TALLINN STOCK EXCHANGE

ANNOUNCEMENT

25.05.99

 

TALLINN STOCK EXCHANGE SURVEILLANCE COMMITTEE’S DECISION ABOUT HF 

KAPITAL AS

 

The Tallinn Stock Exchange ("TSE") Surveillance Committee discussed on 

its 24.05.1999 meeting the possible violation of the provisions of the 

TSE Rules and Regulations by HF Kapital AS ("HFK").

 

1. Pursuant to article 6.3.6. of chapter “Membership Rules” of the TSE 

Rules and Regulations, the Stock Exchange member is required to 

inform the Stock Exchange about resignation of the approved broker 

in form of written notice at least 7 days in advance.

 

The results of the surveillance procedures conducted by the TSE 

indicated that HFK failed to meet the aforementioned requirement.

 

2. Pursuant to article 4.4.1. of chapter “Membership Rules” of the TSE 

Rules and Regulations, the Stock Exchange member is required to 

employ full-time at least one approved broker.

 

During the time period of 12.11.-18.11.1998, no approved brokers were 

employed by HFK.

 

3. Pursuant to article 3.2.1. of chapter “Trading Rules” of the TSE 

Rules and Regulations, in case the Stock Exchange member is also a 

recognized dealer for a security, it is required to employ full-time 

at least two approved brokers, of whom at least one is immediately 

available at any time during the trading hours on the phone number 

used for effecting exchange transactions.

 

During the time period of 22.09-15.10.1998, when HFK was a recognized 

dealer for eight securities, only one approved broker was employed by 

HFK.

 

4. Pursuant to article 4.1.5. of chapter “Membership Rules” of the TSE 

Rules and Regulations, each approved broker employed by the Stock 

Exchange member has a personal identification code and password. The 

Stock Exchange member is required to guarantee that the 

identification code and password are used solely by the approved 

broker, to whom the respective identification code and password were 

assigned.

 

The results of the surveillance procedures conducted by the TSE 

indicated that HFK failed to meet the aforementioned requirement.

 

 

The Tallinn Stock Exchange Surveillance Committee found that HFK has 

violated against the provisions of articles 4.1.5., 4.4.1. and 6.3.6. 

of chapter “Membership Rules”, and article 3.2.1. of chapter “Trading 

Rules” of the TSE Rules and Regulations. 

 

The TSE Surveillance Committee decided to fine HFK in the amount of EEK 

5,000 for violation of article 6.3.6. of chapter “Membership Rules” and 

article 3.2.1. of chapter “Trading Rules” of the TSE Rules and 

Regulations.

 

The TSE Surveillance Committee decided to issue a warning to HFK for 

violation of articles 4.1.5. and 4.4.1. of chapter “Membership Rules” 

of the TSE Rules and Regulations.

 

 

TSE