1.
General Provisions
1.1.
The brokerage house VGT-Broker provides the following
services to its clients:
• Takes clients’ orders to buy or sell securities
and executes those orders on the stock exchange
or some other regulated market on behalf of the
clients.
• Manages accounts of dematerialized securities.
• Ensures the first listing of shares without
obligation of redemption
• Transactions dealing with the IPO (initial public
offer of shares)
• Transactions dealing with takeover of companies
• Informs clients about conditions on the securities
market.
1.2.
The basis for realization of a transaction with
securities by the brokerage house are
the clients’ orders to purchase or sell securities,
which are entered into the Book of Orders. The
orders can deal with transactions on the stock
exchange or some other orderly public market,
or they can be related to transfer of ownership
of securities. Received orders, amendments to
orders and camcellations of orders are entered
into the Book of Orders in chronological order
and they are executed in the same order.
1.3.
The brokerage house keeps the Book of Orders,
which is to say it keeps records of orders and
securities transactions in line with the regulations
on securities trading and internal regulations
on keeping the Book of Orders. At a client’s request,
s/he is given insight into the records related
to her/his transactions.
1.4.
The brokerage house charges a commission for service
provided to clients in accordance with
the price list of the firm. The price list is
a part of the General Operation Conditions. The
price list and General Operating Conditions are
presented to clients for examination at the brokerage
house’s office or at some other place where an
order to purchase or sell securities was received.
1.5.
Prior to receiving the first order to buy or sell
securities on behalf of a client, information
about the client is entered into a computer data
base. Information about clients, their
property and records are considered a business
secret. Access to, as well as ways of handling,
the data considered to be business secret are
provided for by internal company regulations on
business secrets.
1.6.
The General Operating Conditions are presented
to clients for examination prior to signing the
general brokerage agreement and they
are available to clients at the brokerage house’s
offices at any given moment. The clients are informed
beforehand about any amendments to the General
Operating Conditions.
2. Stock Exchange Transactions
2.1
The stock exchange brokerage services
include taking investors’ orders to buy or sell
securities and execution of those orders on behalf
of the client on stock exchange or some other
orderly public market, with a suitable commission
being charged for the executed services.
2.2
Prior to taking the first order to buy or sell
securities from the 2.1 herein, the client
has to sign a written general brokerage agreement
with the brokerage house.
2.3
In order to sign the general brokerage
agreement, the client is bound to provide
the following personal information:
•
Name and surname, or company name if the client
is a legal entity;
• Residential address, or address of the head
office;
• Personal identification number if the client
is an individual person, or company identification
number if the client is a legal entity;
• Number of bank account into which the brokerage
house will make payments;
The
client extends guarantees for accuracy and truthfulness
of the provided data herein. Should a client refuse
to provide any of the data herein, the brokerage
house is entitled to refuse signing a general
brokerage agreement with that client. If the brokerage
house decides to sign a general brokerage agreement
regardless of incomplete data, the client will
be fully responsible for all possible consequences
resulting from the incomplete data.
2.4
After signing the general brokerage agreement
and prior to taking the first order to buy or
sell securities, the brokerage house opens
a trading account with the Register of
Securities on behalf of the client.
2.5
Clients can place an order for purchase
or sale of securities in the following ways:
•
In person;
• In written form (by post, e-mail or fax);
• By telephone;
In
case that a client issues an order by telephone,
the brokerage house is entitled to demand from
him/her to subsequently confirm the order in written
form. In case of client being a legal entity,
the brokerage house can take an order only from
the person designated as the contact person by
the client, or from a person with general authorization
to represent the client.
2.6
Clients can issue the following orders to the
brokerage house:
•
Market order;
• Limited order;
• Discretionary order;
In
case of the market order, clients do not set limitations
on execution of purchase or sale orders. Instead,
the order is executed in accordance with the current
conditions on the securities market.
In
case of the limited order, clients set some limitations
on execution of the order, mostly regarding lowest
or highest price and time frame for execution
of the order.
In
case of the discretionary order, the brokerage
house is given authority to execute the order
at the moment they deem, on basis of their assessment
of the conditions on the market, to be the most
favorable moment to realize the best interests
of the client.
Should
the brokerage house refuse to execute a client’s
order, it is bound to promptly inform the client
about such proceedings as well as to provide arguments
for refusing to execute the order.
