KOSPI2 Index Futures
Korea Futures Exchange (www.krx.co.kr)
Mon - Fri; 09:30 - 11:30, 13:00 - 15:15;
On the last trading day 09:00 - 14:50
KRW500,000 x Index
0.05
Mar, Jun, Sep and Dec
2nd Thursday of the delivery month
<0#KS:>, near month <KSc1>, details <KFE/KS>
KM (Month Code)(Last Number of Year) <Index>
Tick Size
Unit
Tick Size
KRW5
0.5 ~ 0.1%
KRW10
0.2 ~ 0.1%
KRW50
0.5 ~ 0.1%
KRW100
0.2 ~ 0.1%
KRW500
0.5 ~ 0.1%
KRW1000
<0.2%
Trading System
The KRX is an order-driven market where buy and sell orders compete
for the best price. Throughout the Official Trading Hours, orders are
continuously matched at a price satisfactory to both buy and sell sides,
according to price and time priorities. The opening and closing prices,
however are determined by call auctions.
In January 2004 the KRX introduced the random-end system for opening
and closing call auctions. The main purpose of the random-end system
is to prevent any distortion in the price discovery function of the KRX,
caused by so-called ‘fake order’ placed with an intention of misleading
other investors, thereby promoting fair price formation at the opening and
closing call markets.
In December 2007 the KRX announced plans to upgrade its electronic
trading system. Due to be online in January 2009 the new platform aims to
enable up to 2800 orders a second for trading on the main exchange, up
from the current 500. Investors and brokers will have their trades settled in
0.08 seconds as apposed to the current average of two seconds.
Circuit Breakers
If the KOSPI decreases by more than 10% of the previous closing price
for more than one minute all trading is suspended for 20 minutes. For ten
minutes after the trading halt, all bids and offers will be received and all
orders will be settled by a single price. This process is limited to once a
day and is not issued 40 minutes before market closing.
Main Indices
Board Lots
KRX 100
10 shares/units (one share if the
price is KRW50,000 or higher
Brokerage commission is negotiable and each member autonomously
determines its own brokerage commission rate. Currently, the commission
rate for stocks is around 0.2% of the trading value.
Monday - Friday
The basic rate of tax for a stock transaction is 0.5%. When investing in the
securities market, investors have to pay 0.15% stock transaction tax and
a special 0.15% tax for farming and fishing villages. On the KOSDAQ the
tax for stock transaction is 0.5%. Off-exchange trading will be taxed at a
rate of 0.5%. The withholding tax on dividends is 16.5%.
Currency Exchange
Pre-Hours Session and
After‑Hours Session:
07:30 - 08:30, 15:10 - 18:00
USD1 = KRW939.7000
Foreign investors must apply to the FSC (Financial Services Commission)
for registration to commence investments. When this has been completed
investors shall be given a IRC which is required to execute trades.
No restriction is imposed on foreign investment in Korea, except for the
investment ceiling placed on a few industries that are considered to be
of national strategic importance, such as electricity, telecommunications,
broadcasting and airline industries.
106
Korea composite stock price
index (KOSPI)
KOSDAQ
Regular Session: 09:00 - 14:50
Market Size
as of February 2008
USD7.49bn
Currency
South Korean Won (KRW)
T+2 business days for stocks
EUR1 = KRW1426.35
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Contract Months Expiration Day Reuters Bloomberg IBEX-35 Futures
Meff Renta Variable (Madrid)
09:00 - 17:35 (pre-opening auction 08:30 - 09:00)
EUR10 x Index
10 nearest months of the Mar, Jun, Sep & Dec cycle, 2
nearest calendar months not included in the previous
group, and further 5 months of the Jun, Dec cycle
The 3rd Friday of the contract month
<0#MFXI:>, next month <MFXIc1>, spreads
<0#MFXI-:>, details <MRV/MFXI1?
IB(Month Code)(Last Number of Year)<Index>
Brief History
There are currently four regional exchanges in Spain; the Barcelona, Bilbao,
Valencia and Madrid borses. All the regional exchanges are now part of
an umbrella organisation - the Bolsas y Mercados Españoles (BME). The
BME has integrated the companies that direct and manage the securities
markets and financial systems in Spain. It has brought together, under
a single activity, decision-making and coordination unit, the Spanish
equity, fixed-income and derivatives markets and their clearing and
settlement systems.
Bolsas y Mercados Españoles, with its four exchanges, is one of Europe’s
four leading stock market operators by trading volume.
Trading System
At present, two trading systems coexist in the Madrid stock market:
traditional open outcry trading and the electronic Spanish Stock
Market Interconnection system or SIBE (Sistema de Interconexión
Bursátil Español).
In the Equity Market an electronic trading platform (SIBE) accessed by
the four stock exchanges operates a single equities market, based on an
order-driven structure, with a single order book and a matching procedure
based on price-time priority. A call market (Fixing) is also supported for the
less liquid stocks, operating with two daily auctions. More than 150 shares
are traded in the main market. The most liquid 35 are included in the
market index, IBEX-35. The system supplies sectorial indices (financial,
utilities and so on). Other market segments, such as Nuevo Mercado,
are operated on the same platform. New products, such as warrants, are
also traded in SIBE, utilising particular matching procedures for this sort
of instrument.
Main Indices
IBEX 35 Index
IGBM Index
Monday - Friday
Equity Market- SIBE
(Electronic order book)
08:30 - 09:00
Open Market: 09:00 - 17:30
Fixing Market: First Fixing 12:00
Fixing Market:
Second Fixing 16:00
Block Trading: 09:00 - 17:30
Special Operations:
17:35 - 20:00
Equity Market – Floor Trading
Barcelona: 11:00 - 11:10
Bilbao: 10:30 - 11:30
Madrid: 10:00 - 12:00
Valencia: 10:30 - 10:45
Spain
Internet: www.bolsasymercados.es
Primary Exchange
BME, Spanish Exchanges
Additionally open out-cry floor trading is still conducted in every stock
exchange, based on outcry operations, but accounting for a residual
volume (less than 2% of trading volume).
Fees charged by members (brokers and broker dealers) are fully negotiable.
Intermediaries have to communicate the fees they charge to the Securities
Market Commission (CNMV) and make them public.
There is no taxation on capital gains derived from the transmission of
securities on the Spanish stock exchanges if a double taxation agreement
with the investors’ country of residence exists. Dividends are subject to a
15% withholding tax.
There are also special conditions that affect foreign investment in Spain in
matters of air transport, radio, minerals, mineral raw materials of strategic
interest and mining rights, television, gambling and telecommunications.
Short selling in Spain is illegal and off shore lending has been established
in order to provide an opportunity to avoid short sale fines.
Market Size
as of February 2008
USD15.8bn
Board Lot
1
Tick Size
The tick is based on the
share price: 0 - EUR50: tick =
EUR0.01, EUR50+ tick
= EUR0.05.
Currency
Euro (EUR)
T+3 Business days
Currency Exchange
USD1 = EUR0.65845
107
Sri Lanka
Futures Information
None
GMT +6hrs
Internet: www.cse.lk
Primary Exchange
Colombo Stock Exchange
Brief History
Share trading in Sri Lanka began in 1896 under the aegis of the Colombo
Share Brokers Association (CSBA). In 1984 share trading was formalised
and opened to the public with the establishment of the Colombo Stock
Exchange (CSE) which took over the operations of the stock market from
the Colombo Brokers Association (CBA).
Short selling is prohibited.
Cross Selling is allowed as long as it takes place within the bid-ask spread.
Trading System
The CSE commenced the process of automating the Exchange in
1991 with the installation of the Central Depository System (CDS) and
an electronic clearing and settlement system for share transactions.
This automation process was completed with the commissioning of the
Automated Trading Systems (ATS) in 1997. The technology introduced by
the Exchange significantly enhanced the competitiveness of the CSE and
provided a more efficient and transparent market. As a modern exchange,
the CSE now offers state-of-the-art technological infrastructure to facilitate
an “order-driven trading platform” for securities trading - including shares,
corporate debt securities and government debt securities.
The ATS is designed to match buy and sell orders placed by the member
firms of the CSE. Bid and Ask prices are entered into a central electronic
order book. During Official Trading Hours, orders are matched according
to fixed rules and execution prices are set. Price and volume details of all
completed transactions are electronically communicated immediately to
all the members involved.
Investors in the CSE will face the following charges.
Transactions up to Rs.1 million
The CSE will charge 1.425% on
your transaction This is divided
as follows:
Net amount
1.00%
to Broker
SEC Cess
0.09%
CSE Fees
0.105%
CDS Fees
0.03%
Govt. Cess tax
0.20%
Transactions over Rs.1 million
The CSE will charge 1.225% on
your transaction This is divided
as follows:
Net amount
0.80%
to Broker
SEC Cess
0.09%
CSE Fees
0.105%
CDS Fees
0.03%
Govt. Cess tax
0.20%
(Subject to a minimum brokerage of Rs.10/- per contract & a minimum
CDS fee of Rs.5/-).
Foreign investment is permitted without restriction in listed companies
up to 100%, except in certain area deemed of national importance.
In such areas the standard limit is 40% of the share issue ownership,
however there are some variations and the limit can be increased with
governmental approval. The sectors which are protected include mining
companies, insurance companies, mass communication, deep sea fishing
and commercial banks. The full list is available on the website.
108
Main Indices
Currency
All Share Price Index (ASPI)
Sri Lankan Rupee (LKR)
Milanka Price Index (MPI)
Monday - Friday
Pre-Open: 09:00 - 09:30
Close: 14:30
Market Size
as of February 2008
USD1.58m
T+4 Business Days
Currency Exchange
USD1 = LKR107.84
EUR1 = LKR163.67650
Swaziland
Futures Information
None
GMT +2hrs
Internet: www.ssx.org.sz
Primary Exchange
Swaziland Stock Market
Brief History
The initiative for the establishment of a local stock market came from the
Government of Swaziland and approval was given in 1989. In July 1990
the stock market commenced trading with the listing of the first public
company, Standard Chartered Bank Swaziland Ltd.
Value of Transaction (SZL)
Commission Rate
Orders up to 49,999
2.0%
Orders from 50,000 to 99,999
1.5%
For eight years the stock market operated as an over the counter-single
broker facility. It was not until July 1999 that a fully-fledged stock exchange,
the Swaziland Stock Exchange (SSX), was inaugurated.
Orders over 100,000
1.0%
Vendor
20.0
Trading System
Purchaser
20.0
Trading is conducted using the call-over system under the supervision
of the Capital Markets Development Unit of the Central Bank, which
has regulatory oversight over the operations of the exchange. There
are currently two members of the Swaziland Stock Market: Swaziland
Stockbrokers Ltd and African Alliance Swaziland Securities Ltd. A total of
6 equities are listed on the exchange, which are as follows:
Handling Fees (SZL)
There are no investment restrictions on any of the instruments listed on
the market or ownership restrictions for both residents and non-resident
investors. Also there is no disclosure requirement in the market.
Position
Security
1
Royal Swaziland Sugar Corporation Ltd
2
NEWERA Partners Ltd
However, prior approval of the Central Bank of Swaziland is required for
all capital transfers into Swaziland from outside the Common Monetary
Area (CMA). In practice, approval is routinely granted when required
for investment activity. Repatriation of dividends and capital is allowed,
provided the authorities approved the inflow of funds.
3
Swazi Empowerment Limited
4
Swaziland Property Investments Ltd
The following are taxes levied on foreign investments:
5
Nedbank (Swaziland) Ltd
6
Swazispa Holdings Ltd
Main Indices
Currency
The SSX Index
Swaziland Lilangeni (SZL)
Monday - Friday
T+5 Business Days
12:00 - 12:30
Market Size
as of February 2008
Tax
Rate
Withholding Tax on Interest
10.0%
Dividend Tax on CMA Residents
12.5%
Non CMA Residents Tax on Dividends
15.0%
Currency Exchange
USD1 = SZL7.9163
EUR1 = SZL12.001
USD218.2m
109
Sweden
Internet: www.se.omxgroup.com
Primary Exchange
Stockholm Stock Exchange
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg OMXS30 Index Futures
OMX Stockholm Stock Exchange
Mon - Fri; 09:00 - 17:20
SEK100 x Index
0.25
All 12 months with contract terms of 1, 2 & 3 months
4th Friday of the expiration month
<0#OMX:>, nearest month <OMXc1>, contract
details <OM/MENY>
QC(Month Code)(Last Number of Year) <Index>
Brief History
Tick Size
Trading at the Stockholm Stock Exchange commenced in 1863. Banks
were admitted as trading members from 1907 and an electromechanical
trading system was introduced in 1918. The Stockholm Stock
Exchange was the most modern exchange in Europe and was referred
to as ‘the world’s quietest exchange’. In 1990, the Stockholm Stock
Exchange became fully electronic with the introduction of the SAXESS
trading system.
Stock Price
Tick Size
0 - 4.99
0.01
5 - 14.95
0.05
15 - 49.90
0.1
50 - 149.75
0.25
150 - 499.5
0.5
500 - 4,999
1
5,000
5
As recently as 1997 there were three exchanges in Sweden: OM Stockholm
AB, the Stockholm Stock Exchange and PmI AB. In 1998 and 1999 the
three exchanges merged.
The OMX Exchanges division was created when OM and HEX merged in
1998. In December 2002 OMX together with the London Stock Exchange
(LSE) announced the formation of EDEX London, a new marketplace for
Equity Derivatives trading. Operations commenced in 2003 through EDX
London’s acquisition of OM London Exchange’s Scandinavian equity
derivatives business. During 2007 NASDAQ and Dubai Borse were
involved in a takeover battle for OMX. In January 2008 it was announced
that Borse Dubai was to buy OMX and would then sell it to NASDAQ, in
return the Borse Dubai gained a 20% state in NASDAQ.
Trading System
depository receipts on the Stockholm Stock Exchange is carried out via
OMX’s SAXESS trading system, while derivatives trading takes place via
OMX’s CLICK trading system and voice broking.
Numerous transactions are executed using automatic matching, this
means that bid and ask orders are automatically matched for a trade
where the bid and ask price correspond. All brokers have the same picture
of the market situation simultaneously since all information from cash and
derivative trading is relayed in real-time.
Stockholm Stock Exchange currently charges a two-fold transaction fee
to their members. The trading fees are related to the number of trades and
turnover value. In addition to these fees members also receive a discount
on their traded volumes.
Foreign investors are exempt from all taxes in Sweden except for
a withholding tax on dividends. This tax of nominally 30% is often
reduced by a double-taxation agreement between Sweden and the
investor’s nation.
