Regulatory Alerts2009-07-12
Instruction COSOB No. 09-01 of July 12, 2009, Setting the Conditions for Over-the-Counter Trading of Listed Bonds
Issued by COSOB, this instruction establishes the minimum trading volume and maximum allowable price deviation for over-the-counter transactions of listed bonds. It mandates that such trades must involve at least five times the standard block size and cannot deviate by more than 0.2% from the official exchange price. Additionally, it requires all authorized intermediaries, banks, and financial institutions to submit monthly transaction reports to COSOB and SGBV, while simultaneously repealing the previous 2005 directive.
Instruction COSOB No. 09-01 of July 12, 2009, Setting the Conditions for Over-the-Counter Trading of Listed Bonds Having regard to Legislative Decree No. 93-10 of May 23, 1993, as amended and supplemented, concerning the securities exchange, particularly Article 5 thereof; Having regard to Ordinance No. 96-10 of January 10, 1996, amending and supplementing Legislative Decree No. 93-10 of May 23, 1993, as amended and supplemented, concerning the securities exchange; Having regard to COSOB Regulation No. 04-02 of November 10, 2004, concerning the conditions for over-the-counter trading of listed bonds; Having regard to COSOB Instruction No. 05-01 of May 24, 2005, setting certain conditions for over-the-counter trading of listed bonds. Article 1. — Pursuant to Article 3 of COSOB Regulation No. 04-02 of November 10, 2004, concerning the conditions for over-the-counter trading of listed bonds, this instruction aims to set the minimum amount for over-the-counter trading of listed bonds, as well as the maximum rate of variation of their price relative to the exchange price. Art. 2. — Over-the-counter trading of listed bonds must involve a minimum amount set at five times the normal block size, defined in number of securities by the SGBV in accordance with Article 105 of COSOB Regulation No. 97-03 of November 18, 1997, concerning the general regulations of the securities exchange. Art. 3. — Over-the-counter trading of listed bond securities covers those issued by the State, other public law entities, as well as joint-stock companies. Art. 4. — Over-the-counter trading of listed bonds is conducted between stock exchange intermediaries, banks, and financial institutions, which are the only entities authorized to negotiate these bonds over-the-counter, at the last quoted price increased or decreased by a maximum rate set at one-fifth of one percent (0.2%). Art. 5. — Stock exchange intermediaries, banks, and financial institutions are required to transmit monthly to COSOB and SGBV a report detailing all over-the-counter transactions. Art. 6. — COSOB Instruction No. 05-01 of May 24, 2005, is hereby repealed. Art. 7. — This instruction shall enter into force on the date of its signature. Done in Algiers on July 12, 2009. The President Noureddine ISMAIL. COSOB Regulation Instruction No. 09-01