Currency Derivatives Advisory Committee - Mandate

JSE Currency Derivatives Advisory Committee Strictly confidential

JSE CURRENCY DERIVATIVES ADVISORY COMMITTEE – TERMS OF REFERENCE

1.0 PURPOSE

1.1 The purpose of the Committee is to consider and advise on principles and operational matters relating to the management of the JSE Currency Derivatives and the trading platform on which it operates, Yield-X. The Committee will be responsible for reviewing the rules, directives and the treatment of currency related instruments trading on Yield-X, and may make recommendations arising therefrom to the JSE.

1.2 The Committee is set up by the JSE. The Committee will operate independently of the JSE and, subject to the Committee acting within its Terms of Reference; the JSE will use their reasonable endeavours to implement the decisions of the Committee regarding the operation of Currency Derivatives and the operating platform of Yield-X.

2.0 TERMS OF REFERENCE AND MEMBERSHIP

2.1 The membership of the Committee is intended to be representative of the currency derivative market participants. It is therefore the intention of the JSE that the Committee’s membership includes experts from the market and independent professionals.

2.2 The JSE shall nominate the Chairman, Deputy Chairman, secretary and any additional representatives.

2.3 In the event that any member acts in a manner which may bring the JSE or the Currency Derivatives market or Yield-X into disrepute, or acts in breach of these Terms of Reference or letter of appointment, such member may be removed from the Committee if the JSE, in consultation with the Chairman, so decide.

2.4 In the event that a member is no longer actively involved in the industry in a capacity which will allow the member to make a meaningful contribution to the Committee, that member shall resign from the Committee, failing which the JSE may, in consultation with the Chairman, remove that member from the Committee.

3.0 MEETINGS

3.1 The Committee will meet once a quarter on dates notified in writing (which may be electronic) in advance by the Secretary to all the members. The quorum for meetings of the Committee will be three members.

3.2 The Secretary will also convene a special meeting of the Committee at the request of the Chairman or at the request of two or more members of the Committee.

3.3 The Committee may hold its meetings in person or via suitable electronic means including, without limitation, telephone conference or video calls or a combination as appropriate.

1 JSE Currency Derivatives Advisory Committee Strictly confidential

3.4 Committee meetings will normally be held in Sandton, unless otherwise advised by the JSE.

4.0 DUTIES OF THE JSE CURRENCY DERIVATIVES ADVISORY COMMITTEE

4.1 The JSE Currency Derivatives Advisory Committee’s mandate is to:-

4.1.1 consider and advise on principle and operational matters relating to trading.

4.1.2 consider and advise on proposed amendments to the JSE rules and directives governing trading;

4.2 The Currency Derivatives Advisory Committee will make recommendations to the JSE Executive as defined in the JSE rules on the basis of reasonable consensus. Where reasonable consensus on any issue considered by the Currency Derivatives Advisory Committee cannot be reached, the conflicting views on the issue in question shall be referred to the JSE Executive or, where appropriate, to the Board for determination.

4.3 The Chairperson must ensure that the Currency Derivatives Advisory Committee is acting within its mandate at all times. If any matter outside the Currency Derivatives Advisory Committee’s mandate comes before it, the Chairperson must refer the matter to the appropriate forum.

5.0 DELEGATION OF POWERS

The Chairman will represent the Committee between meetings and may act on behalf of the Committee in urgent cases. All such decisions of the Chairman of the Committee must subsequently be reported to and ratified by the Committee as soon as possible.

6.0 ROLE OF SECRETARY

6.1 A Secretary is appointed and paid for by the JSE to support the work of the Committee.

6.2 The Secretary will maintain a record of constituent changes to Currency Derivatives (Yield-X), will be responsible for the timely publication of all constituent changes and prepare agendas, papers and minutes for the Committee meetings.

LEGAL NOTICE

The above terms of reference are intended as a guide and are not binding on either of the JSE or the Secretary. Neither the JSE, the Secretary nor any Committee member has any duty to any third party in respect of the performance, role or membership of the Committee or any decisions taken thereby.

16 October 2009