Rules of provision of derivatives-related services

Transcription

1 Rules of provision of derivatives-related services

2 I. General provisions This document, hereinafter referred to as the Rules, defines the rights and obligations of the Brokerage House Millennium Dom Maklerski Spółka Akcyjna and its customers under the Contract for services related to public trading of derivatives concluded between the said parties. 2. The Rules are an integral part of the Contract referred to in Section Terms and expressions used herein shall have the following meaning: 1) the Brokerage House means Millennium Dom Maklerski Spółka Akcyjna, 2) Investor means a natural person, a legal person, or a non-corporate organisational unit, i.e. residents and non-residents within the meaning of the foreign exchange law, who concluded or are to conclude a Contract for brokerage services and management of securities account and cash account with the Brokerage House, 3) the Act means the Financial Instruments Trading Act of 29 July 2005 (Journal of Laws of 2005 No. 183 item 1538), 4) the Ordinance means the Ordinance by the Polish Council of Ministers of 19 April 2005 on procedures and terms and conditions adopted by entities providing brokerage services and banks managing securities accounts (Journal of Laws No. 73 item 644), 5) the Contract means Contract for services related to public trading of derivatives, 6) the Account Agreement means Contract for brokerage services and management of securities account and cash account, 7) CSC means Customer Service Centre, i.e. an organisational unit of the Brokerage House providing on-going service to Investors, 8) securities means securities within the meaning of the Act, 9) derivatives means financial instruments within the meaning of Art. 2 Section 1.2)c) and d) of the Act, 10) Terms of Trade means a document underlying the admission of derivatives to public trading, 11) forward transaction means an agreement concluded on the regulated market whereby the parties agree to settle their mutual payables on terms and conditions defined in the Terms of Trade. Forward transactions include derivatives, i.e. rights and obligations defined in the standard of a given derivative, 12) take a position means take a position as the buying party in a forward transaction (long position) or take a position as the selling party in a forward transaction (short position), 13) close a position means an expiry of rights and obligation related to purchase and sale of a derivative as a result of sale or purchase a derivative of the same series, respectively, 14) delivery means a performance of an obligation, i.e. delivery of securities meeting the criteria defined in the Terms of Trade to the other party of a forward transaction, 15) delivery term means a term of delivery for a given series of financial instruments, from the last trading day to the final settlement day, 16) exercise means the exercise of rights of the buying party to receive the delivery price or settlement amount from the issuer of this derivative, as defined in the Terms of Trade, 17) Order means a buy or sell order (call/put) for a derivative placed by the Investor or its representative on the regulated market, 18) regulated market means: - the Stock Exchange, or - over-the-counter (OTC) market where regulated public secondary over-the-counter trading of securities takes place, managed by MTS CeTO Spółka Akcyjna, 19) session means a trading session or a trading day on the over-the-counter market, 20) securities account means a securities account managed by the Brokerage House based on the Account Agreement, 21) cash account means a cash account managed by the Brokerage House based on the Account Agreement, 22) securities margin account means a separate blocked securities account used as a collateral in forward transactions, 23) cash margin accounts means separate blocked cash accounts used as collaterals in forward transactions, 24) margin account means a securities margin account or cash margin accounts, 25) initial margin means a value of assets which must be deposited by the Investor in its margin account as a collateral for the respective Order, 26) premium means an amount to be received by the issuer of a derivative from the buyer of this derivative, as defined in the Terms of Trade, 27) margin means assets deposited by the Investor in its margin account as a collateral for derivative positions taken, Orders placed, losses incurred during trading sessions, as well as a potential amount of the settlement referred to in 25, 28) delivery margin means a value of assets which must be deposited by the Investor in its margin account as a collateral for positions taken in derivatives during the delivery term, 29) maintenance margin means a value of the margin deposited for positions taken by Investors, defined in a relevant Communication or by agreement of the parties, 30) Brokers Service means epromak software or other software used to place Instructions on the Internet, 31) Information Service means a database of information made available through electronic means, in particular on the Internet, 1

