The Netherlands Authority for the Financial Markets. A legal person applying to become a Member of TOM MTF.

Transcription

1 TOM MTF DEFINITION LIST In the TOM MTF Rules (consisting of the Rule Book, the Membership Agreement, the Market Data Agreement, the Market Maker Agreement, the Trading Manual Cash Products, the Trading Manual Derivatives, the Corporate Action Policy, the Definition List, and any Notice, including annexes thereto, all, as amended or extended from time to time), capitalised words shall have the following meaning: AFM Applicant Application Form Board Call Option Cash Product Cash Product Transaction The Netherlands Authority for the Financial Markets. A legal person applying to become a Member of TOM MTF. The TOM MTF Application Form as filled in and signed by the Applicant. The management board of TOM and any duly authorised committee of the Board as constituted from time to time. The right, but not the obligation to buy an agreed quantity of a particular Financial Instrument, a commodity or an index (the Underlying ) from the seller of the option at a certain time (the Expiration Date ) for a certain price (the Exercise Price ). The seller (or writer ) is obligated to sell the Underlying, should the buyer so decide. The buyer pays a fee (called a premium) for this right. Cash-settled Options do not require the actual delivery of the Underlying. Instead, the corresponding value of the Underlying is netted against the Exercise Price and the difference is paid to the buyer of the Option. Any security admitted to trading as a Cash Product on TOM MTF. Any purchase or sale of a Cash Product on TOM MTF. 1

2 Central Counterparty Connectivity Package Contract Specifications Corporate Action Corporate Action Policy Cum Entitlement Daily Closing Price Derivative The entity or entities appointed by TOM MTF from time to time to act as the central counterparty for Transactions executed on TOM MTF and to provide clearing and settlement services. The TOM MTF Connectivity Package as published on the Website and as amended or replaced from time to time. The contract specifications of a Derivative as defined and specified by Notice. In relation to the Underlying of a Derivative, an event in respect of: a) the grouping or splitting of security; or b) a merger, takeover or any arrangement, transaction or series of transactions which lead to a change in respect of a (substantial) holding of securities of a company by a person; or c) a cash or scrip dividend payment; a bonus issue, a rights issue, a subdivision or consolidation, a demerger or any other event affecting or giving rise to a right or entitlement, allocation or increase in respect of securities of, or ownership of securities in a company (including a demerger, subdivision or consolidation); or d) any other event in relation to an Underlying which requires an adjustment of a Derivative according to TOM MTF. The TOM MTF Corporate Action Policy. In relation to securities meaning that the purchaser of securities 'cum entitlement' is allowed to receive the relevant entitlement which may include dividends, any bonus issue, rights issue or other rights. The last traded price of a Derivative at the end of Trading Day Derivatives Markets or, if there has been no Transaction in such Derivative on the 2

3 Trading Day Derivatives Markets, the price of the last Transaction in such Derivative will be considered as the Daily Closing Price Derivative, unless otherwise determined in accordance with the Rule of the Trading Manual Derivatives. Daily Closing Price Underlying Definition List Derivative Derivative Transaction EEA Ex Entitlement Exercise Exercise Price Fair Value The last traded price of an Underlying at the end of the Trading Day Cash Markets or if there has been no Transaction in such Underlying on the Trading Day Cash Markets, the price of the last Transaction in the Underlying will be considered as the Daily Closing Price Underlying, unless otherwise determined in accordance with the Rule of the Trading Manual Derivatives. The TOM MTF s Definition List containing a glossary of capitalised terms that are defined as amended from time to time. Any derivative contract admitted to trading as a Derivative on TOM MTF. Any purchase or sale of a Derivative on TOM MTF. The European Economic Area. In relation to securities meaning that the purchaser of securities 'ex entitlement' is not allowed to receive the relevant entitlement, which may include dividends, any bonus issue, rights issue or other rights. To use the right one has as the holder of an Option. The specified price per unit at which the Underlying of an Option may be purchased or sold upon the Exercise of an Option, or on the basis of which the cash settlement of such Option is calculated. The price as calculated by TOM MTF in case Derivatives are terminated against payment of an amount after a merger or takeover or delisting. 3