2.7 Obligatory elements to be included
in an order to purchase securities:
•
Company name and address of the brokerage house;
• Name and surname, address and number of ID card
if the client is an individual person, or name
and surname, address and number of ID card of
the person authorized to sign orders to buy or
sell securities on behalf of a legal entity;
• The client's code, allocated by the brokerage
house after signing of the general brokerage agreement;
• Date and time of reception of the order, file
number of the order;
• Number of the client's trading account at the
Register of Securities, if the client has opened
the account;
• Indication on which stock exchange or other
orderly public market the order is to be executed;
• Identification sign of the securities valid
at a stock exchange or some other orderly public
market on which the securities are traded;
• The amount of securities to be purchased;
• Conditions for execution of the order in terms
of time frame, quantity and price limitations;
• Indication of the amount or percentage of the
commission charged by the brokerage house, as
well as an indication of the overall costs of
order execution;
• Indication of risks in securities transactions
and a statement that it is impossible to guarantee
in any way that securities purchased by a client
will bring him/her any profits;
• Signature of the client, signature of the person
authorized by the brokerage house to take orders
as well as signature of the person authorized
by the brokerage house to control the order;
Obligatory
elements to be included in an order to sell securities:
•
Company name and address of the brokerage house;
• Name and surname, address and number of ID card
if the client is an individual person, or name
and surname, address and number of ID card of
the person authorized to sign orders to buy or
sell securities on behalf of a legal entity;
• The client's code, allocated by the brokerage
house after signing of the general brokerage agreement;
• Date and time of reception of the order, file
number of the order;
• Number of the client's trading account at the
Register of Securities
• Indication on which stock exchange or other
orderly public market the order is to be executed;
• Identification sign of the securities valid
at a stock exchange or some other orderly public
market on which the securities are traded;
• The amount of securities to be sold;
• Conditions for execution of the order in terms
of time frame, quantity and price limitations;
• Indication of the amount or percentage of the
commission charged by the brokerage house, as
well as a statement of the overall costs of order
execution;
• Indication of risks in securities transactions
and a statement that it is impossible to guarantee
in any way that securities purchased by a client
will bring him/her any profits;
• Signature of the client, signature of the person
authorized by the brokerage house to take orders
as well as signature of the person authorized
by the brokerage house to control the order;
2.8.
All the abovementioned orders can also be: all
or none orders, time-restricted orders, open orders
and value orders.
2.9. It is considered that an
order to sell securities on a regulated public
market also includes order to transfer the ownership
of the securities from the client’s account.
2.10.
The brokerage house forwards to the client,
at his/her request, all the available information
about securities and about the general conditions
on the securities market. The client
can shape his order on basis of information received
from the brokerage house. The brokerage house
must not advise clients. Investing in securities
carries a certain amount of risk. The client has
to be aware of that as well as of the fact that
in case of losses, which are due to volatility
or some other factors affecting the market, the
brokerage house does not take any responsibilities
for consequences of client’s decisions.
The
orders to purchase or sell securities will be
executed, in terms of time frame, quantity and
price limitations, in line with requests made
by the owner of securities and pursuant to regulations
prescribed by stock exchange or some other orderly
public market.
2.10.
Once the client issues an order to buy securities,
he/she has to pay the brokerage house 100 % of
the advance payment. The brokerage house can,
taking into consideration long-term business relations
with a client, intensity of transactions with
that client, his/her financial stability and other
reasons, opt to ask for a lower advance payment
from that particular client.
2.11.
Once the client issues an order to sell
securities, it has to be made sure that the securities
that are subject of the transaction are
listed on the client’s account opened with the
Register of Securities.
2.12.
The client's order is considered to be received
once the client provides all the data needed to
execute the order and when all the conditions
laid out in the items 2.10. and 2.11. herein are
met.
2.13.
The client can change his/her order only
in case the order has not been executed or it
is possible to prevent its execution. If the client
changes the price or quantity of securities from
the order already placed with the brokerage house,
then the newly-named quantity and price are considered
to be a new order. The order is considered changed
only when the change has been confirmed by the
brokerage house and entered into the Book of Orders.
2.14.
Clients will be informed about risks of trading
with securities, and they will be made
aware of impossibility to guarantee that the securities
purchased by them will bring them any profits.
2.15.
The brokerage house is entitled to refuse to take
a client’s order in the following cases:
• If the client – in case of a purchase order
– fails to meet the requirements from the item
2.10. herein within agreed deadline,
• If the client – in case of a sale order – fails
to meet the requirements from the item 2.11. herein
within agreed deadline,
• If the client’s order could result in conflict
of interests between the client and the brokerage
house
2.16.
The client can revoke or withdraw his/her order
only in case that it has not been executed yet
or it is possible to prevent its execution. The
order is considered revoked/withdrawn only when
the revocation is confirmed by the brokerage house
and entered into the Book of Orders.
Received
orders, amendments to the orders and revocations/withdrawal
of the orders are entered into the Book of Orders
in chronological order and are executed according
to the order of entering.
2.17.
