Pre-Open Order Cancellation

April 27, 1998 PSE CIRCULAR FOR BROKERS NO. 856-98 SUBJECT : Pre-Open Order Cancellation It has been observed that some pre-open orders are canceled at exactly 9:30 a.m. even if the market for that particular stock has not yet opened. The real intent of the present prohibition on pre-open order cancellation is to cover the last 15 minutes prior to market open. The way the trading system works (MakTrade) however is that it opens the listed issues one at a time. Only when all the listed issued were processed (posted pre-open orders were matched) is the message "Market Open" given out by the system and can be viewed by traders in the F9 (message) window. As recommended by the FTAC and approved by the BOG in its last meeting, the rule on Pre-Open Cancellation is amended to cover 9:15 to market open instead of 9:15 to 9:30. Market open is the time when the system issues the "Market Open" messages in the Message Window (F9). LexLib In this connection, Article 14 (Chapter 1) of the Consolidated Trading Rules is hereby amended to read as follows: ARTICLE 14 . Cancellations of Posted and Done Orders . - (a) Cancellation of Posted Pre-open Orders. The following transactions cannot be canceled between 9:00 a.m. to 9:14 a.m.: 1. Posted buying/selling orders that get matched in price (during the pre-open period, matching means only in price and therefore not a done transaction yet) by other brokers; 2. Posting is within the band (between the highest posted buying price and the lowest posted selling price provided the selling price is lower than the buying price). All posted orders regardless of the price and volume cannot be canceled from 9 : 15 a . m . up to market open . Market open is defined as the period where opening prices have been computed for all listed securities and where matching or pre-open posted orders have been executed by the system. Actual time of Market Open is slightly after 9:30 a.m. dependent on market activity. Market is officially open when "MARKET OPEN" appears on the F9 page. Cancellations in all these periods may however be done if within five (5) minutes therefrom, a posting involving the same issue and the same client at a better price and at a volume not less than the original canceled order is made. In this regard, a better price means a lower price for a selling order or a higher price for a buying order. LLpr Violations of the above restrictions on cancellation shall be penalized as follows: First Offense P1,000.00 Second Offense P2,000.00 Third Offense P3,000.00 Fourth and Subsequent Offense P4,000.00 For your information. (SGD.) RAFAEL L. LLAVE Chief Operating Officer