Region

Jurisdiction

Regulator

2024-11-14

Regulatory Bylaw No. 34 on Cross Trades and Large Transactions for the Year 2016

The Securities Commission issued Bylaw No. 34 to regulate cross trades and large transactions, defining permitted execution methods and strict disclosure requirements for brokers. The regulation mandates specific financial settlement procedures, including share-for-share exchanges during designated trading hours, and requires brokers to submit comprehensive documentation such as disclosure letters and anti-money laundering compliance declarations. These measures aim to ensure market transparency and integrity by controlling the execution of trades involving different investors executed by the same or multiple brokers.

Iraq

Iraqi Securities Commission

Regulatory Bylaws of the Securities Commission 2022 Regulatory Bylaw No. (34) for Cross Trades and Large Transactions for the Year 2016

Cross Trade Definition: A cross trade is a contract executed by the electronic trading system when the buy and sell prices match at the market, involving orders entered by the broker or authorized person during the trading session for different investors, according to the following procedures:

a. Trading has not occurred on the shares of the company, and the cross trade is accepted after entering the order for half an hour without any offer, bid, or sell order and buy request from another broker.

b. The cross trade is accepted when executed at prevailing prices (the price traded by other brokers).

c. The cross trade contracts are executed by the company for its portfolio or its owner, and the employees of the session, provided that it is within the prevailing prices mentioned in paragraph (b) above and informing the investor thereof.

d. In the case of a decrease in share prices for participating investors, the cross trade is executed at prevailing prices, provided that the sell offer precedes the buy request by a time period of no less than five minutes.

Intentional Cross Trade: An intentional cross trade is a contract (or a group of contracts) executed by a single broker for different investors on securities during the additional session from 12:00 – 12:30. The intentional cross trade and large transaction orders are executed by multiple brokers according to the following procedures:

a. There is no limit to the number of shares for the intentional cross trade and large transactions.

b. The broker(s) must submit a disclosure containing the name of the company, the name of the seller, the number of shares, and the name of the buyer, along with the sell and buy mandates. Execution is at the last weighted average price, provided that trading has not occurred on the shares of the companies after their return to the indicative price or the nominal value of the companies, and trading has not occurred on them at all.

Financial Settlement: a. The execution of cross trades and large transactions is subject to the trading regulations regarding the implementation of financial settlement. b. Acceptance of the execution of cross trade contracts and large transactions is based on the exchange of listed shares for other listed shares from 12:00 – 12:30 and according to the weighted average price for that day. This is an exception to the session mentioned in paragraph (a) above.
Documents Required from Brokers:
A disclosure letter containing information about the name of the company, the number of shares, the name of the seller, and the buyer.
The investor-broker agreement.
Sell and buy mandates.
A broker commitment to the provisions of the prevailing Anti-Money Laundering and Combating the Financing of Terrorism Law and the "Know Your Customer" principle.