Regulatory Alerts2004-01-01
COSOB Regulation No. 04-02 of November 10, 2004, on the Conditions for Off-Exchange Trading of Listed Bonds
The Commission for the Organization and Supervision of Stock Exchange Operations (COSOB) issued Regulation No. 04-02 to define the specific conditions under which listed bonds may be traded off-exchange in Algeria. The regulation restricts such transactions to stock exchange intermediaries, banks, and financial institutions, requiring them to adhere to a minimum transaction amount and a price margin relative to the last quoted price. Furthermore, market participants and the central securities depository are mandated to publish detailed trade information, including volumes and price extremes, in the depository's bulletin to ensure market transparency.
Decree of 13 Dhou El Hidja 1425 corresponding to January 23, 2005, approving the regulation of the Commission for the Organization and Supervision of Stock Exchange Operations No. 04-02 date of 27 Ramadhan 1425 corresponding to November 10, 2004, regarding the conditions for off-exchange trading of bonds listed on the stock exchange. The Minister of Finance, Having regard to Ordinance No. 75-59 of September 26, 1975, modified and supplemented, establishing the Commercial Code; Having regard to Legislative Decree No. 93-10 of May 23, 1993, modified and supplemented, regarding the securities exchange; Having regard to Presidential Decree No. 04-138 of 6 Rabie El Aouel 1425 corresponding to April 26, 2004, appointing members of the Government; Having regard to Executive Decree No. 95-54 of 15 Ramadhan 1415 corresponding to February 15, 1995, fixing the attributions of the Minister of Finance; Having regard to Executive Decree No. 96-102 of 22 Chaoual 1416 corresponding to March 11, 1996, implementing Article 32 of Legislative Decree No. 93-10 of May 23, 1993, modified and supplemented, regarding the securities exchange; Decrees: Article 1. — The regulation of the Commission for the Organization and Supervision of Stock Exchange Operations No. 04-02 of 27 Ramadhan 1425 corresponding to November 10, 2004, regarding the conditions for off-exchange trading of bonds listed on the stock exchange, is approved, the text of which is annexed to this decree. Art. 2. — This decree shall be published in the Official Journal of the Algerian People's Democratic Republic. Done in Algiers, on 13 Dhou El Hidja 1425 corresponding to January 23, 2005. Abdellatif BENACHENHOU. ANNEX Regulation No. 04-02 of 27 Ramadhan 1425 corresponding to November 10, 2004, regarding the conditions for off-exchange trading of bonds listed on the stock exchange. The President of the Commission for the Organization and Supervision of Stock Exchange Operations (COSOB); Having regard to Ordinance No. 75-59 of September 26, 1975, modified and supplemented, establishing the Commercial Code; Having regard to Legislative Decree No. 93-10 of May 23, 1993, modified and supplemented, regarding the securities exchange, particularly its Article 5; Having regard to Ordinance No. 03-11 of 27 Joumada Ethania 1424 corresponding to August 26, 2003, regarding currency and credit; Having regard to the Presidential Decree of 7 Ramadhan 1424 corresponding to November 2, 2003, appointing the President of the Commission for the Organization and Supervision of Stock Exchange Operations; After adoption by the Commission for the Organization and Supervision of Stock Exchange Operations on the date of 27 Ramadhan 1425 corresponding to November 10, 2004; Enacts the regulation as follows: Article 1. — In accordance with the provisions of Article 5 of Legislative Decree No. 93-10 of May 23, 1993, modified and supplemented, cited above, this regulation aims to define the conditions for off-exchange trading of bonds listed on the stock exchange. Art. 2. — Only stock exchange intermediaries, banks, and financial institutions may trade off-exchange, according to the negotiated procedure, the bonds listed on the stock exchange. Art. 3. — Off-exchange trading of bonds listed on the stock exchange is carried out under the following conditions:
- The transaction must involve a minimum amount fixed by the Commission for the Organization and Supervision of Stock Exchange Operations.
- The transaction is executed at the last quoted price increased or decreased by a margin whose maximum rate is fixed by the Commission for the Organization and Supervision of Stock Exchange Operations. Art. 4. — Market participants and the central depository of securities must publish in the bulletin of the central depository information relating to the operations carried out on listed bonds and including in particular:
- the total quantities of securities traded;
- the highest price with the quantities traded;
- the lowest price with the quantities traded. The Commission may, by decision, establish any other information to be published in the bulletin referred to above. Art. 5. — This regulation shall be published in the Official Journal of the Algerian People's Democratic Republic. Done in Algiers on 27 Ramadhan 1425 corresponding to November 10
Ali SADMI. COSOB Regulation Regulation No. 04-02