[COM 280] Transactions in listed securities280 

280

(1) The holder of a securities industry licence must not—

• (a)trade in listed securities outside the securities exchange of which the licence holder is a member except as authorised by the Reserve Bank on a case by case basis;
• (b)trade in listed securities in contravention of such rules as the Reserve Bank may prescribe with respect to the clearance, settlement, payment, transfer or delivery of listed securities;
• (c)effect any transaction in a margin account in a manner contrary to requirements adopted by the Reserve Bank;
• (d)lend or arrange the lending of any listed securities carried for the account of any customer without the customer’s written consent, or borrow, or arrange to borrow, listed securities using the securities carried for the account of any customer, as collateral, without the customer’s written consent; or
• (e)effect any transaction in, or induce or attempt the purchase or sale of, any listed securities by means of any manipulative deception, or other fraudulent device or contrivance.

(2) The Reserve Bank may prescribe rules with respect to the clearance, settlement, payment, transfer or delivery of listed securities.

(3) No person holding listed securities, must sell such listed securities except in compliance with the trading procedures adopted by such securities exchange.

(4) No person must, directly or indirectly, in connection with the purchase or sale of any security—

• (a)employ any device, scheme or artifice to defraud;
• (b)engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person;
• (c)make any untrue statement of a material fact; or
• (d)omit to state a material fact necessary in order to make the statements made in light of the circumstances under which they were made, not misleading.

(5) The holder of a securities industry licence must not execute a transaction for his or her own account, related family account, or for the account of his or her firm, whether in a secondary market or on an underwriting, until all customer orders, either at market or at the same price, have been filled.