EDX LONDON LIMITED

TURQUOISE DERIVATIVES RULE BOOK

Version 1.1 Issued 26 September 2011

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Contents
PART.1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 PART 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 GENERAL Introduction Definitions Relationship with Members Membership Criteria Trading Capacity of Members Accounts Transactions and Contracts Confidentiality Disciplinary Procedures Appeals Administrative Matters Dissemination of Market Information Technical Regulations Copyright and Intellectual Property Limits of Liability Emergency Provisions Amendments to these Rules Governing Law LISTING AND TRADING OF LISTED PRODUCTS Trading Principles Platform Listing Listing of New Listed Products Designation of Listed Series Market Making: General Orders Placing, Cancellation and Variation of Orders Order Types The Marketplace Service Placing of Orders with the Marketplace Service Indications of Interest

Page
10 10 10 18 19 20 21 22 23 23 24 24 24 25 26 27 27 28 29 30 30 30 31 31 31 32 32 33 34 35 35

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2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 PART 3 3.1 3.2 3.3 3.4 3.5 3.6 PART 4.1 Instructions to Marketplace Service Rules for Non-Standardised Contracts Give-Ups Deleted Cancellation of Incorrect Transactions Market Supervision Position Limits Prohibition of Market Manipulation Trading Hours Emergency Closure or Suspension of Trading Information Concerning Listed Series Eligible U.S. Investors CLEARING AND SETTLEMENT Introduction Registration and Requests for Registration of Off-Exchange Transactions Protests Re-registration Exercise of Options Contracts Fees and Cash Settlement Obligations 35 36 38 39 39 43 43 44 44 44 45 45 47 47 47 50 51 52 53

FUTURES AND OPTIONS CONTRACTS BASED ON INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPTS (IOB DRs) 55

4.1.1 4.1.2 4.1.3 4.1.3.1

International Order Book Depositary Receipt (IOB DR) Interpretation Contract Specifications

55 55 58

Contract Specifications: Standardised Futures on an International Order Book Depositary Receipt (IOB DR) 58 Contract Specifications: Standardised Options on an International Order Book Depositary Receipt (IOB DR") 59 Listing of New Series Request for Listing of New Series Designation of Expiration Month Payment of Fees Market Making Obligations 60 61 61 62 62

4.1.3.2

4.1.4 4.1.5 4.1.6 4.1.7 4.1.8

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4.1.9 4.1.10 4.1.11 4.1.12 4.1.13 4.1.14 4.1.15 4.1.16 4.1.17 4.1.18 4.1.19 4.1.20.1 4.1.20.2 4.1.20.3 4.1.20.4 PART 4.1.A Market Maker Fees Market Making: Sanctions Orders Registration of Off-Exchange Transactions Requests for Re-Registration Cancellation of Incorrect Transactions Daily Cash Settlement Settlement and Delivery of IOB DR Contracts IOB DRs: Expiration Settlement Procedures Options: Exercise Standard Exercise of IOB DR Recalculation Rules for IOB DR General Principles Applicable to Recalculation of IOB Depositary Receipt Contracts Recalculation Methods Corporate Actions 64 65 66 66 67 67 68 68 69 70 71 71 72 74 75

FUTURES CONTRACTS BASED ON INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPT DIVIDENDS (IOB DR DIVIDEND FUTURES) AND LATE DIVIDEND FUTURES ON INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPT (LATE IOB DR DIVIDEND FUTURES) 81 90

APPENDIX 1 TO PART 4.1 - Adjustment Method - Fair Value PART 4.2 4.2.1 4.2.2 4.2.3 4.2.3.1 4.2.3.2 4.2.4 4.2.5 4.2.6 4.2.7 4.2.8 4.2.9 4.2.10 4.2.11

FUTURES AND OPTIONS CONTRACTS BASED ON THE FTSE RUSSIA IOB INDEX 92 Introductory Interpretation Contract Specifications Contract Specifications: Standardised FTSE Russia IOB Index Futures Contract Specifications: Standardised FTSE Russia IOB Index Options Listing of New Series Designation of Expiration Months Payment of Fees Market Making Obligations, Market Making Fees, Market Making Sanctions Orders Registration of off-exchange transactions Requests for Re-Registration Cancellation of Incorrect Transactions 92 92 95 95 96 97 97 98 98 98 98 99 100

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4.2.12 4.2.13 4.2.14 4.2.15 4.2.16 4.2.17 4.2.18 PART 4.5 4.5.1 4.5.2 4.5.3 4.5.3.1 4.5.3.2 4.5.4 4.5.5 4.5.6 4.5.7 4.5.7A 4.5.8 4.5.9 4.5.10 4.5.11 4.5.12 4.5.12A 4.5.13 4.5.14 4.5.15 4.5.16 4.5.17 Expiration Settlement Price Expiration and Settlement FTSE Russia IOB Index Futures Contracts Daily Cash Settlement : FTSE Russia IOB Index Futures Contracts Closing Transactions: FTSE Russia IOB Index Futures Contracts FTSE Russia IOB Index Futures Contracts: Expiration Settlement Options: Exercise Options: Standard Exercise FUTURES AND OPTIONS CONTRACTS BASED ON NORWEGIAN STOCK Norwegian Stock - Introductory Interpretation Contract Specifications Contract Specifications: Standardised Norwegian Stock Futures Contract Specifications: Standardised Norwegian Stock Options Listing of New Futures and Options Contracts Designation of Expiration Month Payment of Fees and Premium Market Making Obligations Market Making Fees Market Making: Sanctions Orders Registration of off-exchange transactions Requests for Re-Registration Cancellation of Incorrect Transactions Norwegian Stock Contracts: Daily Cash Settlement Settlement and Delivery of Norwegian Stock Contracts Norwegian Stock Futures: Settlement Procedures Exercise of Norwegian Stock Options Standard Exercise of Norwegian Stock Options Recalculation of Norwegian Stock Contracts 100 100 101 102 102 103 103 105 105 105 107 107 108 109 110 111 111 113 114 115 115 116 116 116 117 118 119 120 120 121 132 132

Addendum to Rule 4.5.17 PART 4.6 4.6.1 FUTURES AND OPTIONS CONTRACTS BASED ON THE OBX INDEX Introductory

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4.6.2 4.6.3 4.6.3.1 4.6.3.2 4.6.3.3 4.6.4 4.6.5 4.6.6 4.6.7 4.6.8 4.6.9 4.6.10 4.6.11 4.6.12 4.6.13 4.6.14 4.6.15 4.6.16 4.6.17 4.6.18 4.6.19 Interpretation Contract Specifications Contract Specifications: Standardised OBX Futures Contract Specifications: Standardised OBX Options Deleted Listing of New OBX Contracts Deleted Designation of Expiration Months Payment of Fees Market Making Obligations, Market Making Fees, Market Making Sanctions Deleted Orders Registration of off-exchange transactions Requests for Re-Registration Cancellation of Incorrect Transactions Daily Cash Settlement Closing Transactions OBX Futures Contracts: Expiration Settlement Options: Exercise Options: Standard Exercise OBX Composition and Related Matters 132 134 134 135 136 136 136 136 137 137 138 138 138 139 140 140 141 141 143 143 144 144

Addendum to Rule 4.6.19 PART 4.7 FUTURES AND OPTION CONTRACTS BASED ON THE FTSE 100 INDEX

145 4.7.1 4.7.2 4.7.3 4.7.4 4.7.5 Introductory Interpretation Standardised FTSE 100 Index Futures Contract Specifications Standardised FTSE 100 Index Futures Contract Specifications Changing of the Listing or Expiration Day of a Series 15050 Designation of Expiration Months 15050 Payment of Fees 15050 145 145 148 150

4.7.6

4.7.7

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4.7.8 Orders 15050 Registration fo off-exchange transactions 15150 Rules for Non-Standardised Contracts (tailor made Contracts) 15250 Market Making Expiration Settlement Price 1521 Statements Index Futures Contracts: Expiration and Settlement Index Futures Contracts: Daily Cash Settlement Index Futures Contracts: Closing Transactions Index Options Contracts: Exercise DEFAULT RULES 1544 Definitions and Interpretation 1544 Application 1544 Events of Default 1555 Declaration of Member or Designated Non-Member to be a Defaulter 1566 Default Proceedings in respect of a Defaulter 1566 Default by a Member or Designated Non-Member who is not declared a Defaulter 1577 Defaulter also declared to be in default by the Designated Clearing House 1577 Termination of Futures and Options Transactions 1577 Exercise of Options 1588 Non-fulfilment of Delivery 1588 Sale of Stock, or Deliverable Instruments 1599 Other Actions 1599 Prohibition on Further Trading 1599 151 152 152 152 153 152

4.7.9.

4.7.10

4.7.11 4.7.12

4.7.13 4.7.14 4.7.15 4.7.16 4.7.17 PART 5

5.1

5.2

5.3

5.4

5.5

5.6

5.7

5.8

5.9

5.10

5.11

5.12

5.13

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5.14 Settlement of Open Contracts 1599 Procedures 16060 Delegation of Functions 16060 Costs 16060 Co-operation with Other Bodies 16161 INTRODUCTION Introduction and Status of Cleared Only Contracts 1622 Definitions 1633 TRADE MATCHING 1655 Trade Reports Concerning Cleared Only Contracts 1655 Registration of Cleared Only Contracts 1666 Requests for Re-Registration 1677 Deleted 1688 Delivery and Settlement of Cleared Only Contracts - General 1688 Fees: General 1699 CLEARED ONLY CONTRACTS BASED ON THE INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPT (IOB DR) AND THE FTSE RUSSIA IOB INDEX 1700 Contract Specifications 17070 Contract Specifications: Cleared Only Contracts-IOB DR Futures 17070 Contract Specifications: Cleared Only Contracts-IOB DR Options 17171 Contract Specifications: Cleared Only Contracts-FTSE Russia IOB Index Futures 1722 Contract Specifications: Cleared Only Contracts-FTSE Russia IOB Index Options 1722 Settlement and Delivery of Cleared Only IOB DR Contracts: General and Application of Rules in Part 4.1 1733 162

5.15

5.16

5.17

5.18

PART COR I COR 1.1

COR 1.2

PART COR 2

COR 2.1

COR 2.2

COR 2.3

COR 2.4

COR 2.5

COR 2.6

PART COR 3

COR 3.1

COR 3.1.1

COR 3.1.2

COR 3.1.3

COR 3.1.4

COR 3.2

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COR 3.3 Settlement of Cleared Only FTSE Russia IOB Index Contracts: General and Application of Rules in Part 4.2 1744 Deleted Deleted CLEARED ONLY CONTRACTS BASED ON NORWEGIAN STOCK AND THE OBX INDEX 1766 COR 6.1.1 Contract Specifications: Cleared Only Contracts - Norwegian Stock Futures 1766 Contract Specifications: Cleared Only Contracts-Norwegian Stock Options 1777 Contract Specifications: Cleared Only Contracts-OBX Index Futures 1799 Contract Specifications: Cleared Only Contracts-OBX Index Options 1800 Settlement and Delivery of Cleared Only Norwegian Stock Contracts: General and Application of Rules in Part 4.5 1811 Settlement of Cleared Only OBX Index Contracts: General and Application of Rules in Part 4.6 1822 Fee Schedule Deleted 183

PART COR 4 PART COR 5 PART COR 6

COR 6.1.2

COR 6.1.3

COR 6.1.4

COR 6.2

COR 6.3

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PART.1 1.1
1.1.1

GENERAL Introduction
Turquoise Global Holdings Limited (Turquoise) is a Multilateral Trading Facility authorised and regulated by the Financial Services Authority and has made arrangements for clearing services for Listed Products and clearing services in relation to Cleared Only Contracts to be provided by LCH.Clearnet Limited (LCH) acting as the Designated Clearing House for Turquoise Derivatives. LCH is a Recognised Clearing House in the United Kingdom pursuant to the Financial Services and Markets Act 2000 (the Act). References in these Rules to Turquoise Derivatives or Tuquoise shall be construed as references to TGHL.