3 32) Communication means a communication by the Board of Directors of the Brokerage House, regulating services provided to Investors, 33) Guideline" means a guideline issued in the form of a Communication and regulating the use of the Brokers Service and the Information Service. II. Conclusion of the Contract Provision of service related to trading of derivatives is based on the Contract. 2. Conclusion of the Contract depends on whether the Investor has signed the Account Agreement with the Brokerage House or whether the Account Agreement is in effect. 3. The Brokerage House may set additional requirements to be satisfied by the Investor before the Contract is concluded, and in particular related to the value of the Investor's assets or the Investor's turnover in the Brokerage House. 4. The Investor can only conclude one Contract with the Brokerage House. 5. Spouses may not be a party to the Contract Before the Contract is concluded, the Brokerage House shall provide detailed information on the Brokerage House and services to be provided under the Contract to the Investor. As regards information contained in these Rules, the said requirement to provide detailed information is satisfied upon receipt of this document by the Investor. 2. Before the Contract is concluded, the Brokerage House shall request the Investor to provide all information required to asses the Investor s knowledge of financial instruments, the Investor s investment experience, and investment goals. 3. Before the Contract is concluded, the Investor shall submit a written statement of its financial standing. The Brokerage House may request the Investor to submit a written statement of the Investor s financial standing at any time in the term of the Contract. The scope of information to be presented in the statement shall be defined by the Brokerage House. 4. Before the Contract is concluded, the Investor shall specify its Customer s Identification Number (CIN) assigned by the National Depository for Securities. The Investor who has not been assigned a Customer s Identification Number may request that the CIN number is assigned by the National Depository for Securities through the Brokerage House. 5. By issuing a relevant Communication, the Brokerage House may agree that the statement referred to in Section 2 and 3 above is submitted by electronic means. 6. Provisions of Sections 1-3 shall not apply to a professional customer (as defined in the Contract) unless this customer requests to be treated as a non-professional customer Before the Contract is concluded and during the term of the Contract, the Brokerage House shall inform the Investor of any conflict of interest (within the meaning of the Ordinance) related to provision of services to the Investor. 2. The Contract shall be concluded provided that the Investor confirms the receipt of information referred to in Section 1 above and confirms its intention to conclude the Contract, either in writing or by electronic means. 3. If the Investor fails to confirm its intention to continue the performance the Contract after the Investor is notified of the conflict of interest in the period of the Contract, the Contract shall be terminated In the Contract, the Brokerage House may set individual maximum limit of commitment for each Investor, defining the maximum amount of the margin to be used by the Investor to sell or buy derivatives on margin. 2. While defining the maximum commitment limit, the Brokerage House shall take into account the valuation of the Investor's securities account and cash account, the Investor s record of trade in derivatives in the Brokerage House, and the record of co-operation with the Investor Contracts shall be null and void unless concluded in writing, in two identical copies, one for each party thereto. Sample Contract form shall be defined by the Brokerage House. 2. The Contract shall come into effect when signed by both parties thereto, unless another effective date is defined by the parties in the Contract. 3. Contracts concluded with Investors other than natural persons shall be signed by the Investor's representatives authorised to make statements related to the Investor s property rights and obligations. 4. Two authorised representatives shall sign the Contract on behalf of the Brokerage House. 5. The Contract shall be concluded by the Brokerage House on condition that the Investor s individual accounts are opened by the National Depository for Securities. III. Registration of derivatives Derivatives held by the Investor are registered in the securities account. 2. Derivatives held by the Investor may be registered in the securities account in more than one portfolio, within the meaning of the Terms of Trade, after all portfolios are assigned separate codes by the National Depository for Securities Entries in the securities account are made by the Brokerage House against registration receipts as defined in relevant regulations, and in particular on terms and conditions set by the National Depository for Securities. 2

4 2. The value of derivatives registered in the securities account is calculated based on principles defined in accounting regulations for brokerage houses and other legal provisions Upon its written instruction, the Investor may transfer its derivatives transferable without any limitations (known to the Brokerage House) from its securities account in the Brokerage House to another account. 2. Derivatives may only be transferred to the Investor s account. 3. Limitations of transfer of derivatives include in particular: 1) attachment of the securities account as a result of court or administrative enforcement proceedings in progress, 2) account blocked by the Brokerage House based on guidelines issued by authorised bodies, 3) other circumstances preventing unlimited transfer of derivatives by the Investor, resulting from rules adopted by the Brokerage House and legal regulations currently in effect. 