4 Financial Instrument Market Data Agreement Market Close Derivatives Market Maker Market Maker Agreement Market Maker Commitment Market Maker Protection Tools Market Opening Derivatives Maturity Member. Membership Agreement A Cash Product or a Derivative. The TOM MTF Market Data Agreement entered into by TOM and a Member. The time on which trading ends on a Trading Day Derivatives as declared by TOM MTF by Notice. A Member that has entered into a Market Maker Agreement with TOM MTF and that has been designated by TOM MTF as a Market Maker with the purpose of enhancing the liquidity of the market in respect of a particular Derivative or multiple Derivatives The TOM MTF Market Maker Agreement together with the Annexes thereto and as amended from time to time, entered into by TOM MTF and a Member. The obligations of a Market Maker to provide Quotes in a Derivative or Derivatives in accordance with the specifications as agreed upon in the Market Maker Agreement. The technical tools offered by TOM MTF to Market Makers on TOM MTF as further described in the Market Maker Agreement. The time on which the Trading Session Derivatives commences as declared by TOM MTF by Notice. The moment when an Option expires. A legal person that has entered into a Membership Agreement and that has been admitted as Member in accordance with the Rules. The TOM MTF Membership Agreement including the annexes thereto as entered by TOM and the Member. 4

5 MiFID Mistrade MTF Notice Notification Period Opening Auction Derivatives Open Interest Option Class Option Option Series Order The European Parliament and Council Directive on Markets in Financial Instruments (No. 2004/39/EC) as amended from time to time. A Transaction based on a price that deviates significantly from the market price on TOM MTF as specified in Rule 12.3 or the Rule Book and Rule 5.3 of the Trading Manual Derivatives. A multilateral trading facility as defined in article 4(1)(15) of MiFID and article 1:1 of the Dutch Financial Supervision Act ( Wet op het financieel toezicht ). Any notice as published by TOM MTF as such on the Website. The notification period as defined in Rule 5.2 of the Trading Manual Derivatives. The start of the Trading Session Derivatives comprising the uncross as described in the Trading Manual Derivatives and the TOM MTF Derivatives Markets Model. The number of Options (in any particular class or series or otherwise) that have been entered into on the TOM MTF Derivatives Markets and that have not been closed. All Options of the same type (put or call) relating to the same Underlying, having the same expiration cycles. Any option contract that has been admitted to trading on TOM MTF. All Options of the same Option Class, having the same exercise price and expiration date. Any order to buy and/or sell a Financial Instrument 5

6 entered by a Member on TOM MTF. Order Book Order Book Cash Products Order Book Derivatives Prearranged Cross Ready to Clear Trade. Pre-open Trading Session Derivatives Post-trading Session Derivatives Put Option TOM MTF s Order Book Cash Products and/or TOM MTF s Order Book Derivatives in which all Orders and any modifications thereto are held until matched, expired or cancelled. The Order Book Cash Products, including its separate order books for each market segment and as described in the Trading Manual Cash Products. The Order Book Derivatives including its separate order books for each market segment and as described in the Trading Manual Derivatives. A Transaction which has been prearranged outside the Order Book and entered by the executing Member into the Order Book as a prearranged Transaction in accordance with Rule 12.6 of the Rule Book and the Trading Manual Derivatives. A Transaction which has been effected over the counter outside the Order Book between two (2) Members or a Member with a third party and which transaction is cleared and settled in accordance with the Rules. The period prior to the Trading Session in which only order management is permitted and no order matching will take place. The Member may enter, modify and cancel Orders in the Order Book Derivatives during this period. The period after the Trading Session in which only order management is permitted. The Member is permitted to modify and cancel Orders in the Order Book Derivatives during this period. The right, but not the obligation to sell an agreed quantity of a particular Financial Instrument, a commodity or an index (the Underlying) from the seller of the Option at the Expiration date for the 6