1.1.2

Turquoise provides a combined marketplace in relation to Commonly Traded Products with Oslo Brs ASA (Oslo Brs) owned by Oslo Brs VPS Holding ASA. Oslo Brs is recognised as an exchange incorporated as a public limited liability company under the laws of Norway, which is used by its members, amongst other things, for trading of securities and securities derivatives. These Rules prescribe the terms on which Turquoise provides trading facilities to its Members and the arrangements made by Turquoise in conjunction with the Designated Clearing House in relation to the clearing and settlement of Contracts entered into under these Rules. The Rules governing the reporting of transactions in Cleared Only Contracts are set out in the Rules for Cleared Only Contacts at Part COR of these Rules. In the event that there is any conflict between these Rules and any other statement whether written or oral made by Turquoiseat any time, the terms of these Rules shall prevail.

1.1.3

1.1.4

Members are entitled to participate in the trading and clearing of equity derivative and other instruments provided for in these Rules and in the reporting to Turquoiseof contracts entered into on a bilateral basis for registration pursuant to the Rules for Cleared Only Contracts. The trading services provided by Turquoiseare provided by it in its capacity as an MTF subject to the supervision of the Financial Services Authority (FSA) and to the requirements of FSA handbook relating to Mulitilateral Trading Facilities.

1.1.5

1.2
1.2.1

Definitions
Unless the contrary intention appears, the following terms used in these Rules shall have the meanings given below: Account means: (i) an account held by a General Clearing Member at the Designated Clearing House in which Futures and Options transactions entered into whether on own account or on behalf of a Client or a customer by such General Clearing Member or by a Member for whom the General Clearing Member acts as such pursuant to the Clearing House Regulations may be registered; or an account held by a Clearing Member at the Designated Clearing House in which Futures and Options transactions entered into by such Clearing Member whether on own account or on behalf of a Client pursuant to the Clearing House Regulations may be registered;

(ii)

Account Holder in relation to an Account, means the General Clearing Member or the Clearing Member in whose name the Account is held at the Designated Clearing House; American Style Option means an Option which the Holder may exercise at any time during the Term; Associated Clearing House means any body acting as the provider of clearing services to an Associated Exchange;

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Balance Contract means the arrangements established between the Designated Clearing House and Oslo Brs governing the administration and settlement of contracts resulting from Transactions effected by a member of Turquoise and a member of an Associated Exchange; BCS means Borsa Italiana Technology Clearing Station which is used by Members to access Turquoises clearing services; BTS means Borsa Italiana Technology trading station which is used by Members to access Turquoises trading services; Broker means a Member which has entered into the Membership Agreement and which may enter into Transactions on behalf of Clients in accordance with these Rules; Call Option means: (i) in relation to an Index Option, a Contract under which the Holder of the Option has the right, against the obligation to pay the Premium to the Writer, to buy the value of the Contract Index at the Strike Price on the Expiration Date for such Contract and the Writer has the obligation to sell the value of the Contract Index at the Strike Price on the Expiration Date for such Contract to the Holder against the right to receive payment of the Premium; and in relation to a Stock Option, a Contract under which the Holder of the Option has the right, against the obligation to pay the Premium to the Writer, to buy the Underlying Stock from the Writer at the Strike Price on the Exercise Date for the Contract and the Writer has the obligation to sell the Underlying Stock at the Strike Price on the Exercise Date for the Contract to the Holder against the right to receive payment of the Premium;

(ii)

CC&G means la Cassa di Compensazione e Garanzia S.p.A. Further information can be found at http://www.ccg.it; Clearing Capacity means the status conferred by the Designated Clearing House on a Member enabling it to act as a General Clearing Member or a Clearing Member as the case may be; Clearing House Regulations means the General Regulations, Default Rules and Procedures of the Designated Clearing House as amended from time to time; Clearing Member means a member of the Designated Clearing House including a General Clearing Member as the context may require; Clearing Services Agreement means the agreement between Turquoise and LCH; Client means a person for whom a Broker acts in relation to the effecting and settlement of transactions at Turquoise pursuant to these Rules; Closing means the process whereby on registration of a Closing Transaction, the rights and obligations of the Account Holder in question in respect of the Opening Transaction and the Closing Transaction are extinguished; Closing Transaction means, in relation to an Option held by the Member, an Options Contract in the same Series written by the Member and, in relation to an Option written by the Member, means an Options Contract in the same Series bought by the Member; Collateral means one or more of the forms of security accepted by the Designated Clearing House for such purposes; Collateral Balance means the value of the Collateral provided to the Designated Clearing House in respect of transactions under these Rules by a Clearing Member or a General Clearing Member at any time, such value to be calculated in accordance with the Clearing House Regulations; Collateral Deficiency means the amount if any by which a Member's Margin Requirement at any time exceeds its Collateral Balance; Collateral Surplus means the amount if any by which the value of the Collateral provided to the Designated Clearing House by a Clearing Member or a General Clearing Member at any time exceeds such party's Margin Requirement at such time;

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Combination means an Order the terms of which stipulate that two or more Orders in different Series shall be executed simultaneously with other Orders forming part of the Combination; Commonly Traded Product means a Product which is eligible for trading by Members and members of Oslo Brs as specified more particularly in Turquoises Contract Specifications; Compliance and Regulatory Committee means a sub-committee of the Board with oversight of the compliance function and with responsibility for, amongst other things, the disciplinary process; Contract Base means the Contract Index or Underlying Stock on which a Listed Product is based; Contract Index means the Index designated as such by Turquoiseon which the Index Option or Index Future in question is based; Contract Series means Futures Series and Option Series collectively and Series shall be construed accordingly; Contract Specification in relation to a Contract means the detailed information set out at the section of Part 4 of these Rules applicable to the Contract in question setting out the standard terms of such Contract, as varied from time to time; Co-Operation Agreement means the agreement between Turquoiseand Oslo Brs wih regards to the access to a combined Order Book; Counterparty means the Member or Associated Clearing House which is the opposite party to the Designated Clearing House in its capacity as a central counterparty to a Registered Contract and Counterparties shall be construed accordingly; Day Account means the Account on which Transactions effected by a Member are registered initially prior to final allocation to the Account of the Member or of its General Clearing Member where appropriate for clearing and settlement; Default Rules means the rules set out in Part 5 hereof; Designated Clearing House means LCH.Clearnet Limited, a Recognised Clearing House, as the provider of clearing services to Turquoisein respect of Listed Instruments and Cleared Only Contracts; European Style Option means an Option which may only be exercised by the Holder on the Expiration Date for such Contract; Exercise in relation to an Options Contract, means the process of settlement applicable to such Contract to be effected pursuant to an Exercise Order given by the Holder of the Option or on Standard Exercise thereof in accordance with these Rules; Exercise Date in relation to an Options Contract, means the day on which Exercise is effected whether by submission of an Exercise Order or on Standard Exercise; Exercise Fee means the fee payable to Turquoiseby the Holder of an Options Contract on its Exercise; Exercise Index Value in relation to an Index Option, means the value given in the Option's designation; Exercise Order means the request submitted to Turquoiseby the Holder of an Option that such Option be exercised; Exercise Settlement Day means the day on which the obligations of the parties to an Options Contract following its Exercise are due for settlement as specified in the Contract Specification for the Product in question; Exercise Settlement Statement means the Settlement Statement issued by Turquoisefollowing Exercise of an Options Contract showing the rights and obligations of the Counterparties following the Expiration of the Contract;

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Expiration in relation to a Series means the process whereby trading in such Series is terminated on the Expiration Date for such Series and the rights and obligations of Members in respect of outstanding Contracts in such Series are settled in accordance with the provisions governing settlement of such Contracts set out in these Rules; Expiration Date in relation to a standardised Contract, means the day designated as such by Turquoise as the day on which such Contracts will expire and, in relation to a NonStandardised Contract, means the day agreed upon by the Parties as the day on which such Contract will expire; Expiration Month in relation to a standardised Contract, means the month designated by Turquoiseas the month in which such Contract will expire and in relation to a Non-Standardised Contract, means the month agreed upon by the Parties as the month in which such Contract will expire; Expiration Settlement means the procedures for final settlement of a Contract on Expiration provided for in these Rules and the Clearing House Regulations; Expiration Settlement Day in relation to a Series, means the day on which final settlement of Contracts in such Series which have proceeded to Expiration Settlement are to be performed; Expiration Settlement Statement means the Settlement Statement issued by Turquoisefollowing Expiration of a Futures Contract showing the rights and obligations of the Counterparties following the Expiration of the Contract; Expiration Year in relation to a standardised Contract means the year designated by Turquoiseas the year in which such Contract will expire and in relation to a Non-Standardised Contract, means the year agreed upon by the Parties as the year in which such Contract will expire; FSA means the Financial Services Authority; Fast Market means significant market movements in respect of a Contract Base; Fee means the amount due and payable by a Member in relation to services provided by Turquoisein accordance with these Rules and Fees shall be construed accordingly; First Listing Day means the first day on which Contracts in a particular Series will be accepted for registration by Turquoise; Futures Class means Futures Contracts based on the same Underlying Stock or Contract Index as the case may be; Futures Contract means a standardised Futures Contract or a Non-Standardised Futures Contract which is registered by Turquoisein the Account of the Member and Future and Futures shall be construed accordingly. Unless otherwise specifically stated, a Futures Contract includes such a Contract whether written by Turquoiseor by the Member. Futures Contracts are subject to daily Cash Settlement; Futures Contract Price in relation to a Futures Contract, means the price agreed upon by the Parties to such Contract on concluding the Transaction in question to be used in determining the rights and obligations of the Parties on Cash Settlement of an Index Future or on Physical Settlement of a Stock Future as the case may be; Futures Contract Value in relation to an Index Futures Contract means the Futures Contract Price for such Contract multiplied by the Index Multiplier and in relation to a Stock Futures Contract means the Futures Contract Price for such Contract multiplied by the number of shares of the Underlying Stock represented by such Contract; Futures Only Market Maker means a Member which has agreed to act as such in respect of one or more Listed Product. Futures Series means Futures Contracts having the same Expiration Month and Expiration Year; GCM Agreement means the NCM-GCM-LCH Agreement in the form prescribed by the Designated Clearing House governing the relationship between the Designated Clearing House, a General Clearing Member and a Non-Clearing Member in respect of Registered

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Contracts and Cleared Only Contracts to be entered into by such parties in accordance with the Clearing House Regulations; General Clearing Member means a Member which is a member of the Designated Clearing House and which has entered into the GCM Agreement prescribed by the Designated Clearing House for such purposes for the time being, thereby agreeing to act in the capacity of General Clearing Member for the Member in question; General Clearing Member Account means an Account maintained by the Designated Clearing House for the purposes of registering Contracts on behalf of Non-Clearing Members for which the General Clearing Member acts as such as provided for more particularly in the Clearing House Regulations; Held Option means: (i) in relation to a Call Option, a Contract the Holder of which has the right to buy the Contract Base at the Strike Price on Exercise of the Option in accordance with these Rules; in relation to a Put Option, a Contract the Holder of which has the right to sell the Contract Base at the Strike Price on Exercise of the Option in accordance with these Rules;

(ii)