4. The Brokerage House may refuse to transfer derivatives from the Investor s account to another account at the Investor s instruction if: 1) there is a debit balance in the cash account until all payables in respect of the Brokerage House are settled, 2) the Clearing Member managing the account where derivatives are to be transferred gives no consent thereto, 3) circumstances referred to in 31 section 5 occur, 4) circumstances referred to in other contracts and regulations signed by the Investor occur. If the instruction to transfer derivatives is rejected, the Brokerage House shall inform the Investor thereof by registered mail. 5. The Brokerage House shall not be held liable for any losses incurred by the Investor as a result of the refusal to transfer derivatives for reasons referred to in Section The pre-condition for registration of any derivatives will be registered on the Investor s securities account, in particular in relation to any transfer of portfolio(s) from another investment company, is an adequate margin deposited in the margin account to secure payables related to transferred derivatives, in the amount equal to the defined maintenance margin, adopted by the Brokerage House as at the date when derivatives are registered in the securities account. Margin account is used to block cash or securities representing: 1) collaterals for active Orders, 2) collaterals for positions taken, 3) collaterals for settlements, 4) amount to be delivered, and 5) in other justified cases, and covered by the margin deposited by the Investor. IV. Margin account Without the Investor s explicit instruction, the Brokerage House may block cash deposited in the margin account if: 1) a collateral must be provided for the Order placed, as per 21, 2) a collateral must be provided for the transfer of securities, as per 11, 3) the margin must be restored, as per 24, 25 and 26, 4) the Investor has requested to restore the margin, as per 28, 5) cash must be deposited for a delivery as per 31 Section Account hold referred to in Section 1 above covers 100% of required cash. 3. If the amount of free cash in the cash account is lower than the value referred to in Section 2 while the margin is restored, all free cash up to the balance value will be put on hold. Provisions of 28 are applied accordingly. 14. Cash deposited in the margin account may bear interest based on the floating interest rate. Amount of the interest rate, terms of interest, and interest payment dates will be defined by the Brokerage House in a relevant Communication. 15. Cash put on hold in the cash margin account by the Brokerage House may be released by the Brokerage House only Subject to provisions of 18 Section 3, 25 Section 3.1) and 27 Section 2.1), securities may be blocked on the securities margin account upon the Investor's instruction; 100% of securities defined in the instruction may be blocked in the account. 2. If the number of free securities in the securities account is lower than the value defined by the Investor in the instruction, securities referred to in Section 1 will be blocked up to the balance value of free securities Securities approved and designated by the National Depository for Securities may be used as collaterals in forward transactions. Relevant information is provided by the National Depository for Securities to Investors in Customer Service Centres and in the Information Service (for information purposes). 2. The Brokerage House hereby reserves the right to decide that all or some securities cannot be used as collaterals in a forward transaction and to issue a relevant Communication to this end. 3. Valuation of securities used as collaterals is made based on rules defined by the National Depository for Securities. 3

5 Securities blocked on the Investor s securities margin account are released at the Investor's instruction, subject to 32 Section 2.2). 2. Release referred to in Section 1 is possible only after the Brokerage House receives a confirmation issued by the National Depository for Securities that these securities have been released. 3. If securities are released as referred to in Section 1, and it subsequently turns out that the Investor does not have enough assets to serve as collaterals for positions taken or Orders activated, the Brokerage House may block the required number of securities deposited in the securities account without the Investor s instruction, as required for the collateral. Selection of securities to be blocked is at the sole discretion of the Brokerage House. V. Terms of trade in derivatives. 19. The Brokerage House is entitled to issue a relevant Communication to define types of derivatives not covered by its public trading services Before placing any Order, the Investor must become familiar with Terms of Trade related to derivatives covered by the Order. The Investor shall comply with these terms. 2. Apart from requirements set in the Rules of provision of brokerage services and management of securities account and cash account, the Order shall specify the Customer s Identification Number (CIN), portfolio number, and other data specified in the Terms of Trade or other legal regulations Order coverage is the sum of initial margin and expected commission or the sum of premium and expected commission. 2. Initial margin and premium are calculated based on requirements set by the National Depository for Securities. Relevant information is displayed by the National Depository for Securities on notice boards in Customer Service Centres and additionally in the Information Service (for information purposes). The Brokerage House may issue a relevant Communication or sign an agreement with the Investor to set another amount of initial deposit (but not lower than required by the National Depository for Securities) or principles of calculation of initial deposit. 3. Order coverage is verified when the Order is placed in the Brokerage House. 