Global Markets Handbook3

Portfolio Strategy
Global Market Commentary 08 September 2008
AES Analysis
Global Equity Market Handbook
Everything You Ever Wanted to Know about Global Equity Markets

(but were too overwhelmed to look up)
AES
The Standard in Algorithmic Trading
Ana Avramovic +1 212 325 2438 Murat Atamer + 852 2101 7133 Marwan Abboud +44 20 7888 0082
Portfolio Strategy
A Rapidly Changing Global Marketplace

Markets More Integrated Globally, Fragmented Locally
Over the past few years weve seen an explosion in alternative trading venues, creating a more fragmented marketplace. While this trend began in the US with the SECs passage of Regulation NMS which paved the way for Electronic Communication Networks, it is rapidly sweeping across the globe triggering a rise in algorithmic trading and Smart Order Routing technology. We explore some of the effects of fragmentation on pg. 5 for the US and pg. 6 for Europe. Asian exchanges, to stay competitive, are reducing their minimum tick sizes. We discuss the benefits of reduced tick sizes and extrapolate from previous cases to predict the impact on Japanese spreads in 2008 (pg. 8).
Global Wealth Growing

Along with the growth in the number of trading venues, we have seen strong increases in trading volumes worldwide as well (up until the pat few months). Also, despite the recent bear market, worldwide wealth has expanded substantially over the years. Emerging Markets have grown the most, now comprising more than 10% of global benchmarks (p. 11).
Beware the Fundamentals

Building global quant portfolios is still a challenge, even using fundamental data such as P/E ratios and dividend yields. The trouble is caused by differing accounting standards and corporate structures, but it is only compounded by recent heavy writedowns. We examine this further on pgs. 12 & 13.
Emerging Markets: More Risk & Return

Developed Markets still tend to have tighter spreads and higher turnover, which makes it easier to trade in and out of these markets (pgs. 14 & 15). However, liquidity in many Emerging Markets is improving just as emerging markets have offered relatively attractive returns (p. 18).
Frontier Markets Offer New Investment Opportunities

The latest focus seems to be Frontier markets. Many index providers have recently started benchmarks in these new regions, which should ultimately help liquidity there as well. We introduce frontier markets in our final section (see The Whole Enchilada below). The easiest way to reduce risk remains diversification. To help investors identify markets which may offer the best diversification, we calculate country by country correlations over the past year on page 16.
The Whole Enchilada: Country-by Country Market Guides and Volume Curves
With so many markets open for trading and rules and market conditions changing so quickly, its hard for global traders to keep up. We include 3 sections devoted to comparing rules and features across markets. The first part (starting on pg. 19) provides an overview of international markets including the primary exchange, benchmark index, settlement currency, sovereign debt ratings and market hours for all 48 countries in the MSCI All-Country World Index. The second part comprises a side-by-side comparison of average daily volume curves for 32 leading markets (p 23). Finally, beginning on pg 28, we detail the rules & regulations for trading in each market such as round lot sizes, price limits, special restrictions for foreigners, fees, and more. Here we cover the 48 developed and emerging markets from the first part, as well as 19 additional frontier markets.
Portfolio Strategy
TABLE OF CONTENTS
Part I: KEY MARKET THEMES
US Leads The March of the Algos..5 Europes Changing Marketplace.6 Crossing the Border: Canadas Dual Listings......7 Spread Reductions Sweep Across Asia....8 India Focus: A Tale of Two Markets...9
Part II: MARKET CHARACTERISTICS

Global Weightings...11 Fundamentals: Price/Earnings Ratio...12 Dividend Yields.......13 Trading Activity (Velocity)..14 Spreads and USD Turnover......15 1 year Global Correlations.....16 Price Performance......18
Part III: STRUCTURE OF GLOBAL MARKETS

Primary Exchange, Index, Futures...20 Sovereign Debt Ratings & Settlement Ccy.21 Global Trading Hours.22
Part IV: DAILY VOLUME CURVES

Avg Daily Volume Curves by Country..23
Part V: INTERNATIONAL RULES & REGULATIONS

Country by Country Guide to Rules & Regs28
Portfolio Strategy
Part I
KEY MARKET THEMES
US Leads The March of the Algos.......5 Europes Changing Marketplace...6 Crossing the Border: Canadas Dual Listings......7 Spread Reductions Sweep Across Asia....8 India Focus: A Tale of Two Markets..9
Portfolio Strategy
US Leads The March of the Algos

Total Daily Value Traded ($ Bn)
$350 $300 $250 $200
Daily Value Traded

Total volume traded in shares has grown sharply over the years with 10bn share days (listed+OTC) now regular occurrences. Thanks to the steep market sell-off following the tech bubble crash, however, the total value traded stumbled in 2000. Prices have since clawed back to reach new highs, and, coupled with the ever-increasing volumes, US daily value traded is now hovering around $200 Billion USD / day!
Daily Value Traded ($ Bn)
$150 $100 $50 $Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03
Source: Credit Suisse: AES Analysis
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
US Volume Breakdown by Exchange 10 9 Volume (Billion Shares) 8 7 6 5 4 3 2 1 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 NASDAQ NYSE PCX FINRA TRF NSX ISE CHX BSE AMEX PHLX CBOE
Volume Breakdown by Exchange

While overall volumes have increased, the once-dominant NYSEs market share has dropped by almost 50 points from 75% in July 2006 to 27% in July 2008! In fact, the FINRA TRF (which reports trades executed away from exchange, like dark pools and crossing networks) began printing more NYSE-listed volume than the NYSE itself on 4/3/08 and the NASDAQ did so on 6/3/08!
Average Number of Shares per Trade Over Time

2000 1800 Number of Shares per Trade 1600 1400 1200 1000 800 600 400 200 0 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08
Small Cap Large Cap
Average Trade Size

With the rise in algorithmic trading and an increasingly fragmented marketplace making it difficult to execute large block trades, the US has seen the average trade size fall dramatically over the years, to a current level now around 200 shares per trade. In fact, the average retail print is now larger than the average institutional trade size! Large cap stocks have seen the most dramatic decline, likely due to the fact that they are more liquid, thus easier to trade algorithmically. It has always been relatively more difficult to print large blocks in small caps. Still, they too have been susceptible to the slicing of algorithms.
Portfolio Strategy
Europes Changing Marketplace

MiFID Spurs Growth in Alt Trading Venues
Coinciding with the implementation of MiFID in November 2007, the European marketplace has seen accelerated growth in the number of Multilateral Trading Facilities (MTFs). These alternative venues have taken a substantial market share away from the primary exchange as well as created new pools of liquidity for trading European equities. Indeed, as we see below, the percentage executed on alternative venues via Credit Suisse AES was around 12% in November 2007. Only 8 months later, that amount crossed 30% and is still climbing.
35% 30% % Executed on Alternative Venue 25% 20% 15% 10% 5% 0% Nov-07
20
Feb-08
May-08
Aug-08
And Often Significant Price Improvement

Price Improvement (bps) 15
Trading on alternative venues offers substantial benefits, including price improvement, anonymity, and increased liquidity, which allow one to improve performance, reduce slippage, and minimize market impact. In Q1 2008, price improvement ranged from 2 bps to 15 bps, with every stock realizing at least some improvement over the period. The average cost savings was 5.2 bps. In general, the wider the bid-ask spread, the greater the price improvement. This is caused by the fact that trades on alternative venues are often executed at the mid, and this saves you half the spread. Thus, the larger the spread, the more you save. The figure to the left demonstrates the relationship between spread and price improvement for all Chi-X listed stocks executed through Credit Suisse AES from January-March 2008.
10
0 0 5 10 15 20 25 30 Average Spread (bps)

Portfolio Strategy
Crossing the Border: Canadas Dual-Listings

As regulations have made it easier for Canadian companies to list shares in the US, the number of Canadian companies with dual listings has increased greatly. However, as the volumes have increased, more and more of the trading is taking place on US exchanges rather than the native Canadian exchanges. In fact, of the 10 largest cross-listings by market cap, on average, around 70% trades in US markets. The average volume traded in the US for all cross-listings is around 50%. More telling: The average value traded in the US for all dual-listed Canadian companies is close to 60% and has been growing over the years.
Value Traded in Dual-Listed Stocks - Broken Down by Exchange
100%
3,000 2,500 Value Traded ($ Millions
Growth in Value Traded over Time
80%
.47
.55
.47 .62 .60
.49
.52
.46
.43
60%
2,000 1,500 1,000
.03 .00
40%
.16
.03 .00 .14
.18 .02 .00 .10 .05 .01 .11 .01
.13 .01 .15
.10 .01 .14
.13 .01 .19
.16 .00 .25
500 0 2000 Canada 2001 US NYSE 2002 2003 2004 2005 2006 2007 2008 Annualized US Other
20%
.15 US Exchanges .19
.34
.29
.26
.23
.23
.24
.21
.15
0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 Annualized
US NASDAQ
US AMEX
80 70 60 Shares (Billions) 50 40 30 20 10 0 2000 2001
Growth in Volume
US NYSE
US NASDAQ
US AMEX
US Other
Canada
New Markets Offer Benefits for All

Even with the relative increase in the USs market share, exchanges in both US & Canada are benefiting as overall trading activity is increasing. Traders are the biggest beneficiaries of the expanding US market. Not only have spreads narrowed from increased competition among alternative venues (see US microstructure in focus on pg 5), but new products such as Credit Suisse AESs BorderCross will agnostically find the best market for trades, thereby saving traders costly FX fees.
2002
2003
2004
2005
2006
2007
2008 Annualized
Canada
US NYSE
US NASDAQ
US AMEX
US Other
Portfolio Strategy
Spread Reductions Sweep Across Asia

Counterpart to Decimalization in US
Electronic trading has swept the globe, making it easier for both retail and institutional customers to trade. The internet has afforded retail clients the ability to trade seamlessly 24hrs a day, while algorithms have proliferated, helping institutions execute trades with less price impact and less signaling risk. While algorithms are in use in Asia, their penetration has been slower than the rest of the world owing to unique characteristics of Asian markets. Spreads tend to be wider (see p. 6) and liquidity lower, forcing many trades to queue up on the order books rather than crossing the large spread. To help address this issue, various Asian exchanges are implementing reduced tick sizes. Hong Kong was the first to do so, in July 2005, followed by Singapore in Dec 2007. Japan is next in line as the reductions begin this summer with the balance occurring in 2009.
Our Prediction for Japans Spread Reductions

In a December 21, 2007 report, using Hong Kong as an example, Credit Suisse accurately predicted that a tick size reduction in Singapore would cause spreads to decline by 64% to 22bps (see top left). Observing that stocks generally trade a few bps above the theoretical spread levels suggested by the minimum tick sizes, we expect that the average bid-ask spread for TOPIX500 constituents will decline from 21bps to 19bps (a 7% reduction), and then to 15bps (a further 26% reduction) by 2H09 (see middle left). For Nikkei 225 constituents, we expect spreads to decline by 13% and 26% in summer 2008 and 2009, respectively, from the current level of 21bps (see below left).
Note that predictions are based on current prices as of Feb 08, and thus may change considerably. We would also note that soon after tick size changes, spreads in Singapore continued to be much higher than the daily average in the early morning hours (area in box), which is also a possibility in Japan.
Benefits of Tick Size Reduction

Using the examples of Hong Kong and Singapore, reduced tick sizes lead to lower spreads; shorter queues with faster order book turnover; and increased volumes with activity more evenly distributed throughout the day and less catch up volume concentrated at the close.
We expect a similar phenomenon to occur in Japan, but note that historical premiums over theoretical spreads are more volatile in Japan than in Hong Kong or Singapore, making predictions potentially less accurate. Credit Suisse AES performance is also likely to see large improvements due to spread cost saving. In addition, since crossing the spread will become much cheaper, intraday trading strategies are expected to be more profitable.
Portfolio Strategy
India Focus: A Tale of Two Markets

Market Microstructure Matters
India has two major stock markets, each with their own flagship index, and many stocks are included in both indexes (all but one as of this writing). However, the same name trades at a 40% lower bid-ask spread on National Stock Exchange (NSE) than the Bombay Stock Exchange (BSE), on average. The NSE discount can be as large as 60-70% for certain names! The NSE was created to offer a fully electronic, national trading system. Today it is Indias leading stock exchange with much higher daily turnover and tighter spreads compared to the older BSE. The same name trades, on average, four times more on the NSE than its BSE listed counterpart. This is all despite the fact that the market capitalizations of both markets are roughly inline, demonstrating that a markets microstructure matters a lot.
Indian Markets Idiosyncrasies

The daily volume curve for the NSE50 is similar to what we are used to seeing. However, the volume curve for the BSE30 is rather unusual. Trading Starts out relatively lightly and gradually increases over the day. In this environment, TWAP may be a more useful strategy than VWAP, especially given the relatively less liquid nature of the market. On both markets, spreads are wider at the open and gradually decline. With larger volumes at the close, the markets may experience substantial jumps in spreads during the final minutes of trading. A further quirk of the India market to recognize is the closing mechanism. The opening price is the first print, but the close is the volume weighted average price of the last 30 minutes. This makes trading market-on-close orders much more difficult in India
Portfolio Strategy
Part II
MARKET CHARACTERISTICS
Global Weightings....11 Fundamentals: Price/Earnings Ratio......12 Dividend Yields....13 Trading Activity (Velocity)....14 Spreads and USD Turnover....15 1 year Global Correlations...16 Price Performance......18
10
Portfolio Strategy
Global Weightings
August 2008
.
Afria 1%
LatAm 3%
USA - the Elephant in the Portfolio

So does the world catch a cold when the USA sneezes? That depends on how you invest. If using the MSCI All-Country World Index, the answer is a resounding yes. With the US representing an overwhelming 40% of the MSCI ACWI, portfolios benchmarked to this index will no doubt feel the pain when the US falters. However, an alternative approach that puts a more equal weight on the 23 Developed and 25 Emerging countries currently in the index might not be affected as much.
US 44%
Asia Pac 19%
MidEast 1%
As The Pie Grows, EM Take Larger Share

Europe 29% N America (Canada) 4%
Worldwide equity market capitalization has exploded over the years, more than doubling to a current value of almost $30 Trillion over the past 5 years! Not surprisingly, assets into to Emerging Markets have grown the fastest. They are also commanding a larger share of the global pie, increasing their worldwide weight from 5% in 2006 to 11% today.
Total Market Cap in USD by Region

100% 90% 80% 70% 60% 50% 40%
Regional Weightings Over Time

Emerging Asia Pac
$16 Tn $14 Tn $12 Tn $10 Tn $8 Tn $6 Tn $4 Tn $2 Tn $ Tn 2003 2004 2005 2006 2007 Jan 2008 Aug 2008
Europe
North America
N America Europe Asia Pac Emerging
30% 20% 10% 0% 2003 US
2004 US
2005 N America (Canada)
2006 Europe
2007 Asia Pac
Jan 2008 Emerging
Aug 2008
Emerging
Asia Pac
Europe
N America
11
Portfolio Strategy
Fundamentals: Price-Earnings (P/E) Ratio

Thanks to the global credit crisis, Forward P/E ratios have come down almost universally. In fact, only 2 out of the 48 countries in the MSCI All-World Index have higher Forward P/E ratios than they did at the start of 2007! (Not surprisingly, they are both Emerging countries: Peru (up 37%), and Brazil.
Forward P/E Trailing P/E
August January August January 2008 2007 2008 2007 MSCI All-World 10.9 14.1 14.0 16.8 Developed Emerging 10.5 11.2 14.7 13.4 12.0 15.9 16.9 16.7
However, using P/E ratios to asses the attractiveness of investment opportunities is tricky in the current environment of continued earnings revisions. Using the Historical P/E, ratios currently appear to be fairly high as writedowns and a weak economy dragged down earnings. (A smaller value for earnings in the denominators makes the P/E ratio larger.) Some may argue that the worst has passed so the recent poor historical numbers are not an accurate measure of investment fundamentals. Unfortunately, the Forward P/E ratio has another set of problems. The forward ratio is based on analysts expectations for future earnings. But traditionally analysts have been very slow to update their forecasts in light of changing market conditions. As a result, even as actual EPS growth has gone down, analysts have tended not to revise their forecasts much until very close to the actual earnings announcement date. This leads to overlyoptimistic estimates and, consequently, excessively low Forward P/E ratios.
Forward Price/Earnings Ratios

21 18 Price / Fo recast Earning s 15 12 9 6 3 0
Emerging Markets
Jan-07 Aug-08
Czech R ep
Colom bia
Indonesia
M orocco
Pakistan
Jordan
M alaysia
Korea
Israel
Philippines
M exico
A rgentina
T hailand
Poland
SA frica
Taiw an
Chile
China
Brazil
Peru
India
Hungary
20
Developed Markets
Jan-07
16 Price / Forecast Earning
Aug-08
12
D enm ark
Belgium
France
G reece
Japan
N etherlands
NZealand
Canada
Finland
Ireland
Hong Kong
S ingapore
G any erm
A ustralia
S eden w
S pain
S itzerland w
U K
A ustria
12
Portugal
N ay orw
UA S
Italy
Turkey
R ussia
Egypt
Portfolio Strategy
Dividend Yields (Dividend / Price)

The Dividend Yield similarly suffers from reliability issues and discrepancies between historical and forecasted yields. In this case, yields based on historical dividends are most likely too high as many companies will be forced to cut dividends in an effort to preserve capital. However, accurately predicting future dividends is not an easy task. People often try to infer them from the options market but this is complicated by the mismatch in timing between an options expiration and a potential dividend date. Not surprisingly, all but 8 countries - all Emerging - have higher Dividend Yields in August 2008 compared to January 2007 (using actual dividends). This is most likely caused by falling market prices. Belgium offers the highest dividend yield at 7.6; its market has dropped -22% over the past year. Pakistan is highest among the Emerging Markets at 5.5 Irelands yield is up the most from Jan 07, increasing from 2.2 to 5.8.
European Dividends in Focus:

Can a higher Dividend Payout compensate the fall in earnings? Recall that Dividends = Earnings x Payout Ratio Given the recent hit to earnings following the global credit crisis, companies would need to increase their payout ratio to maintain a constant dividend stream on lower earnings. As an example, if earnings fall by 20%, companies would have to raise the payout by 25% to compensate. For the companies in the Dow Jones Euro Stoxx 50, an index of 50 blue chip companies in the EMU, the current payout is ~42%. Maintaining the current level of dividends would require an increase to about 52% - a level not seen since the 1970s.
Eurozone Avg Dividend Payout Over Time
13
Portfolio Strategy
Trading Activity (Velocity of Shares)

We use Velocity to measure market activity, where velocity is defined as: Velocity = Annual Shares Traded ---------------------------------Shares Outstanding (Free Float)
Note that while a higher turnover generally means the market is more active and more liquid, this is not always the case. Pakistan appears to be especially attractive, but this is because the free float available for trading is very low. Consequently, the market is actually very illiquid as most shares (around 80%) are held by insiders and not available to regular investors. This also makes the market very volatile. Nevertheless, as we would expect, developed markets are indeed more active than emerging markets, turning shares over an average of 2 times per year, compared to 1.71x for emerging markets. When we take out Pakistan, the average turnover ratio for EM is even lower, at 1.43x.
9 8
Developed Emerging
Velocity (shares traded / shares outstanding)

-
7 6 5 4 3 2 1
United Kingdom Finland Japan
Germany Netherlands China
Brazil Indonesia Singapore
Hong Kong Australia Egypt
Malaysia Poland Philippines
Switzerland Czech Republic Israel
South Africa Greece Morocco
Mexico Chile New Zealand
Russia Colombia Argentina
Sweden Portugal France
Denmark USA Belgium Thailand
Jordan Hungary Austria
Ireland Canada India
Spain Turkey Norway
Korea Taiwan Italy
Pakistan
14
Peru
Portfolio Strategy
Spreads and USD Turnover

10,000,000,000 Developed Emerging
Developed vs. Emerging Markets

Tighter spreads are usually reflective of a more open and competitive market. As noted previously, the same is often true of higher turnover as well though we highlighted the notable exception of Pakistan. As a result, it is not surprising that we generally find much tighter spreads and higher turnover in the developed countries as compared to emerging ones.
1,000,000,000
USD Turnover
100,000,000
10,000,000
1,000,000
100,000
10,000
10 Spread (bps)
100
1,000
10,000,000,000
Regions within Developed Markets

When we consider different regions within the Developed markets, we see that North America tends to have the tightest spreads and Asia the widest. This is due to the fact that Asian markets were slower to adopt the electronic trading that began with the US marketplace and swept across the pond. Again we see that tighter spread often go hand in hand with higher turnover as both stem from freer, more competitive markets.
10 Spread (bps) 100
1,000,000,000
USD Turnover
100,000,000
10,000,000
1,000,000 North America Developed Asia Developed Europe 1
100,000
1,000,000,000
Regions within Emerging Markets

Amongst Emerging market regions, we have a mixed bag. No region is a strong leader in either spreads or turnover. As the defining characteristic of Emerging markets is a restricted trading environment with each country potentially imposing their own special restrictions, we are not surprised to see a range of liquidity from very high spreads/low turnover (ex. Peru) to tighter spreads/higher turnover (ex. Brazil) within the same region. This is also partly caused by a smaller sample size in many countries.
100,000,000
USD Turnover
10,000,000
1,000,000
100,000
Emerging Asia Emerging EMEA Latin America 1 10 Spread (bps) 100 1,000
10,000
15
Portfolio Strategy
1 Year Global Correlations

Czech Republic Hong Kong Indonesia Argentina Colombia Denmark Germany
Australia
Hungary
Belgium
Canada
Greece
Finland
Austria
Ireland
France
China
Egypt
Brazil
Israel 46% 44% 24% 54% 55% 48% 43% 36% 1% 29% 46% 55% 25% 54% 62% 58% 50% 24% 42% 31% 25%
Chile
India
USA
USA 100% 54% Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Egypt Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland Israel Italy Japan Jordan Korea Malaysia Mexico Morocco Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Russia Singapore South Africa Spain Sweden Switzerland Taiwan Thailand Turkey United Kingdom
3%
32% 50%
49% 56% 34%
69% 74% 21% 50%
77% 63% 10% 40% 51%
50% 62% 18% 50% 60% 60% 100%
-8% 4% 27% 13% 6% 8% -2% 2%
32% 40% 27% 43% 47% 38% 36% 45%
23% 53% 45% 70% 49% 38% 52% 18%
43% 59% 36% 75% 61% 52% 51% 14% 41%
4% 13% 32% 21% 23% 6% 9% 13% 7% 21% 23%
40% 58% 42%
51% 60% 36%
45% 55% 39%
27% 44% 32% 73% 70% 48% 35% 40% 9% 40% 71% 69% 15% 70% 72%
5% 23% 74% 41% 31% 23% 11% 14% 45% 28% 36% 40% 34% 38% 30% 28%
29% 43% 31% 65% 57% 51% 34% 43% 12% 33% 61% 59% 10% 62% 62% 62% 54%
7% 20% 56% 40% 33% 17% 13% 7% 31% 28% 38% 41% 37% 37% 33% 30% 34% 71%
10% 35% 62% 46% 38% 28% 20% 21% 28% 33% 43% 50% 35% 44% 35% 33% 36% 72% 34%
47% 50% 29% 71% 72% 49% 43% 48% 0% 37% 56% 67% 18% 73% 73% 67% 55% 26% 49% 32%
50% 59% 26% 78% 84% 57% 53% 52% 5% 45% 65% 74% 17% 82% 90% 85% 69% 25% 61% 33% 28% 69% 100%
100% 26%
100% 38%
100% 79%
78% 78%
84% 84% 81% 83% 91% 86% 55% 50% 54% 10% 45% 71% 62% 52% 57% 6% 48% 71% 16% 57% 48% 50% 9% 44% 72% 71% 19%
100% 57%
100% 76%
100% 53%
100% 16%
100% 47%
100% 65%
100% 15%
80% 78%
100% 18%
100% 88% 84% 100% 93%
100% 67%
100% 35%
How To Read Correlations

Correlation tells us how closely returns move together, taking a value between -100% and 100%. Markets that move up and down together at the same time will have perfect correlation (100%). Conversely, markets that move the same amount but in exactly opposite direction each day will have perfect negative correlation (-100%). A value of 0 means the returns are unrelated. Low correlations are useful for diversifying a portfolio as the returns from one country will not be related to the other. Negative correlations are useful for hedging. Correlations are symmetrical so the correlation between Brazil and Sweden is the same as between Sweden and Brazil. For this reason, the bottom half of the matrix is blank as it is the same as the top half. In order to find market correlations, look up the first country by alphabet on the left and the second country along the top.
75% < correlation 50% < correl < 75% 25% < correl < 50%
100% 33%
100% 28%
100% 62%
100% 35%
100% 50%
100% 58%
Data from June 2007 - June 2008
16
Italy
Portfolio Strategy
1 Year Global Correlations (p.2)

United Kingdom 50% 59% 35% 85% 86% 59% 54% 55% 8% 47% 69% 79% 16% 87% 93% 86% 69% 33% 62% 36% 37% 75% 61% 87% 35% 4% 37% 33% 50% -3% 91% 22% 72% 15% 65% 21% 69% 74% 65% 44% 69% 83% 85% 85% 33% 38% 100% New Zealand South Africa Netherlands Switzerland
Philippines
Singapore
Morocco
Malaysia
Pakistan
Portugal
Thailand 13% 31% 49% 43% 35% 30% 22% 21% 15% 21% 45% 49% 32% 42% 37% 37% 32% 58% 36% 50% 60% 26% 31% 33% 46% 6% 55% 52% 19% 7% 37% 30% 52% 22% 43% 31% 30% 44% 38% 60% 46% 25% 35% 36%
Sweden
Norway
Mexico
Taiwan
Poland
USA
9%
-10% -3% 11% 7% 9% -6% -1% -3% 6% 10% 16% -2% 18% 3% 7% 11% 7% 5% 4% 9% 2% -4% -4% 9% 7% 100%
8% 25% 69% 46% 37% 27% 17% 20% 33% 29% 43% 44% 28% 44% 35% 34% 39% 70% 30% 55% 64% 32% 29% 32% 73% -2% 100%
4% 25% 58% 40% 37% 23% 16% 22% 29% 21% 43% 40% 29% 41% 35% 38% 36% 57% 35% 47% 70% 28% 21% 31% 49% 5% 60% 100%
78% 58% 15% 35% 48% 72% 69% 64% 1% 30% 27% 45% 9% 41% 48% 40% 27% 16% 36% 7% 21% 44% 39% 47% 11% -9% 17% 14% 100%
-5% -1% 17% -2% 1% -8% -2% 3% 14% 10% 11% -6% 16% 1% -2% 5% -4% 15% 1% 6% 17% -1% -5% -5% 4% 17% 3% 14% 3% 100%
48% 59% 36% 83% 91% 59% 52% 58% 8% 49% 73% 78% 17% 88% 94% 89% 73% 28% 58% 30% 38% 71% 60% 87% 32% 7% 38% 37% 46% 0%
2% 17% 55% 30% 28% 19% 15% 20% 24% 26% 33% 30% 32% 29% 25% 28% 24% 42% 17% 26% 31% 18% 18% 21% 48% 10% 45% 34% 11% 5%
28% 54% 42% 74% 68% 54% 47% 40% 13% 39% 68% 75% 19% 77% 72% 68% 69% 45% 55% 43% 49% 54% 52% 66% 42% 9% 47% 43% 31% 1% 74%
9% 8% 9% 12% 16% 3% 7% 8% 2% 9% 6% 12% 4% 12% 14% 11% 4% 12% 10% 10% 12% 13% 10% 15% 10% 12% 17% 15% 8% 6% 14% 3%
35% 56% 29% 57% 61% 56% 43% 55% 13% 45% 56% 67% 13% 59% 62% 58% 54% 30% 52% 28% 36% 52% 44% 59% 28% 10% 36% 29% 46% -4% 63% 20% 56%
0% 28% 58% 28% 29% 18% 13% 28% 22% 21% 38% 29% 32% 29% 26% 28% 28% 48% 27% 32% 46% 23% 15% 21% 50% 10% 52% 52% 14% 6% 26% 51% 27% -1%
37% 47% 24% 68% 64% 48% 40% 47% 8% 40% 60% 64% 16% 68% 65% 61% 61% 32% 63% 31% 32% 56% 53% 66% 27% -1% 30% 21% 46% -3% 66% 19% 60% 11% 53%
29% 50% 41% 74% 70% 45% 36% 45% 10% 47% 62% 69% 21% 73% 75% 74% 58% 41% 57% 39% 45% 63% 47% 68% 42% 8% 45% 44% 33% 3% 71% 25% 65% 16% 57% 31%
21% 48% 39% 66% 61% 44% 37% 38% 10% 38% 68% 66% 20% 69% 66% 63% 65% 37% 53% 36% 41% 46% 48% 60% 35% 11% 43% 44% 28% 2% 67% 29% 74% 14% 51% 31% 58%
11% 29% 68% 53% 41% 32% 22% 25% 25% 32% 47% 52% 30% 51% 41% 36% 46% 80% 37% 62% 70% 38% 34% 38% 68% -3% 74% 59% 21% 7% 41% 40% 55% 14% 35% 37% 40% 46%
19% 45% 44% 64% 62% 42% 35% 40% 12% 29% 56% 68% 20% 69% 64% 57% 52% 35% 46% 32% 42% 49% 43% 57% 38% 9% 46% 44% 30% -1% 65% 29% 67% 16% 54% 32% 55% 59% 61%
45% 52% 22% 77% 79% 53% 47% 52% -1% 45% 62% 69% 7% 82% 86% 80% 68% 18% 56% 24% 23% 69% 54% 84% 26% -1% 28% 24% 43% -6% 84% 19% 62% 10% 55% 15% 67% 69% 60% 35%
46% 57% 30% 81% 80% 55% 49% 49% 0% 37% 63% 78% 10% 87% 87% 80% 65% 28% 60% 32% 32% 71% 55% 84% 35% 0% 36% 29% 44% -5% 84% 23% 71% 13% 56% 18% 68% 68% 64% 44% 64%
47% 50% 36% 81% 83% 53% 46% 51% 6% 43% 65% 75% 16% 81% 88% 83% 69% 36% 57% 33% 35% 70% 57% 81% 44% 5% 38% 32% 45% -2% 85% 28% 67% 12% 55% 27% 63% 69% 57% 43% 59% 79%
1% 27% 62% 38% 35% 24% 14% 20% 28% 22% 42% 40% 23% 40% 35% 35% 32% 57% 30% 43% 55% 29% 30% 25% 62% 3% 74% 58% 10% 3% 35% 39% 46% 17% 33% 51% 19% 42% 45% 62% 42% 22% 28%
34% 51% 37% 71% 69% 51% 37% 47% 11% 40% 69% 66% 24% 70% 71% 68% 70% 41% 59% 42% 38% 54% 60% 72% 39% 4% 44% 37% 37% -3% 70% 28% 69% 16% 56% 28% 68% 58% 71% 53% 56% 66% 70% 66% 40%
Argentina 17% Australia 69% Austria 47% Belgium 35% Brazil 24% Canada 16% Chile 20% China 27% Colombia 26% Czech Republic 44% Denmark 41% Egypt 28% Finland 43% France 36% Germany 34% Greece 39% Hong Kong 68% Hungary 33% India 50% Indonesia 55% Ireland 34% Israel 29% Italy 30% Japan 100% Jordan Korea Malaysia Mexico Morocco Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Russia Singapore South Africa Spain Sweden Switzerland Taiwan Thailand Turkey United Kingdom
100% 28%
100% 29%
100% 15%
100% 18%
100% 30%
100% 16%
100% 55%
75% < correlation 25% < correl < 50% 50% < correl < 75%
100% 56%
100% 48%
100% 50%
100% 60%
100% 81%
100% 81%
100% 32%
100% 53%
100% 41%
100% 71%
Data from June 2007 - June 2008
17
Turkey
Russia
Jordan
Korea
Japan
Spain
Peru
Portfolio Strategy
Price Performance
1 Year Price Returns in USD (June 2007-08)
Jordan Brazil Egypt Morocco Russia Norway Israel Hong Kong Czech Republic Canada Taiwan Indonesia Thailand Colombia Denmark India South Africa Austria Singapore Australia Mexico Netherlands Germany Poland Chile Hungary Spain Malaysia Korea Finland Argentina Greece China Switzerland Japan Peru France Portugal Turkey Belgium USA United Kingdom New Zealand Sweden Italy Pakistan Philippines Ireland
3 Year Cumulative Price Returns in USD

Brazil China Morocco Russia Egypt Colombia Norway Mexico Poland India Indonesia Czech Republic Israel South Africa Canada Germany Austria Korea Singapore Chile Philippines Finland Hong Kong Spain Portugal Denmark Turkey Hungary Australia Malaysia Greece Netherlands Pakistan Sweden Belgium Taiwan Thailand France Switzerland Jordan New Zealand Argentina Japan United Kingdom Italy Ireland USA Peru
Emerging Developed
-30%
-10%
10%
30%
50%
70%
0%
100%
200%
300%
400%
Emerging Market Returns

Country Argentina Brazil Chile China Colombia Czech Republic Egypt Hungary India Indonesia Israel Jordan Korea Malaysia Mexico Morocco Pakistan Peru Philippines Poland Russia South Africa Taiwan Thailand Turkey Local Currency 1 Year 3 Year 5 Year
-2% 35% -8% -14% -2% -9% 40% -17% 10% 16% -1% 62% 8% -7% -1% 23% -5% -17% -20% -23% 34% 15% 6% 7% -14% 45% 177% 53% 233% 109% 45% 158% 31% 127% 124% 64% 38% 91% 46% 141% 209% 75% 336% 44% 53% 268% 137% 46% 21% 59% 213% 443% 145% 119% 396% 199% 1386% 165% 367% 380% 159% 386% 185% 88% 371% 332% 296% 851% 164% 143% 438% 271% 86% 100% 246%
Developed Market Returns

35% 314% 86% 297% 180% 126% 183% 75% 134% 131% 121% 38% 88% 73% 152% 278% 56% 400% 80% 138% 268% 112% 52% 52% 76% 188% 888% 259% 162% 710% 398% 1546% 268% 418% 326% 248% 384% 235% 122% 365% 446% 238% 1071% 223% 324% 438% 283% 114% 156% 303%
USD 1 Year 3 Year 5 Year