High Speed Vendor Feed (HSVF) means Turquoises electronic public market data information dissemination system; HSVF Subscriber Agreement means the agreement governing the right to subscribe to receive or display TurquoiseMarket Data using HSVF; Holder in relation to an Options Contract, means the Member entitled to exercise the Option in accordance with its terms; Index Contracts means Index Futures and Index Options collectively; Index Future means a Futures Contract based on any of the Stock Indexes referred to in Part 4; Index Multiplier in relation to a Contract Index, means the amount specified as such in the Contract Specification for Products based on the Index in question; Index Option means an Options Contract based on any of the Stock Indexes referred to in Part 4; Index Provider means the party for the time being acting as provider of the Contract Index in accordance with the provisions of the section of Part 4 applicable to the Contract Index; Index Value means the value of the Contract Index at any time calculated in accordance with the provisions of the section of Part 4 applicable to such Contract Index; Indication of Interest means a non-binding indication of interest in a transaction given to the Marketplace Service by a Member; Information List means the list published by Turquoiseshowing the type of information which is available to Members and third parties and the means of dissemination of such information; Lifetime in relation to a Contract means the period from the First Listing Day to the Expiration Date inclusive; Listed Product means an Product which is listed by Turquoise and which may be traded by means of its facilities, the terms of which are specified more particularly in the Contract Specification for the Product in question set out at Part 4 to these Rules and Product shall be construed accordingly; Listed Series means Futures Series and Options Series collectively and Series shall be construed accordingly; Listings Schedule means the schedule published by Turquoise showing Listed Products and Listed Series for the time being;

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London Bank Day means a day other than a Saturday or a Sunday on which banks generally are open for business in London; Margin Requirement in relation to an Account of a Member, means the requirement as determined by the Designated Clearing House to provide security for the fulfilment of the obligations of the Member arising from Contracts registered in such Account; Market Information means information relating to Listed Products which is published by Turquoise as described in Rule 1.12; Market Maker means a Member which has entered into the Market Maker Agreement; Market Maker Account means an Account of the type described in Rule 1.6.1; Market Maker Agreement means the standard form agreement entered into between a Market Maker and Turquoise whereby the Market Maker agrees to act as such in relation to certain specified products; Market Maker Document means the document, as amended from time to time, which contains further details in respect of Market Makers obligations, and applicable sanctions. This document shall be read in conjunction with the Market Maker Agreement and the Turquoise Derivatives Rules and is available at www.tradeturquoise.com; Market Order means an Order placed by a Member subject to a requirement that it must be accepted immediately or withdrawn; Marketplace Service means the marketplace service provided by Turquoiseto Members as described more particularly in Part 2 of these Rules and the abbreviation MPS shall be construed accordingly; Member means a party which has entered into the Membership Agreement with Turquoise; Membership Agreement means the standard form agreement entered into between a Member and Turquoisegoverning that party's position as a Member at Appendix B; Membership Criteria means the requirements applied by Turquoiseset out at Rule 1.4 which need to be satisfied by applicants for membership in the category in question; Most Liquid Series means, in the case of a Stock Contract, the Series which is closest to the price of the Underlying Stock and in the case of an Index Contract, the Series which is closest to the value of the Contract Index; Non-Clearing Member means a Member which is a member of the Designated Clearing House other than a Clearing Member and which is a party to a GCM Agreement; Non-standardised Combination means a Combination other than a Standardised Combination; Non-Standardised contract means a Stock or Index Contract executed or reported to Turquoisefor registration in accordance with Rule 2.13; Opening Transaction means in relation to an Options Contract, a transaction in a Series other than a Closing Transaction; Options Class means Options based on the same Underlying Stock or Contract Index as the case may be; Options Contract means a Call Option and a Put Option collectively and Option shall be construed accordingly; Options Series means a series of Contracts based on an Listed Product of the same Type having the same Expiration Month and Year and the same Strike Price; Options Type means either a Call Option or a Put Option as the case may be and Type shall be construed accordingly; Order means an unconditional offer by a Member to buy or sell Products in a Listed Series;

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Orderbook in relation to a Listed Product, means the record of current Orders for such Product; Orderbook Order means an Order placed by a Member subject to a condition that it be withdrawn at the normal close of trading for the Product in question on the day it is entered or at the time specified by the Member on placing the Order; Oslo Brs means Oslo Brs ASA owned by Oslo Brs VPS Holding ASA; Parameter Value List means the list published by the Designated Clearing House showing the parameter values used in the calculation of the Margin Requirements of Members; Penalty Fee means the fee payable to Turquoiseby a Member in the circumstances prescribed in these Rules where the Member has failed to perform its obligations under such Rules at the time or in the manner required therein; Physical Settlement in relation to a Futures or an Options Contract means the process of settlement of such Contract to be performed by the delivery of the underlying security; Position Limits means the limits applied from time to time by Turquoisewhether generally or in relation to a particular Member imposing limits on the number of Contracts of any type which may be executed by a Member; Premium means the consideration due to the seller for entering into an Options Contract as agreed by the Holder and the Writer of the Contract on entering into it; Premium Settlement Day means the day on which the Premium for an Options Contract is to be paid; Prescribed Spread in relation to an Options Contract or a Futures Contract means the range within which bid and offer prices must be provided by Market Makers in such Contracts; Proprietary Account means an Account of the type described in Rule 1.6.1 in which transactions entered into by a Member on its own account, and only such transactions, are to be registered; Protest means a request submitted by a Member to Turquoiserequesting the cancellation or amendment of an incorrect Registration or the Registration of a Transaction which had been omitted, or a request for an amendment of an incorrectly executed or non-executed Exercise or Cash Settlement; Put Option means: (i) in relation to an Index Option, a Contract under which the Holder has the right on its Expiration Date to sell the value of the Contract Index to the Writer at its Strike Price against the obligation to pay the Premium and the Writer has the obligation to buy the value of the Contract Index from the Holder at its Strike Price on its Expiration Date in consideration for the payment of the Premium; and in relation to a Stock Option, a Contract under which the Holder has the right on Exercise of the Option to sell the Underlying Stock to the Writer at its Strike Price against the right to receive the Premium and the Writer has the obligation to buy the Underlying Stock from the Holder at its Strike Price on its Expiration Date in consideration for the payment of the Premium;

(ii)

Recognised Clearing House means an organisation recognised as such pursuant to the Act; Registered Contract means a Futures Contract or an Options Contract registered in an Account following the execution of a Transaction entered into by means of Turquoise's facilities or the acceptance by it of a Request for Registration of a transaction in a Listed Product effected off exchange in accordance with these Rules and Contract shall be construed accordingly; Registered Counterparty means the Account Holder or Associated Clearing House which is registered as the opposite party to a Registered Contract to the Designated Clearing House following execution of a Transaction or registration of a Contract in accordance with these Rules;

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Registrable Contract means a contract which is eligible for registration in a Clearing Account in accordance with these Rules; Registration means the process of recording Transactions and transactions in Listed Products which have been effected off exchange, registration of which has been requested in the manner provided for in these Rules, in the Account at the Designated Clearing House specified by that Member or in the appropriate Account of its General Clearing Member in accordance the Clearing House Regulations; Registration Day in relation to a Contract, means the day on which such Contract is registered by the Designated Clearing House in accordance with these Rules; Request for Re-registration means a request submitted by a Clearing Member to the Designated Clearing House seeking the Re-registration of one or more Registered Contracts; Re-registration means the process of transferring a Registered Contract from one Account to another Account pursuant to a Request for Re-registration submitted in accordance with these Rules; Re-registration Fee means the fee payable on Re-registration of a Contract pursuant to Rule 3.5; Rules means these rules, including the Rules for Cleared Only Contracts at Part COR and the documents appearing in the Appendices as amended from time to time; Rules for Cleared Only Contracts means the Rules at Part COR of these Rules and the Appendices to Part COR, as amended from time to time; Settlement in relation to a Futures Contract or an Options Contract means the procedures for Cash Settlement and or Physical Settlement applicable to the Contract in question set out in the relevant section of Part 4 to these Rules and in the Clearing House Regulations on the Expiration or Exercise of such Contract; Settlement Day in relation to a Contract, means the day on which the settlement obligations of such Contract are to be performed; Settlement Statement means the note showing the details of the settlement amounts due to or payable by a Member following settlement; Settlement Value means the value used by Turquoise for the purposes of determining the Expiration Settlement Amount for a Contract; Standard Exercise means the procedures governing the exercise of in-the-money Options Contracts prescribed in Part 4 of these Rules; Standardised Combination means a Combination of a type which Turquoise designates as such for the time being; Stored Order means an Order relating to a standardised Listed Product which is stored in Turquoise's electronic orderbook in accordance with these Rules; Strike Price in relation to an Options Contract, means the price agreed upon by the parties on entering into the Transaction in question to be used in determining the rights and obligations of the Parties on Cash Settlement of an Index Option or on Physical Settlement of a Stock Option as the case may be; Suspension of Trading means a trading suspension on Turquoise or of any underlying primary markets; Trading Capacity means the status conferred by Turquoise allowing a Member to trade on Turquoise in the capacity of a Broker, Proprietary Trader or Market Maker as the case may be; Trading Counterparties means, in relation to a Transaction effected onTurquoise, the party whose offer to buy or to sell a Contract is accepted and the Member by whom such offer is accepted; Trading Day in relation to a Listed Product means any day on which Turquoise is open for trading such Product;

18

RULE BOOK
Transaction means an agreement for the sale or purchase of an Listed Product between Members of Turquoise or between a Member of Turquoise and a member of Oslo Brs concluded by means of the facilities provided by Turquoise for the trading of such Instruments in accordance with these Rules; Turquoise Management means the management of Turquoise Global Holdings Limited; Turquoise Market Data means the market information originating from Turquoises trading and clearing operation facilities such as quotes, orders, trades and volumes; Turquoise Information Licence Agreement means the agreement governing the right to disseminate Turquoises Market Data. Writer in relation to an Options Contract, means the Member whose Contract is liable to be exercised in accordance with its terms; Written Option means: (i) in relation to a Call Option, a Contract the Writer of which is obliged to sell the Contract Base at the Strike Price on Exercise of the Option in accordance with these Rules; in relation to a Put Option, a Contract the Writer of which is obliged to buy the Contract Base at the Strike Price on Exercise of the Option in accordance with these Rules.

(ii)

1.2.2

Save where these Rules state expressly to the contrary, all references to time herein are references to London time.

1.3
1.3.1 1.3.2

Relationship with Members

Turquoise is committed to providing trading services of the highest quality to its Members and to ensuring that the markets in Listed Products meet the standards set by the FSA. To this end Turquoise aims to: (i) (ii) set rules and standards for its Members which ensure the provision by it of a fair market in which listed products can be properly priced; grant membership only to suitably qualified bodies of good standing and operate appropriate internal procedures for the supervision of the activities of its Members and take enforcement action as necessary to ensure that the conduct of Members is of the required standard; grant membership only to bodies having sufficient resources and to monitor the continuing compliance with these requirements by Members to minimise the risk of default by a Member and to minimise the impact on the market should a default occur; and monitor and assess trading on the platform, the activities of Members, the quality of its markets and to enforce compliance with these Rules by utilising its technology and other means.

(iii)

(iv)

1.3.3

Turquoise believes that the quality of its Members and their standard of conduct is of fundamental importance to its standing as an MTF and is firmly committed to the fair and proper enforcement of these Rules. Disciplinary procedures and the sanctions available to Turquoise against Members in respect of breaches of these Rules are set out in Rule 1.9 below. All Members shall comply fully with these Rules. A Member shall inform Turquoise immediately of any failure by the Member to comply with the Rules. The Member shall inform Turquoise immediately of any change in the Members status as a Clearing Member or General Clearing Member or of any arrangements made by it with a General Clearing Member.

