Instruction COSOB No. 24-10 of December 31, 2024, on Stock Exchange Order Placement Methods

The People's Democratic Republic of Algeria 1 Commission for the Organization and Supervision of Stock Exchange Operations – COSOB – Instruction COSOB No. 24-10 of December 31, 2024, on Stock Exchange Order Placement Methods

Article 1 - In application of the provisions of Article 21 of COSOB Regulation No. 15-01 of April 15, 2015, relating to the conditions for approval, obligations, and supervision of stock exchange intermediaries (IOB), this instruction aims to define the modalities for placing stock exchange orders by clients.

Article 2 - A stock exchange order may be given by any means leaving a written, electronic, or telephone recording trace, in accordance with the convention signed between the IOB and the client.

Section 1: Placement of Stock Exchange Orders via Electronic Support

Article 3 - By electronic support, it is understood as any communication device set up by the IOB on a computer platform allowing the transmission and reception of client orders. The electronic support may be a mobile application, a website, or a dedicated platform made available to clients.

Article 4 - The IOB offering an order transmission service via electronic support must make available to clients a user manual specifying access conditions, procedures to follow, and measures to take in case of platform malfunction.

Article 5 - The electronic support must allow for the identification and authentication of the client using an identifier (username, account number, etc.), a password, an electronic signature, or a combination of these elements, in accordance with current security standards.

Article 6 - The client must be able to validate the stock exchange order on the electronic support before its transmission to the IOB.

The People's Democratic Republic of Algeria 2 Commission for the Organization and Supervision of Stock Exchange Operations – COSOB –

Article 7 - The electronic support must offer the client the possibility to program stock exchange orders with specific execution parameters (limit price, validity period, etc.), thereby allowing flexible order management.

Article 8 - IOBs having the status of a bank may offer this order transmission service via their e-banking platforms, thus facilitating the authentication of clients already domiciled at the bank.

Section 2: Placement of Stock Exchange Orders via Telephone Support

Article 9 - Stock exchange orders placed by telephone may be given either by telephone call, by text message (SMS), or via a smartphone instant messaging application. The IOB must ensure that these orders are correctly recorded and that the client's identity is authenticated.

Authentication modalities must include the verification of the phone number and the identification of the client through their first and last name, their account number, or any other secure identification method.

Article 10 - The IOB must guarantee that all telephone communications, including calls and text messages, are recorded in a manner that allows for complete traceability of orders.

Section 3: Placement of Stock Exchange Orders in Writing

Article 11 - Stock exchange orders placed in writing may be sent by email to the dedicated address, or by any other agreed written means. In this case, the IOB must ensure that the email address used corresponds to that specified in the client's account opening convention.

The People's Democratic Republic of Algeria 3 Commission for the Organization and Supervision of Stock Exchange Operations – COSOB –

The IOB must also verify that the order indeed originates from the client, in accordance with the authentication modalities provided for in the convention.

Section 4: Miscellaneous Provisions

Article 12 - The IOB must verify the conformity of orders received via the various supports before their transmission for execution. This includes the verification of identification data and the conformity of instructions given by the client.

Article 13 - The IOB is required to retain received orders in accordance with the deadlines and personal data protection conditions established by current legislation. These data must be retained in a manner that guarantees their integrity, confidentiality, and availability if needed.

Article 14 - Approved IOBs have a period of six (6) months, from the effective date of this instruction, to comply with the provisions of this instruction.

Article 15 - This instruction takes effect from the date of its signature.

Done in Algiers on, January 20, 2025 Youcef BOUZENADA The President