-3% 57% 0% -5% 6% 20% 50% -1% 5% 10% 23% 62% -2% -2% 2% 39% -14% -7% -16% 0% 34% 5% 16% 9% -8%
Local Currency USD Country 1 Year 3 Year 5 Year 1 Year 3 Year 5 Year -11% 37% 86% 3% 74% 171% Australia -11% 55% 241% 3% 97% 351% Austria -22% 20% 90% -9% 53% 151% Belgium 9% 64% 125% 16% 104% 207% Canada -9% 38% 116% 6% 76% 185% Denmark -16% 40% 128% -3% 79% 202% Finland -20% 18% 62% -7% 50% 114% France -12% 55% 129% 2% 97% 203% Germany -17% 33% 151% -4% 70% 232% Greece 21% 79% 158% 21% 79% 157% Hong Kong -39% -3% 45% -29% 23% 91% Ireland -24% 2% 30% -12% 30% 72% Italy -20% 27% 69% -6% 33% 92% Japan -12% 29% 67% 2% 64% 122% Netherlands -16% 21% 74% -11% 36% 136% New Zealand 4% 100% 306% 23% 153% 434% Norway -20% 38% 82% -8% 76% 141% Portugal -8% 52% 135% 3% 87% 198% Singapore -14% 39% 102% -1% 77% 167% Spain -23% 25% 92% -11% 56% 148% Sweden -21% 22% 59% -6% 47% 99% Switzerland 20% 45% -11% 30% 75% United Kingdom -10% -10% 15% 43% -10% 15% 43% USA
1yr Return from June 2007-08; 3yr Return June 2005-08; 5yr Return June 2003-08
18
Portfolio Strategy
Part III
STRUCTURE OF GLOBAL MARKETS
Primary Exchange, Index, Futures......20 Sovereign Debt Ratings & Settlement Currency.21 Global Trading Hours.......................................22
19
Portfolio Strategy
Market Basics: Primary Exchange; Benchmark Index; Futures

Country Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Egypt Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland Israel Italy Japan Jordan Korea Malaysia Mexico Morocco Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Russia Status Emerging Developed Developed Developed Emerging Developed Emerging Emerging Emerging Emerging Developed Emerging Developed Developed Developed Developed Developed Emerging Emerging Emerging Developed Emerging Developed Developed Emerging Emerging Emerging Emerging Emerging Developed Developed Developed Emerging Emerging Emerging Emerging Developed Emerging Main Exchange
Bolsa de Comercio de Buenos Aires Australian Stock Exchange Wiener Bourse Euronext Brussels Bolsa de Valores de Sao Paulo Toronto Stock Exchange Santiago Stock Exchange Shanghai Securities Exchange Shenzhen Stock Exchange
Abbr
Benchmark Index
Ticker MERVAL AS51 ATX BEL20 IBOV SPTSX60 IPSA SHSZ300 IGBC PX KFX CASE HEX25 CAC DAX ASE FTASE HSI BUX SENSEX NIFTY JCI ISEQ TA-25 SPMIB NKY TPX JOSMGNPR KOSPI KLCI MEXBOL
Weighting basket mkt cap mkt cap mod mkt cap traded volume mkt cap mkt cap mkt cap price price mkt cap mkt cap mod mkt cap mod mkt cap mkt cap mkt cap mkt cap mkt cap both mkt cap mod mkt cap mkt cap mkt cap mkt cap NKY - price TPX - mkt cap mkt cap mkt cap mkt cap mkt cap
Futures
(Index Based on)
BCBA MERVAL ASX S&P/ASX 200 WBAG Austrian Traded Index BEL20 Bovespa iBovespa Index TSX S&P/TSX 60 SSE Select Stock Market Index SSE CSI 300 SZSE (composite of both Shanghai & Shenzhen) Bolsa de Valores de Columbia BVC General Index Prague Stock Exchange PSE PX Index OMX Nordic Exchange Copenhagen OMX OMX Copenhagen 20 Cairo & Alexandria Stock Exchanges CASE CASE 30 OMX Nordic Exchange Helsinki OMX OMX Helsinki 25 Euronext Paris CAC 40 Frankfurt Stock Exchange (Deutsche Bourse) DAX Athens Stock Exchange ASE ASE General FTSE/ASE 20 Index Hong Kong Exchanges and Clearing HKEx Hang Seng Budapest Stock Exchange BSE Budapest Stock Index Bombay Stock Exchange BSE BSE Sensex (aka BSE 30) National Stock Exchange NSE S&P CNX Nifty Indonesia Stock Exchange IDX JSX Composite (from former Jakarta Stock Exchange) Irish Stock Exchange ISE ISEQ Overall Index Tel-Aviv Stock Exchange TASE Tel Aviv 25 Borsa Italiana S&P MIB Tokyo Stock Exchange TSE Nikkei 225 TOPIX Amman Stock Exchange ASE ASE General Korea Exchange KRX KOSPI 200 Index Bursa Malaysia MYX Kuala Lumpur Composite Index Bolsa Mexicana de Valores BMV Mexican Bolsa Index
(aka IPC - Indice de Precios y Cotizaciones)
ASX 200 ATX BEL 20 IBOV S&P/TSX 60
KFX HEX 25 CAC DAX FTSE/ASE 20 HSI BUX SENSEX NIFTY
SPMIB Nikkei 225 TOPIX KOSPI 200 KLCI MEXBOL
Morocco All Shares Index MASI MOSENEW mkt cap AEX (from former Amsterdam EXchange) AEX mkt cap AEX NZX New Zealand Exchange 50 NZSE50FG mod mkt cap OBX OBX (for Oslo Bors) OBX mkt cap OBX KSE KSE 100 KSE100 mkt cap BVL Indice General Bolsa de Valores de Lima IGBVL mkt cap PSE PSEi Index (formerly PSE Composite) PCOMP mkt cap WSE WSE WIG 20 WIG20 mod mkt cap WIG20 Portuguese Stock Index 20 PSI20 mkt cap PSI 20 MICEX MICEX Index INDEXCF mkt cap RTS RTS RTS Index RTSI$ SGX Straits Times Index FSSTI mkt cap Singapore Developed Singapore Exchange SGY (1) Johannesburg Stock Exchange South Africa Emerging JSE FTSE/JSE Africa Top 40 TOP40 mkt cap TOP40 Spain Developed Bolsas y Mercados Espanoles(2) BME IBEX 35 IBEX mkt cap IBEX Sweden Developed OMX Nordic Exchange Stockholm OMX OMX Stockholm 30 OMX mkt cap OMX Switzerland Developed SWX Swiss Exchange SWX Swiss Market Index SMI mkt cap SMI Taiwan Emerging Taiwan Stock Exchange TSE TAIEX Index TWSE mkt cap TWSE/TAIEX Thailand Emerging Stock Exchange of Thailand SET SET SET mkt cap SET50 Turkey Emerging Istanbul Stock Exchange ISE ISE National 100 XU100 mkt cap ISE 30 United Kingdom Developed London Stock Exchange LSE FTSE 100 UKX mkt cap FTSE 100 SPX: mkt cap USA Developed NYSE Euronext SPX S&P 500 SPX NASDAQ INDU: Price INDU Dow Jones Industrial Avg DJIA CCMP: mkt cap NASDAQ 100 CCMP NASDAQ Composite (1) (2) SGY = MSCI Singapore Free Index Bolsas y Mercados Espanoles is comprised of the regional stock exchanges in Madrid, Barcelona, Bilbao, and Valencia
Casablanca Stock Exchange Euronext Amsterdam New Zealand Exchange Oslo Stock Exchange Karachi Stock Exchange Bolsa de Valores de Lima Philippine Stock Exchange Warsaw Stock Exchange Euronext Lisbon Moscow Interbank Currency Exch RTS Stock Exchange
CSE
20
Portfolio Strategy
Sovereign Debt Ratings & Settlement Currencies

Country Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Czech Republic Denmark Egypt Finland France Germany Greece Hong Kong Hungary India Indonesia Ireland Israel Italy Japan Jordan Korea Malaysia Mexico Morocco Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Russia Singapore South Africa Spain Sweden Switzerland Taiwan Thailand Turkey United Kingdom USA Status Outlook Long Term Debt B AAA AAA AA+ BBBAAA A+ A+ BBBA AAA BB+ AAA AAA AAA A AA+ BBB+ BBBBBAAA A A+ AA BB A ABBB+ BBBAAA AA+ AAA B BBBBBAAABBB+ AAA BBB+ AAA AAA AAA AABBB+ BBAAA AAA B AAA AAA AA+ BBB+ AAA AA A+ BBB+ A+ AAA BBBAAA AAA AAA A AA+ BBB+ BBBBB+ AAA AAA+ AA BBB A+ A+ A+ BBB AAA AAA AAA BBBBBBB+ A+ AAAAAA A+ AAA AAA AAA AAA BB AAA AAA Short Term Debt B A-1+ A-1+ A-1+ A-3 A-1+ A-1 A-1 B A-1 A-1+ B A-1+ A-1+ A-1+ A-1 A-1+ A-2 A-3 B A-1+ A-1 A-1+ A-1+ B A-1 A-2 A-2 B A-1+ A-1+ A-1+ B A-3 B A-2 A-1+ A-2 A-1+ A-2 A-1+ A-1+ A-1+ A-1+ A-2 B A-1+ A-1+ B A-1+ A-1+ A-1+ A-2 A-1+ A-1+ A-1 A-2 A-1 A-1+ A-3 A-1+ A-1+ A-1+ A-1 A-1+ A-2 A-3 B A-1+ A-1+ A-1+ A-1+ A-3 A-1 A-1 A-1 A-3 A-1+ A-1+ A-1+ B A-2 B A-1 A-1+ A-2 A-1+ A-1 A-1+ A-1+ A-1+ A-1+ A-1 B A-1+ A-1+ Currency Argentine Peso Australian Dollar Euro Euro Brazil Real Canadian Dollar Chilean Peso China Renminbi Colombian Peso Czech Koruna Danish Krone Egyptian Pound Euro Euro Euro Euro Hong Kong Dollar Hungarian Forint Indian Rupee Indonesian Rupiah Euro Israeli Shekel Euro Japanese Yen Jordanian Dinar South Korean Won Malaysian Ringgit Mexican Peso Moroccan Dirham Euro New Zealand Dollar Norwegian Krone Pakistani Rupee Peruvian New Sol Philippines Peso Polish Zloty Euro US Dollar Singapore Dollar South African Rand Euro Swedish Krona Swiss Franc Taiwan Dollar Thai Baht New Turkish Lira British Pound US Dollar Symbol ARS AUD EUR EUR BRL CAD CLP CNY COP CZK DKK EGP EUR EUR EUR EUR HKD HUF INR IDR EUR ILS EUR JPY JOD KRW MYR MXN MAD EUR NZD NOK PKR PEN PHP PLN EUR USD SGD ZAR EUR SEK CHF TWD THB TRY GBP USD
Foreign Ccy Local Ccy Foreign Ccy Local Ccy
Emerging Stable Developed Stable Developed Stable Developed Stable Stable Emerging Developed Stable Stable Emerging Stable Emerging Stable Emerging Stable Emerging Developed Stable Emerging Stable Developed Stable Developed Stable Developed Stable Developed Stable Developed Stable Emerging Negative Stable Emerging Stable Emerging Developed Stable Stable Emerging Developed Stable Developed Stable Stable Emerging Stable Emerging Stable Emerging Stable Emerging Stable Emerging Developed Stable Developed Stable Developed Stable Emerging Negative Stable Emerging Stable Emerging Stable Emerging Developed Stable Emerging Positive Developed Stable Stable Emerging Developed Stable Developed Stable Developed Stable Stable Emerging Stable Emerging Emerging Negative Developed Stable Developed Stable
Denotes Non-Investment Grade
21
Portfolio Strategy
Global Trading Hours

Market Pre-Open
New York Time 17 London Time 22 Tokyo Time 6am
18 23 7 19 24 8 20 1am 9 21 2 10 22 3 11
Continuous Trading
23 4 12 17:00 10:00 9:00 9:00 9:00 9:00 9:00 11 16:10 12:30 15:00 15:00 13:30 12:30 12:30 14:00 17:06 24 5 13 1am 6am 14 2 7 15 3 8 16 4 9 17
(hours listed are local times)

5 10 18 6am 11 19 7 12 20 8 13 21 9 14 22 10 15 23 11 16 24 12 17 1am 13 18 2 14 19 3 15 20 4 16 21 5
Close
NEW ZEALAND AUSTRALIA JAPAN KOREA TAIWAN SINGAPORE MALAYSIA CHINA PHILIPPINES VIETNAM HONG KONG INDONESIA THAILAND PAKISTAN INDIA RUSSIA TURKEY ISRAEL^ SOUTH AFRICA BELGIUM DENMARK FINLAND NETHERLANDS PORTUGAL SWEDEN FRANCE UK SPAIN IRELAND SWITZERLAND GERMANY NORWAY HUNGARY ITALY CZECH REPUBLIC AUSTRIA POLAND EGYPT^ GREECE MOROCCO BRAZIL CANADA USA CHILE MEXICO ARGENTINA COLOMBIA PERU
(A)* 9:00-9:55 (A) 7:00-10:00 (A) 8:00-9:00 (A) 12:05-12:30 (A) 8:00-9:00 (A) 8:30-9:00 (A) 8:30-9:00 (A) 8:30-9:00 (A) 14:00-14:30 (A) 9:15-9:25 (A) 9:00-9:30 (A) 8:20-8:40; 9:00-9:20; 10:00-10:30 (HSTC) (A) 9:30-9:50 (A) 9:10-9:25** (A) 9:30-9:55 (A) 14:00-14:25 (A) 9:30-9:45*** First print (A) 10:15-10:30 (MICEX) (A) 9:30-9:40 (A) 9:45-9:50 (A) 8:35-9:00 (A) 7:15-9:00 (A) 8:00-9:00 (A) 8:30-10:00 (A) 7:15-9:00 (A) 7:30-8:00 (A) (A) 7:15-9:00
10 :00
Random close in last 5 mins (A) 16:00-16:10 (A) 11:00 (A) 15:00 (A) 14:50-15:00 (A) 13:25-13:30 (A)17:00-17:06 Last print Last Print-Shanghai 3 minute-Shenzhen Trading-at-Last - 12:00-12:10 Last print (HaSTC)
14:30 16:10
14:30 17:00 13 15:00
9:30 11:30 9:30 12:00 9:00 11
10:00 12:30 9:30 12:00 10:00 12:30 9:45 9:55
(A) 16:00-16:10 Last print
13:30 16:00 14:30 14:15 15:30 10:30 9:45 12:00 9:50 9:00 9:00 9:00 10:00 9:00 8:00 9:00 9:00 8:00 14:00 18:00 17:00 17:30 17:00 17:35 16:50 18:30 17:35 16:35 17:30 17:35 16:35 17:35 16:30 17:30 17:35 16:30 16:35 10am 16:00 17:33 16:20 14:30 16:30^^ 10:00 15:30 10:00 9:30 9:30 17:00 16:00 16:00 16:30 15:00 17:00 13:00 13:30 12 17 1am 13 18 2 14 19 3 15 20 4 16 21 5 17:30 16:40
(A) 16:30-16:40 Last print VWAP of last 30 mins Last print-RTS VWAP of last 30 mins - MICEX Last print (A) 17:25-17:30 (A) 16:50-17:00
(A) 17:30-17:35 Trading-at-Last - 17:35-17:40
(A) 16:50-random close (A) 18:20-18:30

(A) 17:30-17:35 Trading-at-Last - 17:35-17:40 (A) 16:30-16:35 Trading-at-Last - 16:35-16:40
(A) 17:20-17:30
(A) 17:30-17:35 Trading-at-Last - 17:35-17:40
(A) 16:30-16:35 (A) 17:35-17:40 (A) 16:28-16:30 (A) 17:15-17:30 (A) 17:30-17:35 (A) 16:20-16:30 (A) 16:30-16:35 or 16:36 (A) 17:25-17:30 Last print (A) 17:30-17:33 (A) 16:10-16:20 Day's VWAP
(A) 16:30-16:39 or 16:41 Trading-at-Last - 16:41-16:50
(A) 8:30-9:00:30 (A) 6:30-8:00 (A) 6:00-9:00:30 (A) 7:30-9:00 - DAX (A) 7:30-9:04 - STOXX (A) 8:15-9:00 (A) 8:30-9:02 (A) 8:00-9:00:59 Opening print 9:01-9:05 (A) 8:00-9:15 (SPAD) (A) 7:30-9:10 (KOBOS) (A) 8:30-9:20:30 (A) 8:30-9:30
9:00:30 8:00:30 9:00:30 9:00 9:05 9:05 9:05 9:15 9:20 9:30 10:30
(A) 10:00-10:30 (A) 9:00-10:00 (A) 9:45-10:00 (A) 7:30-9:30
10:30
(A) 15:25-15:30 (A) 16:55-17:00

Last Print 16:10 Trading-at-Last - 16:10-17:00
(A) 15:50-16:00 (A) 16:20-16:30 VWAP of last 20 min Last Print Last Print Trading-at-Last - 13:30-14:30
(A) 9:20-9:30
9:30 8:30 11:00 9:00
(A) 9:00-9:30
New York Time 17 London Time 22 Tokyo Time 6am
18 23 7 19 24 8 20 1am 9 21 2 10 22 3 11 23 4 12 24 5 13 1am 6am 14 2 7 15 3 8 16 4 9 17 5 10 18 6am 11 19 7 12 20 8 13 21 9 14 22
9:30 10 15 23 11 16 24
Notes
* (A) = Auction ** Indonesia: on Fridays, first session ends at 11:30 AM and second session begins at 14:00 PM. *** Pakistan: on Fridays, (A) 9:15-9:30, 14:15-14:30, with two sessions from 9:30-12:00 and 14:30-16:00 PM. ^ Egypt and Israel are open Sunday - Thursday ^^ Effective 29 September 2008, Greece will extend trading hours until 17:00. Auctions will be similarly moved to 30 min later.
22
Portfolio Strategy
Part IV
DAILY VOLUME CURVES
Australia.24 Austria24 Belgium..24 China..24 Czech Republic..24 Denmark....24 Finland24 France24 Germany....25 Greece...25 Hong Kong....25
Hungary......25 India.25 Ireland.25 Italy..25 Japan..25 Korea..25 Malaysia..26 Netherlands.26 Norway26 Poland.26 Russia-MICEX.26
Russia-RTS...26 Singapore..26 South Africa..26 Spain.27 Sweden.27 Switzerland27 Taiwan......27 Thailand.27 Turkey...27 United Kingdom.27 United States.27
23
Volume (%ADV)
10% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
5%
0%
1%
2%
3%
4%
5%
6%
7%
10%
12%
0%
9:55 10:25 10:55 11:25 11:55 12:25 12:55 13:25 13:55 14:25 14:55 15:25 15:55 0 5 10 15 20 25 30
2%
4%
6%
8%
10:00
8:00 Open 8:30 9:00 9:30 Open SPAD 10:00 10:30