1.3.4 1.3.5 1.3.6

19

RULE BOOK
1.3.7 The Member shall inform Turquoise immediately of any change in the financial position of the Member which might cause it to fail to satisfy the financial criteria applicable to it or which otherwise might have an adverse effect on its ability to perform its obligations to Turquoise. The Member shall inform Turquoise immediately of the occurrence of any event which affects its regulatory capacity required for its activities as a Member. The Member shall report any dispute with any third party relating to a transaction in a Listed Product to Turquoise at the earliest opportunity. The Member shall inform Turquoise in writing of any change in its name, principal place of business or principal shareholders, directors or officers and of any change in the list of persons authorised to effect transactions at Turquoise. Wherever possible, such notice shall be given prior to the occurrence of the event in question. The Member shall allow Turquoise access to its premises and relevant records and shall cooperate fully in connection with any investigation which Turquoise considers needs to be undertaken into any aspect of the conduct of the Member arising from its activities as a member of Turquoise or any suspected breach by such Member of these Rules. Turquoise will generally give the Member advance notice of its intended investigation. Deleted Turquoise may use the services of the FSA or any other appropriate regulatory organisation in any investigation undertaken by it under these Rules. Turquoise shall treat any information provided to it by a Member in accordance with these Rules as confidential but may pass any such information or any information which it obtains under an investigation under these Rules to the FSA, a recognised clearing house, any other body having responsibility for the regulation of financial services business in the United Kingdom, Oslo Brs or to any overseas body having responsibility for the regulation of financial services business in a jurisdiction connected with the Member involved in the investigation. Save where it is required to do so by operation of law or by virtue of an order of a court of competent jurisdiction or to comply with its obligations to provide information to any governmental or multinational organisation or agency, Turquoise shall not disclose any such information or any information coming into its possession as a result of such investigation to any other person without the express authorisation of the Member in question. Turquoise may exclude a Member from trading Listed Products or suspend its right to submit reports pursuant to the Rules for Cleared Only Contracts or place such other restrictions on the activities of the Member as Turquoise considers necessary following any change in the circumstances of the Member of the type described in this Rule 1.3.

1.3.8 1.3.9 1.3.10

1.3.11

1.3.12 1.3.13 1.3.14

1.3.15

1.4
1.4.1 1.4.2 1.4.3 1.4.4 1.4.5

Membership Criteria
Members are required to satisfy the Membership criteria applied by Turquoise appropriate to the capacity in which they intend to act at Turquoise. The Applicant must be an EEA regulated investment firm or credit institution (as defined under MiFID); or The Applicant must show that it is fit and proper; and Turquoise Management must be satisfied that the Applicant has or will have sufficiently completed conformance testing prior to conducting business on Turquoise; and Turquoise Management must also be satisfied that the Applicant has adequate organisational arrangements and a sufficient level of trading ability and competence and other relevant systems and controls; and The Applicant must be a clearing member of a central counterparty approved by Turquoise Management or have made satisfactory arrangements with an entity that is in order to guarantee the clearing of any transactions executed on Turquoise. The rules and procedures governing admission to membership of the Designated Clearing House in the respective capacities of Clearing Member and General Clearing Member are provided in the Clearing House Regulations. The financial criteria applied by the Designated Clearing House for such purposes for the time being are:

1.4.6

20

RULE BOOK
(i) (ii) (iii) 1.4.7 A General Clearing Member must have net current assets in excess of 2 million and fully paid-up share capital or other non-distributable reserves of 1 million. A Clearing Member must have net current assets in excess of 1 million and fully paid-up share capital or other non-distributable reserves of 500,000. A Non-Clearing Member is not subject to any specific financial criteria.

In accordance with Rule 1.4.6, a Member shall maintain the necessary clearing arrangements, either directly or with a General Clearing Member acting on its behalf, and in particular is required: (i) (ii) to maintain one or more accounts at a bank approved by the Designated Clearing House to ensure the timely settlement of all transactions; to complete such documents as may be required by the Designated Clearing House, and applicable Central Securities Depository or other agent involved in the Settlement and Delivery of Stock on Expiration or Exercise of Stock Futures and Options in the forms prescribed by the Designated Clearing House; to satisfy Turquoise that arrangements are in place for the provision by the Member or its General Clearing Member of Collateral as and when required in accordance with these Rules; and to establish PPS arrangements in accordance with Rule 1.11.1.

(iii)

(iv) 1.4.8 1.4.9 1.4.10 Deleted

There is no restriction on the number of Members of Turquoise. Deleted

1.5
1.5.1 1.5.1.1

Trading Capacity of Members

General Members may effect transactions on the MTF in one of three capacities: (i) (ii) (iii) Broker; Market Maker; or Proprietary Trader.

1.5.1.2 1.5.1.3 1.5.1.4 1.5.1.5 1.5.2 1.5.2.1 1.5.2.2 1.5.2.3 1.5.2.4

Where a Member has the necessary regulatory authorisation, it may act in more than one of the above capacities. Further provisions relating to the Trading Capacity of Brokers at Turquoise are set out at Rule 1.5.2. Further provisions relating to the Trading Capacity of Market Makers at Turquoise are set out at Rule 1.5.3. Further provisions relating to the Trading Capacity of Proprietary Traders are set out at Rule 1.5.4. Brokers A Member which wishes to act as a Broker at Turquoise shall satisfy Turquoise that it has the regulatory authorisation to act in this capacity. A Broker may enter into transactions at Turquoise either on a proprietary basis or on behalf of a Client. Brokers shall ensure that transactions which they enter into at Turquoise are allocated to the correct Account in accordance with Rule 1.6 and the Clearing House Regulations. All transactions entered into by a Broker on a proprietary basis shall be registered in the Broker's Proprietary Account. Transactions entered into by a Broker on behalf of a Client shall not be registered in this Account.

21

RULE BOOK

1.5.2.5

Transactions entered into by a Broker on behalf of a Client shall be registered in one of the Accounts for the registration of such transactions described in Rule 1.6 and the Clearing House Regulations. Market Makers A Member which wishes to act as a Market Maker in one or more Listed Products shall satisfy Turquoise that it has the necessary regulatory authorisation and technical capability to act in such capacity. A Member which satisfies Turquoise in these respects shall enter into the Market Maker Agreement with Turquoise and shall specify the Listed Products in which it intends to act as a Market Maker and the market making capacity in which it intends to act in respect of each such Product. All transactions entered into by a Market Maker in the capacity of Market Maker shall be registered in a Market Maker Account. Transactions in Listed Products entered into by a Market Maker otherwise than in the capacity of Market Maker shall not be registered in its Market Maker Account. Proprietary Traders A Member which wishes to act as a Proprietary Trader shall satisfy Turquoise that it has the necessary regulatory authorisation to act in this capacity. A Proprietary Trader shall not effect transactions on behalf of customers. All transactions entered into by a Proprietary Trader shall be registered in the Proprietary Trader's Proprietary Account.

1.5.3 1.5.3.1

1.5.3.2

1.5.3.3 1.5.3.4 1.5.4 1.5.4.1 1.5.4.2

1.6
1.6.1

Accounts
Subject to Rule 1.4.8 a Member shall only be entitled to participate in trading at Turquoise if it is either a Clearing Member, a General Clearing Member or is a Non-Clearing Member which has entered into a GCM Agreement with a General Clearing Member and the Designated Clearing House. A Member (other than a Member which has arranged for transactions in Listed Products entered into by it to be cleared by a General Clearing Member) shall open one or more Clearing Accounts at the Designated Clearing House for the Registration of Transactions effected by the Member. A Member which intends to act as a Market Maker shall open one or more accounts for Registration of Contracts entered into by it in the capacity of Market Maker specified for such purposes in the Clearing House Regulations. A Member which intends to enter into transactions on its own account and a Proprietary Trader shall open an Account (Proprietary Transactions) for Registration of Contracts entered into by it on such basis specified for such purposes in the Clearing House Regulations. A Member which intends to act as a Broker shall open one or more of the Accounts specified for such purposes in the Clearing House Regulations.

1.6.2

1.6.3

A Member shall open a Day Account. All Transactions in Listed Products effected by a Member will be registered initially in the appropriate Day Account save where the Member specifies the Account in which the transaction is to be registered at the time of execution. Members shall confirm to Turquoise the type of Clearing Account in which a Contract is to be registered within thirty minutes of the time at which the transaction was registered in the Day Account. The types of account available within Turquoises clearing system for use by Members are described in the table below which also provides details of the related account at the Designated Clearing House to be used for registration of positions recorded in the relevant account. There is no limit to the number of accounts that can be held by a Member. Turquoise accounts are set up and administered by Turquoises Market Operations.

1.6.4

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RULE BOOK
Designated Clearing House Account (House or Client) House House Client Positions allowed (if not, default position account must be defined) Yes Yes Yes

Account Type

Account Name

Description

Positions held on net or gross basis

MM HA OIC

Market Maker Account Proprietary Account Proprietary Account

For Market Maker Trades. Proprietary trades only. For the proprietary trades of a NCM. A position account only. The trading account to which this account is connected must be pre-defined by the member (used by Turquoie members for cross-border accounts only).

Net Net Net

CA

Clearing Account

Client

Yes

Net

NB: Members should note that all NCM business will be designated at LCH as Client business of the GCM.

1.7
1.7.1 1.7.2

Transactions and Contracts

The terms of Listed Products are specified in the Contract Specification for the Product in question at Part 4 of these Rules. Where an Transaction is executed in accordance with these Rules or Turquoise accepts a Request for Registration of a transaction relating to an Listed Product which has been submitted in accordance with the section of Part 4 to these Rules applicable to such Product, the Member or Members involved in such transaction shall enter into a Contract with the Designated Clearing House on the terms of the Contract Specification for the Listed Product and, with regard to the size of the transaction, its price and Series (where applicable), in accordance with the terms agreed on execution of the Transaction in question. Such Contract shall be registered immediately in the Account or Accounts in the clearing system of the Designated Clearing House specified by the Member or Members involved in the Transaction and shall be binding on such parties from the time of such Registration.

1.7.3

An application for Re-registration of a Contract in an Listed Product shall take effect from the time at which Turquoise confirms to the Designated Clearing House that such application has been accepted and the Designated Clearing House amends the particulars recorded in its clearing system in accordance with such request for Re-Registration and registers the Contracts in the appropriate Accounts in accordance with its terms. An incorrectly registered Contract may be cancelled or corrected provided that a valid Protest is made to Turquoise in accordance with Rule 3.4. In the absence of any such Protest, an incorrectly registered Contract will remain in full force and effect and will bind the Registered Counterparties to such Contract.

1.7.4

Following Registration of a Contract in the clearing system of the Designated Clearing House pursuant to the Clearing House Regulations, the Buyer and the Seller of the Contract have the rights and obligations incident to such Contract as specified in Part 4 for the duration of the Contract. Registration of Contracts in a Client Account is effected on a gross basis. A Broker which operates a Client Account shall ensure that the positions registered in such Account accurately reflect the balance of the open interest for the Clients whose positions are registered on the Account at all times. To this end, a Broker which operates a Client Account shall inform Turquoise as soon as practicable following the Registration of a Contract in such Account as to whether the Contract in question represents an Opening Transaction or a Closing Transaction and of the effect that such Registration will have on the open interest on the Account (the required information). Such information may be given either in writing to the Clearing Department at Turquoise or by way of the electronic connection. Where the required information is provided to Turquoise before the relevant deadline prescribed below, any necessary adjustment to the information recorded in the Client Account required in accordance

1.7.5

23

RULE BOOK
with the Brokers instructions will be made by Turquoise. The relevant deadline for a notice given in writing is 10.00 am on the Business Day following the day on which the Contract was initially registered in the Account and, for a notice given by the electronic connection, 12 noon on that day. If a Member fails to provide Turquoise with the required information before the relevant deadline, the Member shall be responsible for taking the necessary action to correct the balance on the Account in question by executing the relevant number and type of transactions required in the circumstances.