4. For Orders requiring deposition of an initial margin, Order coverage is verified based on the balance of the securities margin account, as well as the cash account balance. The Investor must hold assets representing 100% of the required initial margin and 100% of the expected commission. 5. For Orders where payment of a premium is required, Order coverage is verified based on the cash account balance. The Investor must hold cash representing 100% of the required premium and 100% of the expected commission. 6. While examining the coverage of Order referred to in Sections 4 and 5, the Brokerage House may take into consideration assets currently blocked on the margin account, if based on calculations required by the National Depository for Securities assets currently blocked cover positions taken, initial margin, premiums (taking into account the specific Order whose coverage is verified), delivery margin, incurred loss, as well a potential settlement amount referred to in Initial margin and the premium are blocked on the margin account. Assets used as coverage for commission are also blocked in the cash account. 8. If a position taken before is closed or a correlated position (within the meaning of the Terms of Trade) is taken following the Order execution, the Brokerage House may accept and execute this Order on terms and conditions defined in a relevant Communication even if there is no coverage for 100% of expected commission. The Brokerage House shall not be held liable for any delays in Order execution if the Order is accepted based on terms and conditions defined in this Section. 9. The Investor trading derivatives must not place orders based on deferred payment. 22. Unless the Brokerage House defines a maximum limit per Order in a relevant Communication, limits adopted on the respective regulated market shall apply The Brokerage House verifies the maximum commitment limit referred to in 6 when the Order is accepted and rejects or reduces the Order whose execution would be in excess of this limit. 2. The Brokerage House shall have the right to reject or reduce any Order whose execution would be in excess of any limits set in the Terms of Trade or other regulations on trade in derivatives, down to the amount within these limits. 3. The Brokerage House rejects or reduces any Order down to the value of the Investor s assets held on the Investor s securities account or cash account if the Investor does not have enough assets required for the coverage referred to in 21 Sections The Brokerage House rejects the Order if it is not in compliance with the Terms of Trade. 5. The Brokerage House rejects or reduces the Order down to the required level if the number of derivatives defined in this Order is in excess of the limit referred to in In justified cases, the Brokerage House may refuse to accept and execute Orders in cases other than those referred to un Sections 1-5; in particular, the Brokerage House may refuse to accept and execute any Order whose execution could result in a breach of any regulations currently in effect, or whose execution is not possible for reasons beyond the control of the Brokerage House. 7. The Brokerage House shall not be held liable for any losses incurred by the Investor as a result of closing of positions taken by the Investor or settlement of open positions by the National Depository for Securities, or if the Brokerage House refuses to accept and execute the Order, or if the Order is rejected or reduced as per Sections The Brokerage House shall inform the Investor that the Instruction or Order was rejected or reduced for reasons defined in Sections 1, 3, or 5: 1) Orders placed personally and Instructions submitted by phone upon placement/submission of such an Order or Instruction, 2) Instructions submitted by fax when the Instruction is confirmed by phone by the Investor (if confirmation is made by phone by the Investor), 4

6 3) Orders and Instructions submitted through the Brokers Service as per the relevant guideline. VI. Margin verification. Settlement of derivatives The Brokerage House shall verify the value of assets deposited as the margin during the session (upon placement of an Order by the Investor and in the case referred to in 25) and after the session. Assets are verified separately for each portfolio. 2. If results of this verification show that the actual margin is in excess of the margin calculated based on principles adopted for calculation of maintenance margin, initial margin, premium, and delivery margin, the margin may be reduced by the amount of this surplus, subject to provisions of Section 3 and 25. This reduction does not apply to assets blocked based on the Daily Report of the National Depository for Securities. 3. If results of the verification referred to in Section1 show that after closing its positions the Investor made a loss, the Brokerage House shall block assets in the amount of a loss made by the Investor During and after the session, the Brokerage House shall monitor the risk of required deposition of potential settlement amount referred to in 26 Section 1.1) by the Investor for open positions, calculated based on the settlement rate for positions taken during the previous session, or based on the transaction price for positions taken during the current session, or based on the price of the last forward transaction concluded during the current session. 2. By issuing a relevant Communication, the Brokerage House may set the potential settlement amount which requires that the margin is restored during the session on terms and conditions defined in this Communication. 