Short selling is practised in Sweden but is unregulated, the only requirement
being that the securities are delivered at settlement. No uptick rules apply
in this market.
110
Main Indices
Board Lots
OMX Stockholm 30
100
Currency
Monday - Friday
Swedish Krona (SEK)
Opening Auction:
08:45 - 09:00
Continuous Trading:
09:00 - 17:20
T+3 Business Day
Currency Exchange
Market Size
EUR1 = SEK9.37320
as of February 2008
USD1.12trn (OMX)
USD7.68bn (OMX)
USD1 = SEK6.17280
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg Swiss Market Index Futures
Eurex Zurich
Mon - Fri; 09:00 - 17:30
CHF10 x Index
1
The nearest three months in the quarterly cycle of
3rd Friday of contract month (at 17:30)
<0#FSMI:>, nearest month <FSMIc1>, contract
details <SFF/FSMI1>
SM (Month Code)(Last Number of Year) <Index>
Brief History
Formal securities exchange in Switzerland date back to the 19th Century
with the foundation of the Geneva Exchange (1850), Zurich (1873) and
Basle (1876), although traces of financial markets can be found in the 13th
Century. In 1995 the exchanges in Geneva, Zurich and Basle were fused
into a single bourse, the SWX Swiss Exchange.
The SWX was the first exchange in the world to fully automate trading,
clearing and settlement with the new system launched in 1996.
Virt-x was founded in 2001 as the first cross-border trading platform for
pan-European blue chips. The Virt-x market is based on an integrated
trading, clearing and settlement model which simplifies the process of
trading pan-European blue chips. Since its launch Virt-x has focused on
consulting with the London trading community to develop competitive
models, successfully increasing its share of SMI trading in. Virt-x
international presence is reflected by having more than 100 members
domiciled in Switzerland, England, Germany, France, the Netherlands,
Austria, Sweden, Ireland and the USA. As an RIE (Recognised Investment
Exchange) based in London, it is supervised by the UK’s Financial Services
Authority (FSA). Since 2003 the Virt-X has been a wholly owned subsidiary
of SWX Swiss Exchange.
Trading System
All securities listed on the SWX Swiss Exchange are traded via an electronic
trading system - the Electronic Bourse Schweiz (EBS) or SWX electronic trading
system. The SWX Swiss Exchange system is a fully integrated trading and
settlement system and is available to all members for trading on the electronic
exchange. This supports all necessary activities, including trading against the
central order book, OTC trading and the fulfilment of reporting obligations.
Switzerland SWX & Virt-x
Internet: www.swx.com
Primary Exchange
SWX Swiss Exchange
The SWX Swiss Exchange supports permanent access to the central order
book over the course of the trading day. During the trading period trades
are generated according to the matching rules on the basis of supply and
demand. The system also supports OTC trading between members and
provides reporting facilities for non-exchange-traded transactions.
Virt-x’s trading system is conducted through their own trading system.
Orders are forwarded to the central order book in the Exchange System,
which automatically validates, confirms receipt of, and gives a time stamp
to each order. Buy and sell orders are matched against each other in
the central order book. Regardless of their size or origin, incoming
orders are executed on a price/time priority. Alternatively, orders may be
executed directly between two market participants and trade reported on
Virt-x. Members can choose to settle off order book trades manually or
automatically depending on the transaction type.
Circuit Breakers
Trading is halted on the SWX for 15 minutes if there is a 2% deviation from
the reference price either by potential follow up price or for all last paid
prices within the last 10 second period. Where the security is priced at
less than CHF 10 and the price deviated by 25% or more then there is an
interruption of 5 mins.
Since 1991 commissions from traders on the SWX has been fully negotiable.
Agency trades: 1 Basis point (usually absorbed by the broker).
For on-order book transactions on the Virt-x, the fee shall be 0.574 basis
points with a EUR0.60 transaction based fee per order. For full details
please see Directive 9 on the official website.
Main Indices
Tick Size
Swiss Market Index (SMI)
SWX= Minimum tick size
0.01CHF
Virt-x Composite Index
Monday - Friday
09:00 - 17:30
Closing Auction 17:20 - 17:30
Market Size
as of February 2008
USD1.25trn
USD9.1bn
Virt-x = 0.01Euro
Currency
Swiss Franc (CHF)
T+3 Business Days
Currency Exchange
USD1 = CHF1.03795
EUR1 = CHF1.5855
Dividends are subject to a 35% withholding tax. The withholding tax on
interest is also 35%. These rates are reduced by double-taxation treaties.
Stamp duty on some securities transactions was abolished in 1993. There
is no Swiss federal securities tax on Eurobond and Euro-stock issues,
trading in Swiss and foreign-money market paper and securities trading
in bonds between foreign contracting parties. The trading inventories of
Swiss securities dealers are exempt from the securities transfer tax. There
is no Swiss federal new-issue tax on investment-fund certificates, Swiss
corporate restructuring and the transfer of domicile of foreign companies
in Switzerland.
As the Virt-x is regulated by the FSA it is subject to identical taxation
treatment in comparison with other RIEs in the UK.
There are restrictions on short selling for non-residents; Investors need to
be aware of buy in regulations. No uptick rules apply.
Board Lots
1
111
Taiwan
GMT +8hrs
Internet: www.tse.com.tw
Primary Exchange
Taiwan Stock Exchange
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg TAIEX Futures
Taiwan Futures Exchange
Mon - Fri; 08:45 - 13:45
TWD200 x Index
1
Spot, next & then 3 quarterly months on Mar,
Jun cycle
3rd Wednesday of the delivery month
<0#TX:>, near month <TXc1>, details <TM/TX>
FT (Month Code)(Last Number of Year) <Index>
Brief History
The origins of the securities market in Taiwan can be found during the
1953 land reform. To compensate the landowners in the ‘land-to-thetiller’ programme the government issued land bonds and shares in
four large government-owned enterprises. The Securities and Futures
Commission (SFC) was set up in September 1960 to supervise and
control all aspects of securities-market operations. The Exchange began
operations in Feb 1962. The Financial Supervisory Commission (FSC) was
established on 1st July 2004. The Commission consolidates regulatory
functions over the securities, futures, banking and insurance industries in
a single institution. The Taiwan Stock Exchange plans to launch an IPO
at the beginning of 2009, with the share being offered to leading stock
exchange companies.
Brokerage commission is fully negotiable and subject to a maximum
of 0.1425% of the traded value.
Additionally a securities transaction tax is levied on securities sales at
0.3% of the trading value.
Short selling is permitted on the Taiwan Mid-Cap 100 Index and Taiwan
Technology index.
Trading System
Investors place orders to buy or sell securities through brokers. The unit
of trading is 1,000 shares. All listed stocks are traded through the Fully
Automated Electronic Trading System (FAST).
When a customer or a dealer places an order, the broker or dealer enters
the volume, bid or offer price and other required information into the
system through their terminal. The orders are processed and displayed
on the Exchange’s matching terminals and are matched automatically
according to price and time priority. The highest bid or lowest offer has
precedence over other orders and the earliest order has priority over
others at the same price.
When a transaction is completed, the broker or dealer immediately
receives, via the printer installed in his office, a trade report which contains
the order number, investor’s account number, broker’s identification,
trading volume, price of the stock bought and the time when the order
was matched.
Circuit Breakers
Daily price fluctuations are limited to a movement of ± 7% from the closing
price of the preceding business day.
Brokerage commission is fully negotiable and subject to a maximum of
0.1425% of the traded value.
Additionally a securities transaction tax is levied on securities sales at
Since October 2003 foreign investors have no longer been required to
obtain approval from the Securities and Futures Commission (SFC). Today
foreign investors only need to register with the TSEC so as to obtain an
“Investor ID” before opening a trading account with a local securities firm.
Foreign investors no longer need to obtain approval.
Dividends payable to resident beneficiaries are included in their consolidated
income. A 30% withholding tax is levied on non-resident individual
beneficiaries and 25% on non-resident corporate beneficiaries; however, it
may be reduced to 20% if the investments are approved under the Statute
for Investment by Foreign Nationals. There is no capital gains tax.
Interest income is taxable, subject to withholding tax of either 10% for a
resident beneficiary or 20% for a non-resident beneficiary.
112
Main Indices
Board Lots
Taiwan Stock Exchange Corp
(TSEC)
1,000 shares
Capitalisation Weighted Stock
index (TAIEX)
Currency
Monday - Friday
T+2 Business Days
Off-Hour Trading: 14:00 - 14:30
Odd-Lot Trading: 13:40 - 14:30
Block Trading: 09:30 - 09:40,
11:30 - 11:50, 13:35 - 17:00
Market Size
as of February 2008
USD596.2bn
New Taiwan Dollar (TWD)
Currency Exchange
USD1 = TWD31.10000
EUR1 = TWD46.96350
Tanzania
Futures Information
None
GMT +3hrs
Internet: www.darstockexchange.com
Primary Exchange
Dar es Salaam Stock Exchange
Brief History
The Dar es Salaam Stock Exchange (DSE) was established in 1996 to
facilitate the privatisation of state owned industries.
Equities
The Exchange was incorporated in 1996 as a company limited by
guarantee without a share capital and became operational in April 1998.
The opening of the Trading Floor coincided with the listing of TOL Limited
(formerly Tanzania Oxygen Limited), as the first company on the new
Exchange. The DSE is a non-profit making body created to facilitate the
implementation of the reforms and in the future to encourage wider share
ownership of privatised and other companies in Tanzania.
Trading System
Trading is facilitated by the Automated Trading System (ATS) where bids
and offers are matched using an electronic matching engine. LDMs
converge at the trading room and post their orders in the ATS. Orders are
executed in strict price and time priority. An order entered into the system
at an earlier time must be executed in full before an order at the same price
entered at a later time is executed. Matched orders are displayed on the
computer terminal in the trading room and projected in the public gallery.
Currently, the ATS operates on a Local Area Network (LAN). Future plans
include operation in a Wide Area Network (WAN), which can be accessed
by brokers even out of Dar es Salaam. This system will enable the DSE to
meet the expected growth in the Tanzania securities industry.
Main Indices
Currency
None
Tanzanian Shilling (TZS)
Monday - Friday
T+5 Business Days
10:00 - 12:00 (closes early when
there are low levels of activity)
Currency Exchange
Market Size
as of February 2008
Consideration
Brokerage
Commission
Transaction
Fee
Fidelity Fee Total Cost to
Investor
First TZS10m
1.7%
0.28%
0.02%
2.0%
Next TZS40m
1.5%
0.28%
0.02%
1.8%
TZS50m and above
0.8%
0.28%
0.02%
1.1%
Dividends are taxed at source at a rate of 5% for listed companies and
10% for unlisted companies. There is no stamp duty and no capital gains
tax for listed companies. Corporation tax is 25%. There are no ownership
limits or restrictions on foreign investment.
USD1 = TZS1160.50
EUR1 = TZS1761.175
USD2.84bn
USD45.8m
113
Thailand
GMT +7hrs
Internet: www.set.or.th
Primary Exchange
Stock Exchange of Thailand
Brief History
The inception of the Thai stock market began in the early 1960s, when
a private group established an organised stock exchange as a limited
partnership. The group later became a limited company and changed its
name to the Bangkok Stock Exchange Co., Ltd. (BSE) in 1963. However due
to low levels of activity it ceased operations in the early 1970’s. In 1975 the
exchanged reopened and in 1991 it formally changed it name to The Stock
Exchange of Thailand (SET).
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Reuters Bloomberg SET50 Index Futures
Thailand Futures Exchange
Mon - Fri; 09:45 - 12:30; 14:30 - 16:55
THB1,000 x Index
0.1
<0#TX:>, near month <TXc1>, details <TM/TX>
FT (Month Code)(Last Number of Year) <Index>
in Thailand). Interest income is subject to a 15% withholding tax. Dividends
are subject to a 10% withholding tax.
Trading Board
Trading Board
Requirement
Main Board
≥ 1 board lot or a multiple thereof with spread and price limits
Foreign Board
Trading System
≥ 1 board lot or a multiple thereof with spread but without price
limits, no minimum quantity without spread and price limit
Big Lot Board
≥ 3 million Baht or 1 million shares without spread and price limits
Since 1991, the SET has operated a fully computerised trading system,
the Automated System for the Stock Exchange of Thailand (ASSET). In
the ASSET trading system, two principal methods of trading are available:
Automatic Order Matching (AOM) and Put-Through (PT) systems.
Odd Lot Board
< 1 board lot with spread and price limits
Automatic Order Matching (AOM): AOM trading performs the order matching
process according to price, then time, priority, without human intervention.
After brokerage houses electronically send buy or sell orders from their offices
to the SET mainframe computer, the ASSET system queues the orders and
arranges them according to a price-then-time priority. This means orders are
first grouped according to price, with the best price taking precedence. Then,
within each price group, orders are arranged according to time.
Cross trades are allowed on and off the exchange. Off exchange crosses are
allowed only for block trades.
Put Thorough (PT) Trading: The ASSET system also allows brokers
to advertise their buy or sell interests by announcing bid or offer prices.
Members may then deal directly with each other, either on behalf of their
clients or for themselves. Prices may be adjusted during the negotiation;
hence, the effective executed price may not be the same as that advertised
and may not follow the price spread rules. After concluding negotiations,
dealers must send details of the result(s) to the ASSET system for
recording purposes.
The SET have introduced a new type of share called None Voting Depository
receipts (NVDR Shares). The main purpose of the NVDR is to stimulate the
trading activities in the Thai stock market and also to help eliminated foreign
investment barriers. By investing in NVDRs, investors will receive all financial
benefits as if they had invested in a company’s ordinary shares. The only
difference between investing in the NVDR and the companies shares is that
the NVDR holder cannot be involved in company decision making.
Circuit Breakers