12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 11:30 11:00 10:30 10:00 09:30
09:00
10:30
KOBOS
11:00
Portfolio Strategy
11:30
12:00
12:30
13:00
13:30
11:00 11:30 12:00 12:30 13:00 13:30 14:00 US Econo 14:30 15:00 US 15:30
17:30 17:00
Belgium
Finland
14:00
Australia
14:30
Czech Republic (SPAD & KOBOS)
15:00
15:30
16:00
16:30
17:00
17:30
18:00
18:30
Spreads (bps)
24
Volume (%ADV) 0% 1% 2% 3% 4%
3% 4% 5% 6% 7%
0%
1%
2%
0%
1%
2%
3%
4%
5%
6%
0%
1%
2%
3%
4%
5%
6%
7%
8%
09:00
09:00 09:30
9:15 9:45 10:15 10:45 11:15 11:45 12:15 12:45 13:15 13:45 14:15 14:45
09:00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00
09:30
10:00
10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30
10:30
11:00
11:30
12:00
12:30
Austria
France
13:00
China
Denmark
13:30
14:00
14:30
15:00
15:30
16:00
16:30
17:00
17:30
17:30
Spreads (bps)
14
21
28
Volume (%ADV)
Volume (%ADV)
10% 12% 0% 2% 4% 6% 8%
0%
1%
2%
3%
4%
5%
6%
7%
0%
1%
2%
3%
4%
5%
6%
7%
0%
1%
2%
3%
4%
5%
6%
7%
9:00
08:00
9:30 10:00
10:00 09:30
09:00
9:30
08:30 09:00 09:30

10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00
Portfolio Strategy
10:00
10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 0 5 10 15 20 25 30
10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30
20 24 28
10:30
11:00
Germany
Ireland
Hong Kong
Japan
12:30
India see pg. 9
13:00
13:30
14:00
15:30 16:00 16:30 17:00 17:30
Topix spreads
14:30
15:00
Spreads (bps)
12
16
Spreads (bps)
25
10% 11% 12% 9%
Volume (%ADV)
10% 12% 14% 16% 18% 20% 0% 2% 4% 6% 8%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
0% 1% 2% 3% 4% 5% 6% 7% 8% 9%
0%
1%
2%
3%
4%
5%
6%
7%
8%
8:55
09:00
9:00 9:30 10:00 10:30
10:20 10:50 11:20 11:50
9:25
09:30 10:00 10:30 11:00 11:30 12:00 12:30
9:55
10:25
11:00 11:30 12:00
10:55
12:20 12:50
11:25
Italy
11:55
13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30
12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30
Hungary
Korea
13:20 13:50 14:20 14:50 Data 15:20 15:50 16:20 16:50
Greece
12:25
12:55
US Economic
13:25
13:55
US Open
14:25
14:55 21 24 27 30
12
15
18
Spreads (bps)
Volume (%ADV)
0% 1% 2% 3% 4% 5% 6% 7%
Volume (%ADV)
7% 8% 9%
0% 1% 2% 3% 4% 5% 6% 7%
0%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
8:30 9:15 9:45 10:15 10:45 11:15 11:45 12:15 14:00 14:30 15:00 15:30 16:00 16:30
1%
2%
3%
4%
5%
6%
8:30
10:30 11:00 UK Open 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30
16:00 15:30 15:00 14:30 14:00 13:30 13:00 12:30 12:00 11:30 11:00 10:30 10:00 09:30 09:00
9:15
9:45
Portfolio Strategy
10:15
10:45
11:15
11:45
Norway
12:15
Malaysia
Singapore
13:45
Russia - MICEX
14:15
14:45
15:15
15:45
16:15
US Economic US Open Data
16:45 66 68 70
60
70
80
90
100
110
120
50
52
54
56
Spreads (bps)
58
60
62
64
Spreads (bps)
26
0% 1%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0%
2%
3%
4%
5%
6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
9:00
10:30 11:00
UK Open
09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00
09:00
09:00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00
9:30
10:00
11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30
Data
10:30
11:00
11:30
12:00
12:30
Netherlands
Poland
Russia - RTS
13:00
South Africa
13:30
14:00
14:30
15:00
15:30 16:00 16:30 17:00 17:30
15:30 16:00 16:30 17:00 17:30
15:30
US Economic US Open
16:00
16:30
Volume (%ADV) 0% 1% 2% 3% 4% 5% 6% 7%
10%
12%
0%
10% 12%
2%
10% 12% 14% 16%
0% 2% 4% 6% 8%
4%
0% 2% 4% 6% 8%
6%
8%
8:00
9:30
09:00
09:00 09:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30
8:30
10:00
10:00 09:30
9:00
10:30
10:30 11:00 11:30 12:00
Portfolio Strategy
9:30
11:00 11:30 12:00
12:30 13:00 13:30 14:00 14:30 15:00 15:30
1 0:00
1 0:30
1 1:00
1 1:30
12:30 14:00 14:30 15:00 15:30
16:00 16:30 17:00
Spain
1 2:00
Switzerland
1 2:30
Thailand
United Kingdom
Economic
1 3:00
US
Data
1 3:30
1 4:00
US Open
1 4:30
1 5:00
16:00 16:30
17:30
1 5:30
1 6:00
60 62 64 66 68 70 72 74 76 78 80
1 6:30
Spreads (bps)
27
Volume (%ADV)
0% 1% 2% 3% 4% 5% 6% 7%
0%
1%
2%
3%
4%
5%
6%
7%
0.0%
9:00
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
0 9 :30
9:30
09:00 09:30 10:00 10:30
1 0 :00
UK Open
9:40 10:00 10:20
1 0 :30
1 1 :00
10:40 11:00 11:20
10:00
11:00
1 1 :30
10:30
11:30 12:00
1 2 :00
11:40 12:00 12:20
11:00
12:30 13:00
Sweden
Turkey
1 2 :30
Taiwan
United States
1 3 :00
12:40 13:00 13:20 13:40 14:00 14:20 14:40 15:00 15:20 15:40
11:30
13:30 14:00
1 3 :30
12:00
US
14:30 15:00
1 4 :00
Economic Data
1 4 :30
12:30
15:30
1 5 :00
16:00 16:20 16:40
13:00
US Open
16:00 16:30
1 5 :30
13:30 0 3 6 9 12 15 18 21 24 27 30
17:00
1 6 :00
Spreads (bps)
Portfolio Strategy
Part V
INTERNATIONAL RULES & REGULATIONS

Country by Country Guide to Exchange Rules & Regulations Credit Suisse does not guarantee the accuracy of the information contained in this guide.
Argentina...30 Australia........30 Austria..........31 Bahrain......31 Belgium.....32 Bulgaria.....32 Brazil......33 Canada... .........33 Chile......33 China.....34 Columbia.......34 Croatia34 Czech Republic..35 Denmark........35 Egypt......35 Estonia.......36 Finland.......36 France... .......36 Germany........37 Greece.......37 Hong Kong .......38 Hungary.........39 India.......39 Indonesia...40 Ireland40 Israel..41 Italy41 Japan.42 Jordan42 Kazakhstan....42 Kenya.43 Korea.43 Kuwait44 Lebanon.44 Malaysia..45 Mauritius.45 Mexico....46 Morocco..46 Netherlands....46 New Zealand..47 Nigeria....47 Norway47 Oman..48 Pakistan..48 Peru....49 Philippines...49 Poland50 Portugal..50 Qatar..50 Romania.51 Russia.51 Singapore...52 Slovenia..52 South Africa52 Spain..53 Sri Lanka53 Sweden..53 Switzerland.54 Taiwan54 Thailand..55 Tunisia56 Turkey.56 Ukraine...56 UAE56 United Kingdom.57 United States.57 Vietnam..58
28
Portfolio Strategy
Access Market Guides Online on EDGE