3. If the margin referred to in Section 2 cannot be restored and after a period set in the Communication for restoration of the margin has expired, the Brokerage House may issue another Communication to set the potential settlement amount which authorises the Brokerage House to: 1) block the Investor s securities on the securities margin account without the Investor's instruction, as required to restore the margin. Selection of securities to be blocked is at the sole discretion of the Brokerage House. 2) close any position kept by the Investor with the price limit guaranteeing execution of the Order, as required to maintain the adequate margin. 4. If results of the verification carried out after the session has been closed show that the Investor made a loss with positions taken, the Brokerage House shall block assets on the margin account in the amount of the potential settlement After the session, based on documentation approved by the National Depository for Securities, the Brokerage House shall carry out daily and final settlements with the Investor: 1) if the Investor is to pay a settlement amount following the said settlement, the margin is reduced by the settlement amount, 2) if the Investor is to receive a settlement amount following the said settlement, the margin is increased by the settlement amount. 2. If, following the settlement, the actual margin is in excess of the margin calculated based on principles adopted for calculation of maintenance margin, initial margin, premium, and delivery margin, the Brokerage House shall release cash blocked on the cash margin account (up to the required amount). 3. If, following the settlement, the actual margin falls below the margin calculated based on principles adopted for calculation of maintenance margin, initial margin, premium, and delivery margin, the Brokerage House shall block the required amount on the cash margin account as per provisions of 13; if the required margin is still not restored, provisions of 28 shall apply accordingly. 4. If, following the settlement, the actual margin falls below the margin defined for the Investor by the National Depository for Securities in its Daily Report, the Brokerage House shall block the amount required by the National Depository for Securities on the cash margin account as per provisions of 13; if the required margin is still not restored, provisions of 28 shall apply accordingly Starting on the last trading day of derivatives to be delivered, the Investor who holds open positions in these derivatives must deposit a required delivery margin. Delivery margin is calculated based on requirements set by the National Depository for Securities. The Brokerage House may issue a relevant Communication or sign an agreement with the Investor to adopt another amount of delivery deposit (but not lower than required by the National Depository for Securities) or principles of calculation of delivery margin. 2. The Brokerage House may issue a Communication defining the final date for depositing the delivery margin; after this date, the Brokerage House shall have the right to: 1) block the Investor s securities on the securities margin account without the Investor's instruction, as required to restore the delivery margin. Selection of securities to be blocked is at the sole discretion of the Brokerage House. 2) close any position kept by the Investor with the price limit guaranteeing execution of the Order, as required to maintain the adequate delivery margin. 3. Delivery margin is returned based on the schedule defined in the Terms of Trade or other legal regulations The Investor is required to monitor its margin account on an on-going basis in order to: 1) check whether the value of securities deposited as the margin has not dropped below: a) the amount referred to in 26 Section 3, b) the amount set for the Investor by the National Depository for Securities in its Daily Report, as per 26 Section 4, 2) deposit required amounts to cover blocked amount of loss, as per 24 Section 3, 3) increase the margin by the potential settlement amount, as per 25 Section 2, 4) deposit the delivery margin referred to in 27 Section 1. The Investor may monitor its margin account in the Customer Service Centre or by phone (provided that the Account Agreement or an Annex thereto contains a relevant clause enabling the Investor to submit Instructions by phone). 2. If the amount of cash deposited by the Investor on the margin account is lower than required in 24 Section 3, 25 Section 2, 26 Section 3 and 4, as well as 27 Section 1, the Investor shall restore the margin up to the amount referred to in Section 1. 5

7 3. Margin must be restored by the date set in the Communication by: 1) payment of a relevant amount to the cash account and requesting to restore the margin, 2) requesting to approve new securities deposited as collaterals for positions taken by the Investor, as per If the margin referred to in Section 2 cannot be restored in the set period, the Brokerage House may close any position on the Investor's securities account as required to restore the expected value of assets in cases referred to in Section 1 for derivatives remaining in the securities account. 5. Subject to provisions of 25 Section 3 and 27 Section 2: 1) instruction to close any position referred to in Section 4 may be submitted starting on the day following the date of the margin call; 2) the Brokerage House shall not close any of the Investor s positions referred to in Section 1 unless the margin falls below the level of margin required by the National Depository for Securities, after deduction of all losses made by the Investor. 