Special Block Sales

January 15, 1998 PSE MEMO FOR BROKERS NO. 022-98 SUBJECT : Special Block Sales To ensure that prices are set fairly in special block sales, the Board of Governors has approved the amendment of Article 9, Chapter I of the Trading Rules (Circular No. 248 dated 23 December 1997). Said article shall now read as follows: "Article 9. Special Block Sales . All special block sales should first be approved by the Floor Trading Arbitration Committee. The transaction value of the subject of the block sale shall not be less than Five Million Pesos (P5.0 MM). A transaction is defined as one (1) entry to the system. However, a block sale involving one listed issue to be done at two (2) different prices shall be counted as two (2) transactions. Each of the transactions shall be not less than the minimum amount to qualify as a block sale. The following procedures shall be observed when requesting for a Special Block Sale: (1) The price shall be approved by the Committee in accordance with established rules and regulations. For the purpose of this rule, the allowable price range for a special block sale should be within the floor and ceiling prices of the day. (2) In case the amount is not within the floor and ceiling prices of the day, a letter-request citing the reasons for a special block sale and with supporting documents attached should be filed with the Floor Trading Arbitration Committee which shall decide on the request. Cdphil (3) All letter-requests shall be first submitted to PSE Management for signature verification. Once the signature/s are verified to be that of the authorized and/or delegated officials, the broker requesting for special block sale shall secure the final approval of any two (2) Floor Trading Arbitration Committee members personally present on the floor on the transaction date. A copy of this accomplished form shall be submitted to the Information Technology (IT) Help Desk Counters (Ayala and Tektite) for appropriate Market Regulator Terminal (MR TERM) approval. A prescribed request form together with the Specimen Signature Form is set out in Form 3 under Annex "1" and Annex "2" respectively. (4) In all cases, block sales must be effected and entered into the system during trading hours. LLpr This amended rule takes effect immediately. For your information and guidance. (SGD.) RAFAEL L. LLAVE Chief Operating Officer