Amended Rules on Special Block Sales

December 14, 1998 PSE MEMO FOR BROKERS NO. 579-98 SUBJECT : Amended Rules on Special Block Sales The Securities & Exchange Commission (SEC) has approved the changes to the Special Block Sale Rules as proposed by the Exchange. The following are the amendments: 1. All block sales must be entered into the trading system as a CROSS SALE (same broker). 2. Requests for Block Sale where the price is outside the current trading band must be submitted with all the necessary supporting documents to the office of the COO through the staff of the Floor Trading Department. Six members of the Floor Trading Committee must be referred to and at least four (4) should approve. The Block Sale must be executed before the close of the trading of the same day it was filed. 3. Block sales entered into for the purpose of exercising warrants are exempted from the P5.0 million minimum value rule. All the above changes are now incorporated in the new amended Article 9 of the Trading Rule which should 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 (P5.0MM), except for block sale entered into for the purpose of exercising warrants i.e. converting the warrants to common shares and in which case the transaction value may be less than P5 . 0M . 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) transaction. Each of the transactions shall be more than the minimum amount to qualify as a block sale." The following procedure shall be observed when requesting for a Special Block Sale: (1) All letter-requests for special block sales 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 the 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 . (2) 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 the floor and ceiling prices of the day. LexLib (3) All requests for Special Block Sale where the price is outside the current trading band (ceiling and floor prices) shall be executed before the close of the trading of the same day it was filed . The request form must be accompanied with all necessary supporting documents. PSE management shall furnish all Floor Trading and Arbitration Committee members copies of the request and secure their decision. There should be at least six (6) members referred to and at least four (4) should approve . (4) In all cases. block sales must be effected and entered into the system during trading hours by the same broker. There shall be no more special block sale involving two (2) different brokers . The Request for Special Block Sale Form as contained in our Memorandum for Brokers No. 310-98, is hereby amended and attached herewith. These rules and procedures and forms shall be effective Monday, 21 December 1, 998. (SGD.) RAFAEL L. LLAVE Chief Operating Officer PSE-TSD FORM # 3B (Amended 14 December 1998) DATE: _______________ TO: Philippine Stock Exchange, Inc. ATTN: Floor Trading and Arbitration Committee SUBJECT: REQUEST FOR SPECIAL BLOCK SALE Broker's Particulars: Broker's Name: __________________ ID# ___________ Transaction's Particulars: Name of Listed Issue: _____________ Stock Symbol: ________ Number of Shares: _____________ Unit Price: _____________ Last Closing Price: ________ Total Market Value: _____________ Date Last Traded: ________ The broker warrants that both the buying and selling clients are aware and have agreed on the transaction price. If the price is not within the current allowable trading band relative to the last traded price; (Chapter I Article 19, of Trading Rules), please state the reason below: ______________________________________________________________________________________________________ ______________________________________________________________________________________________________ Broker's Authorized Signatory : _______________________ Name _______________________ Position Signature Verified by: ________________________ (Printed Name Signature) Approved by : (Floor Trading And Arbitration Committee Members) _____________________ _____________________ ____________________ Printed Name & Signature Printed Name & Signature Printed Name & Signature _____________________ _____________________ ____________________ Printed Name & Signature Printed Name & Signature Printed Name & Signature Note: At least two (2) FTAC members are needed to approve except when price is outside the trading band whereby at least four (4) FTAC members must approve .