29. At the Investor s instruction, the Brokerage House shall take all reasonable effort to inform the Investor that the margin must be restored as referred to in 28 Section 1 (margin call). Margin calls will be sent to the Investor by SMS to the Investor s current mobile phone number or by to the Investor s current address General rules of execution, redemption, or non-execution of derivatives are set in the Terms of Trade. 2. In a relevant Communication, the Brokerage House may define detailed rules of execution, redemption, or non-execution of derivatives, in compliance with all rules set in the Terms of Trade. 3. The Brokerage House shall not be held liable for any losses incurred by the Investor as a result of closing of positions taken by the Investor following a random selection by the National Depository for Securities, as per the Terms of Trade The Investor who des not intend to take part in the settlement of delivery is required to close all open positions in derivatives (if required for these derivatives) by the last trading day. 2. The Investor required to deliver securities shall: 1) ensure the required number of deliverable securities is deposited in the securities account, 2) select securities to be delivered, 3) instruct that selected securities are transferred for delivery. If these conditions are not satisfied by the Investor, the Brokerage House shall have the right to select and block securities at its sole discretion, provided that the Investor has actually deposited required securities, starting from the first day of delivery, and to transfer these securities. 3. The Investor shall pay for delivered securities and deposit adequate funds on its cash account required to buy delivered securities. Cash margin account is blocked by the Brokerage House starting from the first day of delivery. 4. In the period of delivery, the Brokerage House may refuse to transfer cash from the Investor s cash account or securities from the Investor s securities account if conditions set in Section 2 or 3 are not satisfied. 5. If the Investor fails to deliver securities or deposit adequate funds required to buy delivered securities by the set date, the Brokerage House shall be entitled to: 1) take actions referred to in 32 below, 2) charge the Investor s account with a penalty in the amount and on terms defined in the Derivatives Fees and Commissions Schedule and any other costs related to delivery settlements or cash settlements. 6. The Brokerage House shall not be held liable for any losses incurred by the Investor as a result of: 1) actions taken by the Brokerage House in compliance with the Rules due to the Investor s failure to settle the delivery, 2) failure to settle the delivery or cash in a timely manner, for reasons not attributable to the Brokerage House If there is a debit balance on the Investor s cash margin account, the Investor shall immediately settle all relevant payables. The Investor shall pay statutory interest defined in the Communication for the period of the debit balance. Any change of the said interest does not require amendment of these Rules or provisions of the Contract; interest rates are changed by a relevant Communication and shall be effective as of the date defined therein. 2. If payables referred to in Section 1 are not settled, the Investor hereby authorises the Brokerage House to: 1) close any position held by the Investor, 2) apply to the National Depository for Securities on behalf of the Investor, without the Investor s explicit instruction, to release any number of securities deposited as collaterals for derivatives, and to sell these securities immediately, 3) settle its claims using the Investor s assets deposited in the Investor s accounts, operational registers, or receivables registers, and in particular to sell the Investor s remaining securities. 3. Positions and securities referred to in Section 2 are closed and sold with the price limit guaranteeing that the Order is executed and in the number required to settle all payables in respect of the Brokerage House. 4. Subject to provisions of 25 Section 3 and 27 Section 2, the instruction to close any position or sell any securities may be submitted starting on the day following the payables maturity date. 33. The Brokerage House shall not be held liable for any losses incurred by the Investor as a result of closing of positions or sale of securities as per 25 Section 3, 27 Section 2, 28 Section 4 and 32 Section 2. VII. Commissions and fees The Brokerage House shall charge commissions and fees for derivative-related services provided to the Investor against Instructions submitted by the Investor in person, by phone, or by fax, based on the current Derivatives Fees and Commissions Schedule. 6

8 2. The Brokerage House shall charge fees for the access to information presented in the Information Service and for derivative-related services provided via the Brokers Service, based on the current Fees and Commissions Schedule, in relation to services provided via the Internet or other electronic means. 3. Fees and Commissions Schedules referred to in Section 1 and 2 are integral part hereof. 4. The Brokerage House may include Fees and Commissions Schedules referred to in Section 1 and 2 into the Fees and Commissions Schedule issued based on the Rules of provision of brokerage services and management of securities account and cash account. 5. Other fees and commissions may be specified in agreements signed with the Investor. Parties to the agreement may eliminate or restrict the use of Fees and Commissions Schedules as provided for in the agreement Fees and Commissions Schedules are defined by the Board of Directors of the Brokerage House. 2. Fees and Commissions Schedules are available in Customer Service Centres and additionally in the Information Service (for information purposes). 