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29
Portfolio Strategy
Argentina
Market Hours Circuit Breakers Round Lot Sizes Settlement Clearer Monday - Friday: Continuous Trading (11:00am to 5:00pm): The market trades continuously on a price/time basis. Last Print (5:00pm) 10% from the previous closing price. Trading is stopped for 15 minutes. After another 5%, trading is halted for an additional 15 minutes. 100 shares. An additional market may exist for odd lots, depending upon the stock. T+3, DVP Securities Central Depository, Caja de Valores S.A Exchange fees: 9.51bps to be paid to the exchange 12.8bps to be paid to the local broker 2.69bps = VAT of 19% to be paid on top of commissions Total fee of 25 bps on both buy and sell side. Short selling is not permitted.
Tax
Short Sell Rules
Australia
AES Accessible
Market Hours
Daily Price Limits Round Lot Sizes
Spreads
Settlement Clearer Tax Short Sell Rules Foreign Ownership Restrictions
Crossing
Monday Friday: Pre-Opening (7:00am to 10:00am / 10:09am): Alphabetically staggered opening. Orders may be entered, modified, and deleted to join the opening auction at 10:00am. No market orders are allowed. Normal Trading (10:00am to 4:00pm): The market trades continuously on a price/time priority basis. No Market orders are allowed. Closing Auction (4:00pm to 4:10pm / 4:12pm): Orders may be entered/modified/deleted to join the closing auction at 4:10pm. Actual close is a random time up to 59 seconds after 4:10pm; late closings have been abolished. No market orders are allowed. Closing auction ends at 4:12pm. Overnight Trading (4:12pm to 6:50pm / 7:00pm): Orders may be cancelled or amended. New orders cannot be entered and ITS does no execute trades. Brokers can trade through the phone. No circuit breakers or daily price movement limits. 1 share. Market Price Minimum Bid Up to 10c 0.1c Over 10c up to $2.00 0.5c Over $2.00 up to $998.99 1.0c Over $999 $1.00 T+3, DVP Australian Stock Exchange Settlement and Transfer Corporation (ASTC) No tax for offshore accounts. 10% GST * (Commission) for onshore accounts only. Naked short selling is illegal. Corporate definition of short selling is different from the Exchange definition, i.e., if borrow is in place, the sale is marked long. A foreign investor requires the approval of the Foreign Investment Review Board (FIRB) when the overseas ownership exceeds 10% per shareholder or 40% overall foreign holdings. Notably, there are other rules concerning the media, transportation and banking sectors. Either special or on-market. Special crossings (including large trades and portfolios) may take place off-market at any time, including during Normal Trading. Depending upon the type, the minimum consideration (total sale price) ranges between $1MM and $5MM. Single Stock: any stock, unless under takeover, worth at least AUD 1M (500K for warrants), can be put through at any price. Under AUD 1MN, needs to be crossed on market, at or in between market prices. Portfolio: min of 10 Stocks each worth AUD 200K with a total of AUD 5M can be put to the market at any price. Offshore: If at least one side of an order is taken after market hours, a stock can be put through the market the next morning before 9:45am at an agreed price, as long as the clients home exch is open at the time the deal is executed. All crosses require a change of beneficial ownership.
30
Portfolio Strategy
Austria
Market Hours
AES Accessible
Circuit Breakers Round Lot Sizes Settlement Clearer Tax Short Sell Rules
Monday - Friday: Pre-Opening (8:30am to 9:15am): Orders may be entered/mod/del to join the auction at 9:15am Opening Auction (9:15am to 9:20:30am): Orders may be entered/mod/deleted prior to uncrossing. Continuous Trading (9:20:30am to 5:30pm): An auction prints approximately 3 minutes after 9:15am. The market trades continuously on a price/time priority basis. Closing Auction (5:30pm to 5:32pm): Orders may be entered/mod/del to join the auction at 5:32pm. Intraday Auction (12:00pm): Orders may be entered/modified/deleted to join the auction at 12:00pm. Special Auction (12:30pm): Orders may be entered/mod/deleted to join this auction for illiquid stocks. 15% from the previous closing price. Also activates when receiving price sensitive information or when there is any technical problem in the system 1 share. T+3, DVP Oesterreichische Kontrollbank AG No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
Bahrain
Exchange Market Cap Hours Platform Volume Types of Markets Tracking Indices Foreign Investment Most Active Securities Settlement Currency Price Limits Bahrain Stock Exchange (50 listed companies) $30.8 Billion USD Sunday - Thursday Pre-Opening: 09:15 - 09:30 Regular Trading: 09:30 - 12:30 Closing: 12:30 All trades must be carried out through ATS, the Exchanges Automated Trading System. approx 11 million shares/day IPOs, Regular, Special Orders (min BD 500,000), Mutual Funds, Bonds Bahrain All Share Index, Dow Jones Bahrain Index, Estirad Index Foreigners who reside in Bahrain for one year or more are entitled to purchase, own, and/or trade up to 49% of a domestic joint-stock company's equities. An individual foreigner may not own more than 1% of a companies issued capital. There are ten companies completely open to foreigners. Taxation policy is uniform for domestic and foreign investors. Al Salam Bank (SALAM), Al-Khaleej Development Co. (TAMEERK), Bahrain Middle East Bank (BMB), Albaraka Banking Group (BARKA) T+2 Bahraini Dinar (BD). Certain Securities trade in USD rather than BD. Max of 10% either way from last closing
31
Portfolio Strategy
Belgium
Market Hours
AES Accessible
Monday - Friday: Pre-Opening (7:15am to 8:55am): Orders may be entered/modified/deleted to join the opening auction. Opening Auction (8:55am to 9:00am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (9:00am to 5:30pm): The market trades continuously on a price/time priority basis. Closing Auction (5:30pm to 5:35pm): Orders may be entered/mod/del to join the auction at 5:35pm. Trading-at-Last (5:35pm to 5:40pm): Shares can be traded at the closing prices. Special Auctions (7:15am to 4:30pm): Double fixing stocks are traded at 11:30am and 4:30pm, single ones at 3:00pm. After each fixing, the stock trades for another half an hour at the fixing price. 10% (5% for BEL 20) from the static reference price reset every time the market breaks its upside/downside threshold; this is the last closing price for the opening. Trading resumes after a 4-minute halt. If the traded price deviates more than 5% (2% for BEL20) from the last traded price, the market stops for 1 minute. 1 share. T+3, DVP CIK (Caisse Interprofessionnelle de Depots et de Virements de Titres) No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
Bulgaria
Exchange Market Cap Bulgarian Stock Exchange (388 listed companies ) $17.8 Billion USD Regular Market Monday - Friday Pre - Trading Opening Auction Continuous Trading Intraday Auction Continuous Trading Closing Auction Post-Trading 09:00 - 09:20 09:20 - 09:30 09:30 - 10:50 10:50 - 11:00 11:00 - 13:40 13:40 - 13:45 13:45 - 16:00
Hours
Platform Volume Securities Traded Tracking Indices Foreign Investment Settlement Currency Additional
Auction-Only Securities Monday - Friday 09:00 - 10:50 Pre - Trading 10:50 - 11:00 Opening Auction 13:40 - 13:45 Closing Auction 13:45 - 16:00 Post-Trading Use electronic trading system Xetra, which provides IPO and OTC functionalities Approx 2.28 million shares/day Shares, Corporate and municipal bonds, Units of UCITs, Compensatory Instruments, Subscription rights Sofia, BG40 The entities eligible for membership in the BSE-Sofia are local investment intermediaries and banks, or such seated in a European Union member countries, which have been licensed within the terms and procedures of the Markets of Financial Instruments Act (MFIA) to provide investment services and perform investment activities, and are admitted to trade financial instruments on BSE-Sofia. Taxation policy for domestic and foreign investors is uniform. T+2 Bulgarian Lev (BGN) Bulgarian government owns about 44%
32
Portfolio Strategy
Brazil
Monday - Friday: Pre-Opening (9:45am to 10:00am): Orders may be entered/modified/deleted to join the opening auction. If the order is better than the theoretical price of the auctions, it CANNOT be cancelled or reduced - can only be increased. Continuous Trading (10:00am to 4:55pm): The market trades continuously on a price/time priority basis. Closing Auction (4:55am to 5:00pm). Auction is postponed by 1 minute if the size or price of the auctions changes in the last 30 seconds. Post Trading (5:45pm to 7:00pm). 10% and 15% down in the Bovespa index; trading resumes in 30 minutes and 1 hour, respectively. 1 or 1,000, depending on the price of the stock. Also, all the stocks are quoted in lots whether it is one or 1,000 this has to be taken into account when calculating the value of a trade. T+3, DVP Brazilian Clearing and Depository Corporation (CBLC) Exchange Fee: 3.5 bps (Gross) for both sell and buy side. The commission can be reported including this 3.5 bps fee. Shares have to be located. No uptick needed. Can also borrow and not sell short if desired. Bovespa and CVM numbers (local client accounts) are required to trade. Bovespa usually identifies client, and CVM account, and client local custodian. The account can be identified with by Bovespa only, but never by CVM, as one CVM could have multiple Bovespa numbers.
Market Hours
Circuit Breakers Round Lot Sizes Settlement Clearer Tax Short Sell Rules Additional Info
Canada
Market Hours
AES Accessible
Circuit Breakers
Round Lot Sizes Settlement Clearer Tax Short Sell Rules Foreign Ownership Restrictions
Monday - Friday: Pre-Opening (7:30am to 9:30am): Orders may be entered/mod/deleted to join the opening auction at 9:30am Continuous Trading (9:30am to 4:00pm): The market trades continuously on a price/time priority basis. Last Print (4:10pm): executes all Market-On-Close orders and the official closing print Last Sale Trading (4:10pm to 5:00pm): Shares can be traded at the closing prices. 10%, 20% and 30% declines in the Dow Jones Industrial Average. The numerical points are decided each quarter, using the average closing from the previous month. Without a set designation, TSE oversees the pending for each name. 1,000: 1c - 9c stock price/share. 500: 10c - 99c stock price/share. 100: CAD1.00+ stock price/share. T+3, DVP Canadian Depository for Securities (CDS) No tax applicable. It can only be done up tick. Brokers need to flag the order as short sell. Dual listed issues not subject to uptick rule. The federal government restricts non-Canadian investment in regulated industries such as broadcasting, banking, insurance, transportation and public utilities. Limits vary by sector. The issuing agent is responsible for tracking restricted issues to ensure the limits are not exceeded.
Chile
Market Hours Monday - Friday: Pre-Open (9:20am to 9:30am): Orders are entered to join the open at 9:30. Continuous Trading (9:30am to 4:20pm): The market trades continuously on a price/time basis. Pre-Close (4:20pm to 4:30pm): Orders are entered for the closing at 4:30. Close (4:30): Orders are matched and a closing price is given. 10% from previous closing price for securities that also have an ADR. 20% from previous closing price for securities that do not have an ADR. 100 shares. An additional market may exist for odd lots, depending upon the stock. T+2 Exchange fees: 21bps to be paid to broker and exch (sliding scale based on vol. per client; brokers get a rebate per vol.) 4bps = VAT of 19% Total fee of 25 bps on both buy and sell side. Short selling is allowed. Investors must register and receive an ID from the Central Bank.
Circuit Breakers Round Lot Sizes Settlement Tax Short Sell Rules Additional Info
33
Portfolio Strategy
China
Market Hours Monday - Friday: Opening Call Auction (9:15am - 9:25am). Orders cannot be cancelled between 9:20am and 9:25am. Continuous Auction (9:30am-11:30am & 1:00pm - 3:00pm): The market trades continuously on price/time basis The closing price for Shenzhen is the VWAP of the last 3 min (closing call auction from 14:57pm - 15:00pm) 10% from the last closing price for normal stocks (and mutual funds). 5% for stocks under special treatment (ST shares). Price limit does not apply to IPOs, further issues, and other cases as determined by the exchange. 100 shares on the buy side and 1 share on the sell side. SHSE B Shares Min Price Fluctuation (USD) SZSE B Shares Min Price Fluctuation (HKD) 0.001 0.01 A Shares: RMB 0.01 T+3 for B shares (T+1 for A shares), DVP China Securities Central Clearing & Registration Corporation in Shanghai and Shenzhen Securities Settlement Company in Shenzhen SHSE B (bps) SZSE B (bps) Stamp Duty 10 bps (Gross) 10 bps (Gross) Service 8 bps (Gross) 8.41 * (Gross) & (min HKD 50) Charge SHSE A (bps) SZSE A (bps) Stamp Duty 10 bps (Gross) 10 bps (Gross) Service 8 bps (Gross) 2.175 bps (Gross) Charge Not permitted. Shanghai A Shares: at least 500,000 shares or RMB 3M (adjusted for market conditions) can be traded within day low and day high or last price (if no transactions on the day) and must be registered with the exchange from 3:00 to 3:30pm of the same day. If the stock is suspended before 3:00pm, there is no block trading. Shanghai B Shares: must be at least 500,000 shares or USD 300K and placed by floor traders with confirmation of floor supervisors between 9:45am and market close. Trading must be within day low and day high or previous close and last price (if only one trade on the day) or closing price (if no trades on the day). Shenzhen: At least 500,000, no restrictions in terms of RMB 3MN amount. No amendments can be made to crossings. Investor ID needed.
Daily Price Limits Round Lot Sizes Spreads Settlement Clearer
Tax
Short Sell Rules
Crossing
Additional Info
Columbia
Market Hours Round Lot Sizes Settlement Short Sell Rules Foreign Ownership Restrictions Additional Info Monday - Friday: Continuous Trading (9:00am to 1:00pm): The market trades continuously on a price/time basis. Last Print: (1:00 pm) 100 shares. An additional market may exist for odd lots, depending upon the stock. T+3 Short selling is not permitted. Direct investment inflows into Colombia from countries with which it does not have a free trade agreement are required to remain in the country for at least 2 years. Early withdrawal penalties of at least 6.67% (depending on time remaining) will be applied. Investors must register and receive an ID from the Central Bank.
Croatia
Exchange Market Cap Hours Securities Traded Tracking Indices Foreign Investment Settlement Currency Zagreb Stock Exchange $52.5 Billion USD Monday - Friday Regular Trading: 10:00 - 16:00 Stocks, Bonds, Commercial Bills CROBEX (stocks), CROBIS (bonds) Must abide by the London Stock Exchange Listing Rules T+3 Croatian Kuna (KN)
34
Portfolio Strategy
Czech Republic
Market Hours Monday - Friday:
AES Accessible
Circuit Breakers Round Lot Sizes Settlement Tax
SPAD (Stock Market Support System) - quote driven Pre-Opening (8:00am to 9:15am): Closed trading for OTC reporting and block trading only Continuous Trading (9:15am to 4:00pm): The market trades continuously on a price/time priority basis. Last Print (4:00pm) Post-Trading (5:00pm to 8:00pm): OTC trading KOBOS - order driven Pre-Opening: (7:30am to 9:10am): Orders can be entered/mod/del to join the auction at 9:10am. Continuous Trading (9:15am to 3:55pm): The market trades continuously on a price/time priority basis. Last Print (4:00pm) Post-Trading (5:00pm to 8:00pm): OTC trading SPAD: 20% away from opening price for more than 2 minutes. After a 15 min suspension, 10% additional move for more than 2 minutes triggers additional 15-min halt. Continues up to cumulative move of 50% from opening price. 1 share T+3, DVP 5 bps
Denmark
Market Hours
AES Accessible
Monday - Friday: Pre-Opening (8:00am to 8:56am): Orders may be entered/mod/deleted to join the auction at 9:00am. Opening Auction (8:56am to 9:00am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (9:00am to 4:50pm): The market trades continuously on a price/time priority basis. Closing Auction (4:50 - random end): Orders may be entered/modified/deleted to join the closing auction at 4:50 with a random end. Activates only when price sensitive information is received. Trading halts for 5 min. 1 Trading Block at approximately DKK 20,000 or DKK 10,000, depending on the security. T+3, DVP Danish Securities Centre No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
Egypt
Sunday - Thursday: Listed Securities: Continuous Trading (10:30am to 2:30pm): The market trades continuously on a price/time priority basis. Crossing orders with the same buy and sell broker have the lowest priority. Orders with greater restrictions will also have lower priority. Closing Price: The closing price is the day's weighted average price (total value traded / total volume traded), if more than 100 shares trade; otherwise, the closing price is yesterday's close OTC Market: Deals Market (9:45am to 11:15am) Orders Market (2:45pm to 3:15pm) T+2, DVP MCDR (Misr for Clearing, Depository and Central Registry) Exchange fees: 1.2bps of notional amount on buy and sell sides for listed securities, capped at LE 5000. 10bps of notional on both sides for OTC and other unlisted securities, capped at LE 5000. DRs have a fee of .025bps of the value, to be paid in USD. None. Investors must open a trading account with a licensed member or brokerage firm by the Capital Market Authority. They also must open accounts with custodians, so that the EGX can verify their outstanding balances prior to any sell transactions. Members must trade using the EGX Trading System, CTS.
Market Hours
Settlement Clearer Tax Foreigner Restrictions Additional Info
35
Portfolio Strategy
Estonia
Exchange Tallinn Stock Exchange (62% owned by NASDAQ OMX Nordic Exchange) Monday - Friday 09:30 - 09:45 Pre-trading session 09:45 10:00 Period before the opening call 10:00 Opening call 10:00 13:50 Continuous trading 13:50 14:00 Period before closing call 14:00 Closing call 14:05 14:30 Post-trading session Euros (EUR)
Hours
Currency
Finland
AES Accessible
Market Hours
Monday - Friday: Pre-Opening (8:30am to 9:55am): Orders may be entered/mod/del to join the auction at 10:00am. Opening Auction (9:55am to 10:00am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (10:00am to 6:20pm): The market trades continuously on a price/time basis. Closing Auction (6:20:30pm to 6:30pm): Orders may be entered/modified/deleted to join the closing auction. Stocks uncross after a minimum of 1 minute 50 seconds in the same order as the opening auction, with the last stock uncrossing at 6:30pm. Post-Trading (6:30pm to 7:00pm): Orders may be entered/modified/deleted. 15% from the previous closing price. The limit is often widened when volatile. Activates also at the Managing Directors discretion or the companys request from the MD. 1 -1,000, dependent on the stocks liquidity. The odd lot market exists away from the board lot. T+3, DVP HEX No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
France
AES Accessible
Market Hours
Circuit Breakers Round Lot Sizes Settlement Clearer Tax Short Sell Rules Foreign Ownership
Monday - Friday: Pre-Opening (7:15am to 8:55am): Orders may be entered/mod/deleted to join the opening auction. Opening Auction (8:55am to 9:00am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (9:00am to 5:30pm): The market trades continuously on a price/time basis. Closing Auction (5:30pm to 5:35pm): Orders may be entered/mod/del to join the auction at 5:30pm. Trading-at-Last (5:35pm to 5:40pm): Shares can be traded at the closing prices. Restricted (9:00am to 5:30pm): A separate order book illiquid stocks. Brokers can enter orders, which will only be matched at designated auction periods depending on the sector of the stock. 10% from the static reference price (5% for CAC40 or IPO) reset every time the market breaks its upside/downside threshold; this is the last closing price for the opening. Trading resumes after the 4-minute halt. If the traded price deviates more than 5% (2% for CAC40 of IPO) from the last traded price, the market stops for 1 minute. 1 share. T+3 for the cash market last business day for the Monthly Market Stocks, DVP Euroclear France No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange. Ownerships of 5% (i.e. at 5%, 10%...) need be reported to the Conseil des Marches Financiers (CMF).
36
Portfolio Strategy
Germany
AES Accessible
Market Hours
Monday - Friday: DAX & STOXX Pre-Opening (7:30am to 8:55am): Orders may be entered/mod/del to join the auction at 9:00am. Opening Auction (8:50/8:51am to 9:00/9:04am): Orders may be entered/modified/deleted prior to uncrossing. Auction times vary by stock segment. Continuous Trading (9:00am to 5:30pm): The market trades continuously on a price/time priority basis except for the 2 following auctions. Intraday Auction (1:00/1:15pm to 1:02/1:17pm): Orders may be entered/modified/deleted to join the auction. Auction times vary by stock segment. Closing Auction (5:30pm to 5:35pm): Orders may be entered/modified/deleted to join the auction. Special Auction (1:20pm to 1:25pm): Orders may be entered/mod/del to join this auction for illiquid stock. Activated when the maximum price range deviation is exceeded. Static price is the maximum percentage deviation of a reference price, generally the last-held auction price. All trade halts and suspensions are decided by DBAG. 1 share. T+2, DVP; however most clients prefer to settle T+3 German Central Securities Depository and Intl. Securities Clearing Center No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
Greece
AES Accessible
Market Hours
Monday - Friday: Pre-Opening (10:00am to 10:30am): Orders may be entered/modified/deleted from 10:00am to 10:28 to join the opening auction which takes place at a random time from 10:28 to 10:30. Continuous Trading (10:30am to 4:30pm): Orders can be entered, modified, and deleted. Trades continuously occur as orders match Closing Auction (4:30pm to 4:41pm): Closing pricing occurs randomly at any price between 4:39pm and 4:41pm Trading-at-Last (4:41pm to 4:50pm): Shares can be traded at the closing prices. Intraday Auction (3rd Friday of the Month: 1:45pm - 2pm): print occurs randomly between 1:54pm and 2pm Effective September 29, 2008: Continuous Trading (10:30am to 5:00pm) Closing Auction (5:00pm to 5:11) Trading-at-Last (5:11-5:20) 10% from the previous closing price. Limits do not apply in the first three days of a company's listing. 1 share for most stocks (10 shares for remaining). T+3, DVP Central Securities Depository (CSD) 15 bps (Gross) sell side only; 6pbs registration fee both sides Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
37
Portfolio Strategy
Hong Kong
Market Hours
AES Accessible
Circuit Breakers Round Lot Sizes
Monday - Friday: Pre-Opening (9:30am to 9:50am): Orders may be entered/modified/deleted until 9:45am. From 9:45am to 9:50am, only market orders are allowed. Continuous Trading (10:00am to 12:30pm & 2:30pm to 4:00pm): market trades continuously on a price/time priority basis. Orders must be within 24 ticks up/down of nominal price. Max 3,000 board lots / order. During the break, orders cannot be amended until 2:30pm, but could be cancelled after 2:00pm. Closing Auction (4:00pm to 4:10pm): Orders may be entered/modified/deleted until 4:08pm. From 4:08pm to 4:10pm, only market orders are allowed. Closing price is the indicative equilibrium price (IEP) that maximizes the tradable quantity in the auction. If there is an order imbalance and no IEP is generated, then the closing price is determined via the old system: the median of five 15 second snapshots taken during the last minute of the continuous trading session. +/- 24 spreads from nominal price. Maximum order size of 3000 lots. Various lot sizes between 100 and 2,000 shares. Decided by the issuer. Odd lots can only be sold to odd lot brokers at the discount (usually 1-2 spreads). Stock Price/Share (HKD) Min Price Fluctuation (tick)
0.250 0.25 0.50 0.50 10.00 10.00 20.00 20.00 100.00 100.00 200.00 200.00 500.00 500.00 1000.00 1000.00 2,000.00 2,000.00 5,000.00 5,000.00 10,000.00 0.001 0.005 0.01 0.02 0.05 0.1 0.2 0.5 1 2 5
Spreads
Settlement Clearer Tax Short Sell Rules
Crossing Additional Info Trading in the Opening Auction
Trading in the Closing Auction
T+2, DVP HK Securities Clearing Company (HKSCC). Stamp: 10 bps (Gross), rounded up to the nearest HKD. Levy: 0.4 bps (Gross), rounded mathematically to the nearest HK cent. Fee: 0.5 bps (Gross), rounded mathematically to the nearest HK cent. Must be a SEHK approved short sale stock and a lending agreement must already be in place. The broker must flag the order as a short sell and must be placed at or above the current best ask price. No limit on quantity or value but price should be within the range of the lowest of twenty-four spreads below the previous closing price, the lowest bid and the lowest ask price up to the time of the transaction on the day and the highest of twenty-four spreads above the previous closing price, the highest bid and the highest ask price up to the time of the transaction on the day. Cross trades need to be reported to the exchange within 15 minutes of execution or within 15 minutes of open on the next trading day for crosses executed after market close. Buy In: Day after fail (T+3). Additional 25bps penalty. Orders are not carried overnight. The pre-market opens at 9:30am. Can put market or limit orders in from 9:30 until 9:45am. From 9:45 to 9:50am orders may not be cancelled and only market orders allowed (no limit orders). Orders are matched at 9:50am (market orders are NOT guaranteed of getting filled) with continuous trading begin at 10:00am. DMA orders sent to the open auction need to be flagged specially as OPEN orders otherwise they will be rejected. The pre-closing period starts at 4:00pm. Can put market or limit orders in from 4:00 until 4:08pm. From 4:08 to 4:10pm orders may not be cancelled and only market orders allowed (no limit orders). Orders are matched at 4:10pm (market orders are NOT guaranteed of getting filled). All other points above that apply to the opening auction also apply to the closing auction.
38
Portfolio Strategy
Hungary
Market Hours
AES Accessible
Circuit Breakers Round Lot Sizes Settlement
Monday - Friday: Pre-Opening (8:30am to 9:00am / 9:01 am): Orders can be entered/modified/deleted to join the opening auction at 9:00am / 9:01am. Random end to this period to prevent price manipulation. Opening Auction (9:00am/ 9:01am to 9:02am) Continuous trading (9:05am to 4:30pm): Orders can be entered/modified/deleted. The market trades continuously on a price/time priority basis. Closing Auction (4:30pm to 4:35pm/ 4:36pm): Orders may be entered/modified/deleted to join the auction at 4:35pm / 4:36pm. Random end to this period to prevent price manipulation. 10% from the previous closing price. Trading suspension lasts 2-15 min, at the discretion of the Exchange 1 share. T+3, DVP
India
Market Hours
AES Accessible
Daily Price Limits & Circuit Breakers Round Lot Sizes Settlement Tax Short Sell Rules Foreign Ownership Crossing
Monday Friday (both National Stock Exchange & Bombay Stock Exchange: Continuous Trading (9:55am to 3:30pm): The market trades continuously on a price/time priority basis. The first print is the opening price, and the closing price is the VWAP of all trades in the last 30 minutes of the continuous trading session. However, if no trade during the last 30 minutes, the last traded price in the trading session is the closing price. 10%, 15% and 20% up or down in the BSE Sensex or the NSE S&P CNX Nifty. For details, please check http://www.nseindia.com/content/equities/eq_circbreakers.htm. For top 200 stocks, 20% up or down from the previous closing price (first 8%, then a 30-min cooling period and then another 8%). Generally 1 share. T+2, DVP. For details, please check http://www.bseindia.com/about/tradnset.asp and http://www.nseindia.com/content/nsccl/nsccl_eqrollsett.htm. Securities Transaction Tax: 12.5 bps (Gross). Stamp Duty: 1 paise per 100 Rs. Not allowed. Foreign investors can automatically hold 24% of a listed co. The limit may be raised to 49% upon request. Crossing is not allowed and we can only keep matching the buy / sell side orders at intervals; so the buy & sell orders get almost the same prices. There is no guarantee that the buy & sell sides will be the same as there could be another buyer/seller at / around that price in the market.
39
Portfolio Strategy
Indonesia
Market Hours
AES Accessible
Daily Price Limits
Round Lot Sizes
Spreads Settlement Clearer Tax Short Sell Rules Crossing
Monday Thursday: Pre-Opening (9:10 am to 9:25 am). Morning Session (9:30am to 12:00pm): The market trades continuously on a price/time priority basis. The first print is the opening price. Afternoon Session (1:30pm to 4:00pm): The market trades continuously on a price/time priority basis. The last print is the closing price. Friday: Pre-Opening (9:10 am to 9:25 am). Morning Session (9:30am to 11:30pm): Market trades continuously on a price/time priority basis. The first print is the opening price. Afternoon Session (2:00pm to 4:00pm): Market trades continuously on a price/time priority basis. The last print is the closing price. Stocks may not trade outside of the previous closing price by the percentage indicated in the price ranges below: Below 100 IDR: 50% change 100 to 500 IDR: 35% change 500 to 2500 IDR: 30% change 2500 to 5000 IDR: 25% change 5000 and above: 20% change 500 shares. 500 rights. Trading odd lots can be very difficult in Indonesia; the odd lot market is very illiquid without any special board. Brokers have to find a willing counterparty. Stock Price/Share (IDR) Minimum Price Fluctuation (IDR) 0 500 5 500 5,000 25 5,000+ 50 T+3, DVP Indonesian Clearing & Guaranteed Corp. (PT KDEI) Levy: 4 bps (Gross) on both buys and sells. VAT: 1 bps (Gross) sales tax on the buys and sells. Sales Tax: 10 (Gross) on sells only. Not Allowed. Failure to deliver on settlement will result in Alternate Cash Settlement which is 125% of the 3-days highest price of the traded stock. No limit on quantity or value; no transaction price limit (although typically +/- 25% from previous close). Every cross transaction has to go through the Exchange. Settlement can take place at any time with agreement of both counterparties.
Ireland
AES Accessible
Market Hours
Monday - Friday: Pre-Trading (6:30am to 7:55am): Orders may be entered/mod/del to join the auction at 8:00am. Opening Auction (7:50am to 8:00am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (8:00am to 4:28pm): The market trades continuously on a price/time priority basis. Closing Auction (4:28pm to 4:30pm): Orders may be entered/mod/del to join the auction at 4:30pm. Post-Trading (4:30pm to 5:15pm): New orders can be entered and existing orders can be modified/deleted. Participants can also input OTC deals. New orders are present on the order book the following morning. If the price movements for individual shares exceed certain volatility limits, the system will intervene to cease continuous trading and change the continuous to an auction phase for that particular share and for a short period of time. 1 share. T+3, DVP ISE Levy: EUR 1.25, if (Gross) exceeds EUR 12,500, for both sell and buy sides. Stamp: 100bps (Gross + Commission), rounded to the nearest EUR cent, for the buy side only. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
40
Portfolio Strategy
Israel
Market Hours Sunday - Thursday: Opening (9:45am to 9:50am): Random auction open and close Continuous trading (9:50am to 5:16pm/ 5:17pm): Orders can be entered/modified/deleted. The market trades continuously on a price/time priority basis. Close is random. Closing Auction (5:25pm to 5:30pm): Orders may be entered/modified/deleted to join the auction at 5:25pm. After 5:25pm, cannot cancel orders that impact price or volume. No price limits. All stocks suspended for 45min following significant announcements (earnings, M&A, etc). 1 share. T+1 Short selling is allowed as long as a lending agreement is concluded before the order entry.
Circuit Breakers Round Lot Sizes Settlement Short Sell Rules
Italy
AES Accessible
Market Hours
Monday Friday: Pre-Opening (8:00am to 9:00am): Orders may be entered/modified/deleted to join the opening auction. Period ends at 10:55am for MTA Standard Segment. Pre-Open End (9:00:00am to 9:00:59am): Orders may be entered/modified/deleted prior to uncrossing. Occurs 10:55:00am to 10:55:59am for MTA Standard Segment. Interim Close (9:01am to 9:05am): Closed for uncrossing. Occurs 10:56am to 11:00 am for MTA Standard Segment. Continuous Trading (9:05am to 5:25pm): The market trades continuously on a price/time priority basis. 11:00am to 4:25pm for MTA Standard Segment Class 1. Closing Auction (5:25 pm to 5:30pm): Orders can be entered/modified/deleted for the closing auction. 4:25pm to 4:30pm for MTA Standard Segment Class 1. All segments have the same 1 min random close as at the open. After Hours Trading (6:00pm to 8:30pm): Only MIB30, Midex, S&P MIB, and STAR shares with specialist intervention can be traded on OTC basis. 10% (7.5% for S&P/MIB) from the prev closing price or 5% (3.5% for S&P/MIB) from the last traded price. 1 share. T+3, DVP Bank of Italy No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
41
Portfolio Strategy
Japan
Market Hours
AES Accessible
Daily Price Limits Round Lot Sizes
Spreads
Settlement Clearer Tax Short Sell Rules Crossing
Monday Friday: Morning Session Pre-Opening (8:00am to 9:00am): Orders may be entered/modified/deleted to join the opening auction at 9:00am. Morning Session (9:00am to 11:00am): The market trades continuously on a price/time priority basis. An auction decides the closing price at 11:00am. Afternoon Session Pre-Opening (12:05pm to 12:30pm): Orders may be entered/modified/deleted to join the opening auction at 12:30pm. Afternoon Session (12:30pm to 3:00pm): The market trades continuously on a price/time priority basis. An auction decides the closing price at 3:00pm. Daily price limits are based on stocks' previous closing prices. For details, please check http://www.tse.or.jp/english/faq/list/stockprice/p_g.html Lots range as follows: 1/10/50/100/500/1000/2000/3000 Stock Price/Share (JPY) Minimum Price Fluctuation (JPY) -1,999 1 2,000 - 2,995 5 3,000 29,990 10 30,000 - 49,950 50 50,000 99,900 100 100,000 999,000 1,000 1,000,000 19,990,000 10,000 20,000,000 29,950,000 50,000 30,000,000 + 100,000 T+3, DVP Japan Securities Depository Center (JASDEC) No applicable taxes. Orders must abide by the uptick rule. Orders can be placed at or above the last price if it is an uptick but can only be placed above the last traded price if it is a downtick. A number of exemptions exist including those for hedging and arbitrage. Failure to comply may incur a fine of up to JPY 300K. There are no special restrictions for offshore crossing in Japan.
Jordan
Exchange Market Cap Hours Platform Volume Most Active Securities Foreign Investment Settlement Currency Amman Stock Exchange $313 Million USD Sunday Thursday First and Second Markets: 9:30 - 12:00 Block Trading: 12:00 - 12:15 Electronic trading approx 36.7 millions shares/day Jordan Petroleum Refinery (JOEP) (~25%), Jordan Phosphate Mines (JOPH), Arab Bank (ARBK) 100% allowed in general; certain limited to 49% or 50% T+2 Jordanian Dinar (JOD)
Kazakhstan
Exchange Market Cap Hours Currency Kazakhstan Stock Exchange $96.5 Billion USD Monday - Friday Regular Trading: 11:30 - 17:00 Kazakhstan Tenge (KZT)
42
Portfolio Strategy
Kenya
Exchange Market Cap Hours Currency Nairobi Stock Exchange $19.7 Million USD Monday - Friday Regular Trading: 10:00 - 13:00 Kenyan Shilling (KES)
Korea
Market Hours
AES Accessible
Daily Price Limits and Circuit Breakers Round Lot Sizes
Spreads
Settlement Clearer Tax
Short Sell Rule
Crossing
Additional Info
Monday - Friday: Pre-Opening (8:00am to 9:00am for KSE and 7:50am to 9:00am for Kosdaq): Orders may be entered/modified/deleted to join the opening auction at 9:00am. Pre-Open off market crossings (7:30am to 8:30am). Continuous Trading (9:00am to 2:50pm): The market trades continuously on a price/time priority basis. Closing Auction (2:50pm to 3:00pm): Orders may be entered/modified/deleted to join the closing auction at 3:00pm. Post Market Auction (3:00pm to 3:10pm): Orders, including odd lots, may be entered/modified/deleted to trade at the closing price. Trading-at-Last (3:10pm to 3:30pm): Shares can be traded at the closing prices. After Market (3:30pm to 6:00pm): Shares can be traded via auction every 30 minutes (+/-5% from closing price). Stocks are restricted to 15% limit up / down from previous closing prices. Trading is suspended if there is a 10% fall (and remains there for at least 1 minute) in the KOSPI from the previous close. Trading resumes after a 20-minute halt and 10-minute auction. This can only take place once per day and is not applicable from 2:20pm. For KOSPI listed shares 1 share for stocks trading > KRW 50,000 based on previous close, anything below this threshold is 10 shares. 1 share for KOSDAQ listed shares. Stock Price/Share (KRW) Minimum Price Fluctuation (KRW) -4,995 5 5,000 9,990 10 10,000 49,950 50 50,000 99,900 100 100,000 495,500 500 500,000 + 1,000 T+2, DVP KSE Agricultural Tax: 15bps (Gross) for KSE sell trades, rounded up to the nearest KRW. Trade Tax: 15bps (Gross) for KSE sell trades, rounded up to the nearest KRW. Short Sell: Short selling is permitted. Effective September 17, 2007 short sell orders can be placed at current price for once if the stock is moving higher. The old short sale regulation, i.e. the uptick rule, applies before the market open (closing price +1 tick). Exceptions exist for index arbitrage. It is required to indicate on order & offer note that it is a short sale. 500 trading lots / KRW 100MN for KOSPI and KRW 100MN for KOSDAQ. Effective September 17, 2007, cross trades are available for foreign ownership limited stocks in the off market if both the buyer and the seller are foreign investors. Under the current rules, one cannot buy or cross shares for foreigners if the foreign ownership limit is filled. Pre-Market (7:30am 8:30am): May trade either VWAP or +/- 15% of previous close within limit up/limit down. Normal Trading Hours: Only on the open market within day high / low. After Market (3:10pm 6:00pm): Same as pre-market but within +/- 15%of day close within daily limit up / limit down or VWAP. Account: QFII number (local client account) is required to trade for foreign investors. Korea also has an omnibus facility. Investor IDs must be sent with the order unless all orders are traded via omnibus. Sell orders in foreign ownership restricted stocks must be sent via ID (no omnibus).
43
Portfolio Strategy
Kuwait
Exchange Market Cap Kuwait Stock Exchange $213.4 Billion USD Sunday - Thursday Order Acceptance Pre-Auction Open and Continuous Trading Regular Close Forward Quote Entry Forward Trading Forward Close Kuwaiti Dinar (KWD)
Hours
8:50 9:50 9:00 12:30 12:32 12:55 13:15
Currency
Lebanon
Exchange Market Cap Beirut Stock Exchange $14.9 Billion USD Monday - Friday Pre-Opening Opening Trading Session Closing Lebanese Pound (LBP)
Hours
9:00 - 9:30 9:30 9:30 - 12:30 12:30
Currency
44
Portfolio Strategy
Malaysia
Market Hours
AES Accessible
Spreads
Settlement Clearer Tax
Short Sell Rules
Foreign Ownership Restrictions
Crossing
Additional Info
Monday Friday: Pre Open (8:30am to 9:00am): Open is a random print. Morning Session (9:00am to 12:30pm): Orders are matched based on price and time priority. Pre Market (2:00pm to 2:30pm): Open is a random print. Afternoon Session (2:30pm to 5:00pm): Continuous trading on price/time priority basis. The last print is the closing price. Last Print (5:00pm). 10%, 15% and 20 declines in the Kuala Lumpur Composite Index (KLCI). For details, please check http://www.klse.com.my/website/bm/bursa_basics/faqs/circuit_breaker.html Mostly 100 shares. Odd lots sell at odd lot market at discount. Stock Price/Share (RM) Minimum Price Fluctuation (RM) -0.995 0.005 1.00 2.99 0.01 3.00- 4.98 0.02 5.00 9.95 0.05 10.00 - 24.90 0.1 25.00 99.75 0.25 100.00 + 0.5 T+3, DVP ISS Stamp: 10 bps (Gross rounded up to nearest RM 1000) on both buys and sells. Max. RM 200. Levy: 4 bps (Gross) on both buys and sells. Min./Max. RM 10/RM 500. Permitted for designated securities - closely regulated. Must be done in the Regulated Short Sell (RSS) account. Can only be done uptick. The order needs to be defined as a short sale. Cannot short sell more than the borrowed amount. RSS shall not be executed for 21 days after a takeover announcement and for the period where a security has been declared as a designated security. Bursa requires confirmations that the client has borrowed the shares, and that the client is not related to the issuer of the securities. A foreign investor requires the approval of the Foreign Investment Committee (FIC) when the overseas ownership exceeds 15% per shareholder or 30% overall foreign holdings. Some other rules concerning financial institutions exist. No limit on quantity or value. Every cross transaction has to go through the Exchange. Within 10% of previous day's VWAP: No prior approvals needed. Within 10%-15% of previous day's VWAP: Need to provide details of beneficial owners. Outside of 15% of previous day's VWAP: Prior approval needed from KLSE 10 days before crossing. If settlement via FDSS, no breakdown of quantity needed and bookings can be done post crossing, i.e. MCD numbers provided after crossing. If ISS settlement, need exact breakdown of quantity/allocations to the specific MCD number. Otherwise, the crossing will fail. No amendments can be made to crossings. Failure of a DBT to settle = RM 250K fine. Off market crossings are not allowed in 1st day of IPO listing & ex-day for dividend/share split/bonus issue/rights issue. Account: MCD number (local client account) is required to trade.
Mauritius
Exchange Market Cap Stock Exchange of Mauritius $4 Billion USD Monday - Friday Pre-Opening Opening Trading Session Closing Indian Rupees (Rs)
Hours
09:00 - 10:00 10:00 10:00 - 13:30 13:30
Currency
45
Portfolio Strategy
Mexico
Market Hours Circuit Breakers Round Lot Sizes Settlement Short Sell Rules
AES Accessible
Monday - Friday: Continuous Trading (8:30am to 3:00pm): The market trades continuously on a price/time basis. Closing Price: VWAP of the last 20 minutes 15% from the previous closing price. Trading is halted at the discretion of the exchange, until further notice 100 shares. An additional market may exist for odd lots, depending upon the stock. T+3, DVP A pre-borrow must be in place.
Morocco
Monday - Friday: Central Market is divided into three equity markets - the main market, the development market, and the growth market (with companies in each determined by size, shares outstanding, number of certified financial years). Trading is as follows: Pre-Opening (9:00am to 10:00am): Orders of the most liquid securities ("Group 1") may be submitted to the system to trade at the open. Open (10:00am): Orders are matched and an opening price is displayed. Continuous Trading (10:00am to 3:25pm): The market trades continuously on a price/time basis. Pre-Close (3:25pm to 3:30pm): Orders are entered to trade at the close. Close (3:30pm): Orders entered at pre-close are matched, if possible, and a closing price is displayed. Special Auction: For securities of average liquidity ("Group 3"), a pre-open is held at 9:00am, in which orders may be entered onto the book. Three separate auctions are then held at 11:00am, 1:00pm, and 3:00pm, at which orders are matched and a price is displayed. Secondary lines of Groups 1 & 3 securities are quoted on a continuous basis at 9:00am, with Open at 2:30pm and 3:15pm, respectively, and Close at 3:30pm. A separate Block-Trade Market exists for OTC trades, which must meet a minimum block size (according to liquidity and volume traded). Must trade at a price given by the Central Market, either the auction price or within a range as defined by continuous trading. The Casablanca Stock Exchange reserves the right to temporarily suspend any transactions or to limit price movements, if in the interests of the market. T+3 The Casablanca Stock Exchange Exchange fees: 10bps on both buy and sell side.
Market Hours
Circuit Breakers Settlement Clearer Tax
Netherlands
AES Accessible
Market Hours
Monday - Friday: Pre-Opening (7:15am to 8:55am): Orders may be entered/modified/deleted to join the opening auction. Opening Auction (8:55am to 9:00am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (9:00am to 5:30pm): The market trades continuously on a price/time priority basis. Closing Auction (5:30pm to 5:35pm): Orders may be entered/modified/deleted to join the closing auction at 5:30pm. Trading-at-Last (5:35pm to 5:40pm): Shares can be traded at the closing prices. Restricted (9:00am to 5:30pm): A separate order book for illiquid stocks. Brokers can enter orders, which will only be matched at designated auction periods depending on the sector of the stock. 10% (5% for AEX) from the static reference price reset every time the market breaks its upside/downside threshold; this is the last closing price for the opening. Trading resumes after a 4-minute halt. If the traded price deviates more than 5% (2% for AEX) from the dynamic reference price, the last traded price, the market stops for one minute. 1 share. T+3, DVP NECIGIF No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
46
Portfolio Strategy
New Zealand
Market Hours
AES Accessible
Circuit Breakers Round Lot Sizes Spreads Settlement Clearer Tax Short Sell Rules Foreign Ownership
Crossing
Monday - Friday: Pre-Opening (9:00am to 9:55am): Orders may be entered/mod/deleted to join the opening auction at 10:00am. Continuous Trading (10:00am to 4:55pm): The market trades continuously on a price/time priority. Random Close (4:55pm to 5:00pm): The market may close at anytime in this interval, there is no auction. Closing price is last traded price. Post-Trading (5:00pm to 5:30pm): Need to call broker(s) on the bid/offer on the screen to trade. No circuit breakers or daily price movement limits. 1 share. Stock Price/Share (NZD) Minimum Price Fluctuation (NZD) -0.209 0.001 0.210 + 0.01 T+3 for over NZD 100K, T+0 to +3 for trades under NZD 100K NZSE No tax applicable. Short selling is permitted in designated securities. Not more than 10% of the issued stocks in the security are short sold. A short sell order may not be placed below the last traded price. However, short sells can be negotiated at any price off market after 5:00pm but the net short sold positions must be reported to NZSE after each trading day. A foreign investor requires the approval from the Overseas Investment Commission when the overseas ownership exceeds 25% per shareholder. Single Stock: any stock, unless under takeover, worth at least NZD 3MN can be put through at any price. Under NZD 3MN, needs to be crossed on market, at or in between market prices. Portfolio: minimum of 10 stocks each worth NZD 200K with a total of NZD 5MN can be put through the market at any price. Offshore: If at least one side of an order is taken after market hours, a stock can be put through the market the next morning before 10:00am at an agreed price, as long as the clients home exchange is open at the time the deal is executed.
Nigeria
Exchange Market Cap Hours Currency Nigerian Stock Exchange $100 Billion USD Monday Friday Regular Trading: 10:00 - 13:00 Nigerian Niara (NGN)
Norway
Market Hours
AES Accessible
Monday Friday: Pre-Opening (8:15am to 9:00am): Orders may be entered/mod/deleted to join the opening auction. Opening Auction (9:00am to 9:05am): Orders may be entered/mod/deleted prior to uncrossing. Continuous Trading (9:05am to 4:20pm): The market trades continuously on a price/time basis. Close Auction (4:20pm to 4:30pm): An auction will decide the closing price. An abnormal price movement or any other unexpected event may activate a break. Matching may be halted when announcements are to be made in the system. 1 trading block (approx NOK10,000) in size. Odd lots will be matched automatically at the end of the market hours at the latest official traded prices. T+3, DVP Norwegian Registry of Securities No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange. 10% of the share/voting capital is the limit per domestic or foreign shareholder.
47
Portfolio Strategy
Oman
Exchange Market Cap Hours Platform Volume Types of Markets Tracking Indices Foreign Investment Most Active Settlement Currency Muscat Securities Market $12.4 Billion USD Sunday - Thursday Regular Market: 10:00-11:00 Parallel Market: 11:30 - 12:30 Third Market: 12:34-12:55 Automated electronic trading system Approx 39 million shares/day Stocks, Commercial and Government Bonds, Mutual Funds, OTC Market, Currently contemplating introduction of derivatives MSM-30 Index Up to 70% with some further restrictions at company level. There is no tax on capital returns or profits. Al Anwar Holding, Bank Sohar, Bank Muscat T+3 Omani Rial (OMR)
Pakistan
Monday - Thursday: Pre-Opening (9:30am to 9:45am): Orders may be entered/modified/deleted to join the opening auction at 9:45am. Continuous Trading (9:45am to 2:15pm): The market trades continuously on a price/time priority. Friday First Session Pre-Opening (9:15am to 9:30am): Orders may be entered/modified/deleted to join the opening auction at 9:30am. First Session (9:30am to 12:00pm): The market trades continuously on a price/time priority basis. Second Session Pre-Opening (2:15pm to 2:30pm): Orders may be entered/modified/deleted to join the opening auction at 2:30pm. Second Session (2:30pm to 4:00pm): The market trades continuously on a price/time priority basis. +/-5% from previous close. Typically 500 but 100 for stocks > Rs. 50. T+2 DVP. Spot or T+1 in case of certain corporate actions. KSE Clearing House Stamp: 1.5% of the face value of the shares under the physical form of transfer. No stamp duty on transfers under the Central Depository System. Capital Value Tax / With-holding Tax: (Gross) 2 bps on buy / 1 bps on sell. Not allowed in the regular market. It is allowed in the futures market, however, required margins (mark to market) will be given to the exchange on daily basis (usually twice a day). Market crossings can be done through KATS which provides an option to cross a trade provided it is done near the market rate. Cross trades are not allowed during pre opening, if outside the acceptable price range, and/or there is a one-sided / no market. Additionally, a limit price must be specified. There are no foreign ownership limits in general.
Market Hours
Daily Price Limits Round Lot Sizes Settlement Clearer Tax Short Sell Rules Crossing Foreign Ownership
48
Portfolio Strategy
Peru
Monday - Friday: Pre-Open (9:00am to 9:30am) Continuous Trading (9:30am to 1:30pm): The market trades continuously on a price/time priority basis. Pre-Close (1:30pm to 2:00pm): Orders trade only off the last sale price as of 1:30pm. Close (2:00pm) Securities which are simultaneously traded in international markets follow a different schedule: Pre-Open (8:20am to 8:30am) Trading (8:30am to 3:00pm) Pre-Close (3:00pm to 3:10pm) Close (3:10pm) 15% from the previous closing price. Trading is limited at the discretion of the exchange. 100 shares. An additional market may exist for odd lots, depending upon the stock. T+3 Exchange fees: 9bps to the exchange (BVL) 0.5bps to the CAVALI 6.5bps to the supervisory commission (CONASEV) 10.51bps to the agents (SAB) 6bps = VAT of 19% Total fee of 37.5 bps on both buy and sell side. Investors must register and receive an ID from the Central Bank.
Market Hours
Tax
Additional Info
Philippines
Monday - Friday: Pre-Opening (9:00am to 9:30am): Orders may be entered to join the opening auction at 9:30am. Postings cannot be cancelled if it is fully or partially matched (met the price on bid/offer). If unmatched, postings can be cancelled without penalty before 9:15am and with penalty after 9:15am. Continuous Trading (9:30am to 12:00pm): The market trades continuously on a price/time priority basis. Last Print is at 12:00pm. Trading-at-Last (12:00pm to 12:10pm): Shares can be traded at closing prices. 50% up or 40% down from the last closing price. 10 -1,000,000, depending on the stock price. There is a separate odd lot market. Depending on the price of the stock, the minimum price fluctuation varies from 0.0002 to 5.00. For details, please check http://www.pse.org.ph/html/InvestingInPSE/investing_pse.html. T+3, DVP Securities Clearing Corporation of the Philippines (SCCP) BUY SELL VAT 12 % (Commission) 12 % (Commission) Stock Transaction Tax None 50 bps (Gross) SCCP Fees 1 bps (Gross) 1 bps (Gross) Approved by regulatory agency but has not yet been implemented by the Philippine Stock Exchange. Limited to a list of qualified securities to be announced. Foreign investment is limited to 40% for public utilities, banking and corporations in the natural resource sector. Foreigners cannot purchase retail or mass media companies. Should be approved by the Floor Trading and Arbitration Committee. The transaction value must not be less than P20 million. A transaction is defined as one entry to the system. However, a block sale involving one listed issue to be done at two different prices shall be counted as two transactions. Each of the transactions must be more than the minimum amount to qualify.
Market Hours
Circuit Breakers Round Lot Sizes Spreads Settlement Clearer Tax
Short Sell Rules Foreign Ownership Restrictions Crossing
49
Portfolio Strategy
Poland
Market Hours
AES Accessible
Round Lot Sizes Settlement
Monday - Friday: Pre-Opening (8:30am to 9:30am): Orders may be entered/modified/deleted to join the opening auction at 9:30am. Continuous Trading (9:30am to 4:10pm): Orders can be entered, modified, and deleted. Trades continuously occur as orders match Closing Auction (4:10pm to 4:20pm): Orders may be entered/modified/deleted to join the closing auction at 4:20pm. Post Trading (4:20pm to 4:30pm). Next Day Pre-Open Period (4:30pm to 4:35pm): Orders may be submitted for the following trading days preopen period. Auction System: Trading Hours as normal with auctions at 11:15am and 3:00pm. Auctions are preceded by a 15 min intervention (no new orders) and followed by 30 min of trading at the auction price. 1 share. T+3, DVP
Portugal
AES Accessible
Market Hours
Monday Friday: Pre-Opening (7:30am to 7:55am): Orders may be entered/mod/del to join the auction at 8:00am Opening Auction (7:55am to 8:00am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (8:00am to 4:30pm): The market trades continuously on a price/time priority basis. Closing Auction (4:30pm to 4:35pm): Orders may be entered/mod/del to join the auction at 4:30pm. Trading-at-Last (4:35pm to 4:40pm): Shares can be traded at the closing prices. Restricted (8:00am to 4:30pm): A separate order book for illiquid stocks. Brokers can enter orders, which will only be matched at designated auction periods depending on the sector of the stock. 10% (5% for PSI20) from the static reference price reset every time the market breaks its upside/downside threshold; this is the last closing price for the opening. Trading resumes after a 4-minute halt. If the traded price deviates more than 5% (2% for PSI20) from the dynamic reference price, i.e. the last traded price, the market stops for one minute. 1 share. T+3, DVP Central de Valores Mobiliarios (CENTRAL) No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not
need to declare short sells to exchange.
No general restrictions. A simple notification is needed, for statistical purposes, to the Investimentos Comercio e Turismo de Portugal (ICEP) within 30 days following the transaction.
Qatar
Exchange Market Cap Hours Currency Doha Securities Market $142 Billion USD Sunday - Thursday Regular Trading: 10:00 - 12:30 Qatar Rial (QAR)
50
Portfolio Strategy
Romania
Exchange Market Cap Bucharest Stock Exchange $52.9 Billion USD Monday - Friday 09:30 - 10:00 Pre-Open 10:00 - 16:15 Continuous Trading 16:15 - 16:30 Pre-Close 16:30 Closing Auction HORIZON, An electronic trading system Approx 26 million shares/day Regular Market, Odd Lot Market, Deal Market BET, ROTX Must trade through a Romanian brokerage firm Banca Transilvania (TLV), Amonil (AMO), Sif Transilvania (SIF3), T+3 Romanian New Leu (RON) Stocks, Unlisted Stocks and Bonds, Rights, Corporate Bonds, Municipal Bonds, Futures RASDAQ, another Romanian stock exchange, recently joined to Bucharest Stock Exchange
Hours
Platform Volume Types of Markets Tracking Indices Foreign Investment Most Active Settlement Currency Securities Traded Additional
Russia
Monday - Friday
AES Accessible
Market Hours
Circuit Breakers Round Lot Sizes Settlement Tax Short Sell Rules Foreign Ownership Restrictions
Additional Info
MICEX Pre-Opening (10:15am to 10:30am): Orders may be entered/modified/deleted to join the opening auction at 10:30am. Continuous Trading (10:30am to 5:45pm): The market trades continuously on a price/time basis. Closing Print: VWAP of last 30 minutes. Post-Trading (5:45pm to 5:50pm) RTS Continuous Trading (10:30am to 6:00pm): The market trades continuously on a price/time priority basis. The first print is the opening price. Last Print (6:00pm) 10% from opening price or 15% from close on opening triggers a 1 hour halt. 15% from opening price or 25% from close on opening triggers indefinite halt. (MICEX) 1 share. MICEX: varies: T+0 to T+5 RTS: T+4 Both ruble and foreign currency settlement is allowed. MICEX: 1bp RTS 0.5 bps With the liquid borrow market, short selling is possible. However, it is not allowed on MICEX. If a foreign investor buys more than 30% of a company, it must inform the Anti-Monopoly Committee. If a foreign investor buys more than 15% of the shares of a company, it must notify the Ministry of Finance of the Russian Federation. A non-resident must receive approval by the State Anti-Monopoly Committee before he can acquire 35% of a company's shares or a package providing for 50% of total shareholders' votes. Foreign investors must obtain a license from the Federal Securities and Exchange Committee before trading in Russian securities. In general, foreign investors may engage in transactions in equity securities on the same terms as Russian investors, although in some cases foreign participation is restricted by legislation or by the charter or operating procedures of the issuer of the securities.
51
Portfolio Strategy
Singapore
Market Hours
AES Accessible
Circuit Breakers Round Lot Sizes Spreads Settlement Clearer Tax
Short Sell Rules
Crossing
Additional Info
Monday - Friday: Pre-Opening (8:30am to 9:00am): Orders may be entered/modified/deleted to join the opening auction at 9:00am. No market orders. Continuous Trading (9:00am to 12:30pm and 2:00pm to 5:00pm): The market trades continuously on a price/time priority basis. Closing Auction (5:00pm to 5:06pm): Orders may be entered/modified/deleted to join the closing auction at 5:05pm. No market orders. No set designation. SGX intervenes when deems necessary. Also, each listed company may appeal to SGX to halt trading for some desired duration. 1,000 shares. Odd lots trade at a discount on a separate Unit Share Market, which is quite liquid. Stock Price/Share (SGD/USD) Min. Price Fluctuation (SGD/USD) -0.955 0.005 1.00 9.99 0.01 10.00 + 0.02 T+3 for SGD trades and T+5 for USD trades, DVP Securities Clearing & Computer Services (SCCS) Clearing Fee: 4 bps (Gross), max SGD600 for SGD trades/USD110 for USD trades, rounded to the nearest SG/USD cent. GST: 7% (Commission and Clearing Fees) for onshore accounts only. SGX Access: 0.75 bps (Gross). This fee is sometimes absorbed by the broker. Short selling is permitted as long as there is borrow in place for delivery on the same day. There are no uptick rules. Collateral of 105% of the borrowed securities must be deposited and must be maintained at least 105% of the market value each day. Crosses on the SGX must be at least 50,000 units of securities or SGD150K and price must be with in a reasonable range from the last traded price. Counterparties can cross off exchange by entering instructions into Central Depository (Offshore crosses are frowned upon by SGX). Crossing transactions executed during trading hours must be reported within 10 minutes of execution and transactions executed after trading hours must be reported in the first half hour of trading on the following market day. Buy In: Day after fail (T+4).
Slovenia
Exchange Market Cap Hours Currency Ljubljana Securities Market $34 Billion USD Monday - Friday Regular Trading: 09:30-13:00 Slovenian Tolar (SIT)
South Africa
Market Hours
AES Accessible
Circuit Breakers Round Lot Sizes Settlement Tax
Monday - Friday: Pre-Opening (8:35am to 9:00am): Orders may be entered/mod/del to join the opening auction at 9:00am. Continuous Trading (9:00am to 4:50pm): The market trades continuously on a price/time priority basis through the JET system (Johannesburg Equities Trading system). Closing Auction (4:50pm to 5:00pm): Orders may be entered/mod/del to join the closing auction at 5:00pm. 5% in leader stocks and 10% in non-leader stocks from the last price (not open and not closing price). 1 share. T+5 25bps (Gross) on the buy side only.
52
Portfolio Strategy
Spain
Market Hours
AES Accessible
Monday - Friday: Pre-Opening (8:30am to 8:55am): Orders may be entered/mod/del to join the opening auction at 9:00am. Opening Auction (8:55am to 9:00:30am): Orders may be entered/modified/deleted prior to uncrossing. Continuous Trading (9:00:30am to 5:30pm): The market trades continuously on a price/time basis. Closing Auctions (5:30pm to 5:35pm): Orders may be entered/modified/deleted to join the closing auction at 5:30pm. If there is no auction or if less than 500 trading units were traded in the auction, the closing price is the last 500 traded units closest to the weighted average price. Special Actions (8:30am to 12:00pm and 12:00pm to 4:00pm): Orders may be entered/modified/deleted to join the two auctions for the exchange published names. Activates when either the static or dynamic price limits are exceeded. An auction follows the break, lasting 5 minutes with a 30-second random end. 1 share. T+3, DVP Clearing & Settlement Service (SCL) No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
Sri Lanka
Exchange Market Cap Colombo Stock Exchange (234 listed companies from 20 sectors) $7.2 Billion USD Monday - Friday 9:00 - 9:30 Pre-Open 9:30 Open Auction 9:30 - 14:30 Normal Trading 14:30 Close Automated Trading System (ATS) Approx 4.4 Million shares/day Equity, Debt ASPI, MPI No restrictions. Investment must take place through Share Investment External Rupee Accounts (SIERA) Sales T+4; Purchases T+3 Sri Lanka Rupee (LKR) A Derivatives Market is planned
Hours
Platform Volume Types of Markets Tracking Indices Foreign Investment Settlement Currency Additional
Sweden
AES Accessible
Market Hours
Round Lot Sizes Settlement Clearer Tax Short Sell Rules
Monday - Friday: Pre-Opening (8:00am to 8:55am): Orders may be entered/mod/del to join the opening auction at 9:00am. Opening Auction (8:55am to 9:00:30am): Orders may be entered/modified/deleted prior to uncrossing. The auction for less liquid A and O list stocks will finish at 9:08am. Continuous Trading (9:00am to 5:20pm): The market trades continuously on a price/time priority basis. Closing Auction (5:20pm to 5:30pm): Orders may be entered/modified/deleted to join the closing auction. Stocks uncross after a minimum of 1 minute 50 seconds in the same order as the opening auction, with the last stock uncrossing at 5:30pm. 1 1,000. For an A list stock, it is half the base amount. For any other stock, it is 1/4 of the base amount. T+3, DVP Swedish Central Securities Depository No tax applicable. Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
53
Portfolio Strategy
Switzerland
Market Hours
AES Accessible
Monday - Friday: Pre-Opening (6:00am to 8:55am): Orders may be entered/mod/del to join the opening auction at 9:00am. Opening Auction (8:55am to 9:00:30am): Orders may be entered/mod/deleted prior to uncrossing. Continuous Trading (9:00:30am to 5:20pm): The market trades continuously on a price/time basis. Closing Auction (5:20pm to 5:30pm): Orders may be entered/modified/deleted to join the auction at 5:30pm. For Swiss equities, a 2% or more deviation from the last sale price brings a 15 min halt. 5 min interruption for deviation more than 25% for securities priced less than 10 CHF, more than 2% for foreign equities, and more than 3% in sponsored segment. 1 share (100 for some foreign stocks). T+3, DVP Swiss Securities Clearing Corporation (SEGA) Stamp: 7.5 bps (Gross) on buy and sell. There are a variety of ways for clients to obtain exemption from the Stamp Tax Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
Taiwan
AES Accessible
Market Hours
Daily Price Limits and Circuit Breakers
Round Lot Sizes
Monday - Friday: Pre-Opening (8:30am to 9:00am): Orders may be entered, modified, or deleted to join the opening auction at 9:00am. No market orders. Continuous Trading (9:00am to 1:25pm): The market trades via auction every 25 seconds (can vary by one or two seconds). No market orders. Closing Auction (1:25pm to 1:30pm): Orders may be entered / modified / deleted to join the closing auction at 1:30pm. No market orders. Off-hour Trading (2:00pm to 2:30pm): Shares can be traded at the closing prices. Odd-lot Trading (1:40pm to 2:30pm): Transactions may be done at a price range of +/-7% of the stocks opening price in the regular exchange. Block Trading (9:30-9:50am / 11:30-11:50am / 1:35-1:50pm): Paired trade method added. For details contact your Credit Suisse representative or visit http://www.tse.com.tw/en/products/trading_rules/new_block.php Daily price limits are set at 7% from the previous closing price. Intraday volatility interruptions kick in once a security moves +/-3.5% from previous price. Trades resume in 2 to 3 minutes. The volatility interruptions are not applicable during the opening and between 1:20pm and 1:30pm. They also do not apply to stocks opening below NTD 1 or whose matching is restricted to every 5/10 minutes. 1,000 shares. Odd lots orders can be entered from 1:40pm to 2:30pm with the price determined by a closing match at 2:30pm (prices are subject to the same 7% fluctuation restriction as normal trading). Orders are considered as happening in the current trading day rather than on T+1 and there are no trading restrictions for ex div., day before New Year or day before Chinese New Year dates. Stock Price/Share (NTD) Minimum Price Fluctuation (NTD)
-9.99 10.00 49.95 50.00 99.90 100.0 0 499.50 500.00 999.00 1,000 + 0.01 0.05 0.1 0.5 1 5
Spreads
Settlement Clearer Tax Short Sell Rules Foreign Ownership
Crossing
Additional Info
Settlement deadline on T+1, shares/cash valued on T+2, DVP Taiwan Stock Exchange (TSE); GreTai Securities Market (GTSM); Taiwan Depository & Clearing Corp (TDCC) 30 bps (Gross) from seller transactions truncated to nearest NTD. Foreign investors are not allowed to short sell. Rules depend upon sector; e.g., telecoms. During market hours: 9:30-9:50am and 11:30-11:50am. After market hours: 1:35-1:50pm (1:35pm-5:00pm for paired trades). Price range: Within 7% of the auction reference price at market opening of the regular trading session for the day. Minimum amount / volume: At least 500 units or more than NTD 15 mm for single securities and at least five types of stocks and over NTD 15 mm for a basket of securities. Account: FINI number (local client account) is required to trade. Omnibus accounts are available.
54
Portfolio Strategy
Thailand
AES Accessible
Market Hours
Daily Price Limits and Circuit Breakers Round Lot Sizes
Spreads
Settlement Clearer Tax Short Sell Foreign Ownership Restrictions
Crossing
Monday - Friday: Morning Session Pre-Opening (9:30am to 9:55am): Orders may be entered/modified/deleted to join the opening auction occurring randomly from 9:55am to 10:00am. Morning Session (10:00am to 12:30pm): The market trades continuously on a price/time priority basis. Afternoon Session Pre-Opening (2:00pm to 2:25pm): Orders may be entered/modified/deleted to join the opening auction occurring randomly from 2:25pm to 2:30am. Afternoon Session (2:30pm to 4:30pm): The market trades continuously on a price/time priority basis. Closing Auction (4:30pm to 4:40pm): Orders may be entered/modified/deleted to join the closing auction, which closes randomly between 4:35pm and 4:40pm. Block Trading (4:40pm to 5:00pm): There is no evening trading. Block crosses are allowed after random close and until 5:00pm. 10% and 20% falls of the SET index from the previous close will halt all trading in listed securities for 30 minutes and one hour respectively. If trading time left in a session is less than 30 minutes, or one hour after the circuit breaker comes into effect, trading will be halted until the closing time of that session, and will then resume in the next session. 30% daily limit up or down for local board traded shares. Foreign board traded shares do not have any limits. 100 shares for most stocks. 50 shares for stocks priced THB 500 or more for 6 consecutive months. The local shares odd lots can be traded on a separate board, and foreign shares lose premium. Stock Price/Share (THB) Minimum Price Fluctuation (THB) -2 0.01 2.00 5.00 0.02 5.00 10.00 0.05 10.0 0 25.00 0.1 25.00 50.00 0.25 50.00 100.00 0.5 100.00 200.00 1 200.00 400.00 2 400.00 800.00 4 800.00 + 6 T+3, DVP Thailand Securities Depository Co. (TSD) Stamp Duty: 10 bps (Gross) VAT: 7% (Commission) The borrow has to be onshore and one must abide by the uptick rule. Foreign shareholding is generally limited to a maximum of 49%. There are other rules concerning the finance sector, investment promotion licenses, concession permits etc. (e.g. 25% for financial institutions). When the foreign percentage is full, foreign investors can purchase local shares (sometimes at a premium) on the foreign board of the SET. Foreign investors are allowed to purchase local shares; however, they are not legally entitled to rights and privileges of local shareholders (i.e. dividends, corporate action, voting rights). All crosses must be done within the SET. No limit on quantity or value. No limit on price but should not be outside of day low or high (authorities reserve right to query any transactions outside this range). Local shares < THB 3MN may be crossed after market close at closing price or exchange VWAP. Crosses < THB 3MN will be included in VWAP price. Crosses above THB 3MN or more than 1MN shares can be traded in the Big-Lot Board via put-through trading with no price or time restrictions. Such trades can be crossed with other brokers as well as internally and will not impact VWAP price. One Touch DMA only
55
Portfolio Strategy
Tunisia
Exchange Market Cap Bourse de Tunis $4 Billion USD Monday - Friday Fixing Trade Continuous Trading Pre- Opening Trading Session Closing Tunisian Dinar (TND) 09:00-11:05 09:00 - 10:00 10:00 - 11:30 11:35 - 11:40
Hours
Currency
Turkey
Monday - Friday: Pre-Opening (9:30am to 9:40am): Orders can be entered/mod/del to join the auction at 9:40am. Continuous Trading (Morning 9:45am 12:00pm; Afternoon 2:00pm 5:00pm): Orders, once entered, may not be cancelled and may only be revised aggressively. The exception to this is the first five minutes of the 2nd session, during which orders may be revised passively. Orders are valid for either the 1st session only or the whole day. An order in the morning session valid for the whole day may be revised to morning session only up until the end of the 1st session. Last Print (5:00pm) 10% from the previous session's VWAP. ISE can also suspend trading at any time. 1 share. T+2, DVP
Market Hours
Ukraine
Exchange Market Cap Hours Currency Ukrainian Stock Exchange $252.6 Million USD Monday - Friday Regular Trading: 11:00-17:00 Ukraine Hryvnia (UAH)
United Arab Emirates