1.8
1.8.1

Confidentiality
As between Members, trading in Listed Products carried out by way of Turquoise's electronic trading system or the Marketplace Service is conducted on an anonymous basis. Similarly, the identity of a Client or a customer for whom a Broker effects a Transaction is not disclosed to Members. Turquoise presents the electronic orderbook and information related to transactions executed by means of its facilities and accepted for Registration in accordance with these Rules to members on an anonymous basis so that the identity of a party which has placed an Order or which is a party to a Registered Contract is not disclosed to other Members. In normal circumstances, the identity of a Client for whom a Broker effects a transaction under the rules of Turquoise is not known by Turquoise. Where Turquoise considers it necessary to protect its interests or the quality of the market in any Listed Product or in the circumstances specifically provided for in these Rules it may require the Member to provide information relating to the Client or customer in question.

1.8.2

1.8.3 1.8.4

1.9
1.9.1 1.9.2 1.9.3 1.9.4 1.9.5

Disciplinary Procedures
Turquoise Management may take disciplinary action against a Member in respect of any act or omission that may amount to a breach of these Rules. Turquoise Management may suspend or restrict a Members activities on Turquoise on an interim basis when a matter is under investigation. Members shall co-operate with Turquoise Management in its investigation into a suspected breach of these Rules. In enforcing these Rules, Turquoise Management will have regard to the need to maintain a fair and orderly market in the interests of Members. Turquoise Management will have absolute discretion to impose sanctions on a Member for a breach of the Rules including: (i) temporary suspension; (ii) termination of participation; (iii) levying a fine up to 20 000; (iv) issuing a cease and desist letter; (v) issuing a censure; (vi) issuing a no action letter; (vii) an order directing restitution to any injured person; and (viii) publication of the details of the breach and the identity of the Member.

1.9.6

Turquoise Management may impose a combination of the sanctions listed in rule 7.2.1 on a Member for a breach of the Rules. The discretion of Turquoise Management to impose sanctions will extend to negotiating a settlement with a Member regarding an alleged breach of these Rules, the terms of which may include imposing a sanction, or combination of sanctions, listed in Rule 1.9.5.

1.9.7

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RULE BOOK
1.10
1.10.1 1.10.2 1.10.3

Appeals
A Member may appeal a decision made by Turquoise Management under these Rules within ten (10) working days of having received written notice of the decision. There is no right of appeal in relation to interim decisions. A notice of intention to appeal must be submitted in writing to Turquoise Management within ten (10) working days of the Member being notified in writing of the findings of any investigation of an alleged breach of the Rules. Turquoise Management will then refer any such appeal to the Compliance and Regulatory Committee. A Member will, within twenty (20) working days of giving notification of any appeal under rule 1.10.1, provide the Compliance and Regulatory Committee with a written submission outlining the grounds for the appeal. The Compliance and Regulatory Committee will consider requests for an extension to the timeframe allowed under 1.10.3. Appeals will be heard and decided by the Compliance and Regulatory Committee. The Compliance and Regulatory Committee is comprised of a Chairman, appointed by the Board, and a minimum of two other members, appointed by the Board, who are all independent of the Board and who are suitably qualified to hold the position of members of the Compliance and Regulatory Committee. The Compliance and Regulatory Committee will hand down a decision within twenty (20) working days of hearing the appeal. The Compliance and Regulatory Committee may order any party to an appeal to pay costs as it thinks appropriate, including but not limited to, administration costs and reasonable costs incurred in the investigation, preparation and presentation of the appeal. The Compliance and Regulatory Committee can uphold, quash or amend the original decision that is the subject of the appeal. Decisions of the Compliance and Regulatory Committee in relation to appeals will be final.

1.10.4

1.10.5 1.10.6 1.10.7

1.10.8 1.10.9

1.10.10 1.10.11

1.11
1.11.1

Administrative Matters
The Designated Clearing House has established a Protected Payments System (PPS) for use in connection with the settlement of payment obligations of Members to Turquoise. Members, other than Members who have made arrangements for the settlement of such obligations to be performed by a General Clearing Member, must maintain arrangements with a PPS Bank for such purposes. Further provisions concerning the PPS System and settlement and delivery generally are set out in the Clearing House Regulations.

1.12

Dissemination of Market Information

General

1.12.1

Turquoise disseminates public market information originating from the services provided by Turquoise pursuant to these Rules or from third parties in accordance with the provisions set forth in this Rule. Turquoise publicly disseminates information for each Listed Product during the Trading Hours for such Product. With regard to Listed Products which are quoted in co-operation with Oslo Brs, the disseminated information includes, unless otherwise stated, information from all relevant sources. Turquoise publicly disseminates clearing information relating to Listed Products during times at which the clearing system is open regarding volumes and, where applicable, registration prices. Where such information relates to a Product provided in conjunction with Oslo Brs or an Associated Clearing House, the disseminated information includes, unless otherwise stated, information from all sources.

1.12.2

1.12.3

25

RULE BOOK

1.12.4

Turquoise may at any time make such changes in the contents, scope and composition of the Market Information which it deems suitable or necessary. Media

1.12.5 1.12.6

Market information is disseminated in electronic form immediately. Turquoise disseminates public market information through the following media: (i) (ii) Immediately by electronic connection to Turquoises High Speed Vendor Feed (HSVF) and, in applicable cases, by telephone; immediately or following a certain delay through public information distribution systems (electronic or non-electronic media) of third party vendors, a list of which is available from Turquoise.

Subscription 1.12.7 Members or other third parties wishing to directly subscribe to HSVF must enter into the Turquoise Information License Agreement and adhere to the relevant terms and conditions set forth within the agreement.

License 1.12.8 Members or other third parties wishing to redistribute Turquoise Market Data must first enter into the relevant Turquoise Information License Agreement and adhere to the terms and conditions set out within the agreement. The following market information is covered by the right of use granted herein: (i) (ii) 1.12.10 market information originating from Turquoise's trading and clearing operations; and market or other information received from third parties.

1.12.9

Copyright and other intellectual property rights to market information which Turquoise disseminates shall vest in Turquoise or the rightsholders Turquoise represents.

1.13
1.13.1

Technical Regulations
Members which wish to maintain an electronic trading connection to Turquoise shall enter into the relevant access, connectivity and software licence agreements as amended from time to time and connectivity agreement (referred to in this Rule 1.13 to Agreement) enabling access to Turquoise Markets and shall comply with this Rule. Breach of any provision of these Agreements shall constitute a breach of these Rules. Members should contact Turquoise for a list of all market access connectivity providers and for all relevant information on these solutions. Fees in respect of Market access are payable by Members in the amount and at the time specified in Appendix A. Equipment and computer programs which are required for the purposes of the electronic connection to Turquoise's trading and clearing systems are specified the technical documentation. Turquoise reserves the right to prohibit the connection of equipment or the use of programs which have not been specified by Turquoise and to carry out such tests of the said equipment or programs at the expense of the Member as Turquoise considers necessary. The costs of equipment supplied by third parties and the installation and maintenance thereof shall be paid by the Member. Turquoise reserves the right to set requirements as well as demand information regarding such computer programs construction and functionality from Members or computer program suppliers. Turquoise reserves the right to conduct tests of the computer program based on the requirements stipulated by Turquoise from time to time and information that has been obtained (certification). Additional certification can, when deemed necessary by Turquoise, be requested by Turquoise.

1.13.2

26

RULE BOOK
1.13.3 Where a Member installs software supplied by the relevant providers, it shall ensure that such software is the latest version in force together with system program software in the latest version specified by the relevant providers. The Member shall ensure that technical contact persons and system contact persons are present at its premises throughout the period starting one hour before trading commences at Turquoise and ending one hour after the close of trading on any day on which Turquoise is open for trading in Listed Products. Turquoise may restrict the number of electronic connections per Member to the extent that it is satisfied that such action is required in order to maintain the proper functioning of its trading and clearing operations. 1.13.4 Turquoise may take immediate action to impose restrictions on the use of such connection to suspend or to terminate a Member's electronic connection if it is satisfied that the manner in which such connection has been used by the member justifies such action in the interests of protecting the proper functioning of Turquoise's trading and clearing operations. Turquoise may inspect the electronic equipment used by a Member for the purposes of its trading, clearing and market data connection to Turquoise at all times during normal business hours. The Member shall comply with all security instructions given by Turquoise and the relevant providers in relation to the use of the Member's electronic trading connection. The Member shall take such other steps as are reasonably required to prevent unauthorised access to Turquoise's trading, clearing and market data systems. The Member shall allow Turquoise access to its premises for such purposes. Save in exceptional circumstances, Turquoise shall give the Member prior notice of its intended inspection. The Member shall be liable for all instructions regarding the placing, variation or cancellation of orders given by way of the Member's electronic connection and for all transactions executed in consequence thereof and for all matters reported to Turquoise by means of such electronic connection and shall be bound by the terms of any Registered Contract entered into by the Designated Clearing House with such Member pursuant thereto whether or not such instructions or reports are submitted by a person authorised to use the electronic connection of the Member. Electronic connections to Turquoise can be achieved through Extranex, VPN, other external network and service providers. Members shall contact Turquoise for further information on how to connect to Turquoises markets. Turquoise provides the possibility to programme Members systems to Turquoises trading and clearing services. (a) The trading application programmers interface (API) are (1) SOLA Automated Input Language (SAIL) (2) Fix 4.2 (b) The clearing API is CC&G BCS API. 1.13.10 Turquoise provides Members with trading and clearing user applications (1) BTS (Trading application) (2) BCS (Clearing application)

1.13.5

1.13.6

1.13.7

1.13.8

1.13.9

1.14
1.14.1

Copyright and Intellectual Property

Copyright and all other intellectual property rights in these Rules and all other documentation or software produced by Turquoise relating to the trading of Listed Products and Market Information disseminated to Members under these Rules is vested in Turquoise. Turquoise is a trade mark vested in Turquoise. The Member shall not reproduce, use or sanction the reproduction or use of any such material or any part thereof other than for purposes necessarily connected with such operations without the prior express consent in writing of Turquoise.

1.14.2

Deleted

27

RULE BOOK

1.14.3

FTSE and FTSE Russia IOB Index, (Index) are trade and service marks of the London Stock Exchange Plc and the Financial Times Limited and are used by FTSE International Limited (FTSE) under licence. Members shall not use the said trade and service mark other than for purposes reasonably connected with trading and clearing of Listed Products or other products or services provided by Turquoise in the absence of express written consent to the contrary by Turquoise. Options and Futures based on the FTSE Russia IOB Index, , are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (FTSE) and neither FTSE nor or any licensors of FTSE make any warranty or representation whatsoever, express or implied as to the results to be obtained from the use of theses Derivatives Contracts.

1.14.4

The OBX Index is a trade and service marks of Oslo Brs and is used by Turquoise under licence. Members shall not use the said trade and service mark other than for purposes reasonably connected with trading and clearing of Listed Products or other products or services provided by Turquoise in the absence of express written consent to the contrary by Turquoise.