First Stage: If the SET index falls by 10% from the previous day’s close,
all trading in listed securities will be halted for 30 minutes.

Second Stage: If the SET index falls by 20% from the previous day’s close
(i.e., another 10%), trading in all listed securities will be halted for one hour.
A member may conduct a short sale only at a price that is higher than the last
trading price. A member shall, at the end of each day in accordance with the
form prescribed by the Exchange, submit a report on short positions which
have not yet been covered; classified according to each individual security.
Only securities listed on the SET 50 Index are able to be short sold.
Tick Size
Tick Size
Price Range
0.01
10 and below
0.05
10 to 50
0.1
50 to 100
0.5
100 to 500
1
500 to 1000
5
1000 and above
Main Indices
Stock Exchange of Thailand
(SET)
SET100
Market Size
as of February 2008
USD185.4bn
SET50
Board Lots
100 shares
If the trading time left in a session is less than 30 minutes, or one hour (as the
case may be) after the circuit breaker comes into effect, trading will be halted
until the closing time of that session, and the trading will then resume in the
next session.
Monday - Friday
Pre-Opening: 09:30 - T1
(Random opening between 9:55
and 10:00)
Currency
Morning Session: T1 - 12:30
All investors must pay stamp duty on the transfer of share and debenture
certificates for 0.1%. For the trading of stocks, warrants, non-voting
depository receipts (NVDRs), derivative warrants and transferable subscription
rights (TSR), brokerage commissions are negotiable but subject to a floor of
Afternoon Pre-Opening:
14:00 - T2 (random opening
between 14:25 and 14:30)
If trades of these instruments are submitted through the Internet, the floor is
reduced to 0.20% if the trading value.
VAT is charged at 7% on brokers commission.
Closing Session: 16:30 - T3
(random close between 16:35
and 16:40)
Off-Hour Trading:
T3 - 17:00
Foreign investors are subject to taxation on capital gains, dividends and
interest earned from their securities investment on the stock Exchange of
Thailand, according to the following schedule: Capital gains: Tax free for
individual investors, but 15% withholding tax for foreign juristic Investors,
defined as institutions established under foreign law and which do not operate
114
Futures Information
Afternoon Trading Session:
T2 - 16:30
Thai Baht (THB)
T+3 Business Days
Currency Exchange
USD1 = THB31.5950
EUR1 = THB46.58
Trinidad & Tobago
Futures Information
None
GMT -5hrs
Internet: www.stockex.co.tt
Primary Exchange
Trinidad and Tobago Stock Exchange
Brief History
An informal securities market had existed in Trinidad and Tobago for more
than 20 years before the 1970’s when the government decided to localise
the foreign-owned commercial banking and manufacturing sectors of the
economy. The thrust of the policy was to get such companies to divest
and sell a majority of their shares to nationals of Trinidad and Tobago. The
Trinidad and Tobago Stock Exchange was founded in 1981 under the
auspices of the Ministry of Finance to facilitate such a transfer. Currently
the Trinidad and Tobago Stock Exchange is governed by Securities and
Exchange Commission who were established by the Securities Industry
Act of 1995.
Equities
Trading System
On every transaction clients are required to pay 2% of 1% of the transaction
cost or TTD1, whichever is higher. Stamp duty is paid on share transfers.
On 18th March 2005, electronic trading was introduced using the Horizon
Electronic trading system. The Exchange does not fix the price at which a
stock may be bought or sold. The price is determined by the demand and
supply of the particular stock in an electronic environment. Between 08:00
and 09:30 on the morning of every trading day brokers are permitted to
enter orders into the system, but they are not immediately matched. Based
on this method, the Horizon Trading System will determine separately, the
total volume available on both the buy and sell side of the market at each
price level as one of the means in arriving at an opening price.
Value of Transaction (TTD)
Commission Rate
On the first 50,000
1.50%
On the next 50,000
1.25%
100,000 and above
1.00%
For executing transactions on the floor of the Exchange members are
charged, on a monthly basis 2% of their commissions earned during
the period.
The new Foreign Investment Bill allows foreign investors to hold up to 30%
of the shares in a public company without obtaining a licence, although
any further purchases require such a licence.
Withholding taxes are payable for non-residents. For dividends rates vary
from 10% to 20% whilst on interest they are subjected to a final withholding
tax of 20%. This may be reduced with double taxation treaties.
Once the market opens at 09:30 trading is done on a continuous basis.
This means that any security can trade at any time throughout the trading
session. All trades will be determined on a Price and time sequence and
on a FIFO basis, that is, first in, first out.
Main Indices
Board Lots
Trinidad and Tobago Stock
Exchange Composite Index
500 Shares
All Trinidad and Tobago Index
Currency
Trinidad and Tobago Dollar (TTD)
Monday - Friday
Pre-Open: 08:00 - 09:30
T+3 business days
Open: 09:30 - 12:00
Currency Exchange
Pre-Close: 12:00 - 14:00
Market Closes: 14:00
USD1 = TTD6.3
EUR1 = TTD9.56
Market Size
as of February 2008
USD18.7bn
115
Tunisia
Futures Information
None
GMT +1hr (+2 DST)
Internet: www.bvmt.com.tn
Primary Exchange
Tunis Stock Exchange
Brief History
The Bourse des Valeurs Mobilières de Tunis (BVM) was founded in 1969. Its
responsibilities included the organisation of the securities market and the
promotion and protection of investments in securities. As a consequence,
some positive results were achieved such as the centralisation of securities
trading and intermediation activity. In 1987, the Structural Adjustment
Programme was adopted which emphasised, among other things, the
importance of private enterprise and the direct financing of investments.
Following Tunisia’s economic reforms, led by the 1994 Financial Markets
act, a new-look Tunis Stock Exchange with increased independence
became operational in November 1995. The Tunisia Stock Exchange is
wholly owned by brokerage firms.
Value of Transaction (TND)
Buyer
Seller
Up to 50,000
0.2%
0.2%
50,000 and above
0.1%
0.1%
There is total exemption from taxes on dividends and capital gains for
individuals. For corporations, capital gains are taxed at a rate of 35%.
The present exchange regulation guarantees free transfer of profits to
non‑residents if the company is listed on the permanent quotation of the
BVM and fixes a non-foreign investment ceiling of 49.9%.
Trading System
In December 2007 the Tunis Stock Exchange upgraded the SUPERCAC
electronic trading system which has been in use since 1996. The current
system allows remote access for brokers so that orders can be entered at
their terminals, forwarded then matched at the central system.
Tunis Stock Exchange disseminates information of the market in real time
via Reuters and Bloomberg; quotations are in addition available in real
time via the Web site of the Stock Exchange.
Main Indices
Board Lots
BVMT
100 Shares
TUNINDEX
Monday - Friday
Pre-Open: 09:00 - 10:00
Tunisian Dinar (TND)
All of the BVM markets are spot
markets. Settlement is on a T+3
basis. The settlement process is
automated
Market Size
Currency Exchange
Continuous Session:
10:00 - 11:30
as of February 2008
116
Currency
USD1 = TND1.1897
EUR1 = TND1.8058
Turkey
Futures Information
None
Internet: www.ise.org
Primary Exchange
Istanbul Stock Exchange
Brief History
Turkish securities markets have their roots in the 19th Century with the
development of the Dersaadet Securities Exchange in 1866. Following
the creation of the Turkish Republic, a new law was enacted in 1929 to
reorganise the fledgling capital markets under the new name of Istanbul
Securities and Foreign Exchange Bourse. The Istanbul Stock Exchange
(ISE) was inaugurated in its present structure at the end of 1985.
For rights coupons, one round lot represents the subscription coupons of
a stock with a total nominal value of TRL1. Special orders are designated
depending on the base price and the lot limits allowed for bidding or
offering for each stock.
Commission with brokers is freely negotiable with a limit of 1% maximum.
Trading System
The fully computerised trading system enables ISE members to trade in
stocks and rights coupons. Stock trading activities are carried out in two
separate two-and-a-half hour sessions, one in the morning and the other
in the afternoon.
There are no restrictions on overseas institutional and individual investments
in securities listed on the ISE, making the Turkish stock and bond markets
open to foreign investors without any restrictions on the repatriation of
capital and profits.
Prices are determined on a ‘multiple price-continuous auction method,’
utilising a system that automatically matches buy and sell orders on a price
and time priority basis. Buyers and sellers enter orders through workstations
located at the ISE. It is a blind order system with counterparties identified
upon matching. All information regarding transparency, except standing
order IDs are displayed in the trading system during the sessions.
For companies traded on the ISE the standard lot size is 1,000 shares.
The system enables members to execute several types of orders such as
‘limit’, ‘limit value’, ‘fill or kill’ and ‘special limit’.
Short selling is legal in Turkey, although it is not widely practiced. Short
selling can be practiced on ISE-100 Index, which makes up the main
index. The securities on which short selling can be practiced is determined
on a quarterly basis by the ISE and announced in the daily ISE bulletin.
Resident and Non resident investors are both permitted to short sell.
Odd-lot trades that involve fewer shares than the round lot amount are
also available. Odd-lot orders in a specific security are matched according
to the last trading price of the same security traded in round lots.
Every order involving a price limit is also limited by a maximum lot quantity.
Main Indices
ISE National-All Shares Index
ISE National-30 Index
ISE National-100 Index
Market Size
as of February 2008
USD226.7bn
USD1.3bn
Monday - Friday
Board Lots
National Market;
Second National Market;
New Economy Market:
09:30 - 12:00 (09:30 - 09:45
electronic order collection);
14:00 - 17:00 (14:00 - 14:10
electronic order collection)
100 Shares
Watch list companies market:
14:00 - 15:00
T+2 business days
Primary Market; Official Market;
Wholesale Trading: 11:00 - 12:00
(No opening or closing auctions)
Currency
New Turkish Lira (TRY)
Currency Exchange
USD1 = TRY1.22790
EUR1 = TRY1.83610
117
Uganda
Futures Information
None
GMT +3hrs
Internet: www.use.or.ug
Primary Exchange
Uganda Securities Exchange
Brief History
The Uganda Securities Exchange (USE) was licensed to operate an
approved stock exchange in June 1997 by the Capital Markets Authority
of Uganda. The USE began formal trading operations in January 1998
with the trading of the East African Development Bond (EADB).
Trading System
Currently trading is conducted at the USE floor under a continuous open
outcry trading system. The representatives of broker members converge
at the trading floor and trade by shouting their orders to a board writer
who records the orders on the board. A trade is affected when a bid and
an offer are matched.
Commission Rates and Client Costs
First
UGX200m
Next
UGX800m
Any sum over
UGX1bn
1.70%
1.50%
0.80%
USE
0.14%
0.14
0.14%
CMA*
0.14%
0.14%
0.14%
Compensation Fund Fee
0.02%
0.02%
0.02%
Total cost to investor
2.00%
1.80%
1.00%
Brokerage Commission
Transaction Levy
*CMA is the Capital Markets Authority Uganda
Currently there are no restrictions to foreign investors in the Ugandan
market. Withholding tax on dividends of listed companies is 10%, for
unlisted companies it is 15%. Corporate tax is charged at a rate of 30%.
There is no stamp duty or capital gains tax.
Main Indices
Currency
USE All Share Index
Ugandan Shilling (UGX)
Mondays, Tuesdays &
Thursdays
T+5 Business Days
10:00 - 12:00
Market Size
as of February 2008
USD3.11bn
USD2.8m
118
Currency Exchange
USD1 = UGX1692.000
EUR1 = UGX2568.541
Ukraine
Futures Information
None
GMT +2hrs (+3 DST)
Internet: www.ukrse.kiev.ua; www.pfts.com
Email: [email protected],ua; [email protected]
Primary Exchange
Ukrainian Stock Exchange/
First Securities Trading System (PFTS)
Brief History
There are two main stock exchanges in operation in the Ukraine, namely
the Ukraine Stock Exchange (USE) and the PFTS Stock Exchange.
The Ukraine Stock Exchange (USE) was founded in 1991, with activity
on the exchange starting in January 1992. The exchange is a closed
joint-stock company, and is the most advanced stock exchange in
the Ukraine.
The PFTS Stock Trading System has been in operation since 1996 and
is currently the largest marketplace and self-regulatory organisation in
Ukraine’s stock market. PFTS Association is self-regulatory organisation
(SRO) according to decision of the Ukrainian State Securities and Stock
Market Commission. Only PFTS Association members may perform
transactions at the PFTS trading system. PFTS membership now stands
at 218 firms in 14 Ukrainian cities. From January 2008 the PFTS Index has
been calculated in real time.
Trading System
On the USE Stocks are traded on a screen based order-driven system
˘
called EBOS (Elektronický Burzový Operacný
Systém). Three methods
can be used for share transactions; Auction trading (at one fixed price),
Continuous trading and Block trading.
The PFTS Trading system is assembled as multi-functional system for
ensuring activity of securities traders. The PFTS trading system consists
of Quote-Driven, Order-Driven markets and PFTS Auctions.
The Quote-Driven Market (QDM) is the major PFTS market built on the
Dealer-Driven trading technology, which is based on the rules of competing
Main Indices
Currency
PFTS Index
Ukrainian Hryvnia (UAH)
Monday - Friday
T+5 Business Days
Ukrainian Stock Exchange:
11:00 - 17:00
Currency Exchange
PFTS: 09:00 - 17:00
USD1 = UAH5.0530
Market Size
quotes offered by trade participants and on acceptance of firm quotes.
QDM is used for the secondary trades in stocks, state, municipal and
corporate bonds, investment certificates and derivatives with the prices
used to calculate the PFTS system.
Order-Driven Market is the market built on the order-driven market
trading technology. Trading is performed with full preliminary deposition
on assets; settlement is conducted in Hryvnya using the delivery versus
payment technology.
PFTS Auctions is based on the principle of a unilateral auction, which
presumes the performance of trades through submitting of competing
proposals by the participants of auction on the buy or sell orders of the
auction initiator.
Currently, Ukraine applies the following tax rates to foreign investors:
Tax Type
Rate
Tax on Dividends for Foreign Investors*
15%
Corporate Profit Tax
25%
Repatriation Tax*
15%
* Repatriation of dividends is not possible if securities were purchased offshore
Restrictions exist for foreign investments in the publishing and
broadcasting sectors, and foreigners are not allowed to participate in
the manufacturing of weapons. Tax incentives for investments were
abolished in March 2005.
EUR1 = UAH7.6697
as of February 2008
119
UAE
Futures Information
None
GMT +4hrs
Internet: www.dfm.co.ae
Primary Exchange
Dubai Financial Market
Brief History
The Dubai Financial Market (DFM) was established in 2000 by the
Government of Dubai. It became a fully operational exchange on
26th March 2000. Prior to the establishment of the DFM, the United Arab
Emirates (UAE) had an OTC market in which publicly held companies were
traded. The DFM offers a centralised mechanism for trading, clearing and
settlement as well as a regulatory framework to govern the market.
Trading System
The DFM operates on an order driven system. The trading system is screenbased and fully automated. It matches the buying and selling orders that
are entered into the system by the accredited brokers, all of whom have
been provided with trading workstations at the DFM premises.
The trading system is completely transparent and trading information is
disseminated widely to all interested parties. Brokers, as well as investors,
can view outstanding orders, price and volume data, and price and index
histories for all listed stocks.