Exchange Market Cap Hours Platform Volume Types of Markets Tracking Indices Foreign Investment Most Active Securities Settlement Currency Abu Dhabi Securities Exchange $121.1 Billion USD Sunday - Thursday Pre-Opening: 9:30 - 10:00 Continuous Trading: 10:00 - 12:00 Fully automated central limit order matching screen trading system Approx 353.38 million shares/day Equity, Debt General Index The percentage allowed to be invested in particular stocks varies from stock to stock. 100% investment by foreigners is allowed only in Fujairah Trade Center stock. The next highest percentage of an individual stock allowed to be owned by a foreigner is 49% Methaq Takaful Insurance (METHAQ), Arkan Building Materials (ARKAN), Dana Gas (DANA) T+2 Emirati dirham (AED)
56
Portfolio Strategy
United Kingdom
Market Hours
AES Accessible
Monday - Friday: Pre-Opening (7:50am to 8:00am): Orders may be entered/modified/deleted to join the opening auction at Orders may be entered/modified/deleted to join the opening auction at 8:00am. Continuous Trading (8:00am to 4:30pm): The market trades continuously on a price/time priority basis. Closing Auction (4:30pm to 4:35pm): Orders may be entered/modified/deleted to join the closing auction at 4:35pm. 5% from the last traded price. The trading resumes after 5 minutes. 1 share. T+3, DVP CREST Levy: GBP1 for tickets in excess of 10,000. Stamp: 50bps (Gross + Commission), rounded to the nearest GB pence, on the buy side only Short selling is allowed as long as a lending agreement is concluded before the order entry. Broker does not need to declare short sells to exchange.
United States
Monday - Friday:
AES Accessible
Market Hours
Circuit Breakers Round Lot Sizes Settlement Clearer Tax Short Sell Rules Other
NYSE Continuous Trading (9:30am to 4:00pm): The market opens with the auction around 9:30am and trades continuously on a price/time priority basis. NASDAQ Pre-Opening 7:00am to 9:28am): Orders may be entered/mod/del to join the opening cross at 9:30am. Opening Auction (9:28am to 9:30am): Limit orders are treated as Imbalance-Only (IO) orders for the opening cross. Orders not fully executed are returned. Can enter new IO orders but not modify or cancel existing ones. New Market Orders are not allowed. Continuous Trading (9:30am to 4:00pm): The market trades continuously on a price/time priority basis. Closing Auction (3:50 to 4:00pm): On-Close orders must be entered prior to 3:50pm. Post Trading (4:00pm to 8:00pm) 10%, 20% and 30% declines in The Dow Jones Industrial Average. The numerical points are decided each quarter, using the average closing from the previous month. Without a set designation, both markets oversee the pending for each name. 100 shares for most stocks (both NYSE and NASDAQ). T+3, DVP The Depositary Trust Company (DTC) SEC Fee: 0.056 bps (Gross), rounded up to the nearest US cent, on the sell side only. No up-tick rule. Dealer must declare short sell and stock locate. Stock below $5 is non-marginable.
57
Portfolio Strategy
Vietnam
Ho Chi Minh Securities Trading Center (HSTC) (main board) Monday - Friday: Order-matching First Auction (8:20am to 8:40am): Orders are matched with the following priority: (1) price (2) size (3) time (4) individual before institutional orders. Orders are in the form of either limit orders (effective until close of the day) or ATO (At-the-open - effective during the session of matching orders). Second Auction (9:00am to 9:20am): Orders are received and matched in a similar fashion to the first auction. Third Auction (10:00am to 10:30am): Orders are received and matched similar to the 1st auction. Put-through trading between 10:30am and 11:00am. Hanoi Securities Trading Center (HaSTC) (the SME market) Continuous Trading (9:00am to 11:00am): The market trades continuously on a price/time priority. HSTC: +/-5% from previous match (adjusted for dividends). HaSTC: +/-10% from previous match (adjusted for dividends). HSTC: 10 shares; orders are limited to 9,990 shares. HaSTC: 100 shares. Stock Price / Share (VND) Minimum Price Fluctuation (VND) 49,900 100 50,000 99,500 500 100,000+ 1,000 T+3. Sales Tax: 10bps (Gross) for sell trades; this charge is typically included in brokerage commissions. Orders: for HSTC, a buy order can not be placed in the same session as a sell order and orders may not be cancelled. ATO orders are also available. Not allowed, i.e. when a sell order is placed, clients must have the full amount in his/her account. 30% for banks and telcos; 49% for others. No QFII needed. Blocks (10,000 shares or more) can be executed with Credit Suisse (blocks can be done at prices other than the daily auction prices). Market Access: Credit Suisse suggests trading via swap or p-notes. Alternatively, foreign investors can either set-up their own Securities Trading Code (STC) and appoint a local custodian, broker and setup a bank account with USD. Dividends: must be announced at least 4 weeks before ex-div on the HSTC daily bulletin. IPOs: Credit Suisse can participate in IPOs.
Market Hours
Spreads Settlement Tax Restrictions Short Sell Foreign Ownership Crossing
Other Information
58
Portfolio Strategy
Market Commentary Disclaimer