1.15
1.15.1

Limits of Liability
Turquoise shall not be liable to any Member, Client, customer or other party for any loss or damage which may result directly or indirectly from any legislative enactment in the United Kingdom or in any overseas jurisdiction, any action taken by any governmental department or cognate agency in the United Kingdom or in any overseas jurisdiction, any action taken by the Commission of the European Community or any agency or division thereof, from any act of war, terrorist activity, power failure, fire, water damage, embargo, strike, blockade, boycott or lockout or other similar action or circumstance irrespective of whether Turquoise is involved directly therein. Turquoise shall not be liable to any Member, Client, customer or other party for any loss or damage which may result directly or indirectly from any technical problem affecting or interfering with the provision by Turquoise of its electronic trading system, Marketplace Service or clearing and information systems or affecting the Member's electronic trading connection or clearing connection to Turquoise in the absence of gross negligence on the part of Turquoise. Turquoise shall not be liable to any Member, Client, customer or other party in any circumstances for any claim for economic loss, loss of profit or loss of opportunity for profit, loss of data, or for indirect, incidental or consequential loss or damage. If any of the circumstances described in Rule 1.15.1 occurs which prevents Turquoise performing any obligation under these Rules at the prescribed time in whole or in part, the time for performance of such obligation shall be suspended for as long as the said circumstances obtain. In these circumstances, Turquoise shall not be liable to pay interest on any sum which is paid at a later time than would otherwise have been the case. In the absence of gross negligence, Turquoise shall not be liable to compensate the Member, Client, customer or any other party for any loss or damage arising other than in circumstances in which liability is expressly admitted in this Rule. Without prejudice to the generality of the foregoing provisions of this Rule: (i) (ii) the liability of Turquoise to recipients of Market Information is further limited in the manner provided for in Rule 1.12.3; the liability to Members using an electronic connection to the exchange is further limited in the manner provided for in the relevant access and connectivity agreement enabling access to Turquoise Markets. the liability of the Index Owner, Index Provider and Index Calculator for the FTSE Russia IOB Index is subject to the provisions of the rules governing these indices as determined by FTSE.

1.15.2

1.15.3

1.15.4

1.15.5

1.15.6

(iii)

1.16
1.16.1

Emergency Provisions
Where Turquoise considers that circumstances exist which have an adverse effect on the trading services provided by Turquoise or the related clearing services provided by the

28

RULE BOOK
Designated Clearing House or which affect the quality of the market in any Listed Product, Turquoise may take such action as it at its sole discretion deems necessary. The forms of action which Turquoise may take under this Rule include, but shall not be limited to, the following: (i) (ii) (iii) (iv) (v) suspending or restricting the trading services of Turquoise or any part thereof; suspending or restricting trading in one or more Listed Products; amending these Rules including the terms of any Listed Product or suspend or restrict the reporting of transactions in one or more instruments pursuant to Part 3 of these Rules or the Rules for Cleared Only Contracts requesting the Designated Clearing House to take any action in relation to its clearing services as is required in the circumstances, including, without limitation, amending the terms of Registered Contracts.

1.16.2

Where the Designated Clearing House suspends the provision of its clearing services to Turquoise, Turquoise may: (i) (ii) (iii) (iv) suspend or restrict the trading services of Turquoise or any part thereof; suspend or restrict trading in one or more Listed Products; amend these Rules including the terms of any Listed Product; or take such other action as is considered appropriate in the circumstances.

1.16.3

Any Order placed in the Orderbook after trading in the Listed Product to which such Order relates or trading generally has been suspended under this Rule or any Order which breaches any restriction on trading in the relevant Product and any transaction in an Listed Product which is executed after trading in such Product has been suspended in the circumstances provided for in this Rule 1.16 or which would breach any restriction applicable to trading in the Product in question shall be null and void. In taking action under this Rule, Turquoise will have regard to the interests of Members generally in the circumstances and will act in an impartial manner. Where Turquoise has taken any action pursuant to this Rule, it shall notify Members of such fact at the earliest opportunity. Members shall inform any Client or customer which might be affected by such action of the measures taken by Turquoise.

1.16.4

1.17
1.17.1

Amendments to these Rules

Turquoise may amend these Rules by notice in writing to Members. The amendment to the Rules shall take effect at the time specified in such notice. Such amendments shall in the absence of an express statement to the contrary apply to Contracts registered before the amendment in question comes into effect. Where Turquoise considers that the amendment to the Rules is of regulatory importance or will affect the terms of previously Registered Contracts, it shall use its best endeavours to consult with Members before making the amendment. Turquoise shall not be subject to any obligation to consult with Members in relation to any proposed amendment where it is satisfied that the amendment is required as a result of legislation, the decision of a court or any action taken or regulation issued by a regulatory body or governmental body which affects Turquoise. Deleted Brokers shall take reasonable steps to advise their Clients and customers of amendments to these Rules as they consider appropriate and shall have regard to any guidance issued by Turquoise in this respect.

1.17.2

1.17.3 1.17.4

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RULE BOOK
1.18
1.18.1 1.18.2

Governing Law
Except where these Rules provide expressly to the contrary, the Rules shall be construed and applied in accordance with English law. Except where these Rules provide expressly to the contrary, any dispute between a Member and Turquoise concerning these Rules or any transaction effected pursuant to these Rules shall be resolved in the manner provided for in the Membership Agreement.

30

RULE BOOK

PART 2 2.1
2.1.1 2.1.2

LISTING AND TRADING OF LISTED PRODUCTS Trading Principles

Members shall co-operate fully with Turquoise in the promotion of high standards of fair dealing and integrity in the trading of Listed Products. Members shall comply fully with these Rules in trading Listed Products and with any guidance which Turquoise may issue from time to time concerning the application of these Rules and trading at Turquoise generally. Turquoise provides Members with two methods of trading in standardised Listed Products: (i) (ii) the electronic trading system; and the Marketplace Service.

2.1.3

Members should note that transactions in Non-Standardised Contracts may only be effected by way of the Marketplace Service in accordance with the provisions of Rule2.13. 2.1.4 The two trading methods are complementary. The characteristics of these methods and the procedures to be followed by members in placing, varying or cancelling Orders relating to standardised Products are set out in Rules2.6 to2.12. The following Orders may only be placed, varied or cancelled by using the Marketplace Service: (i) (ii) 2.1.5 Non-Standardised Combinations; and Interest Orders.

As between Members, trading at Turquoise is conducted on an anonymous basis. The identity of a Member which has placed an Order or executed a transaction at Turquoise is not disclosed to other Members save in circumstances where such disclosure is specifically provided for in these Rules.

2.2
2.2.1 2.2.2

Platform Listing
Turquoise provides trading facilities to its Members for trading in standardised and NonStandardised Contracts based on Listed Products. The Contract Specifications for standardised Contracts based on Listed Products and all rules and procedures relating specifically to trading, clearing and settlement of Contracts based on such Products are set out in the section of Part 4 applicable to the Product in question. The Series in which trading in a standardised Contract based on a Listed Product may be effected at any time are shown in Turquoises Listings Schedule for the time being. The information given by Turquoise on the listing of new Series is effected in accordance with the section of Part 4 applicable to the Product in question. The Listings Schedule is provided to Members by Turquoise by electronic transmission. Notice of the listing of new Series for standardised Contracts is provided to Members by electronic transmission. Turquoises procedures for the listing of Series for trading in a standardised Contract based on a Listed Product vary according to the Product. These procedures are set out in relation to each such Product in the appropriate section of Part 4. Turquoise may list new Series otherwise than in the circumstances prescribed in its procedures applicable to the Product in question provided that it is satisfied that such action should be taken in the interests of the market in the Product in question. Turquoise may decide at any time to cease to list one or more Listed Series if it is satisfied that the requirements of a proper market in such Product are no longer satisfied or any other circumstances exist which it considers require such action. In such circumstances, Turquoise may also change the Expiration Date for the Series in question in conjunction with the Designated Clearing House. Information regarding the Series which are currently listed for trading is shown on the Quotation List for the time being.

2.2.3

2.2.4

2.2.5

2.2.6

31

RULE BOOK

2.3
2.3.1 2.3.2

Listing of New Listed Products

On introducing a new Listed Product, Turquoise shall give notice to Members of the date on which trading in such Products will commence and other relevant information. On introducing a new Listed Product, Turquoise will inform Members of the Futures and Options Series in which trading in standardised Contracts based on such Product will take place. Turquoise will publish the Contract Specification for the new Listed Product prior to the start of trading in such Products.

2.3.3

2.4
2.4.1

Designation of Listed Series

On listing a new Series for a standardised Contract based on a Listed Product, Turquoise will designate the Series so as to identify the following matters: (i) (ii) (iii) (iv) (v) the Underlying Stock the Strike Price (if an Option Contract) the Expiration Month the Expiration Year whether the Series is a Call Option, a Put Option or a Futures Contract.

2.4.2 2.4.3 2.4.4

Listed Series are listed by Turquoise in accordance with Rule 2.3 and the terms of the relevant Contract Specification for the Product in question at Part 4. Listed Series are standardised contracts the terms of which are set out in the Contract Specifications for the Product in question at Part 4. On entering into a transaction in a standardised Listed Series, Members are free to determine the price. All other terms for the Contract will be those prescribed in the relevant Contract Specification and Series Designation for the Listed Series in question. On entering into a transaction in a Non-Standardised Contract, Members shall determine the price and the variable elements of the Contract. All other terms for the Non-Standardised Contract will be those prescribed in the relevant Contract Specification for the corresponding standardised Contract.

2.4.5

The Strike Price for an Options Contract based on a Listed Series appears immediately after the designation of the Expiration Month.

2.5
2.5.1

Market Making: General

All Market Makers are required to maintain an electronic connection to Turquoise and to provide quotes in the Products that are available for market making and in which they have agreed to act as such by such means. A Market Maker shall enter into a Market Maker Agreement with Turquoise specifying the Products in which it agrees to act as such and the capacity in which it will act in respect of each Product. A Market Maker may act in such capacity as is specified in the section of Part 4 and/or the Market Making Document applicable to the Product in question. A Market Maker which fails to perform its obligations as such will be subject to the sanctions provided for in the section of Part 4 and/or the Market Making Document applicable to the Product in question. A Market Maker which performs its obligations as such to the satisfaction of Turquoise shall pay fees in relation to transactions effected by it in its capacity as such in the Product in question as specified more particularly in Part 4 and/or the Market Making Document. A Market Maker may arrange with Turquoise for more than one Market Maker Account to be opened in its name by submitting a request to that effect and providing the following information in writing to Turquoise: (i) the number of Market Maker Accounts it wishes to operate;

2.5.2

2.5.3 2.5.4

2.5.5

2.5.6

32

RULE BOOK
(ii) (iii) (iv) the individuals authorised by it to enter orders in each such Account; for each such Account, the Products in which market making obligations will be performed; and for each such Account, whether the fees payable are to be determined by reference to the annual discount scheme or monthly discount scheme applicable to the Product in question.

Any such arrangements shall be subject to the approval of Turquoise. Where any such arrangement is established, each transaction executed by the Market Maker shall be registered in the Market Maker Account specified by the Market Maker as the Account in which transactions executed by the relevant authorised traders are to be registered and the measurement of the performance of the applicable market making obligations and the determination of the fees payable in relation to such activity shall be made solely by reference to the orders entered and contracts registered in the Account in question.

2.6
2.6.1

Orders
On placing an Order (whether by means of the electronic trading system or the Marketplace Service) a Member offers to buy or to sell the Products in the Listed Series in accordance with the terms specified in the Order. Such offer remains open for acceptance unless and until the Order is varied or cancelled by the Member. Where a Member has placed an Order with the Marketplace Service to buy or to sell an Product in an Listed Series, the Marketplace Service will enter such Order in the Orderbook. The Member in question thereby offers to buy or to sell (as the case may be) the specified Products at the displayed price. Such offer remains open for acceptance unless and until it is accepted by any such party or is varied or cancelled by the Marketplace Service on the instructions of the Member. Orders placed by a Member in accordance with Rules 2.6.1 and 2.6.2 may be accepted by Members or members of Oslo Brs in the case of Products which are traded in a Combined Marketplace. Where an offer is accepted in this way, Turquoise shall register the resulting Contract in the Account of the Member or Members which are parties to the transaction in accordance with Rule 3.2.

