Renaissance Securities (Cyprus) Limited. FORTS and RTS Standard Trading Schedule

Transcription

1 Renaissance Securities (Cyprus) Limited FORTS and RTS Standard Trading Schedule Version 1: August 2011

2 You confirm and agree that this Schedule forms part of and is incorporated by reference into the Agreement and the Customer Document Pack entered into between Renaissance and the Customer and shall be read as if part of the original Agreement and the Customer Document Pack. To the extent there is any conflict between the Agreement and/or the Customer Document Pack and this Schedule, this Schedule shall prevail to the extent the conflict relates to the trading of equity and derivative products through RTS. Capitalized terms used in this Schedule shall have the meanings specified herein. Those capitalized terms not defined herein shall have the meanings specified in the Agreement and/or the Customer Document Pack. 1. Definitions The defined terms in this Schedule shall have the meaning given to them in the Agreement unless otherwise defined below: Available Assets Shall mean cash and/or Securities held in the Customer s DCF Account and cash held in the Customer s DMC Account which have not already been allocated to a Margin Requirement, Fee or any other obligation of the Customer to Renaissance under this Agreement or any other agreement between the Parties. Close Out Shall mean the execution of an Offset Transaction resulting in the termination of the rights and obligations under an existing Open Position., such that the Trade is effectively settled. DCF Account Shall mean an account opened to facilitate the trading of RTS Standard Trading and FORTS Trading. DMC Account Shall mean a brokerage account opened with RESEC. Exchange Shall mean, the Russian Trading System Stock Exchange, including FORTS, RTS Standard ( RTS ) or any other exchange as agreed by the Parties. Fees Shall mean the charges and payments as provided to the Customer by Renaissance from time to time. FORTS Trade/ing Shall mean trading of various derivative products through RESEC on FORTS (Futures and Options on RTS). Offset Transaction Shall mean a trade resulting in the termination of the rights and obligations under an existing Open Position, following execution of a Trade resulting in a short position where the current Open Position is a long position and vice versa. Open Position Shall mean the Customer s rights and obligations in respect of an executed Trade, which has not yet been Closed Out. Order Shall mean the Customer communicating a valid request for Renaissance to execute a Trade on its behalf. RTS Standard Trade Shall mean a transaction to purchase and sell the Securities entered into with the RTS Clearing Center in accordance with the trading rules of RTS in so far as they relate to such trades. Trade Shall mean a FORTS Trade and/or a RTS Standard Trade. Trading Day Shall mean a time period consisting of an evening trading session (from 19:00 to 23:50 Moscow time) and a trading session of the following day (from 10:00 to 18:45 Moscow time). T+4 Shall mean a time period where T is the Trade date on which the Order is executed and +4 shall mean four additional Trading Days. 2. FORTS and RTS Trading By signing up to FORTS and RTS Standard Trading, you agree that you have read and understand all of the risk warnings outlined in our Risk Warning Statement. You further agree that this service is made available to you at entirely our own discretion and we may cancel such service at any time without giving notice or reasons for such cancellation to you. 1

3 3. Your Account 3.1. Renaissance will open a DCF derivative brokerage account ( DCF Account ) in your name which will hold cash and securities on your behalf to facilitate Trades You will not be permitted to withdraw cash directly from your DCF Account. In the event that you wish to withdraw cash from your DCF Account, you may submit an instruction for such cash to be wired to your DMC account with us and, subject to us being satisfied, in our sole discretion, that you have no outstanding liabilities, you may withdraw such money from your DMC account. 4. Communication 4.1. You agree to the use of FIX protocol, or any other protocol as is determined by Renaissance, in its sole discretion, to be appropriate for transmitting/receiving messages to facilitate Trading For the avoidance of any doubt, you agree that you will be bound by any and all instructions and communications which you send and receive over any messaging system (including, but not limited to FIX Protocol) which is made available to you in connection with Trading. You also confirm that any such communication shall be governed by the terms of this Agreement. 5. Order Submission 5.1. Renaissance shall accept the Order provided that the Client has sufficient Available Assets to cover the Margin Requirement and Fees for that Trade and, if Securities are required to be deposited, provided that there are sufficient relevant Securities on the Customer s DMC Account to enable Renaissance to execute the Trade Renaissance reserves the right to reject any Order where the amount of Available Assets is insufficient to open and/or hold the Open Positions or for any other reason in its sole and absolute discretion. 6. Execution of Trades 6.1. The Trade shall be deemed fulfilled by Renaissance from the moment when Renaissance has executed the relevant Trade Special characteristics: any Trade which has been Ordered by the Customer may be cancelled by the Customer at any time to the extent not yet executed by Renaissance; an Trade will only be executed during the Trading Day on which the Order is received; any Trade that is not executed on the Trading Day on which the Order is received shall lapse; and the execution of any Trade shall be conducted in compliance with the internal policies, procedures and rules of the relevant Exchange. 7. Client Positions and Close Out 7.1. Renaissance will process any Trade, provided that there are sufficient Available Assets required for its execution The Trade entered into by Renaissance in accordance with the Order shall be executed only if the Order is received not later than the end of that Trading Day, provided that the Customer shall procure, not later than two Business Days prior to its execution, that: sufficient relevant Securities are deposited in the Customer s DMC Account which are free from any obligations under any earlier Trades to ensure performance of the Trade; or that there are sufficient Available Assets in the Customers DCF Account to ensure performance of the Trade and to pay Renaissance s Fee. 2