Please follow the attached hyperlink to an important disclosure: http://www.credit-suisse.com/legal_terms/market_commentary_disclaimer.shtml Structured securities, derivatives and options are complex instruments that are not suitable for every investor, may involve a high degree of risk, and may be appropriate investments only for sophisticated investors who are capable of understanding and assuming the risks involved. Supporting documentation for any claims, comparisons, recommendations, statistics or other technical data will be supplied upon request. Any trade information is preliminary and not intended as an official transaction confirmation. Use the following links to read the Options Clearing Corporation's disclosure document: http://www.cboe.com/LearnCenter/pdf/characteristicsandrisks.pdf Because of the importance of tax considerations to many option transactions, the investor considering options should consult with his/her tax advisor as to how taxes affect the outcome of contemplated options transactions. This material has been prepared by individual traders or sales personnel of Credit Suisse and its affiliates ('CS') and not by the CS research department. It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. It is provided for informational purposes, is intended for your use only and does not constitute an invitation or offer to subscribe for or purchase any of the products or services mentioned. The information provided is not intended to provide a sufficient basis on which to make an investment decision. It is intended only to provide observations and views of individual traders or sales personnel, which may be different from, or inconsistent with, the observations and views of CS research department analysts, other CS traders or sales personnel, or the proprietary positions of CS. Observations and views expressed herein may be changed by the trader or sales personnel at any time without notice. Trade report information is preliminary and subject to our formal written confirmation. CS may, from time to time, participate or invest in transactions with issuers of securities that participate in the markets referred to herein, perform services for or solicit business from such issuers, and/or have a position or effect transactions in the securities or derivatives thereof. The most recent CS research on any company mentioned is at http://www.csfb.com/researchandanalytics. Backtested, hypothetical or simulated performance results have inherent limitations. Simulated results are achieved by the retroactive application of a backtested model itself designed with the benefit of hindsight. The backtesting of performance differs from the actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Alternative modeling techniques or assumptions might produce significantly different results and prove to be more appropriate. Past hypothetical backtest results are neither an indicator nor a guarantee of future returns. Actual results will vary from the analysis. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance. The information set forth above has been obtained from or based upon sources believed by the trader or sales personnel to be reliable, but each of the trader or sales personnel and CS does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors, omissions or changes in market factors. This material does not purport to contain all of the information that an interested party may desire and, in fact, provides only a limited view of a particular market.
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Portfolio Strategy

