MODIFICACIÓN DEL ARTÍCULO 83 DE LA LEY N.° 833, LEY DE CONSTRUCCIONES, Y SUS REFORMAS,

American Depository Receipt (ADR)

An ADR is a negotiable certificate that trades in the USA (either on an exchange or over-the-counter) and which is backed by shares that are listed on a non-US stock exchange.

American option An option that can be exercised at any time prior to its expiry.

Arbitrage transaction A transaction where a JSE member, for its own account, purchases or sells securities on one stock exchange with an intent to sell or buy those securities on another stock exchange in order to profit from differences in prices between the two exchanges. The purchase and sale are normally concluded simultaneously.

At-the-money An option is at-the-money when the price of the underlying instrument is equal to the option's exercise price.

Back-to-back link Is the linking of a receipt to a delivery for on-delivery. A delivery can only be made once a receipt is completed successfully.

BDA JSE broker Deal Accounting

Bear sale A transaction involving the sale of securities that the seller does not own.

Bearer securities Securities issued so that the holder of the certificate is considered to be the owner of the securities. Income is usually payable upon coupon presentation.

Beneficial Owner The true owner of the securities, as opposed to the apparent legal owner or the custodian or a nominee through whom the securities may be held and/or in whose name the securities may be registered.

Benefit Distribution A distribution made by companies to holders of their securities in the form of cash or securities, usually in proportion to their holding. Cash benefits include dividend and interest payments. Securities distributions include rights, bonus and other entitlement issues. Also known as Entitlements and Corporate Actions.

BESA The Bond Exchange of South Africa

Call option An option that gives the holder the right, but not the obligation, to purchase the underlying asset.

Capital adequacy Sufficient capital must be held in the business at all times to enable the JSE member to meet its settlement obligations and to wind down without other market participants or its clients experiencing any losses.

Carry account A client's account where credit has been advanced to the client by a JSE member for the purchase of securities with listed shares as security.

Carry transaction A transaction where the JSE member purchases and pays for securities on behalf of a client without the client paying for them on settlement date. The JSE member extends the client credit and holds the securities purchased pledged as security.

CASA Uncertificated and Administration of Securities Act

CD Central Depository

Certificate A paper document, also known as physical scrip, attesting to the holder's ownership of an issuer's stock or debt obligation. It is required for settlement of transactions in certificated securities and often also for collection of income. A certificate may be bearer or registered. Depending on the country, a certificate may indicate the name of the issuer, specific type of the share/debt, serial number, interest rate (if debt), quantity (number of shares or par value of debt), name and address of shareholder, paying agent, and tax-related information such as country of domicile of beneficial owner.

Coupons, if any, are normally attached to the certificate but may also be issued separately.

Certified Scrip The marking of a transfer deed by the transfer secretary of a company to show that the relevant share certificate is in its possession.

Clearing The process, in conjunction with settlement, of determining accountability for the exchange of money and securities between counter parties to a transaction. Clearing creates binding statements of obligation for securities and/or funds due.

Clearing and Settlement System

The system that collects, processes and transmits the information which enables settlement. This includes information on trades, scrip holdings, released scrip, funds commitment, CSD transfers and SARB settlement account entries.

Compliance officer The person appointed by a JSE member to ensure compliance by the JSE member with the provisions of legislation such as SECA, and the JSE rules and directives.

Contract Note This is a note that the JSE broker is required to send to a client recording the details of a purchase or sale of securities, including the commission payable, the Uncertificated Securities Tax and the settlement period.

Contractual Settlement The market convention whereby the parties to a transaction in uncertificated securities have a contractual obligation to cause such transaction to be settled on the settlement day.

Controlled client A client whose funds and uncertificated securities are under the control of a JSE member and who settles via the JSE member

Convertible Securities Securities issued in one form with provisions allowing them to be converted into securities in another form. For example, debt instruments that can be converted into common or preferred stock, subject to specified circumstances.

Corporate Actions Any action by an issuer of investments, or by another party in relation to the issuer, affecting an investor's entitlement to investments or benefits related to those investments. This includes, but is not restricted to, takeovers, capital restructuring and related activities, rights issues, stock conversions, scrip dividends and redemptions. Also known as Entitlements or Benefit Distributions.

Counter A single listed instrument, such as Harmony options. When referring to the number of counters on STRATE, this figure includes each instrument issued by a particular issuer. When referring to the number of companies on STRATE, this figure refers to the number of listed companies that have issued securities that are settled via STRATE.

Coupon A small document attached to a bearer bond or share certificate that, when detached and presented to the issuer of a security or its agent(s), entitles the holder to exercise the right embodied in the coupon (interest, dividend payment or subscription right).

100

Coupon rate The interest rate payable by the issuer on the nominal value of a bond.

CSAs Custody and Settlement Agents

CSDP Central Securities Depository Participant

CSM Custody and Settlement JSE member

Delpay Settlement Type

Dematerialisation The process of converting certificated securities into uncertificated securities.

Derivative A contract whose value is dependent on the performance of some underlying asset or market indicator. Includes exchange traded and over-the-counter futures and options, as well as more complex instruments such as caps, floors, collars, down and outs and swaptions.

DFP Delivery free of payment

DVP Delivery versus payment

ERD Electronic Report Distribution

European option An option that can be exercised only on its expiry date or any other agreed dates during the option period.

Exercise price The specified price at which the underlying asset may be purchased or sold upon the exercise of an option, also referred to as the strike price.

Failed Settlement Instruction

A securities transaction that fails to settle on time; i.e. the securities and cash are not exchanged as agreed on the settlement date.