4 7.3. A Trade shall be Closed Out through the execution of an Offset Transaction which will terminate the rights and obligations under an existing Open Position Subject to Clause 7.2 hereof, an Order to execute an RTS Standard Trade only, and which shall not apply to a FORTS Trade, shall also mean that the Customer instructs Renaissance, during the course of each Trading Day, to roll over Open Positions in accordance with Clause 7.3 and 7.4 hereof or to enter into repurchase transactions on the following terms: the first leg of the repurchase transaction ( Repo 1 ) shall be settled three Business Days following the date on which the repurchase trade is executed ( T+3 ). Pursuant to the terms of the that repurchase transaction the Customer shall purchase or sell such Securities as it requires in order to fulfill its obligations under the RTS Standard Trade, provided that Renaissance shall, in its absolute discretion, determine which Securities are to be sold on any given Trading Day; the second leg of the repurchase transaction ( Repo 2 ) shall be settled four Business Days following the Repo Trade Date ( T+4 ) Renaissance, on behalf of the Customer, shall then sell or purchase sufficient Securities in order to execute an Offset Transaction in respect of Repo 1 and/or Repo Renaissance is hereby authorized by the Customer to determine, in its absolute discretion, the number and amount of repurchase transactions entered into on behalf of the Customer in accordance with clause 7 hereof Execution of transactions to roll over positions shall mean the execution by Renaissance of the following transactions: an Offset Transaction in relation to an earlier RTS Standard Trade; and a new RTS Standard Trade, in order to create a new Open Position in respect of an RTS Standard Trade The Offset Transaction and the new transaction shall be entered into as specific market participant transactions on RTS at the settlement price determined in the course of the clearing session of RTS preceding the entry into the transaction. If an evening additional trading session of the following Trading Day is not open, Renaissance shall enter into an Offset Transaction and a new transaction during the course of the remainder of that Trading Day For the avoidance of doubt Clause 7.3 to 7.5 shall only apply to RTS Standard Trades and shall not apply to FORTS Trading. 8. Settlement Procedures 8.1. In order to secure the obligations under the Trades the Customer shall deposit sufficient cash funds to meet the Margin Requirement in accordance with procedures set out in this Agreement and also those of the appropriate Exchange and/or clearing organization Unless otherwise agreed with Renaissance, the Customer shall, no later than 2 (two) Business Days, prior to the appropriate Trade, deposit the Margin Requirement into the DMC Account The Customer shall be entitled to deposit cash funds into the DCF Account by transferring cash funds from the Customer s DCM Account opened in accordance with this Agreement In case the Margin Requirement is being deposited in the form of Securities, such Securities shall be deposited in the Customer s DMC Account before the relevant Trade The Customer shall be entitled to reduce the amount of Available Assets held on the DCF Account, provided that the reduced amount shall not exceed the amount of Available Assets minus the outstanding amounts payable under this Agreement and/or any other agreement which has been entered into between the Customer and Renaissance Subject to Clause 8.5 above the cash funds shall be transferred to the DCM Account the Business Day following the Customer s request. Securities shall be returned to the DCM Account provided that the remaining Security Deposit is sufficient to cover the Customer s liabilities under any and all Trades. 3

5 9. Applicable Laws and Rules 9.1. You agree to be subject to and abide by any rules, regulations, policies or procedures of RTS Standard Trading and FORTS Trading. You also agree that we are not responsible for providing you with such rules, regulations, policies or procedures, or any updates thereto. 10. Margin Reference is made to the Margin Schedule to the Agreement, which shall also apply to this Schedule. To confirm: (i) (ii) (iii) (iv) You understand and accept that any Margin Requirement in relation to your Trade will be determined by Renaissance using such methodology as Renaissance considers appropriate, with reference to RTS Standard s own margining processes and procedures and what Renaissance considers necessary in order for you to meet the Margin Requirement under the Margin Agreement. You are aware that Trading involves a margining process which may require you to immediately transfer cash to your DCF Account or reduce your securities held on your DCF Account on a twice-daily basis. Accordingly, it is essential that you regularly monitor your DCF Account and any communications sent by Renaissance. You agree to immediately respond to any Margin Call Notice or Margin Threshold Notice. You further agree that Renaissance may immediately liquidate your DCF Account, and any other account you or any of your Associates hold with Renaissance or any Associated Firm, upon Renaissance s dispatch of a Margin Threshold Notice to you. Customer By: Name: Title: Date 4