Obligation to Execute Client Orders at the Best Market Conditions

Commission for the Organization and Supervision of Stock Exchange Operations 17, Campagne CHKIKEN.16043. Val d'HYDRA - Algiers. Tel: 023 47 27 93/47 28 03 Fax: 023 47 28 00/47 28 04

The Algerian Democratic and Popular Republic

COSOB

The President
Algiers, June 28, 2018

Reference texts:

• Article 43 of COSOB Regulation No. 15-01 relating to IOBs
• Minutes of the negotiation committee meeting of April 8, 2017

Joint Note to IOBs and Public Prosecutors

SUBJECT: Obligation to execute client orders at the best market conditions.

In order to ensure the effective application of the provisions of "Article 43 of COSOB Regulation No. 15-01 of April 18, 2015 relating to the conditions for approval, obligations, and supervision of Intermediaries in Stock Exchange Operations (IOBs)," which concerns the obligation to execute client orders at the best market conditions, COSOB takes the following measures:

1. During trading sessions, in the event that the IOB is the sole counterparty on the market and when the client's limit buy or sell order can be fully executed at more favorable price conditions, the IOB must modify its order to execute it at the best possible price.

2. In the event that one or more other orders for the same security and in the same direction are subsequently entered, this IOB benefits from execution priority. To this end, it may modify the price of its order when the orders entered by other IOBs are at a higher price (in the case of buy orders) or lower price (in the case of sell orders), even introducing it at the limit price indicated by the client.

3. In the event that the price of the order modified by this IOB is equal to the price of the orders entered by other IOBs, the latter must cancel their orders and re-enter them, respecting the initial chronological order.

4. The SGBV, with the agreement of the supervisor, extends the order entry period to handle these scenarios.

5. IOBs and public prosecutors must strictly respect the provisions set forth in this note.

Commission for the Organization and Supervision of Stock Exchange Operations