2.6.2

2.6.3

2.7
2.7.1

Placing, Cancellation and Variation of Orders

On placing, cancelling or varying an Order by way of the electronic trading system, a Member shall provide the following information: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) the Series, Type, Class and the Listed Product in question; the Expiration Month; whether its order is to buy or to sell; in the case of an Options Contract, whether it is a Call or a Put; the price for the Order or, if the Order is a Combination Order, its net price; the Order's volume; whether it is a Limit Order, Market Order or a Combination Order; whether it is a Single Order or a Block Order; the Account to which the transaction, if executed, is to be allocated; if appropriate, the identification code of the customer for whom the Order has been placed.

On placing an Order Members should ensure that the value of the Order does not exceed the maximum permitted size for an Orderbook Order for the Contract in question for the time being specified by Turquoise. Members should note that any Order placed in the Orderbook which exceeds the applicable maximum permitted size and any transaction which results from such Order shall be null and void. The maximum permitted size for an Orderbook Order is 50,000 Contracts.

33

RULE BOOK
2.7.1A The tick size applicable for trading in the Orderbook is described in the relevant contract specification. An Internal Trade or Interbank Trade can however be registered in the Orderbook at a tick size that differs from the one specified in contract specifications. Where an Order is placed in accordance with these Rules which meet the terms of a Stored Order, an Transaction shall be executed. Where an Order is placed in accordance with these Rules which does not meet the terms of a Stored Order, it shall be stored, ranked or cancelled in accordance with its terms. Orders are executed, stored and ranked in accordance with the rules of priority set out below at Rules 2.7.3 to 2.7.7. The primary rule for ranking of Orders stored in the Orderbook is that priority is given to the Order having the best price. Where two or more Orders are entered at the same price, priority is given to the Order which has been stored in the Orderbook longest. 2.7.4 Any variation in a stored Order involving its price, the extension of its period of validity, a change from a Single Order to a Block Order or an increase in the volume of an Order is treated as the cancellation of the original Order and the substitution of a new Order. The time priority of such Order shall be determined by reference to the time at which the amended Order is entered in the Orderbook. Where the variation of a Stored Order involves only a reduction in its volume or period of validity or a variation in the customer identity, the ranking of the original Order is not affected. Where volume terms attached to an Order having priority under this Rule 2.7 prevent it being executed, the first available Order below such Order in the order of priority which can be matched will be selected for execution. The primary rule for the ranking of Combination Orders is that priority is given to the Combination Order which has the best net price. Where two or more Combination Orders are entered at the same net price, priority is given to the Order which has been stored in the Orderbook for the longest period of time. 2.7.8 Where a Combination Order can be executed against another Combination Order an Transaction will be executed on the terms of the matching Combination Orders provided that it is not possible to execute either Combination Order against Stored Orders on better terms than those provided by the matching Combination Order. Stored Orders may be cancelled or varied by the Member in question giving instructions to Turquoise at any time before the Order has been executed. A Stored Order will remain valid and effective unless and until an instruction to cancel or vary it given by the Member which placed the Order takes effect. Instructions concerning the placing, varying or cancelling of Orders may be given to Turquoise by a Member by electronic transmission or by telephone to the MPS.

2.7.2

2.7.3

2.7.5 2.7.6

2.7.7

2.7.9

2.7.10

2.8
2.8.1

Order Types
Orders of the following type may be placed by Members: (i) (ii) (iii) Orderbook Orders; Market Orders; and Combination Orders.

The terms governing an Order will vary according to its type. 2.8.2 2.8.3 Deleted A Market Order is an Order which is for immediate acceptance only. A Market Order may not be stored in the Orderbook. There are two types of Market Order: (i) (ii) "Fill or Kill" being an Order which must be traded in its entirety or cancelled; and "Fill and Kill" being an Order which can be executed in part with the unfilled part of the Order being cancelled.

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RULE BOOK
2.8.4 A Combination Order is an Order comprising two or more individual Orders in Listed Series which are subject to the condition that each individual order forming part of the Combination Order must be executed simultaneously. Turquoise may impose general restrictions concerning Combination Orders from time to time. Such restrictions may limit the number of individual Orders which may be included in a Combination Order or the size of any such individual order. 2.8.5 A Combination Order shall be placed as a Market Order of the type Fill or Kill unless the Order in question is a Standardised Combination. Members can define a Non-Standardised Combination using the Enter Tailor-Made Combination function that at the time of placing the Order creates a Standardised Combination and is therefore subject to the Standardised Combination Rules. A Standardised Combination is an Order which meets the following requirements: (i) (ii) (iii) it comprises two individual Orders; these Orders are both subject to the condition that they be executed simultaneously; and the two individual Orders are of a type and in Listed Series included in Turquoise's List of Standardised Combinations for the time being.

2.8.6

A Standardised Combination may be placed as either a Derived Limit Order or a Market Order. A Derived Limit Order will be stored in the Orderbook until the time specified by the Member which placed the Order. A Derived Limit Order is subject to the condition that both Orders comprised in the Derived Limit Order must be executed simultaneously. A Standardised Combination which is a Market Order may not be stored in the Orderbook. 2.8.7 2.8.8 The volume terms applicable to an Order in an Listed Product are prescribed in the section of Part 4 applicable to the Product in question. The term Hidden volume means that an Orderbook Order can be placed with a total volume and a shown volume. Hidden volume is the part of the volume that is not visible in the Orderbook. The shown volume is part of the total volume. When such an Order is partially traded and the shown volume reaches zero, an additional part is shown, as long as there is total volume remaining.

2.9
2.9.1 2.9.2

The Marketplace Service

The rules and procedures governing the facilities provided by Turquoise's Marketplace Service are set out at Rules 2.9 to 2.12. All communications relating to the placing, cancellation or variation of Orders between Members and the Marketplace Service shall be made by telephone. In order to ensure that it is able to perform its regulatory functions, Turquoise records all telephone conversations relating to the placement of orders by Members with the Marketplace Service. The Marketplace Service provides the following services: (i) receiving, cancelling and varying: (a) (b) (ii) (iii) Orders in Listed Products in accordance with Rule 2.10; Orders relating to Non-Standardised Combinations and Large Blocks in Listed Products.

2.9.3

receiving and handling Indications of Interest pursuant to Rule 2.11; receiving Instructions from Members and executing or arranging Transactions in accordance therewith under Rule 2.12.

2.9.4

The Marketplace Service is normally available for use by Members during the hours in which Turquoise is open for trading the Listed Product in question. In extraordinary circumstances Turquoise may extend or curtail such hours. Turquoise will use its best endeavours to secure the availability of the Marketplace Service to Members during the normal trading hours for each Listed Product indicated in the respective Contract Specification.

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RULE BOOK
2.9.5 Where an Order, Indication of Interest or Instruction has been given to the Marketplace Service by a Member prior to the close of trading in the Listed Product to which it relates, the Marketplace Service may at its discretion continue to inform other Members thereof and may arrange for an Transaction to be executed in appropriate circumstances in accordance with the procedures set out in Rules 2.10 to 2.12. The Member which placed the Order, Indication of Interest or Instruction may inform the Marketplace Service that it does not wish the procedure provided for in this Rule 2.9.5 to be applied in relation thereto.

2.10
2.10.1

Placing of Orders with the Marketplace Service

Members may place Orders of the type described in Rule 2.8 relating to Listed Products by way of the Marketplace Service in the following circumstances: (i) (ii) (iii) if the Member does not have an electronic connection to the platform; if the Member's electronic connection is not functioning properly; or if the operation of the electronic trading system is suspended.

2.10.2 2.10.3 2.10.4

Members may additionally place Orders relating to Non-Standardised Combinations by way of the Marketplace Service. On placing Orders with the Marketplace Service under Rule 2.10.1 or 2.10.2, Members shall provide the information prescribed in Rule 2.7. Orders placed by Members in the circumstances described in 2.10.1(i) and (ii) will be entered in the Orderbook forthwith by the Marketplace Service. Such Orders will be ranked in accordance with Rule 2.7 from the time at which the Order is entered in the Orderbook. Orders placed by Members in accordance with Rule 2.10.1(iii) or 2.10.2 shall be recorded and ranked by the Marketplace Service in accordance with Rule 2.7. Where two or more Orders are given to the Marketplace Service so closely in time that Turquoise is unable to determine the relative priorities of such Orders and it becomes possible for a Transaction to be executed against one of these Orders, Turquoise may arrange for the resulting Transaction to be allocated equally to the Members involved. The reporting and Registration of a Transaction which results from an Order or Orders given to the Marketplace Service will be dealt with in the same manner as a Transaction resulting from Orders placed in the Orderbook by Members directly by electronic means.

2.10.5 2.10.6

2.10.7

2.11
2.11.1

Indications of Interest
Members may place an Indication of Interest with the Marketplace Service by giving details of the Listed Series in which it is interested, whether the interest is a call or a put and the price and volume or approximate price and volume applicable to the interest. The Marketplace Service records Indications of Interest and will advise the Member which has placed the Indication of Interest if it appears that another Member is interested in executing a transaction in accordance with such Indication of Interest. The Marketplace Service shall not execute a transaction pursuant to an Indication of Interest unless it has received express confirmation from the Member which placed the fIndication of Interest that it wishes to replace the Indication of Interest with an Order with a view to the execution of a Transaction. Such Orders will be ranked, stored, varied or executed in the manner provided for in Rules 2.7.3 to 2.7.7. In receiving and handling an Indication of Interest placed in accordance with this Rule, the Marketplace Service shall maintain the anonymity of the Member which has placed such Indication.

2.11.2

2.11.3

2.11.4 2.11.5

2.12
2.12.1

Instructions to Marketplace Service

Members may give instructions to the Marketplace Service to execute transactions in Listed Products or to arrange a transaction in such Products on behalf of the Member.

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RULE BOOK
2.12.2 2.12.3 2.12.4 2.12.5 On giving such Instruction, the Member shall provide the information prescribed in Rule 2.7.1. Instructions given to the Marketplace Service in accordance with this Rule shall not be entered in the Orderbook. The Marketplace Service may execute transactions in accordance with such Instructions on behalf of the Member without further reference to the Member. The Marketplace Service will record all Instructions given by Members under this Rule and shall use its best endeavours to execute such Instructions in the Orderbook if the possibility arises. If such possibility does not arise, the Marketplace Service may attempt to arrange a deal in accordance with the Instruction with other Members. In seeking to make such arrangements, the Marketplace Service will have regard to the interest of Members or, where appropriate, members of Oslo Brs in the Series in question evidenced by the Orderbook and the records of Instructions and Indications of Interest maintained by the Marketplace Service. A transaction in a Listed Product may only be executed under this Rule if it is within the bid ask spread for the Series in question at the relevant time. Where the Marketplace Service receives two Orders from Members which are capable of being executed as aTransaction, the Marketplace Service will review the Orderbook. If one or both of these Orders are capable of being executed against an existing Order stored in the Orderbook on the same or better terms than those of the Orders given to the Marketplace Service, such execution will be effected. If this is not the case a Transaction will be executed on the terms of the matching Orders given to the Marketplace Service. Following execution of a transaction under this Rule, Turquoise shall register such transaction in accordance with its normal procedures. In executing or attempting to arrange a transaction pursuant to this Rule, the Marketplace Service shall preserve the anonymity of the Member on whose Instructions it is acting. If at any time the Marketplace Service has received Instructions from Members which are identical in all respects priority shall be given in attempting to execute such Instructions according to the time at which they are given to the Marketplace Service.