The brokerage house keeps the Book of Orders as
well as records of all transactions with securities
pursuant to the internal regulations
on keeping the Book of Orders. At a client’s request,
the brokerage house is bound to provide a client
with an insight into the records related to his/her
transactions.
The
Book of Orders has to include:
•
Date ant time and the way in which the order was
taken
• Name and address of the client, with the name
and surname of the authorized person who issued
the order if the client is a legal entity, or
name and surname and personal identification number
if the client is an individual person.
• Identification label of the securities the order
refers to,
• Instructions for execution of the order: price,
price limitations, and the time of expiry of the
order.
• Statement that the client has kept the right
to cancel the order as well as the cancellation
deadline,
• Date, time and method of order execution,
• Minimum, maximum or the exact number of securities
being purchased or sold,
• Instructions about the method of execution for
each individual order in terms of time frame of
execution and quantity restrictions
It
is not allowed to change the data entered into
the Book of Orders.
The
Securities Commission may prescribe additional
obligatory elements to be included into the Book
of Orders.
2.18.
Upon receiving an order, the brokerage house sends
a reception confirmation to the client on the
following workday. The brokerage house
will send the same confirmation to the client
only upon receiving instructions to amend or withdraw
the order. If the client does not take any actions
on the following workday upon receiving the reception
confirmation, the brokerage house will take it
as a sign that all the data included in the reception
confirmation are accurate.
Order
Execution
2.18.
The brokerage house executes the clients’ orders
to buy or sell securities by following instructions
from the order. The brokerage house executes the
clients’ orders to buy or sell securities on a
regulated market.
2.19.
The brokerage house executes the clients’ orders
to buy or sell securities in accordance with the
chronological order of reception of orders. Regardless
of the provision from the previous sentence, the
brokerage house executes a discretionary order
at the moment it deems to be the most favorable
to realize the best interests of the client.
2.20.
When it receives several orders to buy or sell
securities under the same conditions, the brokerage
house is entitled to execute those orders simultaneously.
2.21.
The brokerage house calculates the amount of its
commissions in accordance with its commission
tariff which was approved by a decision of the
Securities Commission of the Federation of Bosnia
and Herzegovina no. 04-19—476/01 from the 28th
day of February 2002.
Fulfilling
the Obligations from the Order
2.22.
The brokerage house ensures that ownership of
the securities purchased on a regulated market
on behalf of the client in line with the purchase
order is transferred to the client’s account opened
with the Register of Securities within seven days
upon executing the order.
2.23.
The client has to settle all financial liabilities
with the brokerage house for purchase of securities
on the first workday following the execution of
the purchase order. The liabilities have to be
settled as provided for by the item 2.25. herein.
2.24.
The brokerage house settles its financial liabilities
towards the client after executing an order to
sell securities within seven days after the day
of execution.
2.25.
The client settles his/her financial liabilities
with the brokerage house either by making a payment
into the brokerage house’s account no. 199-047-00043791-89
at ABS-Banka d.d. Sarajevo, branch office in Visoko,
or by making a cash payment at the brokerage house’s
teller counter.
2.26.
If a client fails to settle all financial liabilities
with the brokerage house after execution of a
purchase order, the brokerage house is entitled
to mortgage the securities that have been the
subject of the transaction. The brokerage house
is bound to inform the client about the executed
transaction and transaction costs on the first
workday following the execution of the transaction.
2.27.
The communication between the Register of Securities
and the brokerage house will be maintained either
in person or in written form (fax, e-mail, post
service or some other appropriate written form).
3.
Final Provisions
3.1.
Any amendments to the General Operating Conditions
are subject to previous approval of the Securities
Commission and are adopted according to the same
procedure as the General Operating Conditions
were. The brokerage house informs the client about
the amendments to the General Operation Conditions
in the same way it informed them about the operating
conditions. The client is entitled to be given
the General Operating Conditions for examination
at any given moment.
3.2.
All cases that are not described and provided
for by the General Operating Conditions are a
matter of agreement between the client and the
brokerage house, and are regulated by the stock
exchange customs and codes as well as by the relevant
laws. All disputes arising between the client
and the brokerage house which are not settled
by a mutual agreement fall under jurisdiction
of the relevant Municipal Court in Visoko.
3.3.
The Securities Commission of the Federation of
Bosnia and Herzegovina approved the General Operating
Conditions and the price list of the brokerage
house with the decision no. 04-19-476/01 from
the 28th day of February 20002.
3.4.
The General Operating Conditions of the brokerage
house were approved and certified by the management
of the brokerage house with the decision adopted
by the manager of the brokerage house no. 00-02-01
from the 2nd day of January 2002.
3.5.
The General Operating Conditions come into force
at the moment they are approved by the Securities
Commission of the Federation of Bosnia and Herzegovina.
|