For share trading, investors pay an overall commission of 0.5% of the
value of each transaction (minimum 75 Dirhams). This is made up of 0.3%
to the broker (minimum of 45 Dirhams), 0.1% to the Market (minimum of
15 Dirhams), 0.05% to The Emirates Securities and Commodities Market
Authority (minimum 7.50 Dirhams) and 0.05% for Clearing (minimum
7.50 Dirhams).
There are no taxes on dividends, interest income or capital gains for foreign
or local investors. There are no exchange control restrictions of any kind
and investors are free to remit funds into and out of the UAE.
UAE law allows foreigners to own up to 49% of any locally incorporated
public company. In practice, most listed companies allow foreign ownership
of various percentages up to this limit. No limits are specified for foreign
investments in local bonds. Foreign investments are not allowed in local
insurance companies. Foreigners can also invest indirectly in the market
through locally incorporated mutual funds which have no restrictions on
individual share ownership.
Main Indices
Currency
The DFM General Index
Emirati Dirham (AED)
Saturday - Thursday
T+2 Business days
09:30 - 10:00
Currency Exchange
USD1 = AED3.6726
Closing: 14:00 - 14:30
EUR1 = AED5.5750
Market Size
as of February 2008
USD137.9bn
120
Futures Information
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Expiration Day Reuters Bloomberg FTSE 100 Index Futures
Euronext LIFFE (www.liffe.com )
Mon - Fri; 08:00 - 17:30
GBP10 x Index
0.5
Mar (H), Jun (M), Sep (U), Dec (Z)
3rd Friday of delivery month
<0#FFI:>, near month <FFIc1>, details <LIF/FFI>
Z(Space)(Month Code)(Last Number of Year) <Index>
Brief History
The London Stock Exchange (LSE) can trace it history back over three
centuries. In 1697 brokers had been banned from the Royal Exchange
due to their rowdy behaviour and instead headed towards surrounding
coffee houses in Change Alley, most famously Garraway’s and Jonathan’s.
Here John Castaing began to issue list of stock and commodity prices
called “The Course of the Exchange and other things”. It is the earliest
evidence of organised trading in marketable securities in London. By the
late 1760’s, 150 brokers formed a subscription club at Jonathan’s coffee
house, later opening their own subscription room, New Jonathan’s, in
Threadneedle Street after the old one burnt down. In 1773 the members
of New Jonathan’s voted to change the name to the Stock Exchange.
In the 19th and early 20th Century over 20 stock exchanges were set up
in towns around the UK while a Provincial Brokers Stock Exchange was
also established. These were amalgamated in 1973. In 1986 the market
was deregulated, an event known as the “Big Bang”. This event lead
to the following changes; firms were allowed to be owned by outside
corporations, firms became broker-dealers, able to act either as agency
brokers representing clients in the market or as principals buying and selling
shares on their own account. In 2007 after NASDAQ failed in an attempt
to takeover the LSE; instead the LSE and the Italian Borsa merged.
Trading System
TradeElect is the LSE’s new trading system which incorporates several
other systems.
The Stock Exchange Trading System (SETS) is an electronic automatic,
order-driven, flexible and transparent trading platform. The most liquid
stocks on the exchange are traded through SETS, namely the FTSE All
Main Indices
Board Lots
FTSE 100
1 share (some trade 1 or 50)
FTSE All-Share Index
United Kingdom
Internet: www.londonstockexchange.com
Primary Exchange
London Stock Exchange
Share Index, Exchange Traded Funds, Exchanged Traded Commodities
and of the most traded AIM and Irish Securities. The less liquid are traded
on SETSqx (The Stock Exchange Electronic Trading System – quotes and
crosses). All Main Market and EURM AIM securities not traded on a full
order book are traded here. This system combines a periodic electronic
auction book with standalone quote driven market making. Un-crossings
take place at 08:00; 11:00; 15:00 and 16:35.
SEAQ is the LSE’s service for the Fixed Interest market and AIM securities
that are not traded on either SETS or SETSqx.
In late 2008 the LSE plans to integrate the Italian, UK and international
equities markets on TradElect, creating the largest European liquidity pool.
Circuit Breakers
5% from the last traded price. Trading session resumes after 5 minutes.
There are no minimum scales of commission.
A 50bps stamp duty is imposed on equity purchases. Irish stocks listed on
the exchange are subject to Irish stamp duty of 1% on buys.
There is a PTM (Panel on Takeovers and Mergers) levy of £1 (€1.50)
per transaction, except for Hong Kong listed stocks, or if the gross
consideration of the bargain is £10,000 (€15,000) or less.
UK Corporations are required to pay advance corporation tax on dividends
distributed to shareholders. Residents of countries with double-taxation
treaties with the UK can claim a tax credit which is equivalent to the
amount of advance corporation tax paid, less withholding tax.
Investors whose countries of residence have a tax treaty in force with the
UK are subject to a 15% withholding tax on dividends.
Currency
British Pound (GBP)
as of February 2008
Short selling is permitted. However member firms are obliged under rule
1400 not to do any act or engage in any course of conduct which is
likely to damage the fairness or integrity of the Exchange’s markets, or
which might create a false or misleading impression as to the markets or
price of a security. When short selling is undertaken on a substantial scale,
firms must have a clear strategy for ensuring the settlement of their short
positions. If member firms believe at any point that they will be unable to
fulfil their settlement obligations they should not continue to pursue their
short selling strategy. Buy-in procedures apply for failed settlement.
USD3.47trn
Tick Size
Monday - Friday
Continuous Trading:
08:00 - 16:30
Market Size
USD32.3bn
T+3 Business Days
Currency Exchange
USD1 = GBP0.50435
EUR1 = GBP0.76405
Tick Size
Price Range
< 10p
0.01p
10p – 199.9p
0.1p
200p – 499.75p
0.25p
500p – 999.5p
0.5p
1000p and above
1p
121
USA - Amex
Futures Information
None
Internet: www.amex.com
Primary Exchange
American Stock Exchange
Brief History
The American Stock Exchange (Amex) can trace its origins back to the
late 1700s, when New York merchants began trading securities out-ofdoors in lower Manhattan. These out-of-doors brokers became known
as ‘Curbstone Brokers’ or ‘Curbstoners’. In 1921 the Curbstone Brokers
moved indoors to the present site of the Amex, which was known as the
New York Curb Market. In 1929 the Exchange changed its name to the
New York Curb Exchange, and in 1953 changed it again to the American
Stock Exchange.
In March 2006 the Amex Board of Governors approved a course of
action that would begin the process of converting the Exchange from a
not-for-profit corporation into a for-profit corporation. This initial step in
the process of demutualisation is designed to position Amex for future
investment opportunities.
On 17th January 2008 NYSE Euronext announced it would acquire the
American Stock Exchange for $260m in common stock.
Trading System
In 2007 AMEX launched a new trading platform Auction & Electronic
Market Integration (AEMI) initially it shall be used for equities and exchange
traded funds (ETF), but will eventually be integrated with the options traded
platform ANTE. AEMI will enable the Exchange to offer best bid and offer
(BBO) prices on Amex and non-Amex listed issues. The new system was
planned with the aim of uniting the best qualities of the electronic and
the auction market; as such it is described as a “hybrid”. The system
allows the capacity and speed of an electronic market, but with continued
support of an auction market when there are imbalances, complex trades
or liquidity issues.
The American Stock Exchange is an auction market where prices for a
diverse array of products-stocks, options, exchange traded funds (ETFs)
and structured products are determined by public bids to buy and offers
to sell. By centralising order flow on the trading floor, giving public orders
priority, and executing orders by price and time sequence regardless of
size or source, investors trade on a level playing field and are ensured the
best available price.
In May 2004, Amex launched the Amex New Trading Environment (ANTE)
for its options trading. ANTE combines the superior price discovery of an
auction market system with the increase in speed and efficiency of an
electronic trading platform.
SEC fee 0.056bps (as of April 2008) on the gross consideration of
sells only.
Since 1975 brokerage commissions in the USA have been freely
negotiable. There are substantial differences in the charges an investor
can incur depending on the level of service required.
Dividends are subject to a 30% withholding tax, although this is reduced
for investors who reside in a country with a tax treaty in force with the
United States. Capital gains are treated as ordinary income, subject to tax
rates of between 15% and 28%.
In the US, Regulation 15a6 requires all US broker-dealers to book locally
(i.e. in their own ledger system) all trades done for US-based customers
regardless of the actual place of booking/clearing and the market traded.
122
Main Indices
Board Lots
Amex Composite Index
100 shares
Tick Size
Monday - Friday
USD0.01
Regular Trading Session:
09:30 - 16:00
Currency
After-Hours Trading:
US Dollar (USD)
Individual Stock Orders:
16:15 - 17:00
Block Orders: 16:00 - 17:15
T+3 Business Days
Market Size
Currency Exchange
as of February 2008
USD3.62bn
EUR1 = USD1.51825
USA - Chicago
Futures Information
None
Internet: www.chx.com
Primary Exchange
Chicago Stock Exchange
Brief History
The Chicago Stock Exchange (CHX) opened for trading of local bonds
and stocks in 1882. As the marketplace evolved the emphasis on trading
shifted from bonds to stocks, and it was speculation in newly issued local
securities that prompted the early growth of the CHX. These local securities
included utilities, meat-packing companies and railroads. In 1949 the CHX
merged with the stock exchanges of St Louis, Cleveland and MinneapolisSt Paul to form the Midwest Stock Exchange (MSE). A decade later the
New Orleans Stock Exchange became part of the MSE. In 1985 the
Exchange moved into its present address. This marked the tenth move
since the Exchange was formed in 1882. In 1993 the Exchange reverted
to its original name, the Chicago Stock Exchange.
On 9th February 2005 the US Securities and Exchange Commission
(SEC) approved the demutualisation plan set forth by the CHX in
November 2004.
In March 2008 the CME Group announced a deal to take over the New
York Mercantile Exchange for $9.4bn.
Trading System
The Chicago Stock Exchange’s Matching System trading platform
provides a fully automated electronic system. It offers broker/dealers
access to a fair, open and neutral market place with diverse order flows
from retail brokers, CHX Institutional Brokers, NASD market makers and
CHX market makers. CHX supports ITS and NMS/Linkage Plan access to
the Matching System.
Order-sending participants may reach the CHX Matching System by
using the FIX and CMS protocols via order-sending participant or vendor
connections. Upon receipt of an order, the CHX Order Management
System (OMS) will validate and route orders to the appropriate matching
engine. Once the matching engine receives an order in an NYSE, AMEX
or regional-listed stock, the order’s price is compared with resting limit
orders in the book. If a match can be consummated at a price within the
National Best Bid and Offer (NBBO) then the orders will be executed. If
the execution would occur at a price outside the NBBO then no execution
will occur and the inbound order will be rejected. If no match is available,
then an inbound order will be placed in the book and immediately quoted.
If the order’s price would lock or cross the NBBO then the order will
be rejected.
Orders resting in the book will be matched in price - time priority and
according to the ranking - Display orders; Un-displayed portions of
reserves; Un-displayed orders.
The Matching System matches orders on a share for share basis and
inbound odd lot orders can match at prices outside the NBBO.
As part of the Exchange’s new trading model, the CHX operates a
neutral communications service, the CHXConnect. This service allows
participants to route orders to market makers or other broker-dealers
connected to CHXConnect, which provide order handling and execution
services in the over-the-counter market; and to other destinations
(including order-routing vendors) that are connected. Participants also use
CHXConnect to route orders to the Exchange’s Matching System and to its
institutional brokers.
SEC fee 0.056bps (as of April 2008) on the gross consideration of sells only.
Since 1975 brokerage commissions in the USA have been freely
negotiable. There are substantial differences in the charges an investor
can incur depending on the level of service required.
Main Indices
Board Lots
None
100 shares
Tick Size
Monday - Friday
US$0.01
Regular Session: 08:30 - 15:00
(15:15 for specified ETF)
Currency
Late Trading Session:
15:00 - 16:30
US Dollar (USD)
Market Size
T+3 Business Days
Market Capitalisation: NA
Currency Exchange
Average Daily Turnover: NA
EUR1 = USD1.51825
as of February 2008
(i.e. in their own ledger system) all trades done for US-based customers,
123
USA - NASDAQ
Internet: www.nasdaq.com
Primary Exchange
NASDAQ Stock Market
Brief History
Since its debut in 1971 as the world’s first electronic stock market. The
NASDAQ Stock Market (National Association of Securities Dealers Automated
Quotations), has been at the forefront of innovation, using technology to bring
millions of investors together with the world’s leading companies. In September
2004 NASDAQ acquired Brut LLC, the owner and operator of the Brut ECN,
and in 2005 NASDAQ acquired INET. In 2007 NASDAQ bought the Philadelphia
Stock Exchange and became the largest US stock exchange. In Quarter One
2008 NASDAQ completed the purchase of OMX following an agreement with
Borse Dubai, the new company is known as the NASDAQ OMX Group.
Trading System: Precise
The NASDAQ Market Center is a fully integrated order display and execution
system for all NASDAQ- and other exchange-listed securities.
NASDAQ allows participants to enter multiple quotes and orders at single or
multiple price levels which can be displayed either in the form of a quote or
anonymously in NASDAQ. From an order display perspective the NASDAQ
Market Center enhances transparency of trading interest by displaying full
depth available at all price levels.
The primary type of order that NASDAQ Market Center participants use is a nondirected order. Non-directed orders are liability orders up to 999,999 shares in
size. These orders are automatically executed against market participants, and
are either delivered to or automatically executed against quotes of ECNs and
participating unlisted trading privileges (UTP) exchanges, depending on what
option the ECN or UTP exchange has indicated.
Pre-trade and post-trade anonymity are available in NASDAQ Market Center
through the ability to designate orders as non-attributable. Non-attributable
orders appear in an aggregate display, under a special designator, but do not
identify a specific market maker, which minimises the risks associated with
revealing size.
In aggregate, non-attributed and attributed quotes and orders represent the
displayed size executable at that price level. In addition, there may be reserve
size, which is not displayed nor included in any aggregation, but which may be
executed against.
All quotes and orders, whether attributed or non-attributed, will be subject
to execution.
Execution has been enhanced in the NASDAQ Market Center because orders
and subsequent additions to orders are time stamped individually, preserving
position and priority. A market participant’s initial order is not re-ranked when
additional orders are submitted for the same security at the same price. Instead,
each increment is time-stamped and accessed by its priority.
All incoming market and marketable limit orders are processed in the order they
are received and based on the order-entry firm’s execution preferences. The
market participant entering the order may choose - on an order-by-order basis
- the manner in which an order is executed:

Price/time priority (default option).

Price/time priority with access fees taken into consideration.

Price/size priority.
Market participants that choose to enter multiple orders at multiple prices enjoy
the benefit of order protection. While only the participant’s best is shown in the
montage, its other submitted orders are resident in the system and executed
according to market demand.
Market participants can specify reserve size on their quotes/orders; reserve
size is not displayed, but it is available for execution at any time. The displayed
size of all participants at a particular price level will be accessed before going
to reserve size.
124
Futures Information
Tick Size Contract Months Reuters Bloomberg NASDAQ 100 Index Futures
Chicago Mercantile Exchange (www.cme.com)
15:30 - 08:15, 08:30 - 15:15
USD100 x Index
0.25
March quarterly cycle
<0#ND:>, nearest month <NDc1>, contract details
<CME/ND>
ND (Month Code)(Last Number of Year) <Index>
The NASDAQ Market Center eliminates locked and crossed markets during
market hours, thereby improving the efficiency of execution. An order or quote
that would lock or cross the market is executed against the quote or order
it is locking or crossing. If a larger order is entered, the residual shares may
ultimately become the new inside. The system also clears locks and crosses
that exist at the market open.
The NASDAQ Market Center also routes to external liquidity venues, including
other exchanges and ECNs that do not display quotes in the Market Center.
Commission rates and other client costs in the NASDAQ market are
frequently lower than on the exchanges because of the competition
among the multiple market-makers.
Dividends are subject to a 30% withholding tax, although this is reduced for
investors who reside in a country with a tax treaty in force with the United
States. Capital gains are treated as ordinary income, subject to tax rates of
between 15% and 28%.
In the US, Regulation 15a6 requires all US broker-dealers to book locally (i.e. in
their own ledger system) all trades done for US-based customers, regardless
of the actual place of booking/clearing and the market traded.
The Short-Sale and Bid Test rules have been abolished.
Main Indices
Board Lots
NASDAQ Composite Index
100 shares
Tick Size
Monday - Friday
US$0.01
Pre-Hours Trading Session:
07:00 - 09:30
Currency
NASDAQ Stock Market Regular
Official Trading Hours:
09:30 - 16:00
US Dollar (USD)
NASDAQ Stock Market AfterHours: 16:00 - 20:00
T+3 Business Days
NASDAQ International:
03:30 - 09:00
Market Size
as of February 2008
USD4.01trn
USD43bn
Currency Exchange
EUR1 = USD1.51825
USA - National
Futures Information
None
Internet: www.nsx.com
Primary Exchange
National Stock Exchange
Brief History
In 1858 a group of Cincinnati businessmen gathered together to auction
shares in local companies, however this exchange did not survive the Civil
War. The precursor to the current Exchange was organised by twelve
brokers in 1885, a permanent constitution was adopted in 1886 and has
operated on every business day since. The Exchange was incorporated
as a non-profit-making corporation 1887. In 1980 the trading floor was
replaced by a fully electronic system, the first of its kind in the United
States. The Cincinnati Stock Exchange is now based in Chicago and
formally changed it name to the National Stock Exchange (NSX) on
7th November 2003.
Trading System
NSX BLADE was introduced in October 2006, with a phased-in migration
of NASDAQ-listed symbols onto NSX BLADE from the previous system
NSTS. The migration of Tape C securities was completed during December
2006. NSX BLADE provides an order delivery function permitting ECNs
to publish their best bids and offers on the NSX Book and be treated
the same as any other NSX participant. Routing to a participating order
delivery ECN is an integral feature of NSX BLADE and occurs whenever a
marketable order interacts with a resting order delivery ECN order. BATS
was the first ECN on NSX BLADE, and has since been followed by Track
Data Corporation’s Track ECN.
Main Indices
Tick Size
None
US$0.01
Currency
Monday - Friday
US Dollar (USD)
09:30 - 16:30 EST
Market Size
Market Capitalisation: NA
Average Daily Turnover: NA
In addition to order delivery, NSX BLADE offers strict price-time priority,
unprecedented speed and highly competitive pricing due to NSX’s
unique operating leverage. NSX BLADE also features scalable capacity,
with capability of quick expansion as volume dictates; a wide range of
connectivity options; and anonymity during all stages of order execution,
from the receipt of the order through the clearing process.
SEC Fee 0.056bps (as of April 2008) on the gross consideration of sells only.
Since 1975 brokerage commission in the USA has been freely negotiable.
There are substantial differences in the charges investors can occur depending
on the level of services.
T+3 Business days
Currency Exchange
EUR1 = USD1.51825
Board Lot
100 shares
125
USA - New York
Internet: www.nyse.com
Primary Exchange
New York Stock Exchange
Main Contract Trading Exchange Trading Times Contract Size Tick Size Contract Months Reuters Bloomberg S&P500 Stock Price Index Future
Chicago Mercantile Exchange (CME)
15:30 - 08:15, 08:30 - 15:15
USD250xIndex
0.1
Mar (H), Jun (M), Sep (U) & Dec (Z)
<0#SP:>, nearest month <SPc1>, contract details
<CME/SP>
SP (Month Code)(Last Number of Year) <Index>
Brief History
The origins of the New York Stock Exchange (NYSE) date back to 1792,
when the 24 New York stockbrokers and merchants most involved in
trading securities joined in an agreement to collect a uniform commission
on all sales of public stock and to ‘give preference to each other’ in their
negotiations. This compact has since become known as the Buttonwood
Agreement, after a tree on Wall Street where the brokers met from time
to time to conduct their business. In colder weather they met in the
comfortable quarters of the Tontine Coffee House. A constitution was
drawn up and adopted in 1817 and a room was rented at 40 Wall Street.
In 1865 they moved to its present site.
SEC Fee 0.056bps (as of April 2008) on the gross considerations of sells only.
Since 1975 brokerage commissions in the USA have been freely negotiable.
There are substantial differences in the charges an investor can incur
depending on the level of service required.
In 2000, the NYSE became the first US stock market to undertake the
conversion of trading to decimals from fractions, launching a pilot program
of seven stocks in August and expanding it to 159 stocks total by the end
of 2000. On 29th January 2001, the NYSE began trading all 3,525 listed
issues in decimals.
The NYSE was demutualised and converted from a not-for-profit entity
into a for-profit entity on 7th March 2006 when it merged with Archipelago
and became a wholly owned subsidiary of NYSE Group. In March 2007
the NYSE merged with Euronext to form NYSE Euronext.
Trading System
The NYSE operates a so called “Hybrid Market”. This system blends the
modern mode of electronic trading and the traditional open-outcry auction
market mode of trading. All orders are electronically delivered to trading
posts, booths or handheld computers on the floor via several systems. The
main system which accounts for approximately 95% of transactions is called
SuperDOT (Designated Order Turnaround System). SuperDOT is an electronic
order-routing and reporting system that links member firms’ processing and
trading operations and the specialist post on the NYSE trading floor. Larger
transactions are facilitated personally by floor brokers via BBSS (Broker Booth
Support System), NYSE e-Broker and NYSE Direct+.
Dividends are subject to a 30% withholding tax, although this is reduced for
investors who reside in a country with a tax treaty in force with the United
States. Capital gains are treated as ordinary income, subject to tax rates of
between 15% and 28%.
A short sale may not be made below the price of the last regular way sale,
but may be made at the price of the last regular way sale, provided that the
previous different regular way sale price was lower than the price of the last
sale, irrespective of whether such prices were established on the same day
or some earlier day. If the previous different price was higher than the price
of the last sale, a short sale may be made only at a price which is higher than
the price of the last sale.
In 1991 the NYSE introduced off-hours cross selling. Currently the Exchange
offers four crossing session in its Off-hours Trading Facility (OFHT). Session
1 enables members to enter one-sided, two-sided, or good-till-executed
(GTX) orders for a specific stock into the SuperDot system to be executed
at 5pm. at the NYSE closing price. Session II facilitates program trades,
session III is for Guaranteed Price Trades and IV is for Volume Weighted
Average Prices (VWAP) for Sessions II, III and IV the trades are reported.
There are two types of brokers who are permitted to trade on the exchange
Floor Brokers and Specialists. The first type is floor brokers who represent
public orders to buy or sell shares and work to get their customers the
best price. The Specialist brokers are allocated a stock which is listed
on the NYSE and they act as auctioneers in their designated stock at a
designated location. Through the use of sophisticated technology they
bring buyers and sellers together, improve prices and serve ad a point of
accountability for the smooth functioning of the market.
Main Indices
Board Lots
NYSE Composite
100 shares
Tick Size
Monday - Friday
US$0.01
Upstairs traders work at a member-firm trading desk and are linked to
the NYSE trading floor and other markets. They facilitate block orders for
customers and also engage in arbitrage between the equities markets and
derivative-products markets. They also trade for their firms’ own accounts.
After-Hours Trading:
The NYSE also trades via the Intermarket Trading System (ITS). This
system began operation in 1978 and connects the American, National,
Chicago, New York, Pacific and Philadelphia stock exchanges, NASD
and the CBOE, and enables brokers to execute a transaction on another
market whenever the Composite Quotation System shows that a better
price may be obtained there.
Circuit Breakers
10%, 20% and 30% declines in The Dow Jones Industrial Average. The
numerical points are decided each quarter, using the average closing from
the previous month. Without a set designation, both markets oversee the
pending for each name.
126
Futures Information
Trading Hours: 09:30 - 16:00
Currency
US Dollar (USD)
Closing Session I: 16:15 - 17:00
Closing Session II, III, IV:
16:00 - 18:30
T+3 Business Days
Market Size
as of February 2008
USD14.6trn
USD163.7bn
Currency Exchange
EUR1 = USD1.51825
Uruguay
Futures Information
None
Internet: www.bvm.com.uy (Spanish Text Only)
Email: [email protected],uy
Primary Exchange
Montevideo Stock Exchange
Brief History
The Montevideo Stock Exchange (MSE) was established in 1867. In 1992
the Exchange amended its by-laws to allow the purchase of broker titles
by legal entities. In 1996 additional reforms were introduced to provide a
legal framework for the securities markets.
Trading System
Trading at the MSE is effected manually on the trading floor.
Commissions collected by brokers as a result of the sale of shares are
approximately 0.5% of the price of the transaction.
The Act 14.179 guarantees restitution of capital invested by individuals or
corporations domiciled abroad, as well as earnings accrued. Investments
covered by this law must be authorised by the government. Investors have
the absolute freedom to bring capital into the company as well as to remit
it. Neither dividends nor capital gains are taxed.
Main Indices
Indice de Precios
BMV provides all the securities
clearing and settlement services
for its members and on behalf
of their customers. Settlement
takes place 24 hours after
the transaction
Monday - Friday
Continuous Trading:
14:00 - 14:30, 16:15 - 17:00
Market Size
as of February 2008
USD125.3m
Currency Exchange
USD1 = UYU20.9500
EUR1 = UYU31.7853
Currency
Uruguayan Peso (UYU)
127
Uzbekistan
Futures Information
None
GMT +5hrs
Internet: www.uzse.uz
Primary Exchange
Toshkent Republican Stock Exchange
Brief History
Toshkent Republican Stock Exchange (TRSE), formerly the Uzbekistan
Stock Exchange, was established in 1994. Its creation came about
due to economic reforms in Uzbekistan, most significantly the creation
of joint-stock companies and the privatisation of state enterprises. The
State Property Committee of the Republic of Uzbekistan and the financial
company Uzfininvest were the founders of the Exchange.
Trading System
Trading is effected via the Exchange Information and trade system. Trading
is via the double continuous auction method. The system ensures that
the stock exchange is transparent and presents detailed information to
both investors and participants in real time. The information system allows
users to find any transaction that has been concluded at the TRSE from
the date of its creation, and to get information on the JSCs that have sold
shares at the stock exchange, as well as data on brokerage companies or
everyday analytical information.
For Shares: 1% from the buyer and seller on IPO For privatised state
shares only). In the public float market the rate ranges from 0.025% to
0.4% depending on the volume of the transaction, from both each buyer
and seller.
Foreign legal entities are subject to a corporate income tax of 10%.
Main Indices
Currency
TASIX Index
Uzbekistani Som (UZS)
Monday - Friday
T+5 Business Days
10:00 - 15:30
Market Size
as of February 2008
128
Currency Exchange
USD1 = UZS1296.38
EUR1 = UZS1968.099
Futures Information
Tick Size Contract Months Reuters Bloomberg IBC Index Future
Caracas Stock Exchange
Mon - Fri; 09:00 - 14:45
2000 Bolivars
0.1 index point
3 consecutive months & the next 3 contracts
on the Mar, Jun, Sep & Dec expiry cycle
<0#IBC:>, contract details <CCS/IBC>
CI (Month Code)(Last Number of Year) <Index>
Brief History
The development of an organised securities market in Venezuela can be
traced back to 1805 when Don Bruno Abasolo y Don Fernando Key Muñoz
founded a trading house in the city of Santiago de León de Caracas.
In 1807 the Government issued trading rules and the first association of
traders was created. The first formal exchange was registered in January
1947 with an auction of 22 seats at the exchange known as the Bolsa de
Comercio de Caracas. In 1958 a second exchange, the Bolsa de Comercio
del Estado Miranda, was founded to compete with the first exchange.
However, in 1974 the two exchanges were merged, thus marking the
beginning of the modern exchange. In 1998 the Exchange acquired the
SIBE electronic trading exchange from the Madrid Stock Exchange.
Trading System
Equities and fixed income instruments are traded on the SIBE platform.
SIBE is an order-driven market system, with real-time information and
dissemination of trading data. SIBE gives support to the management of
orders, trading, dissemination of information, settlement and monitoring
activities of the organised markets.
Trading is done via a fully automated, screen-based trading system
called SIBE, where transactions are matched automatically. All members
bid and/or offers are identified on the screen. Trading a large volume of
shares or trading a stock at a price which varies from the pre-established
percentage band, will automatically be delayed.
The main index is open-ended and accounts for more than 60% of total
market capitalisation. The majority of equity trading takes place in locally
listed shares and Global Depository Shares (GDS).
Main Indices
Currency
Caracas Stock index (IBC)
Venezuelan Bolivar fuerte (VEB)
Monday - Friday
T+3 Business Days
Spring- Summer
Pre-Opening: 08:30 - 09:00
Market Session: 09:00 - 14:30
Post-Closing: 14:30 - 15:00
Venezuela
GMT -4.30hrs
Internet: www.bolsadecaracas.com
Primary Exchange
Caracas Stock Exchange
Every six months there will be a modification on the schedule based on
the time frame changing in United States of America in order to reach the
same opening time from the New York Stock Exchange where certain
Venezuelan ADR´s are traded.
Commissions paid by investors to the brokers for buying or selling a share
are determined by the brokers individually. Commission is paid by each
side involved in a transaction.
Taxes & Regulations Affecting Foreign Investors.
The Caracas Stock Exchange does not impose any restrictions on foreign
nationals other than those applicable to domestic investors as established
by the Exchange’s internal rules and regulations. There are two ‘sensitive’
areas regarding foreign investment:

TV and radio broadcasting, Spanish-language newspapers.

Professional services regulated by national laws (e.g. law firms).
Dividends are tax exempt, but net income from loans granted by financial
institutions constituted overseas is taxed at the rate of 4.95%. The capital
gains tax has been replaced by a proportional tax of 1% on the gross
income (if the trade is executed on a stock exchange). The rates for trades
(variable and fixed income securities) not done on a stock exchange are
as follows:
Proportional Tax Rate
Individuals Companies
Residents
3%
5%
Non-residents
34%
Varies from 6.0% - 34.0% depending on
taxable income
Short selling is prohibited.
Currency Exchange
USD1 = VEB2147.3
EUR1 = VEB3257.88
Autumn-Winter
Pre-Opening: 09:00 - 10:00
Market Session: 10:00 - 14:30
Post-Closing: 14:30 - 15:00
Market Size
as of February 2008
USD31.9bn
USD374.3m
129
Vietnam
Futures Information
None
GMT +7hrs
Internet: www.vse.org.vn
Primary Exchange
Ho Chi Minh Stock Exchange
Brief History
Ho Chi Minh City Securities Trading Center (HoSTC) (‘STC’) was officially
inaugurated on 20th July 2000 and trading commenced on 28th July 2000.
Initially, two equity issues were listed, Refrigeration Electrical Engineering
Joint Stock Corporation (‘REE’) and Saigon Cable and Telecommunication
Material Joint Stock Company (‘SACOM’). In August 2007, HoSTC was
renamed the Ho Chi Minh Stock Exchange (HOSE). As of 31th December
2007 there were 62 securities listed.
Trading System
The STC operates fully-computerised trading system for the Stock
Exchange of Vietnam. Two principal methods of trading are available:
Automatic Order Matching (AOM) and Put Through transactions (PT).
Automatic Order Matching (AOM) Trading
The Automatic Order Matching performs the order matching process
according to price then time priority, without human intervention. After
brokerage houses electronically send buy or sell orders from their offices
to the HOSE mainframe computer, the system implements an order
queuing process and arranges the orders according to a price-then-time
priority. This means orders are first grouped according to price, with the
best price taking precedence. Then, within each price group, orders are
arranged according to time.
The system calculates the opening and closing price of a security at the
opening and closing times of the Official Trading Hours. The system allows
brokers to enter their orders to be queued for matching at a specified time
at the single price which generates the greatest trading volumes of that
particular stock.
Put Through (PT) Trading
The system provides a facility for brokers to deal directly with each other,
either on behalf of their clients or for themselves. The dealing price is
negotiated between the 2 brokers and hence, the effective executed price
may not be the same as that of securities traded in the market on that day.
After concluding negotiations, dealers must send details of the result(s) to
STC mainframe recording purposes.
None.
The only tax on equities for foreign investors is a securities transaction tax
of 0.1%. There is no withholding tax on dividends paid abroad. There is
no capital gains tax. Foreigners can buy up to 49% of listed stocks except
banks. For banks the limit on foreign ownership is 30% with a maximum
individual investor limit of 10%. Maximum bonds holding: no limitation.
Foreign contribution on joint-venture securities firms or fund management
company less than or equal to 49%.
130
Main Indices
Currency
Vietnam Index
Vietnamese Dong (VND)
Monday - Friday
T+3 Business Days
Order-Matching Opening:
08:30 - 09:00
Currency Exchange
Continuous Order Matching:
09:10 - 09:30
Order Matching Closing:
10:15 - 10:30
Put Through: 10:30 - 11:00
Close: 11:00
Market Size
USD14.7bn
USD1 = VND15931.0
EUR1 = VND24170.5
Futures Information
West African Stock Exchange
None
Bourse Regionale des Valeurs Mobilières SA (BRVM)
GMT+1
Internet: www.brvm.org
Primary Exchange
Regional Stock Exchange West Africa
Brief History
Circuit Breakers
The West African Stock Exchange can trace its roots back to the
foundation in 1973 of the West African Monetary Union (WAMU). In
Adibjan, Cote d’Ivoire the Bourse des Valeurs d’Abidjan (BVA) began its
operation in 1976 following the passing of Law No 74-353 in 1974. The
Regional West African Exchange, Bourse des Regionale Valeurs Mobilieres
(BRVM), took over the 35 stocks of Ivory Coast’s national BVA bourse from
16th September 1998. The BRVM is made up of eight member nations.
The head quarters are located in Abidjan, the capital of Cote d’Ivoire, whilst
market offices are maintained in Benin, Burkina Faso, Guinea Bissau, Mali,
Niger, Senegal and Togo.
The price fluctuation per session is limited to 7.5% for stocks and bonds.
Trading System
There is one method of dealing and establishing prices. Stocks and
bonds are traded through a computer system known as the Decentralized
Electronic Fixing (CED) system, with a single price auction called fixing.
Stocks are quoted in multiples of XOF5. Bonds are quoted as a percentage
of nominal. The trading system allows orders to be dispatched to the
Abidjan headquarters, with brokers able to amend orders at any time until
the fixing. The trading system serves Benin, Burkina Faso, Cote d’Ivoire,
Mali, Niger, Senegal and Togo.
The fees charged by the exchange to the brokers are:
Trading: 0.30% of the transaction value.
Settling and Clearing: 0.10% of the transaction value.
The brokerage fees are about 1% of the transaction value (freely determined
by each broker).
There are no formal restrictions on foreign investment.
A satellite trading system was inaugurated in March 1999 allowing orders
to be dispatched to the Abidjan headquarters via satellite, with brokers able
to amend orders at any time until the fixing. Agents sitting at workstations in
their offices or desks located in national branch offices in WAEMU countries
and brokerage firms can enter and amend orders. The satellite trading
system serves the countries included in the regional bourse (Benin, Burkina
Faso, Côte d’Ivoire, Mali, Niger, Senegal, Togo and Guinea Bissau).
Main Indices
BVRM Composite Index
Settlement is carried out via the
Central Depository and the cycle
is T+5, but to meet international
standards it is expected to move
to T+3 in the future
BVRM10 Index
Monday - Friday
08:30 - 11:15
Market Size
as of February 2008
Currency Exchange
USD1 = XOF431.5
EUR1 = XOF655.2995
Currency
Communauté Financière
Africaine Franc (XOF)
131
Zambia
Futures Information
None
GMT +2hrs
Internet: www.luse.co.zm
Primary Exchange
Lusaka Stock Exchange
Brief History
The Lusaka Stock Exchange (LuSE) began operations in February 1994.
Its formation was directly linked to the economic reforms and liberalisation
of the Zambian economy that began in 1991, a key feature of which
was the privatisation of state-owned enterprises. A stock exchange was
viewed as pivotal to the success of the privatisation programme which
was also intended to facilitate foreign investment.
0.25% of value to each party paid to the exchange. Brokerage rates are
negotiable. Indicative scale is 0.5% on equities. Depository Transfer Fees
0.375% of the total value deposited.
The securities market in Zambia was formalised by the enactment of the
Securities Act in December 1993. The Securities Act, and its subsidiary
legislation in the form of rules, provides for the operation of a market that
is fair, orderly, secure, and transparent. It provides for investor protection
and the licensing of all market players. The Act also provides for the
establishment of the Securities and Exchange Commission (SEC-Zambia)
as the regulatory agency for the Zambian securities market.
Trading System
The LuSE operates as an order-driven market. Trading is manual and
through direct order matching. A single price auction (SPA) is used to
determine the opening market price. SPA is the price at which the largest
volume of shares will be traded with the least imbalance. Orders are
traded based on the criteria of price, time of entry and whether the order is
a client order or principal order. Orders can be submitted to the Exchange
by fax. The Exchange produces an opening market price summary report,
a mid-morning update report and a closing market report.
There is a withholding tax of 15% on dividends that are treated as
income. However this tax is exempted for dividends paid on listed stock
to individuals. There is no capital gains tax. A property transfer tax of 3%
is paid by the seller of unlisted securities. Listed stock does not attract
this tax. The corporate income tax rate is 33%. Government restructured
the preferential tax structure for listed companies effective 1st April 2004
as follows; corporate tax reduction by 2% for new listings for one year
only and a further reduction of 5% over and above the 2% for companies
whose offer results in at least 33% of their shares being held by Zambians.
This incentive is for new listings for one year only and is accessible
only once.
There are no ownership limits or restrictions on foreign investment.
Main Indices
Currency
LuSE All Share Index
Zambian Kwacha (ZMK)
Monday - Friday
T+3 Business Days
First Trading Session:
10:00 - 11:00
Currency Exchange
Second Trading Session:
12:00 - 13:00
Market Size
as of February 2008
132
USD1 = ZMK3760
EUR1 = ZMK5710.312
Zimbabwe
Futures Information
None
GMT +2hrs
Internet: www.zse.co.zw
Primary Exchange
Zimbabwe Stock Exchange
Brief History
The first stock exchange in Zimbabwe opened its doors shortly after the
arrival of the Pioneer Column in Bulawayo. It was however only operative
for about six years from 1896 to the end of the South African war. Other
stock exchanges were established in Gwelo (Gweru) and Umtali (Mutare).
The latter, also founded in 1896, thrived on the success of local mining,
but with the realisation that deposits in the area were not extensive,
activity declined and it closed in 1924. After World War II a new exchange
was founded in Bulawayo and dealing started in January 1946. A second
floor was opened in Salisbury (Harare) in December 1951 and trading
between the two centres was by telephone. They continued operating
until it was decided that legislation should be enacted to govern the
rights and obligations of both members of the Exchange and the general
investing public.
Buying and selling shares incurs costs which are added onto the purchase
price or deducted from the sale amount.
The Zimbabwe Stock Exchange Act reached the statute book in January
1974. The members of the Exchange continued to trade as before, but it
became necessary for legal reasons to bring into being a new Exchange
coincidental with the passing of the legislation. The present Exchange
therefore dates from the passing of the Act.
The exchange has been open to foreign investment since 1993.
Trading System
The trading method used on the ZSE is a call-over system organised on
the floor of the exchange. Trading is carried out by open call over in two
sessions. The system is paper based and a trading record is published
by the ZSE daily and circulated to broking firms and the press. Deals are
effected by placing an order with a local broker who completes the trade
at the call over.
Main Indices
Currency
ABRI Zimbabwe Index
Zimbabwean Dollar (ZWD)
Zimbabwe Industrials index
Zimbabwe Mining Index
Monday - Friday
09:00 - 10:30; 11:45 - 13:00
Rate (ZWD)
Basic charge 500
Brokerage
2 per 100
Stamp duty
2 per 100 (of shares purchased)
Transfer fee (on purchases)
500
VAT
15%
Control on repatriation of sale proceeds were lifted in January 1994.
However the following rules still apply; no one foreign investor may own
more than 10% of the issued equity of a listed company. Aggregate foreign
ownership of a listed company may not exceed 40% (excluding positions
held before June 1993).
Withholding taxes on dividends are deducted at source at the rate of 15%.
Capital gains tax was abolished in 2003. All investment purchases are done
through the Exchange and funded through normal banking channels.
Two listed shares - Old Mutual plc and ABC Holdings Limited - have
fungibility inward and outward.
T+7 Business Days
Currency Exchange
USD1 = ZWD30000
EUR1 = ZWD45516 (official rate)
Market Size
2005
USD2.8bn
133
ECNs,
ATS &
Dark Pools
NYSE Arca
Internet: www.nyse.com
Brief History
Trading System
In January 1997, the US Securities and Exchange Commission (SEC)
implemented new Order Handling Rules, which revolutionised trading in
NASDAQ securities. The new rules created the opportunity for Electronic
Communications Networks (ECNs), such as Archipelago, to interact
directly with the NASDAQ National Market System. Archipelago LLC was
formed in December 1996 in response to these rules and was launched in
January 1997 as one of the four original ECNs approved by the SEC.
ArcaEx, is an open, fully electronic equity exchange offering fast,
anonymous and consistent order processing. NYSE Arca trades all NYSE,
NYSE Arca, AMEX and OTC listed stocks. The SEC has restricted UTP
trading in certain ETFs on NYSE Arca for those ETFs and Trusts that do
not provide intra-day fund valuation estimates during either the early or
late trading session. NYSE Arca features four trading sessions each day:
a pre-opening session (03:30 - 04:00), Opening session (04:00 - 09:30),
Core trading Session (09:30 - 16:00), Extended Hours (16:00 - 18:00).
Additionally, ArcaEX has an opening auction, a Market Order Auction and
a Closing Auction where all participants can see and participate in price
information. Equity trading Permit Holders and other uses of Arca submit
orders directly to an electronic file of orders, known as the ArcaBook. Arca
searches for the best price for orders internally or externally.
In October 2001, the SEC approved the proposal of the Pacific
Exchange, Inc (PCX) to establish the Archipelago Exchange (ArcaEx) as
its new, electronic trading facility. The Pacific Exchange closed its San
Francisco equities floor on 21st March 2002, moving its equities trading
operations to the fully electronic Archipelago Exchange (ArcaEx), replacing
the traditional floor specialists. The Pacific Exchange options floor in
San Francisco is unaffected by the migration of equities trading to an
electronic environment.
In March 2006 Archipelago merged with the NYSE to form the for-profit
entity NYSE group (now NYSE Euronext). NYSE Arca was the first open,
all-electronic stock market in the United States enabling customers to
trade equity securities, including those listed on NYSE Arca, the NYSE
and other US equities markets and options products. NYSE Arca trading
platform links traders to multiple US market centres where buyers and
sellers meet directly in a highly-liquid electronic environment without
intermediaries for fast order executing and open, direct and anonymous
market access.
Core Trading: 09:30 - 16:00
Investor Protection
The legal entity known as NYSE Regulation, Inc., was created during
the course of the merger between the New York Stock Exchange and
Archipelago Holdings, Inc. To protect investors, the health of the financial
system, and the integrity of the capital-formation process, the US SEC
selected NYSE as the Designated Examining Authority for financial and
operational issues for its member organisations. The chide executive
officer of NYSE Regulation has primary responsibility for the regulatory
oversight of the exchange subsidiaries within NYSE Group, and reports
solely to the NYSE Regulation board of directors.
seller. Trades executed will be
routed to NSCC for settlement
via the Regional Interface
Organisation (RIO)
Extended hours: 16:00 - 18:00
It is necessary for clearing firms
to become NYSE Arca Equity
Trading Permit (ETP) holders
to clear trades on behalf of
exchange participants. Once
a trade has been executed,
records will be sent to National
Securities Clearing Corporation
(NSCC) for clearance and
settlement. All trading activity
is transmitted to NSCC via
computers as “locked in”
transactions meaning a computer
has already matched the details
of the trades from buyer and
137
EuroTLX – TLX
Internet: www.eurotlx.com
Brief History
TLX was launched as an ATS in January 2000 by TradingLab Banca, the
investment bank of Unicredito Group. On 1st January 2003 the exchange
was spun off from TradingLab Banca into a new vehicle called TLX
SpA, in order to create a pan-European electronic exchange of financial
instruments targeted to individual investors.
Since the 20th October 2003, TLX SpA has managed two markets: a
Regulated Market recognised by the Italian Authority CONSOB, called
TLX and the ECN called EuroTLX, where the following instruments are
traded: foreign equities, corporate bonds, emerging market bonds, non EU
government bonds, structured bonds, covered warrant and certificates.
EuroTLX enables retail investors to trade, through intermediaries, with
a high level of liquidity and transparency. Trading activity is especially
concentrated on instruments such as foreign equities, structured bonds,
Covered Warrants, Certificates and Corporate bonds. Investors can
access real time prices and pre and post trading info through the EuroTLX
website. On 29th December 2006, Banca IMI, the investment bank of
Intesa Sanpaolo banking group, acquired a 50% stake in TLX, and started
to act as a market makers from February 2007. TLX currently has 40
members, among them major Italian brokers-dealers.
Structure
The following members have access to the market:

Market Makers, which provide liquidity through insertion of quotes
for all instruments traded.

Broker-Dealers, which provide orders on behalf of their clients.
The liquidity of all instruments is guaranteed by the mixed structure,
quote‑and order-driven. A single investor may send orders independently
from the quotes of the market maker.
The rules of the market are available on the web site (www.eurotlx.com).
Securities Traded
Non EU Government bonds, sovereign bonds, supranational bonds,
corporate bonds, structured bonds, covered warrant and certificates, ABS.
Trading System
Trading occurs through a hybrid quote- and order-driven system supported
by an OM technology electronic trading platform. Market Makers and
Members enter buy and sell orders through an order routing system
located in their offices. The system then matches the transactions basing
on the rules of the Exchange.
Commission Rates & Other Client Costs
Membership and execution are free for Members.
138
Monday - Friday
Continuous Trading:
09:00 - 20:30 (22:00 for equities)
EuroTLX contracts are settled
through the domestic clearing system
(Montetitoli), except for Eurobonds
which are cleared on Euroclear
Liquidnet
Internet: www.liquidnet.com
Brief History
Trading System
Liquidnet was launched initially in the US in April 2001. It was built
exclusively for institutional investors and after two years was ranked as one
of the largest 30 NYSE-listed and NASDAQ institutional brokers. The 227
buy-side firms that have signed up to the system represent approximately
USD5.8trillion in equity assets under management. In Europe, Liquidnet
was launched in November 2002 allowing European fund managers
access to liquid six distinct foreign markets. On 15th March 2007, Liquidnet
completed its acquisition of Miletus Trading. By February 2008, Liquidnets
reach had risen to 52 member firms in 29 Markets following launches in
Australia, Europe and Asia.
Members’ orders flow automatically into Liquidnet, and Liquidnet alerts a
trader only when there is a natural contra on the system.
Structure
Liquidnet is the major marketplace for electronic block trading. Liquidnet
allows money management institutions to trade large blocks of equities
directly and anonymously with significant price improvements and littleto-no market impact. Liquidnets model brings natural buyers and sellers
together and enable them to anonymously negotiate trades among each
other, without intermediaries or information leaks. Liquidnet’s Members
trade large blocks of small-, mid- and large-cap stocks efficiently with
little to no market impact costs. Liquidnet estimates that searching for
liquidity currently cost the US equities industry more than USD100bn a
year in hidden transaction costs. Liquidnet executes 93% of all trades
within the spread, with 42% executed at the mid-point. Liquidnet is the
only institutional broker to offer one global pool to its Members.
Traders can actively work trades in multiple venues without competing
against themselves in the marketplace.
Members Trade Only With Fellow Buy-side Institutions.
Liquidnet guarantees anonymity and takes it to a new level. Nothing is
done - and no critical information is revealed - unless two Members actively
negotiate with each other. Even then, the parties remain anonymous to
each other and to everyone else.
Commission Rates & Other Client Costs
There is no software-licensing fee. Members pay commissions to Liquidnet
only when they deal.
Monday - Friday:
02:00 - 18:00 EST
Liquidnet out-sources clearing
and settlement to Bear, Stearns
Securities Corp. Settlement is
handled as with any other broker.
Liquidnet will collect allocation
information from the Electronic
Trade Confirmation (ETC) system
(e.g., OASYS or OASYS Global)
Members use or directly from
their OMS.
139
ITG POSIT
Internet: www.itginc.com
Brief History
ITG (Investment Technology Group) was founded in 1987 to provide
automated equity trading to institutional investors, and in the same year
ITG introduced POSIT, the first anonymous electronic matching system,
an is currently the world’s largest intraday equities crossing system. It was
introduced for UK equities on 18th November 1998. In 2005 ITG expanded
into Japan, launching POSIT matching for Japanese securities. In 2006
ITG acquired Macgregor and Plexus Group, adding a leading trade
order management system provider and boosting its transaction cost
analysis offering.
Structure
ITG POSIT trades equities in US, Australia, UK, France, Germany,
Switzerland, Holland, Finland, Sweden, Spain, Italy, Belgium (Ireland
added in February 2003). Since 2002 a POSIT cross has been available in
Hong Kong. Its HQ is in New York; with offices in Boston, London, Dublin,
Sydney, Melbourne, Toronto & Hong Kong.
Trading System
POSIT supports active, passive and quantitative trading styles. It covers
domestic and international stocks as well as listed and OTC. POSIT is also
a venue for small, illiquid names and allows order matching and extraliquidity searching. ITG POSIT Matching system sources from buy side
clients and sell side market participants and tries to match as many as
possible at given times in the day anonymously and at the mid-price in
the market. POSIT has evolved to offer a host of options with several
benefits which includes POSIT MATCH, POSIT Now and Blockalert. Since
the introduction of MiFID in November 2007, POSIT is now categorised as
a multilateral trading facility.
POSIT MatchTM

Provides scheduled matches with concentrated liquidity throughout
the trading day and in our unique after-hours cross.

Crosses Orders at the midpoint of the bid-offer spread, resulting in
significant price improvement of executions.

Ensures total anonymity so that trading results in no market impact.
POSIT NowSM

Offers continuous intra-day crossing and total anonymity.

Ensures that you never miss a trading opportunity once orders have
been submitted.
BLOCKalertSM

Seeks out liquidity before it even enters the market.

