GENERAL TERMS OF SERVICE OF THE BUDAPEST STOCK EXCHANGE LTD. BOOK FIVE REGULATIONS ON TRADING BOOK FIVE 1 REGULATIONS ON TRADING GENERAL TERMS OF SERVICE OF THE BUDAPEST STOCK EXCHANGE LTD. TABLE OF CONTENTS PART I ..................................................................................................................................................... 5 GENERAL PROVISIONS ........................................................................................................................ 5 CHAPTER 1 ............................................................................................................................................ 5 PURPOSE, SUBJECT MATTER, FUNDAMENTAL PRINCIPLES, EFFECT ....................................... 5 CHAPTER 2 ............................................................................................................................................ 6 DEFINITIONS .......................................................................................................................................... 6 CHAPTER 3 ............................................................................................................................................ 7 RULES GOVERNING THE EXCHANGE ................................................................................................ 7 2. Personnel and Technical Requirements for Trading ............................................................... 7 3. Trading Related Decision-making Powers ............................................................................... 7 4. Liability of the Exchange in Relation to Trading ....................................................................... 9 CHAPTER 4 .......................................................................................................................................... 10 THE SUBJECT MATTER AND METHOD OF TRADING IN THE PARTICULAR SECTIONS ............ 10 5. The Subject Matter and Method of Trading ........................................................................... 10 CHAPTER 5 .......................................................................................................................................... 11 CONCLUDING DEALS ON THE EXCHANGE ..................................................................................... 11 6. Concluding a Transaction ...................................................................................................... 11 PART II .................................................................................................................................................. 13 TRADING FEATURES AND RULES IN THE EQUITIES AND DEBT SECURITIES SECTIONS ....... 13 CHAPTER 1 .......................................................................................................................................... 13 GENERAL RULES ................................................................................................................................ 13 7. Reference Price, Base Price, Auction Price, Reference Price of the Dynamic and Static Price Range ..................................................................................................................................... 13 8. Freezing, Technical Halts and Suspension of Trading in a Security ..................................... 14 CHAPTER 2 .......................................................................................................................................... 15 ORDERS ............................................................................................................................................... 15 9. The Order and the Quote ....................................................................................................... 15 10. Order Types ........................................................................................................................... 17 11. Order Restrictions and Validity Restrictions (Order Parameters) .......................................... 20 12. Modification of an Order ......................................................................................................... 22 13. Order Priority, Persistency, and the Order Limit .................................................................... 23 14. The Order Expires .................................................................................................................. 26 CHAPTER 3 .......................................................................................................................................... 27 TRADE-MATCHING ALGORITHMS .................................................................................................... 27 15. Equilibrium-Price-Based and Continuous Trade-Matching Algorithms .................................. 27 16. Modification of Transaction Data ........................................................................................... 31 CHAPTER 4 .......................................................................................................................................... 32 TRADING .............................................................................................................................................. 32 17. Trading Phases ...................................................................................................................... 32 BOOK FIVE 2 REGULATIONS ON TRADING GENERAL TERMS OF SERVICE OF THE BUDAPEST STOCK EXCHANGE LTD. 18. Trading Models in the Equities and Debt Securities Section ................................................. 33 CHAPTER 5 .......................................................................................................................................... 42 VOLATILITY INTERRUPTION AND MARKET ORDER INTERRUPTION SUB-PHASE .................... 42 19. Volatility Interruption ............................................................................................................... 42 20. Market Order Interruption ....................................................................................................... 48 21. Special Cases of the Volatility Interruption and the Market Order Interruption in the Auction Trading Model ........................................................................................................................ 49 CHAPTER 6 .......................................................................................................................................... 50 SPECIAL RULES FOR NEGOTIATED DEALS ................................................................................... 50 22. The Negotiated Deal Order .................................................................................................... 50 PART III ................................................................................................................................................. 53 TRADING RULES IN THE DERIVATIVES AND COMMODITIES SECTIONS .................................... 53 CHAPTER 1 .......................................................................................................................................... 53 GENERAL RULES APPLICABLE TO ORDERS ............................................................................. 53 23. Orders .................................................................................................................................... 53 24. Limits on Orders Regarding all Derivative Products: ............................................................. 54 25. Order Types, Order Classes and Order Duration .................................................................. 55 CHAPTER 2 .......................................................................................................................................... 57 TRADE-MATCHING ALGORITHMS .................................................................................................... 57 26. Equilibrium-Price-Based and Continuous Trade-Matching Algorithms .................................. 57 CHAPTER 3 .......................................................................................................................................... 59 TRADING .............................................................................................................................................. 59 27. Trading Periods ...................................................................................................................... 59 28. Additional Rules and terms concerning trading in the Derivatives and Commodities Sections.................................................................................................................................. 60 29. Special Conditions of Exercising Trading Rights in the Derivatives and Commodities Sections.................................................................................................................................. 63 CHAPTER 4 .......................................................................................................................................... 65 30. Orders Accepted on the Spread Board .................................................................................. 65 31. Trade-Matching Algorithm of Spread Products ...................................................................... 67 CHAPTER 5 .......................................................................................................................................... 68 32. General Rules .......................................................................................................................