Regulatory Alerts2023-01-01
COSOB Regulation No. 23-03 of April 12, 2023, Fixing Qualification Rules and Registration Conditions for Agents Authorized to Conduct Securities Trading on the Stock Exchange and Issuing Professional Cards
The Commission for the Organization and Supervision of Stock Exchange Operations (COSOB) issued Regulation No. 23-03 to establish the qualification criteria and registration procedures for agents authorized to trade securities on the stock exchange. The regulation mandates that agents hold a higher education diploma, complete specialized training, and pass a professional aptitude exam administered by the Stock Management Company. It further defines the conditions for issuing professional cards, outlines grounds for suspension or deregistration, and sets obligations for intermediaries regarding employment changes and card return.
18 JOURNAL OFFICIEL DE LA REPUBLIC ALGERIENNE N° 68 10 Rabie Ethani 1445 25 October 2023
Art. 2. — This order shall be published in the Official Journal of the Algerian Democratic and Popular Republic.
Done in Algiers, on 18 Safar 1445 corresponding to 4 September 2023.
Laziz FAID.
ANNEX
COSOB Regulation No. 23-03 of 21 Ramadhan 1444 corresponding to 12 April 2023, Fixing Qualification Rules and Registration Conditions for Agents Authorized to Conduct Securities Trading on the Stock Exchange and Issuing the Professional Card.
The President of the Commission for the Organization and Supervision of Stock Exchange Operations (COSOB),
Having seen Legislative Decree No. 93-10 of 23 May 1993, as amended and supplemented, relating to the stock exchange of securities, particularly its Articles 10 and 11;
Having seen Presidential Decree of 5 Chaâbane 1444 corresponding to 26 February 2023, appointing the President of the Commission for the Organization and Supervision of Stock Exchange Operations;
Having seen the Order of 29 Ramadhan 1443 corresponding to 30 April 2022, appointing the members of the Commission for the Organization and Supervision of Stock Exchange Operations;
Having seen COSOB Regulation No. 97-02 of 17 Rajab 1418 corresponding to 18 November 1997, relating to the registration conditions of agents authorized to conduct securities trading;
Having seen COSOB Regulation No. 15-01 of 25 Joumada Ethania 1436 corresponding to 15 April 2015, relating to the approval conditions, obligations, and control of intermediaries in stock exchange operations;
After adoption by the Commission for the Organization and Supervision of Stock Exchange Operations on 21 Ramadhan 1444 corresponding to 12 April 2023;
Enacts the regulation whose text follows:
Article 1st. — In application of the provisions of Articles 10 and 11 of Legislative Decree No. 93-10 of 23 May 1993, as amended and supplemented, cited above, this regulation aims to fix the qualification rules and registration conditions for agents authorized to conduct securities trading on the stock exchange and the issuance of the professional card.
Art. 2. — To be qualified to conduct securities trading on the stock exchange, agents authorized by stock exchange operation intermediaries (IOBs) must meet the following qualification conditions:
— hold a higher education diploma;
— hold a certificate of successful completion of specialized training organized by a training center whose program is fixed, in collaboration with the Commission for the Organization and Supervision of Stock Exchange Operations (C.O.S.O.B), hereinafter referred to as the "Commission";
— pass the professional aptitude test organized by the Stock Management Company (S.G.B.V), covering the quotation system and the rules for managing trading sessions.
Art. 3. — The registration application for the trader is submitted to the Commission by the IOB for agents authorized to conduct securities trading on the stock exchange.
The registration application for the trader is submitted according to the modalities defined by an instruction from the Commission.
Art. 4. — The candidate who has satisfied the conditions cited in Article 2 above is registered on the list of traders kept by the Commission, which issues to the IOB that submitted the application a professional trader card, which can only be used for this purpose.
The decision to register the concerned trader is notified, at the latest, one (1) month after the filing of the complete file.
A copy of the decision is notified to the Stock Management Company, which maintains a register of holders of the professional card.
The registration of a trader by the Commission gives rise to the payment of a fee by the IOB, in accordance with current regulations.
Art. 5. — The Commission may proceed with the temporary suspension of the trader, for a period ranging from six (6) months to three (3) years, in the following cases:
— conduct contrary to rules of ethics and deontology;
— infringement of market trading rules;
— deliberate breach, which has harmed the interests and rights of the IOB's clients and the integrity of the market.
Art. 6. — The Commission may proceed with the deregistration of the trader, in the following cases:
— at the request of the IOB;
— infringement of market rules;
— deliberate breach, which has harmed the interests and rights of the IOB's clients and the integrity of the market.
Art. 7. — The decision of suspension or deregistration is reasoned and notified, by registered letter with acknowledgment of receipt, to the concerned trader and to the IOB on whose behalf he exercises.
Art. 8. — The IOB must inform the Commission when it terminates the employment relationship linking it to the trader, within eight (8) days following its interruption, while specifying the reason for the contract rupture.
The IOB must inform the Commission when the trader is assigned to other services.
Art. 9. — The trader may not intervene on the market in the following cases, under penalty of the application of the provisions of Article 58 of Legislative Decree No. 93-10 of 23 May 1993, as amended and supplemented, cited above:
— when he is informed of a suspension or deregistration measure;
— at the end of the employment relationship linking him to the IOB within which he exercised;
— when he has no longer exercised trading for more than twelve (12) months, or he is assigned to other services other than those of the IOB's activity for a duration exceeding twelve (12) months;
— upon the cessation of the IOB's activity.
Art. 10. — The trader is required to return his professional card to his employer, who will be responsible for returning it to the Commission, within the week following the occurrence of one of the cases provided for in Articles 5, 6, and 9 above.
Art. 11. — Any trader who has no longer exercised trading for more than twelve (12) months may only resume his activity after passing the professional aptitude test, provided for in Article 2 above.
When an IOB intends to recruit a person already registered on the list of traders with the Commission, it must notify the Commission in advance and proceed with the payment of the due fee.
Art. 12. — Traders in exercise, on the date of publication of this regulation, are exempt from the conditions provided for in Article 2 above.
Art. 13. — All provisions contrary to this regulation are repealed, particularly COSOB Regulation No. 97-02 of 17 Rajab 1418 corresponding to 18 November 1997 relating to the registration conditions of agents authorized to conduct securities trading.
Art. 14. — This regulation shall be published in the Official Journal of the Algerian Democratic and Popular Republic.
Done in Algiers, on 21 Ramadhan 1444 corresponding to 12 April 2023.
Youcef BOUZENADA.