3. The Brokerage House hereby reserves the right to change Fees and Commissions Schedules. VIII. Final provisions Unless these Rules provide otherwise, all instructions and applications referred to herein shall be submitted by the Investor in writing. By issuing a relevant Communication, the Brokerage House may define different methods for submission of instructions and applications (other than in writing). 2. By issuing a relevant Communication, the Brokerage House may define the date for submission of instructions and applications referred to herein. Instructions and applications submitted after the time defined in a relevant Communication shall be processed on the following day, if they are still valid. 37. The Brokerage House hereby reserves the right to amend these Rules. 38. The Investor hereby authorises the Brokerage House to submit information on forward transactions concluded by the Investor to the National Depository for Securities or entities authorised to apply to the National Depository for Securities for admission of derivatives to public trading on the regulated market based on separate provisions Subject to provisions of Section 2-4, the Contract is terminated upon termination of the Account Agreement. 2. Amendment of the Account Agreement does not terminate the Contract. 3. Subject to provisions of Section 4, the Brokerage House shall have the right to terminate the Contract in writing (otherwise the termination is null and void) with the period of notice if: 1) the Investor fails to comply with or is in breach of terms or provisions of the Contract, 2) the Investor fails to comply with principles set out in the Contract or the Rules, 3) the Investor fails to submit a statement of its financial standing referred to in 4 Section 3, 4) the Investor fails to comply with terms or provisions of Communications, 5) amended legal regulations prevent the Brokerage House from managing the Account, Orders, or Instructions on terms and conditions defined in the Contract, 6) the Brokerage House decides to discontinue its services on terms and conditions defined in the Contract, 7) zero or debit balances are recorded on the Investor s cash account or securities account for a period of over 6 months. 4. The Brokerage House shall have the right to terminate the Contract with immediate effect without any period of notice if: 1) the Account is used against its intended purpose, 2) the Investor fails to settle its payables in respect of the Brokerage House referred to in 32 by the date set by the Brokerage House, 3) the Brokerage House is informed of any circumstances which according to the Brokerage House undermine the reliability of the statement of the Investor s financial standing referred to in 4 Section 3, submitted by the Investor, 4) the Investor s spouse has withdrawn its consent to incur liabilities under the Contract (if consent of the spouse was required and given), 5) the Brokerage House believes that actions taken by the Investor may constitute a threat for the security of the IT system of the Brokerage House, or security of the trade in derivatives, or may be against the public interest, 6) the Investor fails to carry out obligations referred to in 31 Section In all cases not provided for in Sections 1-4, termination of the Contract shall be governed by the Rules of provision of brokerage services and management of securities account and cash account. 40. Any authorisations granted to the Brokerage House under these Rules shall not expire upon death or termination of legal existence of the Investor, or upon expiry or termination of the Contract, until all mature payables in respect of the Brokerage House are settled All matters not provided for herein, and in particular referring to: 1) conclusion of the Contract, 2) management of the securities account and cash account, 3) management of the operational register and session register, 4) authorisations, 5) charging, suspending, or reducing fees and commissions, 7

9 6) account hold and pledge, 7) complaints, 8) notices, 9) amendment of the Rules and the Fees and Commissions Schedule, 10) termination of the Contract, 11) issuing Communications, shall be governed accordingly by the Rules of provision of brokerage services and management of securities account and cash account. 2. All matters not provided for herein or in the Rules referred to in Section 1, shall be governed by applicable provisions of the law, provisions of Terms of Trade, and regulations issued by the Securities and Exchange Commission, the Warsaw Stock Exchange, MTS CeTO Spółka Akcyjna, and the National Depository for Securities. 3. All terms not defined herein shall have the meaning defined in the Rules of provision of brokerage services and management of securities account and cash account and the Terms of Trade These Rules shall come into effect on 1 February After these Rules come into effect, provisions of the Rules of provision of services related to derivative rights and property rights of 15 March 2005 shall be invalid. 3. In the case of the following contracts and agreements concluded before the effective date hereof: 1) Contract for brokerage services related to public trading of forward contracts, 2) Contract for brokerage services related to public trading of forward contracts and index units, 3) Contract for services related to public trading of derivative rights and property rights and management of property rights account, 4) Contract for services related to public trading of derivative rights and property rights, provisions of these Rules referring to the Contract shall apply directly. 8