7 Exercise Price. The seller (or writer ) is obligated to buy the Underlying, should the buyer of the Put Option so decide. The buyer pays a fee (called a premium) for this right. Cash-settled options do not require the actual delivery of the Underlying. Instead, the corresponding value of the Underlying is netted against the Exercise Price and the difference is paid to the buyer of the Put Option. Quote Ratio Method Reference Price Reference Market. Relevant Regulator Rules Rule Book Standard Lot Size Placement by a Market Maker of buy and sell Orders in respect of a Derivative within a given spread in accordance with the Market Maker Agreement. Method for adjusting Contract Specifications for existing Options in the event of a Corporate Action. The price specified and used by TOM MTF as a reference price to determine the adjustments to be made to a Derivative in relation to a Corporate Action. The trading platform which has been determined to be the Reference Market in accordance with Rule 2.3 of the Corporate Action Policy. The AFM or any other competent authority having jurisdiction over the relevant matter, as the case may be. The Rule Book, the Membership Agreement, the Market Data Agreement, the Market Maker Agreement, the Trading Manual Cash Products, the Trading Manual Derivatives, the Corporate Action Policy, the Definition List and any Notice, including annexes thereto, all, as amended or extended from time to time. TOM MTF s Rule Book as amended from time to time. Number of underlying shares of a Derivative as 7

8 specified in the Contract Specifications. Substitution Method Tick Size TOM TOM MTF TOM MTF Cash Market TOM MTF Derivatives Market TOM MTF Cash Markets Model TOM MTF Derivatives Markets Model Trading Contact Person Trading Day Cash Markets Trading Day Derivatives Markets Trading Manual Cash Products Method for adjusting the Contract Specifications of Derivatives in the event of a corporate action whereby the Underlying is substituted for another Underlying. The minimum price movement of a Derivative as defined in the relevant Contract Specifications and published by Notice. The legal entity TOM B.V. The MTF operated by TOM. Any Cash Market of TOM MTF including, any of its market segments. Any Derivatives Market of TOM MTF including any of its market segments. The description and specifications in respect of the market model for trading on the TOM MTF Cash Markets. The description and specifications in respect of the market model for trading on the TOM MTF Derivatives Markets. The authorised trading representative of the Member as mentioned in the Application Form. In relation to any market segment of the TOM MTF Cash Markets any day on which such market segment is scheduled to be open for trading. In relation to any market segment of TOM MTF Derivative Markets any day on which such market segment is scheduled to be open for trading. The TOM MTF Trading Manual Cash Products describing the operations of the TOM MTF Cash 8

9 Markets. Trading Manual Derivatives Trading Session Derivatives Transaction Transaction Confirmation Website Underlying User ID User ID Client User ID House The TOM MTF Trading Manual Derivatives describing the operations of the TOM MTF Derivatives Markets. The period during the Trading Day Derivatives between the Pre-open Trading Session Derivatives and the Post-trading Session Derivatives comprising the Opening Auction Derivatives and a continuous trading session. During this period the Member may enter, modify and cancel Orders in the Order Book Derivatives and may effect Transactions in accordance with the Rules. Any purchase or sale of a Financial Instrument on TOM MTF. The information issued by TOM MTF specifying the terms of a Transaction and confirming the Transaction. TOM MTF s website as amended from time to time. The underlying value (e.g. a security, a commodity or an index) on which the value of a Derivative is based. The User ID Client and /or the User ID House issued by TOM MTF to the Member for entering Orders according to the specifications of TOM MTF. The user ID issued by TOM MTF to the Member for entering Orders for the account of its clients. The user ID issued by TOM MTF to the Member for entering Orders which are not for the account of its clients. 9