Chapter 1

1.01 The Council of the Malta Stock Exchange, in exercise of the powers conferred on it by Section 7 Subsection (ii) of the Malta Stock Exchange Act 1990, makes the following Bye-laws :

1.02 Unless the context or subject otherwise requires the definitions under Section 2 of the Malta Stock Exchange Act 1990, and the definitions under Article 2 of the Statute shall equally apply to these Bye-laws.

1.03 Furthermore, the following terms have the following meanings :

"Act" means the Malta Stock Exchange Act 1990;

"Advertisement" means any form of advertising or promotional activity or material, whether done verbally or in writing, and, without prejudice to the generality of the foregoing, includes advertising in a publications, listing particulars or equivalent offering documents, prospectuses, the display of notices, signs, labels or showcards, by means of letters, circulars, catalogues, price lists or other documents, by an exhibition of pictures or photographic or cinematographic films, by way of sound broadcasting or television, by the distribution of recordings or in any other manner, and references to the issue of an advertisement shall be construed accordingly;

"Exchange Floor" means the room, area and other facilities from time to time designated or made available by the Exchange for effecting trades and other transactions between members during sessions of the Exchange;

"Financial Intermediary" means any person acting in an intermediary capacity between clients and brokers with whom he shares the brokerage as specified in these Bye-laws;

"Listed company" means a quoted company as defined in the Act;

"Listed security" means a quoted security as defined in the Act;

"Official List" means a list prepared and published by the Exchange, containing information of the current or most recent prices of all listed securities, together with such other information as the Council may consider fit to include therein;

"The Statute" means the Statute of the Exchange as established under Schedule 1 of the Act and as promulgated in terms of the same Act;

"Stockbroking Firm" means a limited liability company constituted by a stockbroker for the purpose of undertaking on his behalf all transactions for which he is responsible in the course of exercising his functions as a stockbroker.

1.04 The following definitions should be used in relation to the Trading Procedure :

"all or nothing" means that the bidder or offeror is only interested in either buying or selling the total number of shares displayed on the Trading Board and does not wish the order to be reduced in size;

"Books close date" means the day on which the register is closed;

"Buyers' Market" is a market which in an initial call in a particular security the aggregate nominal amount of bids exceeds the aggregate nominal amount of offers;

"Call" means an offer or bid order made by a stockbroker or his accredited representative on the Exchange Floor in respect of a selling or buying order;

"cum" placed immediately before a distribution or benefit implies inclusion of the distribution or benefit;

"ex" similarly means that the bargain was dealt exclusive of distribution or benefit;

"Equal Market" is a market where in an initial call in a particular security the aggregate nominal amount of offers equals the aggregate nominal amount of bids;

"Match" is where two calls, one bid and one offer can be either wholly or partially satisfied and declared as trades in accordance with the Matching Procedures contained in these Bye-laws;

"Price" means the unit price of a security;

"Put-through" is where one stockbroker has both buying and selling clients in the same security and amounting in total to the same size;

"Sellers' Market" is a market where in an initial call in a particular security the aggregate nominal amount of offers exceeds the aggregate nominal amount of bids;

"Special Put-through" is a put-through whose nature is classified by the Council as "Special" and is so designated;

"Spread" means the step by step increase or decrease in price by which bids and offers may be raised or lowered;

"Trade Range" means the percentage increase/decrease from the trade weighted average price dealt in during the last trading session in which that particular security was traded.

"Trading Board" means the facility/computer screen provided for matching offers and bids on the Market.

1.05 Words importing the singular number include the plural and vice versa where the context so permits. Words importing the masculine gender shall include the feminine and neuter genders.

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