Rules of INDX¶
1. GENERAL PROVISIONS
1.1. The present document describes:
access procedure to the Internet exchange INDX (further INDX) as a Trader and the admission to the stock exchange trading;
stock exchange trading procedure via INDX;
registration procedure and the scheme of circulations of Instruments;
types of transactions and operating procedure;
the record and storage of the rights on Instruments in INDX Register;
types of deposits and fees when using INDX.
1.2. Internet exchange INDX (INDX) is the program complex functioning in accordance with the present rules, available via Internet.
1.3. Internet exchange INDX guarantees to all registered Traders equal rights and possibilities no matter how they access interfaces, but it does not guarantee the same connection quality, which depends on the Internet providers.
2. JOINING THE INDX SETTLEMENT SYSTEM
2.1. All payments within INDX are made via WebMoney Transfer. The necessary amount of property rights (or an equivalent) is deposited by Traders on the requisites opened by INDX in this system.
2.2. To provide equal possibilities for Traders and also to speed up transactions and guarantee their continuity, a special settlement system is used within INDX This system maintains the property rights of Traders and provides interfaces for input/output of such rights into Traders accounts with WebMoney Transfer system.
3. REGISTRATION AND ACCESS TO INDX
3.1. Authentication is carried out via WebMoney Transfer system. Only those registered with WebMoney Transfer on http://www.wmtransfer.com can have access to INDX. Formal passport or higher is required.
3.2. Registration as a Trader and access to the Trader’s interface.
3.2.1. To use INDX, a WebMoney transfer user should get registered as a Trader. The Trader should choose a unique Nick, and also agree with the INDX Rules.
3.3. The suspension of the access to INDX.
3.3.1. In case of the attempt from the Trader to use his access rights to INDX for creating obstacles for work of INDX or other Traders, Administration of INDX has the right to block this Trader’s access to INDX in whole or in part.
3.3.2. In case a Trader attempts to take advantage of access rights of other Trader or prevent him from participating in INDX transactions— this Trader will be automatically blocked.
3.3.3. In all similar cases all necessary actions will be taken to prevent such situations in future.
4. DEPOSITS AND FEES APPLIED IN INDX
4.1. To cover service charges Emitters of instruments pay 5 WMZ for 10 000 registration units in a month. The advance payment is made during the registration of the instrument for the period of not less than one year. The further payments can be made by any holder of any volume of the given instrument on the requisites of INDX TS Ltd for any period of time, but not less than one month.
4.2. Guarantee fees are estimated in the property rights when for the purchase order and in the instruments when for the sale order. To guarantee the fulfillment of all obligations INDX blocks the amount of the property rights on the Trader’s account which is equal to the order. The order will be placed at INDX exchange once the guarantee payment is made.
The Guarantee payment can be returned to the Trader in the following cases:
the order is recalled by the Trader;
the Exchange day is over — for orders with borrowed assets.
The Note is an instrument used in INDX. The Note is the formalized obligation in the electronic form payable to the bearer. The Note is secured by the assets of the Emitter. The nominal value of the Note is defined by the Broker during the registration of the instrument.
6. MAKING TRANSACTIONS WITH INSTRUMENTS IN INDX
6.1. Principles of transactions
6.1.1. INDX registers transactions with instruments and ensures automatic maintenance of exchange.
6.1.2. Transactions with instruments are based on the orders submitted by Traders. The Trader can remove the orders from the Order book, and also to change their parameters if it is allowed by the INDX.
6.1.3. Cross transactions are not allowed.
6.1.4. At the end of the working day all active orders remain in the order book, except those orders where borrowed assets are used.
An order is accepted by INDX from the Trader and it expresses the firm intention of the Trader to make a transaction with another Trader on mentioned in the Order terms with the instruments mentioned in the Order.