Allows traders with orders in many order management Systems to
share trading opportunities with other participants.
POSIT is a “black box” system that runs a proprietary algorithm at
designated times each day. In Europe, this algorithm is set to maximise
the value of shares matching in the system, at the mid-price taken from
the lead market quote for each stock. All matching orders are immediately
reported back to the client and are trade/transaction reported to the
relevant authority.
Japan
Monday - Friday
Two Matches at 09:15
(Pre-market VWAP) 10:00
at the following times in the
respective locations
Australia
Four matches at 09:00 (VWAP),
11:00, 12:00 and 15:00
US (EST)
Fourteen matches at 09:45,
10:00, 10:15, 10:30, 11:00,
11:30, 12:00, 13:00, 14:00,
15:00, 15:30, 16:00, (after-hours
14:15 and 16:45)
UK
Eight matches at 09:00, 09:30,
10:00, 11:00, 12:00, 14:00,
15:00 and 16:00
Europe
Eight matches at 09:00; 09:30;
10:00, 11:00, 12:00, 14:00,
15:00 and 16:00
Hong Kong
Three matches at 09:45 (VWAP)
11:00 and 15:00
140
Model “A” clearing with
relationship Pershing (part of
CSFB Group and one of the
independent clearers in the UK)
France, Germany, BNP Paribas
Spain, Italy &
Belgium
Switzerland
Bank Leu
Netherlands
CDC
Labouchere
Monday - Friday: 09.30 - 16.00
Trades in-sync with the opening
times of the relevant local market.
Primex Trading
Internet: www.primextrading.com
Brief History
Primex was established in 1998 as a hybrid auction/dealer system.
The NASDAQ Stock Market agreed in 2000 to license the Primex
Auction System and became its exclusive operator for all U.S. equities,
giving access to NASD-member broker/dealers, following the market’s
conversion to decimal pricing in spring 2001. NASDAQ, in its desire to
consolidate certain functionality into one system (SuperMontage), has
elected to no longer offer the Primex.
Auction System as a facility of NASDAQ has been effective since
31st December 2003.
The system’s electronic auction process elicits latent trading interest from
market participants that is not often displayed in public quotes. This interest
in the system, which is always at prices equal to or better than what may
be available in the NBBO, provides orders with increased opportunities to
receive price improvement and enhanced liquidity.
Trade types include At-market orders and executable orders at a limit that
is within the prevailing spread.
Order sizes can be between 100 – 1,000,000 shares and can be as agent
or principal.
Trading System
The Primex Auction System is a trading system that replicates a competitive
trading crowd in an extended digital environment. The system is available for
NASDAQ-listed securities and exchange listed securities traded.
Market orders and immediately executable limit (priced) orders may be entered
into the Primex Auction System for exposure to a broad-based, electronically
linked crowd. Participants compete anonymously for orders using bidding
tools that speed the auction process. Orders being exposed will execute
instantly in many cases. All executions in the system will be at prices at least
as favourable as the prevailing National Best Bid and Offer (NBBO).
Bloomberg Tradebook
Internet: www.bloombergtradebook.com
Brief History
Established in 1996, Bloomberg Tradebook is a leading global agency
broker used by institutional equity and fixed income traders, brokerdealers, hedge fund managers, market makers and portfolio managers
world-wide. Bloomberg Tradebook has established itself as a leading
electronic consolidator of global liquidity.
Since its inception, the number of shares traded daily has risen to over
150m in the US equity securities and has an approximate aggregate
value of USD1bn per day in international equity shares traded. Bloomberg
Tradebook now offers its global customer base direct connectivity to over
65 markets spanning 54 countries. It also provides global clearing and
settlement capabilities via executing and clearing relationships with BTrade Services LLC and BNY Brokerage Inc. (US Equities), and G-Trade
Services Ltd. (International Equities), all affiliates of the Bank of New York.
141
NexTrade
Internet: www.nextrade.com
Brief History
In November 1998, after two years of design and development, NexTrade
(NTRD) received SEC approval to become one of nine ECN’s (Electronic
Communications Network). NexTrade’s technology allows participants to
interact simultaneously with all NASDAQ ECNs and market-makers.
NexTrade was the first ECN to offer 24 hour trading to retail investors
through participating broker-dealers. Currently, NexTrade offers direct
access solutions, intelligent order routing solutions and straight-throughprocessing through its proprietary product, Pro-Trade. Its clients include
mutual funds, hedge funds, NASDAQ market-makers, traditional
broker-dealers, online broker-dealers and professional trading companies.
NexTrade filed an application with the SEC in 1999 to become a for-profit
stock exchange in the United States and is a registered broker/dealer
and member of the NASD and SIPC. In February 2005 NexTrade and the
Philadelphia Stock exchange announced an XPO licensing agreement.
XPOs are options that simply have no expiration date, traded at multiple
strike prices and closed-out via exercise.
NASDAQ Trader
Internet: www.nasdaqtrader.com
Brief History
NASDAQ completed its Exchange Operation for the Integration of the
NASDAQ Market Centre, Brut and INET into a single platform which
uses INET technology for all securities, on 12th February 2007, the same
day that NASDAQ became operational as an exchange in non-NASDAQ
listed securities. All trades on the integrated system are now considered
exchange trades.
The switch to operational status as an exchange means that NASD/
NASDAQ Trade Reporting Facility (TRF), a new limited liability company
operated by NADSAQ and subject to NASD’s regulatory license and
oversight, now offers trade reporting of over-the-counter transactions.
NASDAQ trading riles regarding its quotation and trading systems
remain essentially the same. NASDAQ members need not undertake
any technology changes; however the following functionality for non
NASDAQ-listed securities has been retired:
142

Orders preference to individual market makers.

The AIQ option to preference yourself first (the option to not).
Instinet
Internet: www.instinet.com
Brief History
Instinet was the first ever ECN, founded in 1969. It was originally a way
for brokerages to display bid and ask prices for practically every stock in
North America and abroad and was the first used by intuitions to transact
with each other.
Instinet is a global agency broker that helps clients define and seek best
execution in global markets. Instinet provides clients with flexible and
technologically advanced tools and services, acting as an unconflicted
agent focused solely on customers trading and investment performance.
Through Instinet’s electronic trading platforms, clients have unbiased
direct and efficient access to more than 55 equity markets worldwide.
In addition, clients can interact with the liquidity of Instinet’s institutional
clients. Instinets systems are designed to optimise access to liquidity
across all available marketplaces, without any bias or interference that
might compromise the pursuit of best execution. Clients can choose to
access this liquidity by trading electronically and self-directing their order
flow, or using Instinets sales trading offering - or combination of both.
In addition, clients can trade with each other directly and anonymously,
with out intermediation, in both continuous market and the periodic
crossing venues.
Instinet Chi-X
Internet: www.instinet.com
Brief History
Structure
Instinet has been providing innovative trading solution to the financial
community since it was created in 1969. Instinet Chi-X limited was
launched by Instinet as a FSA authorised securities firm, and is
known as an ATS (Alternative Trading System) or MTF (Multi-Lateral
Trading Facility).
Through Chi-X’s low cost, streamlined model, institutional investors are
able to trade pan-European equities and achieve ultra-low execution
clearing and settlement costs. Internal benchmark test showed the Chi-X
operating model to be more than 10 times faster and significantly less
expensive than Europe’s trading equity exchanges. Chi-X disseminates
market data to clients directly and via third-party market data vendors at
no cost and trade reporting is available for a flat monthly fee.
Chi-X is an order-driven ATS/MTF for professional investors to trade
approximately 7,500 pan-European equities. It is the first order-driven
pan-European ATS. It offers a lower-cost, less-complex model designed
to help ensure that not only client execution costs are low but so are the
associated clearing and settlement costs.
Chi-X Canada has since quarter 1 2008 been available for trading on all
TSX-listed securities.
In February 2008 Instinet announced plans to launch an Australian ATS.
143
NYFIX
Internet: www.nyfix.com
Brief History
NYFIX, Inc. through its subsidiaries provides electronic trading technology
infrastructure and execution services to brokerage firms and institutional
investors. NYFIX products and services automate trading workflows by
streamlining data entry and seamlessly integrating electronic order and
execution handling. NYFIX offers a complete electronic desktop order
management solution; stationary and wireless handheld exchange floor
technology; FIX (Financial Information eXchange) Protocol messaging and
monitoring tools and a high volume trade execution platform. Its products
deliver straight-through processing (STP) for front, middle and back office
trade transaction processing.
NYFIX Millennium Alternative Trading System (ATS) is an automated
execution venue designed to maximise execution quality and reduce
the over all transaction cost. It is a hybrid market system as it combines
the electronic execution technology of an ECN with the liquidity of
traditional primary markets. NYFIX Millennium facilitates trades through
its real-time matching algorithm at or better than the National Best Bid
or Offer (NBBO). Through Millennium PLUS, the system offers the ability
to generate anonymous liquidity alerts to external dark pools and other
passive liquidity sources.
Track ECN
Internet: www.trackecn.com
Brief History
Track ECN is a subsidiary of Track Data Securities Corp. Track ECN offers
Smart Order Routing Technology, Routing out to major Markets, Direct
Connections to Major Markets, and Book Feed Showing Depth of Book.
Track ECN has made its mark by offering the largest rebates and smallest
take-away fees, without imposing minimum trading levels. Track ECN
is one of the last independent ECNs unattached to any market maker
or exchange.
144
Euro Millennium was launched on the 17th March 2008. This is a neutral
dark pool of liquidity for pan-European listed cash equities with a flexible
order routing capability designed to aggregate order flow and access
liquidity pools. Initial it has listed only UK-listed equities but will be rolled
out to cover the major European markets during 2008.
Pipeline
Internet: www.pipelinetrading.com
Brief History
New York City based Pipeline Trading Systems LLC operates the Pipeline
Alternative Trading System (ATS) that enables institutions and brokerage
firms to quickly and efficiently trade blocks off NYSE-listed companies,
NASDAQ stocks, and Exchange Traded Funds (ETFs). Pipeline empowers
firms to execute block trades in single executions. Pipeline maintains
a hidden book of large, executable limit orders with strict price time
priority. Pipeline facilitates interaction between traders, enabling all real
buyers and sellers to find each other anonymously and get trades done
while minimising gaming. In February 2008 Pipeline has enabled users of
Fidessa Latent Zero’s Minerva OEMS (Order and Execution Management
System) to achieve institutional trading efficiencies without blotter
information leakage.
Monday - Friday:
Continuous Trading:
09:30 - 16:00 (16:15 for ETF)
The International
Securities Exchange
Internet: www.ise.com
Brief History
The International Securities Exchange (ISE) was founded in 2000 and
was the first fully-electronic US options exchange. Today the ISE is the
world’s largest equity options trading venue. It offers equity, ETF, index
and FX options. The ISE Stock Exchange offers two capabilities on the
one platform: MidPoint Match - this is the only continuous, exchange based dark pool in the US. Members can use this facility to trade equities
instantaneously at the exact midpoint of the National Best Bid and Offer
(NBBO). The other platform is the Displayed Market which is a fully
electronic viable maker of Best Bid and Offer which trades the common
stocks and ETFs listed on the NYSE, NYSEArca, NASDAQ and Amex.
Members benefit from the interaction between two liquidity pools, which
provide opportunities for price improvement.
In mid 2008 the ISE plans to launch ISE Alternative Markets.
In December 2007 the ISE was bought by EUREX, a subsidiary of Deutsche
Boerse. The exchange shall continue to be regulated by the SEC.
145
DirectEdge
Official Trading Hours (EST)
Monday - Friday:
08:00 - 17:00
Internet: www.directedge.com
Brief History
DirectEdge ECN is a next generation of displayed financial markets. It trades
in all Tape A, Tape B, Tape C and OTCBB securities. Through multiple
platforms and unique order types, Direct Edge matches complementary
forms of liquidity based on sensitivity to transaction cost, fill rate, fill speed,
and contra-side sophistication while maintaining high execution quality
and low latencies.
DirectEdge was originally wholly owned by White Knight Capital, however
in third quarter of 2007 Citadel Derivative Group and the Goldman
Sachs Group took stakes in the company which resulted in White Knight
Capital becoming minority owners. In March 2008 Direct Edge signed a
memorandum of understanding with AXE ECN, the Australian ECN due
to start trading in 2008.
BATS
Internet: www.batstrading.com
Brief History
Better Alternative Trading System (BATS) was formed in June 2005 and
filed to become a stock exchange November 2006. It operates one of the
fastest-growing, top-tier equity markets in the United States. The BATS
ECN is designed to handle high-speed, high-volume, anonymous, reliable,
algorithmic trading. The system is designed to facilitate order frequency
rates as high as 110,000msgs/sec with acknowledgement response times
under 0.7 milliseconds under these loads. In a very short period of time it
has become the third largest share trading market center in the US cash
equities system (including all NASDAQ, NYSE and Amex-listed securities)
trailing only NASDAQ and the NYSE.
In March 2008 BATS announced that it plans to commence live trading on
its European Equity Platform in 2008.
146
Monday - Friday
Pre-Marker: 08:00 - 09:30
Core Trading Session:
09:30 - 16:00
Monday - Friday:
09:30 - 16:00
CNQ Exchange/
Pure Trading
Internet: www.cnq.ca / www.puretrading.ca
Brief History
The Canadian Trading and Quotation System (CNQ), launched in 2003,
was the first new Canadian Exchange in over 70 years. The exchange
founders felt that after a period of consolidation in the Canadian Securities
Industry there was a need for a low cost, streamlined stock exchange.
As such the CNQ offers simplified reporting requirements and reduced
barriers to listing and it is therefore an alternative stock exchange for
trading equity securities of emerging companies. The trading system
offers dealers access to order display including price, volume, recent
trade history and other market information. Investors enter orders through
their order entry vendor system, orders are then queued in marketplace
according to pure price and time priority rules.
Pure Trading is a subsidiary of CNQ and is the first alternative market in
Canada to offer a visible auction market. The exchange was launched
in September 2007 and by January 2008 all 2226 senior Canadianlisted Securities were available for trading. It is a new trading venue for
Canadian Exchange-listed securities and uses the X-Stream trading
engine constructed by the OMX Group. Pure Trading offers more choice
to investors as access to the market will not only be through a gateway
using the STAMP message protocol (found only in Canada), but orders
can be sent through a FIX gateway (the international standard), or through
a direct connection with an API.
On 3rd March 2008 CNQ launched the CNQ Deal Exchange. This is an
online matching system that facilitates the pairing of companies seeking
financing with registered investment professional whose investment
criteria represents a fit with that particular company. This is system is free
for professionals to participate in; fees are largely success-based.
147
Notes

Contents - Execution

Transcription

Similar documents

Read full article - MultiCharts Trading Platform

ONliNE TRAdiNG

BOY SCOUTS NIGHT OUT AT BLUE MAN GROUP!

News File

Upredictable Markets a Certainty

Illegal Street Trading

KERFORD INVESTMENTS (UK) LTD KERFORD INVESTMENTS

cTrader The new Standard in FX Trading

CORPORATE SERVICES

May 5, 2016 - Camp Jorn YMCA