Failed trade Any securities transaction that does not settle on the contracted settlement date because one of the settlement parties does not meet the settlement conditions. A failed trade may have negative consequences for the party at fault, including buy-ins and penalties.

FICA Financial Intelligence Centre Act FMCA Financial Markets Control Act

FSB Financial Services Board

Fungible Securities Securities that are equivalent, being of the same class and issued by the same issuer, and are therefore substitutable and interchangeable.

Futures contract A contract to buy or sell a specified quantity and quality of a specified asset (be it a commodity, a financial asset or a notional asset) on a specific date, at a price determined at the time the contract was entered into.

GAAP Statements of Generally Accepted Accounting Practice

Gilt A debt issued through the Treasury, public entities and municipalities, with the principal and interest guaranteed by the government. Also referred to as gilt-edged security or gilt-edged stock.

GOPs Gilts Exceptional Open Position (bonds scrip journals)

Guarantee Fund A fund maintained by an exchange to recompense investors when a JSE member firm fails to meet its obligations and is placed into default by the exchange.

Hedge A transaction taken to reduce risk by taking a position that offsets an existing or anticipated exposure to a change in market prices.

IFIA Inspection of Financial Institutions Act

Immediate deal A transaction in bonds where delivery is to take place on the date of the transaction or the following business day; or a transaction in any other listed security where delivery is to take place before the next settlement period directly between the parties concerned.

Immobilisation Immobilisation is the central storage of share certificates or documents of title in the vault of a CSD. Each depositor (participant) is entitled to a share of the depository's entire holding of each class of security in the proportion of its deposit to the aggregate holding, and such records are maintained electronically. Transfers between participants are recorded electronically, without the need for any physical movement of the certificates or documents, unless they are withdrawn from the depository.

Initial margin The deposit required by SAFEX from both parties to a futures contract as a performance guarantee. It is payable by noon on the day after the contract was traded.

Intermediary A collective term for professional securities industry participants that act as go-betweens. An intermediary typically stands between issuers and investors. Intermediaries include JSE members, financial institutions, banks and custodians.

In-the-money An option is in-the-money when there is a net financial benefit to be derived from exercising the option immediately. A call option is in-the-money when the price of the underlying instrument is above the exercise price, and a put option is in-the-money when the price of the underlying asset is below the exercise price.

ISIN International Securities Identification Number

Jobbing Where the JSE member buys or sells a security with the intention of selling or buying those securities before settlement, for its own account. As such there is only a net financial settlement with no delivery of securities.

JSE JSE Securities Exchange

JSET JSE Trustees (Pty) Ltd

Lodgement Date Last date by which certificated securities should be lodged with the Transfer Secretary to be entitled to a corporate action, for example, rights, bonuses and dividends.

Marking-to-market The process of recalculating the exposure in a trading position in securities, options or futures contracts. In exchange traded contracts the exchange clearing house marks JSE members positions to market each day using closing market prices. JSE members have to maintain a certain minimum level of margin at the exchange clearing house and post additional margin if the marking-to-market process reduces margin below the minimum.

102

Minimum cover In relation to a carry account it represents securities to the value of twice the amount owed by the client.

Money Transfers The sending (or movement) of funds or securities or of a right relating to funds or securities from one participant to another by (a) conveyance of physical instruments/money; (b) accounting entries on the books of a financial intermediary; or (c) accounting entries processed through a funds and/or securities transfer system.

NCS Non-managed cash and scrip account

Net Settlement The settlement of scrip or funds, or both, based on the arithmetical sum of trades in the same class of securities for settlement on the same day by the same person.

Netting A process of summing trades to arrive at a Net Settlement position.

This means settlement of cash or securities balances by summing all credits and countervailing debits for a given day or session, then moving cash or securities only in the amount of the net total. Netting schemes immediately satisfy the obligations incurred from any specific settlement without eliminating payment risk, since the participants remain exposed to each other until the end-of-period clearance of the net remainder.

NMDLS Open Deals by Nominee

Nominee A company formed for the specific purpose of registering securities in its own name on behalf of other persons, and administering those holdings. The nominee maintains a record of beneficial owners. In registered markets, the issuer as a supra-nominee generally uses a central depository.

Non-controlled client A client who has appointed its own CSDP.

Non-Demat Non-dematerialised or certificated

Odd Lots Securities in a quantity other than in Round Lot or a multiple thereof.

They often arise as a result of a bonus or rights issue.

Off-market trade A trade that is executed by two parties other than through a licensed exchange.

Off-market transfer A transfer of securities from one party to another, not arising from a trade on an exchange.

On-market trades Trades that are conducted on a licensed exchange and are subject to its Rules.

Option A contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset or a portion thereof, at a predetermined price, during a specified period.

Order An offer to sell, or a bid to buy, an agreed quantity of securities at a fixed or determinable price.

OTC Over the Counter

Out-of-the-money An option is out-of-the-money when there is no benefit to be derived from exercising the option immediately. A call option is out-of-the-money when the price of the underlying instrument is below the exercise price and a put option is out-of-the-money when the price of the underlying asset is above the exercise price.

Over-the-counter options Options traded outside an exchange or formalised market. They are usually designed to suit the client's needs (in terms of underlying assets, expiry dates, etc) and are settled directly between the option buyer and seller.

PAHDIM List Changes

PAHDIN List New Accounts

Partly Paid Bonds or equities on which the holder has paid only part of the face value at the time of issue and is due to pay the balance in one or more instalments, usually but not always at set dates and in set amounts.