Rules to Implement Presidential Decree No. 282

September 27, 1973 RULES TO IMPLEMENT PRESIDENTIAL DECREE NO.282 AUTHORIZING STOCK EXCHANGETRANSACTIONS BY MEMBERS OF AN OPERATINGSTOCK EXCHANGE THROUGH MEMBERS OF ANOTHEROPERATING STOCK EXCHANGE WHENNECESSARY TO EXECUTE CUSTOMERS' ORDERS Under and by virtue of the powers vested in it by existing laws, particularly Section 2 of the Presidential Decree No. 282 dated August 30, 1973, this Commission hereby promulgates the following rules: 1. The relationship between the brokers of the two or more exchanges executing the transaction shall be based upon prior formal written agreement between them, a copy of which shall be filed with each stock exchange and the Commission. 2. Pending appropriate study of the reasonable share in the commission by the participating brokers, the matter shall be governed solely by agreement of the parties, provided that the customer shall pay not more than the allowable commission for each transaction. 3. The member or broker of one stock exchange making use of the facilities of another stock exchange through his correspondent therein shall, after the execution of the transaction in each stock exchange, cause the issuance of stock certificates corresponding to the number of shares executed in each exchange by going directly to the transfer office of the listed company for the purpose. The stock certificates shall be issued by the transfer office in the name of the persons specified in the transfer instruction received by it or in the absence of a specified name, in the firm name of the executing broker. Pending receipt of such stock certificate the person in whose name the stock is to be issued may issue a stock power corresponding to the total number of shares in his name, to be guaranteed by the executing broker in each stock exchange and validated by the clearing house of such exchange. 4. To assure uniformity in the rules in all the operating stock exchanges, the settlement date shall be four (4) trading days from the execution of the transaction in each stock exchange; and there shall be uniformity in price fluctuations as well as ex-dividend and ex-right dates of each particularly listed security in all the operating stock exchanges. llcd 5. Transactions consummated under Presidential Decree No. 282 and as herein provided shall be reported to this Commission as prescribed under SEC Rule B-11 promulgated pursuant to the Revised Securities Act. 6. These rules shall take effect immediately and shall be published in at least two newspapers of general circulation in the Philippines. LibLex (SGD.) ARCADIO E. YABYABIN Securities and Exchange Commissioner Securities and Exchange Commission Approved: September 28, 1973 (SGD.) TROADIO T. QUIAZON, JR. Acting Secretary of Trade Department of Trade