6.2.1. Allowed orders.
The Order will be submitted by INDX if it contains the following requisites:
- an instrument code;
- an order direction;
- quantity of the instrument;
- the price of the instrument (one note)
- the order ID — a nickname of the Trader (INDX Nick). The Order can be put in the Order Book without showing the owners Nick.
6.2.2. Order direction.
The order can be either direct (purchase) or return (sale). Прямая — заявка на выполнения операции обмена эквивалента на инструмент (Покупка). Обратная — заявка на выполнение операции обмена инструмента на эквивалент (Продажа).
6.2.3. Quantity of the instrument.
All orders in INDX are limit orders. The quantity of the instruments and its price should be specified for such orders. The direct order is an order to exchange the specified in the order quantity of the equivalent for the instrument.
6.2.4. Terms of order execution.
The order is considered to be executed if another Trader submits in INDX the matching order of the opposite direction.
6.2.5. Order validity.
The order will stay in the order book till its execution, or till the transaction period for this instrument is over, except orders which are valid only during one Exchange day.
6.2.6. Order ID.
When submitting the order the Trader can show his Nick, or can submit the order without it.
Note: this parameter can be set up in the “Settings” section, and can be adjusted either to automatic use or the Trader can change it each time when submitting the order.
6.2.7. Submitting the order.
The orders can be submitted from any computer where WM Keeper is installed and Internet browser is supported (see the list of supported browsers). Internet connection and identification keys are required.
6.2.8. Submission of identical orders.
Submission of two identical orders from the same Trader is not allowed.
6.2.9. Cancellation and editing of orders.
All orders in the order book can be removed or edited by the Trader. If the option “don’t remove the order when editing” is enabled, the orders will stay in the order book, till this option is disabled. This option is for editing without the price change. If this option is disabled, the order will be removed from the order book, when the Trader clicks on it. Once the order is removed, the new order will be placed at the end of the order book.
6.2.10. Execution of orders
220.127.116.11. Once the order is submitted to INDX, it is placed in the order book, and the availability of the matching orders is checked automatically. Matching orders are orders of the opposite direction, with the price not lower than specified in the order.
18.104.22.168. The transaction will be executed if there is at least one matching order.
the price of transaction is the same as the price of the matching order;
the quantity of the instrument in the submitted order is decreased by the volume of the transaction. If the balance becomes equal to zero, this order considered to be executed and is deleted from the order book;
the quantity of the instrument in the matching order is decreased by the volume of the transaction. If the balance becomes equal to zero, this order considered to be executed and is deleted from the order book;
all changes in the order book are displayed on the information displays of Traders. The information is updated every 10 seconds.
the above mentioned actions will be repeated until no cross orders are left.
22.214.171.124. If there are no matching orders, the submitted order is placed in the order book. Orders are ranked according to their price and time of their reception by the Exchange.
7. MARGIN LENDING
7.1. On INDX all Traders can make leveraged and short term transactions at the Market makers expenses, by attracting additional assets (WMZ and notes) to make a transaction within one Exchange day. Traders can participate in the auction even if there is no position in WMZ (in this case the notes bought beforehand act as a guarantee).
7.2. Market makers determine daily the list of the liquid notes, and put limits on quantity of notes of each instrument and on the amount of the of the possible lend WMZ. Market Makers can update these limits during an Exchange day.
7.3. The Margin lending is free of charge during the trading session.
7.4. Estimation of the Trader’s portfolio (margin level) and procedures on rendering additional resources (WMZ and notes) are carried out automatically. The system shows the quantity of notes, which the Trader can buy/sell without exceeding the margin level. The amount of margin assets is limited by the leverage size only. Available leverage 1:1.
7.5. The margin level is calculated according to the following formula and on the basis of the Trader’s position in INDX: Margin level = (Portfolio - Liabilities) / Portfolio * 100% where:
- Portfolio – the assessed cost of notes and WMZ balance, accumulated on the Trader’s account at the present moment.