Global Market Commentary 08 September 2008

Everything You Ever Wanted to Know about Global Equity Markets

A Rapidly Changing Global Marketplace

Global Wealth Growing

Beware the Fundamentals

Emerging Markets: More Risk & Return

Frontier Markets Offer New Investment Opportunities

Part II: MARKET CHARACTERISTICS

Part III: STRUCTURE OF GLOBAL MARKETS

Part IV: DAILY VOLUME CURVES

Part V: INTERNATIONAL RULES & REGULATIONS

KEY MARKET THEMES

US Leads The March of the Algos

Daily Value Traded

Daily Value Traded ($ Bn)

$150 $100 $50 $Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03

Source: Credit Suisse: AES Analysis

Volume Breakdown by Exchange

Source: Credit Suisse: AES Analysis

Average Number of Shares per Trade Over Time

Average Trade Size

Source: Credit Suisse: AES Analysis

Europes Changing Marketplace

Source: Credit Suisse: AES Analysis

And Often Significant Price Improvement

0 0 5 10 15 20 25 30 Average Spread (bps)

Crossing the Border: Canadas Dual-Listings

3,000 2,500 Value Traded ($ Millions

Growth in Value Traded over Time

.47 .62 .60

.03 .00 .14

.18 .02 .00 .10 .05 .01 .11 .01

.13 .01 .15

.10 .01 .14

.13 .01 .19

.16 .00 .25

.15 US Exchanges .19

80 70 60 Shares (Billions) 50 40 30 20 10 0 2000 2001

Source: Credit Suisse: AES Analysis

New Markets Offer Benefits for All

Source: Credit Suisse: AES Analysis

Spread Reductions Sweep Across Asia

Our Prediction for Japans Spread Reductions

Source: Credit Suisse: AES Analysis

Benefits of Tick Size Reduction

India Focus: A Tale of Two Markets

Indian Markets Idiosyncrasies

Source: Credit Suisse: AES Analysis

Source: Credit Suisse: AES Analysis

USA - the Elephant in the Portfolio

Asia Pac 19%

As The Pie Grows, EM Take Larger Share

Source: Credit Suisse: AES Analysis

Total Market Cap in USD by Region

Regional Weightings Over Time

N America Europe Asia Pac Emerging

30% 20% 10% 0% 2003 US

2005 N America (Canada)

2007 Asia Pac

Jan 2008 Emerging

Source: Credit Suisse: AES Analysis

Source: Credit Suisse: AES Analysis