JSE Rules and Directives PDF

General Provisions and Admittance Requirements ---------------------------------------------- ### The Rules and Directives #### Purpose of these rules and directives The purpose of the Johannesburg Stock Exchange (JSE) Interest Rate and Currency Derivatives (IRC) Rules and Directives is to achiev...

General Provisions and Admittance Requirements ---------------------------------------------- ### The Rules and Directives #### Purpose of these rules and directives The purpose of the Johannesburg Stock Exchange (JSE) Interest Rate and Currency Derivatives (IRC) Rules and Directives is to achieve the objects of the JSE as set out in its Memorandum and Articles of Association by providing the procedures necessary to establish and regulate fair and efficient markets and to ensure that the business of the JSE is carried out in an orderly manner and with due regard to the objects of the Act. #### #### Rules and directives are binding upon: - all trading members, officers, their employees and clients of a trading member and any other person who concludes a transaction with a trading member in the course of that trading member's business. - CSDP's acting on behalf of trading members and their clients. The controlling body shall notify trading members of any decisions or determinations made under these rules. #### #### Transactions subject to provisions of the Act, these Rules, and Directives Every transaction in IRC securities entered into by a trading member must be concluded on the specific condition that the transaction is entered into subject to the provisions of the Act, these Rules, and the Directives. ### Appointment of clearing house The JSE may appoint a clearing house or a clearing house and central counterparty (CCP) with the **purpose of clearing and/or settling trades** in IRC securities on the JSE in accordance with the Rules and to provide any other functions, duties, services and/or facilities as may be required by the JSE. ### Transitional Provisions The markets operated by the JSE in which interest rate securities and currency derivatives were listed, namely, **Yield-X** and **BESA**, were integrated. The effect was the joining of the Yield-X and BESA rules and directives, as well as the membership of the two markets being integrated. The Yield-X rules and directives form the basis of the rules and directives for the integrated markets, with appropriate amendments having been made to give effect to the integration, and the integrated rules and directives were **re-named** the JSE interest rate and currency ("IRC") Rules and Directives. The transitional provisions are necessary to give effect to the integration of the Yield-X and BESA rules and directives. ### Compensation Funds The JSE has the power to-- - establish and maintain, to the satisfaction of the Registrar, one or more Compensation Funds out of which shall be paid claims up to an amount specified in the respective rules of such funds in respect of liabilities arising prior to the default of a trading member. Such payment shall be limited to claims arising out of transactions in IRC securities with or on behalf of other persons by such trading member and such other liabilities as may be specified in the rules of the Compensation Funds and shall be subject to any defences which the defaulting trading member may have against a claimant; and - determine a levy to be payable by every trading member to the Compensation Funds on transactions in IRC securities. Where a trading member has effected a transaction on behalf of a buyer or a seller of IRC securities, such trading member may recover the levy imposed from such buyer or seller. - The trustees of the Compensation Funds, in their capacity as trustees, acquire, incur, and administer the assets and liabilities of the Compensation Funds. - The income of the Compensation Funds, including but not limited to levy contributions by trading members, vests in the trustees and is administered by the trustees as part of the Compensation Funds. ### Settlement System The JSE may operate, or contract with a third party to operate, one or more settlement systems and the JSE may prescribe -- - procedures and requirements with which trading members must comply when using such settlement systems; and - the fees payable by the trading members for the use of such settlement systems.