- Liabilities – the assessed cost of the current liabilities of the Trader in INDX.
7.6. The estimation of notes in the Trader’s portfolio is carried out on the basis of the price of orders for sale and purchase of notes in INDX. The total cost of Trader’s liabilities in INDX is used to estimate the Margin level.
If the total volume of orders in INDX for sale (purchase) of notes is not enough to convert all Trader’s assets, only those assets that can be converted are estimated.
7.7. Regulatory values.
INDX determines three regulatory values for the Margin level:
Restrictive margin level - the initial margin level.
Margin level for sending the claim - when this level is reached, INDX send the claim to the Trader to add funds or notes to reach the Restrictive margin level.
Margin level, when the part of the Trader’s positions will be closed by force.
|Name of the margin level||Margin level value, %|
|Restrictive margin level||50%|
|Margin level for sending the claim||35%|
|Margin level, when the part of the Trader’s positions will be closed by force||25%|
When the Trader’s positions are closed by force, INDX has the right to close as many positions as are required to raise the Margin level by 100% (to redeem all debts).
7.8. When liquid notes and/or regulatory values of Margin level are changed, these changes come into force since the moment the corresponding info is published on the web-site.
7.9. If at the end of the Exchange day the Trader has outstanding debts, on the next day the Market maker will send to the Broker (see Appendix 2) offers with the return basis for borrowed assets. The Broker makes the decision and performs required actions to execute transactions connected with the return of the borrowed assets.
8. THE ORDER OF TRANSACTIONS
8.1. The order of transactions is determined by INDX Regulations (Appendix 3)
8.2. Place of execution.
All transactions with instruments by means of INDX are executed in the Internet. Traders can manage INDX from any computer where WebMoney Transfer software is installed. Internet connection is required (see the list of supported browsers).
8.3. Exchange days.
INDX can be accessed 24/7 (with a technical break). The exchange day is divided into following periods:
- an exchange day;
- a technical break.
9. TRANSACTIONS SETTLEMENT IN INDX
9.1. Base principles of exchanges in INDX.
9.1.1. INDX Internet exchange works on the principle of the advance depositing of instruments and equivalents and immediate performance of the exchange at the moment of transaction execution.
9.2. Exchange procedureв.
9.2.1. The instrument and the equivalent are delivered at the moment of the transaction execution.
9.2.2. At the moment of the transaction execution INDX automatically exchanges Guarantee fees of the Traders participating in the transaction.
9.2.3. If the order is submitted, but the Trader is disconnected from INDX, the transaction can be executed by using the guarantee fee made by the Trader when submitting the order.
10. TYPES OF TRANSACTIONS
INDX carries out the following transactions:
10.1. The instruments placed in INDX can be exchanged by Traders only to the property rights (equivalents) of other Traders in the INDX settlement system.
10.2. Transactions on the settlement of the instrument.
Any instrument in INDX can be cancelled, if the shares covering this instrument are excluded from quote lists of exchanges, or if the Emitter makes the decision to remove the instrument from INDX. In this case the notes will be redeemed by Market makers from the holders. The price should be discussed with the Broker.
10.3. Dividend payout.
Traders who have the notes of the instruments secured by the shares of open joint-stock companies in their portfolios, can receive dividends proportionally to the quantity of notes, if such dividends are paid by the JSC company. Dividends are paid in WMZ. In case the dividends are paid by the companies registered in Russia, the amount will be calculated at the exchange rate of the Bank of Russia minus the profit tax and 10 % of compensation to the organizer of the auction.
11. STORAGE AND RECORD OF THE INSTRUMENTS RIGHTS
11.1. The rights to instruments.
Traders have the rights to instruments as the result of the transactions registered by INDX.
11.2. Transfer of the rights to instruments.
The rights can be transferred from one Trader to the other only via sale/purchase transactions at INDX.
11.3. The place of storage and record of the rights to Instruments.
The rights are stored in the INDX Register.
