Amended Rule on Pre-Open Cancellation

June 29, 1998 PSE MEMO FOR BROKERS NO. 303-98 SUBJECT : Amended Rule on Pre-Open Cancellation The Board of Governors has approved the amendment of the above rule after taking cognizance of the inapplicability of the five-minute rule when the cancellation and the reposting of the order will go beyond the opening of the market. As such, Article 14 of Chapter I of the Trading Rules is hereby amended to read as follows: "ARTICLE 14. Cancelations 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). From 9:15 a.m. to 9:30 a.m., all posted orders regardless of the price and volume cannot be canceled. Cancelations in all these periods may however be done if within five (5) minutes therefrom and before the market opens , 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. 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 This rule shall be in effect immediately. (SGD.) RAFAEL L. LLAVE Chief Operating Officer