11.4. The Trader’s interface.
11.4.1. The Trader’s interface is created during the registration.
11.4.2. The Trader’s interface contains information on: the rights, account balance, borrowed assets, active orders, history of recent transactions.
12. RELATIONSHIPS WITH THE THIRD PARTIES
12.1. The Traders registered in their own names but using the funds of the third parties bear responsibility to the third parties. INDX doesn’t bear any responsibility to the third parties and can not act as a party to dispute.
12.2. INDX does not provide any information on the Traders’ transactions to the third parties and doesn’t bear any responsibility for incomplete or corrupted information provided to the third parties.
12.3. INDX doesn’t fulfill any requirements from the third parties to suspend the Trader from participating in INDX.
13. INTRODUCTION OF CHANGES TO THE PRESENT RULES
13.1. Administration of INDX reserves the right to make changes to the present Rules.
13.2. Changes in Rules come into force on the next day after the new version of Rules is published on the INDX web-site.
13.3. Major changes will be published in the news section of INDX.
14. COMPUTATION OF TIME
14.1. INDX uses Central European time (CET, GMT+1).
14.2. All information, displayed to Traders (time of transactions, time of input/withdrawal of an equivalent etc.) is in accordance with INDX time.
Appendix 1. Section Broker in INDX Internet exchange¶
INDX Internet exchange is the program complex, allowing exchanging of the registered objects (instruments) and property rights (equivalents) between the users who got access to INDX (Traders). The instruments matching by the contracts of the certain type, registered by one Broker are joined by the general interface in the INDX Section. The rights and the responsibilities of Traders are determined by the agreement between the Emitter and the Section Broker in INDX. The Section Broker in INDX (further the Broker) is the INDX Trader who can manage the registered instruments in INDX on the basis of the agreement between the Trader and the owner of the INDX
2. RESPONSIBILITIES AND THE RIGHTS OF THE SECTION BROKER IN INDX
2.1. The broker of section is obliged:
2.1.1. To arrange precontract preparations with potential Emitters.
2.1.2.Carefully check and publish all information on the backing of the registered instruments, to verify the personal data of the Emitter.
2.1.3. To conclude the agreement with the Emitter, if prescribed by INDX, and to execute such an agreement.
2.1.4. To distribute dividends between the holders of instruments if applied.
2.1.5. To force Traders to return borrowed assets to the Market makers, if there are outstanding debts by the end of the Exchange day.
2.2. The Section Broker has the right:
2.2.1. To make the decision to increase mortgage claims for transactions with the borrowed assets, if significant changes have occurred on the specialized exchanges.
2.2.2. To establish transactions rates in case of the forced settlement of the outstanding debts.
Appendix 2. Market maker in the INDX Internet exchange INDX¶
1. GENERAL PROVISIONS
Market maker of the section in INDX is the INDX Trader authorized by the Emitter to perform transactions with the instruments of the Emitter.
2. THE RIGHTS AND RESPONSIBILITIES OF THE MARKET MAKER
2.1. To submit sale/purchase orders according to the quotations on the specialized exchanges.
2.2. To determine the size of borrowed assets, available for Traders to make leveraged and short-term transactions.
2.3. To monitor the availability of orders used for the return of borrowed assets by the end of the Exchange day.
2.4. To make offers to the Broker about the prices of transactions in case of the forced settlement of the outstanding debts.
2.5. To make offers to the Emitter about the purchase of additional backing for the instruments if required.
Appendix 3. Operating Regulations of INDX Internet exchange¶
All auctions with the instruments since the moment of their placing till the moment of execution are performed in the mode 24/7/365 with a technical break from 23:45 till 00:00 of the next day according to the Central European time or from 1:45 till 2:00 Moscow time.
During the technical break the stop of all auctions is required.
Appendix 4. The list of supported browsers¶
The INDX interface should also work with all the following versions of these browsers.