2.12.6 2.12.7

2.12.8 2.12.9 2.12.10

2.13
2.13.1

Rules for Non-Standardised Contracts

The provisions of this Rule 2.13 provide for the trading and reporting to Turquoise of transactions in Non-Standardised Futures or Options Contracts. There are three variable elements of a Non-Standardised Options Contract, namely its term, its style and its strike price. The only variable element for a Non-Standardised Futures Contract is its term. The maximum term of a Non-Standardised Contract is three years or such lesser term as Turquoise may specify from time to time in relation to a particular Non- Standardised Contract. If for any reason the registered Expiration Date for a Non-Standardised Contract proves not to be a Trading Day for the relevant Contract, Turquoise shall have the power to modify the Expiration Date by bringing it forward to the Trading Day for the Contract in question immediately preceding the registered date. In relation to a Non-Standardised Contract for which there is a corresponding standardised contract, the parties thereto are free to determine the variable elements of each such Contract provided that such terms must vary in at least one respect from the terms of the corresponding standardised contract in question. This requirement does not, however, apply in respect of the registration of a Non-Standardised Contract the registration of which would not increase the open interest for the Non-Standardised Contract in question. A Non-Standardised Options transaction in a Product for which there is a corresponding standardised contract will not be registrable unless its terms meet one or more of the following criteria: (i) the Expiration Date for such contract differs from the Expiration Date of any such corresponding standardised contract which is listed for trading at the time the NonStandardised Contract is effected and, further that such day is a Trading Day for the Contract in question;

37

RULE BOOK
(ii) the strike price for the Non-Standardised Options Contract is not a price that is a listed strike price for the corresponding standardised contract at the time the NonStandardised Contract is effected; or the style of a Non-Standardised Stock Option differs from the style of the corresponding standardised contract.

(iii)

A Non-Standardised Futures Contract for which there is a corresponding standardised contract will not be registrable unless the Expiration Date for such contract differs from the Expiration Date of such corresponding standardised contract which is listed for trading at the time the Non-Standardised Contract is effected and, further that such day is a Trading Day for the Product in question. 13.2 Transactions in Non-Standardised Contracts may be effected by Menbers by any of the following means: (i) (ii) (iii) by providing details of the proposed transaction to the Marketplace Service which will deal with the matter in accordance with the provisions of Rule 2.13.3; by reporting a cross trade in a Non-Standardised Contract to Turquoise in accordance with Rule 2.13.5; and by reporting a transaction in a Non-Standardised Contract to Turquoise for registration in accordance with Rule 2.13.4;

The procedures for the settlement of Non-Standardised Contracts are set out in the section of Part 4 as the case may be applicable to the corresponding standardised contract for the Product in question. 2.13.3 The trading of Non-Standardised Contracts will be conducted by way of Turquoise's Marketplace Service. A Member which is interested in trading a Non-Standardised Contract may contact the Marketplace Service by telephone and provide the details of the transaction in which it is interested. The required details will include: (i) (ii) (iii) (iv) (v) (vi) the type of and class of Non-Standardised Contract; the term of the Non-Standardised Contract; the strike price; the style; whether it wishes to buy or to sell; and the contract size.

The Marketplace Service will record the details provided by the Member and will confirm that the proposed terms of the contract satisfy the conditions for Non-Standardised Contracts set out in Rule 2.13.2. If the Marketplace Service believes that another Member is interested in entering into a transaction in the relevant Non-Standardised Contract on the terms specified by the first Member, the Marketplace Service will inform that party of the proposed terms of the transaction and determine whether the second Member wishes to enter into a Non-Standardised Contract on those terms. The Marketplace Service will not execute the transaction in such Non-Standardised Contract until it receives specific confirmation by telephone from each of the Members in question that it wishes to execute the transaction. The Marketplace Service will preserve the anonymity of the Members involved in any transaction in a Non-Standardised Contract that is executed under this Rule or in any discussions entered into by it with a view to the execution of any such transaction. 2.13.4.1 Transactions which are entered into as a result of direct negotiation by a Member with another party may be submitted to Turquoise for Registration in accordance with the provisions of this Rule 2.13.4. A Member may submit a Request for Registration to Turquoise relating to: (i) a transaction in a Non-Standardised Contract which it has entered into directly with another Member; or

2.13.4.2

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RULE BOOK
(ii) 2.13.4.3 a transaction in a Non-Standardised Contract which it has entered into directly with a member of Oslo Brs.

The acceptance of such Request will be at the discretion of Turquoise. The Request will not, however, be accepted unless: (i) a corresponding Request for Registration is submitted by the counterparty to the transaction to Turquoise or Oslo Clearing as the case may be and that such request is accepted for Registration; and the terms of the transaction referred to in the Request for Registration meet the criteria for acceptance of a Non-Standardised Contract set out at Rule 2.13.2 above.

(ii) 2.13.4.4

A Request for Registration of an off-exchange transaction in accordance with this Rule must be submitted to Turquoise by telephone to the Marketplace Service. Turquoise will inform the Member submitting such Request promptly as to whether it has been accepted for Registration or not. The procedures for the trading of Non-Standardised Contracts set out in Rule 2.13.3 do not apply to any such transaction in which both legs are to be registered in Accounts held by a Member. Any Member which wishes to register such a cross trade relating to a NonStandardised Contract shall provide the Marketplace Service with the prescribed information. The Member shall also specify the Accounts in which each side of the Non-Standardised Contract is to be registered. Before a Member reports a cross trade for Registration in accordance with this Rule, it shall take appropriate steps to satisfy itself that the customer or customers for whom it is acting agree to the transaction being registered as a cross trade.

2.13.4.5

2.13.6 2.13.7

Deleted A Member which seeks to execute a Non-Standardised Contract on behalf of a customer shall satisfy itself that that type of transaction is suitable for that customer. To this end, the Member in question shall draw the attention of their customers to the characteristics of the market in Non-Standardised Contracts and shall in this respect have regard to any guidance issued by Turquoise on the subject. The acceptance of any transaction reported to Turquoise in accordance with this Rule 2.13 for registration shall be at the discretion of Turquoise and the Designated Clearing House. If a transaction in a Non-Standardised Contract is executed or accepted for registration in accordance with this Rule 2.13, the Marketplace Service will confirm the transaction to the parties forthwith.

2.13.8

2.14
2.14.1 2.14.2 2.14.3

Give-Ups
A Member may arrange for all or certain specified Registered Contracts in its Account to be given up for clearing and settlement purposes to another Member. The provisions of this Rule 2.14 apply to the exclusion of Rule 3.4 in relation to the Giving-Up of a Registered Contract between Members. In this Rule, "Giving-up" means the process of transferring a Registered Contract from the Account of the Transferring Member to the Account of the Accepting Member in accordance with this Rule and "Give-up" shall be construed accordingly. Where a Member (the "Transferring Member") has executed an Transaction on the understanding that the clearing and settlement of the resulting Registered Contract will be undertaken by another Member or a Members General Clearing Member (the "Accepting Member"), the Transferring Member shall notify the Marketplace Service of its intention to give up the Transaction and provide the relevant details thereof including the identity of the Accepting Member. Any request which seeks the transfer of a Contract to or from a customer Account or a Client Account shall not be considered unless the Members requesting such transfer provide satisfactory confirmation that the Clients affected thereby have consented thereto. For all Give-Ups except those to or from a Norwegian Clearing Member, the Transferring Member must notify Turquoise no later than 6.00 pm London time where the request is submitted via the Members electronic connection, or no later than 60 minutes after the close of

2.14.4

2.14.5

39

RULE BOOK
the market where the request is submitted by other means on the day on which the transaction was executed. For a Give-up to or from a Norwegian Clearing Member the request must be submitted no later than 5.30 pm London time on the day on which the transaction was executed. A request for a Give-Up on the Expiration Date for the contract must be submitted by fax or the Members electronic connection not later than 6.00 pm London time that day. Where it is satisfied that as a result of an administrative error a Member has failed to notify the Marketplace Service of the intention to give up a transaction within the prescribed deadlines, Turquoise may at its sole discretion accept a request to effect a Give-up which is submitted to it prior to 6.00 pm London time on the applicable Bank Day following the day on which the transaction in question was executed. 2.14.6 Turquoise shall consider such matter in conjunction with the Designated Clearing House and shall send a Give-Up Confirmation indicating whether the Give-Up has been accepted or not to the Transferring Member and the Accepting Member as soon as possible following the receipt of the request from the Transferring Member. The Transferring Member and the Accepting Member will be bound by the Give-Up Confirmation unless an objection is submitted to Turquoise no later than thirty minutes after the close of trading for the Product in question on the day on which the Give-Up Confirmation is issued. If a valid objection is received or if the Accepting Member declines to accept the GiveUp, the Registered Contract shall remain in the Account of the Member which effected the transaction. Where the relevant Transaction has been executed by a member of Oslo Brs, such party may agree with a member which is a Clearing Member for the resulting Contract to be given-up for clearing and settlement to such Clearing Member. These arrangements and the procedures governing the Registration of any Contract given-up to the Clearing Member shall be carried out in accordance with the Clearing House Regulations. The acceptance of any such transfer shall be at the discretion of the Designated Clearing House. The procedures for Giving-up set out in this Rule 2.14 do not apply to the arrangements made between a Member, a General Clearing Member and the Designated Clearing House whereby the responsibility for the clearing and settlement of all transactions undertaken by such Member is accepted by the General Clearing Member which has agreed to act in that capacity for the said Member. These arrangements will be governed by the terms of the GCM Agreement entered into by the parties in question.

2.14.7

2.14.8

2.14.9

2.15 2.16
2.16.1

Deleted Cancellation of Incorrect Transactions

From time to time transactions are effected which result from an error in the execution of the transaction by one of the parties to the transaction. Instances of such transactions are: (i) (ii) a transaction which has been effected at a price or in a volume other than that at which the party intended to effect the transaction; or a transaction where one party intended to place a different order from the order he placed.

Turquoise believes that it is in the interests of the market generally that Members are able to mitigate the consequences of such errors and that the Members involved in such incorrect transactions should attempt to reach agreement in order to resolve the matter. The procedures set out in this Rule provide for an incorrect transaction to be cancelled or for its price to be adjusted in response to a request from a Member. On receipt of a request for cancellation, Turquoise will consider the circumstances relating to the execution of the transaction and will determine whether this Rule 2.16 should be applied to the transaction. 2.16.2 Turquoise shall not be required to take any action pursuant to this Rule where it reasonably determines on the basis of market information relating to the relevant products at the time the request is submitted to Turquoise that the aggregate loss sustained by the Member as a result of the incorrect transaction does not exceed NOK 5,000, 500 or USD 110.

40

RULE BOOK

Turquoise will cancel the transaction in question if either: (i) (ii) both parties to the transaction agree that it should be cancelled; or Turquoise considers that the requirements of this Rule are satisfied and that the transaction in question has resulted from an error in the input of the order and that the request for cancellation submitted by one party to the transaction should be granted.

2.16.3

Any request for cancellation must be submitted to Turquoise as soon as possible after the transaction in question has been effected and in any event within sixty minutes of the close of trading for the Contract in question on the day on which the transaction was effected. In the absence of the agreement of the counterparty to the transaction, Turquoise will not direct that a transaction be cancelled unless a request is submitted within ten minutes of the transaction being effected (the Cancellation Deadline). Where the request for cancellation relates to a Combination or Turquoise otherwise determines, having regard to the circumstances, that it is not appropriate for the transaction to be cancelled, it may at its sole discretion direct that the registered transaction price be adjusted.

2.16.4

When a request for cancellation is received by Turquoise, it shall notify the counterparty to the trade of the request. The counterparty shall inform Turquoise whether it is prepared to agree to the cancellation of the transaction. Such consent must be received by Turquoise before the close of trading in the Product in question on the trading day for such Product following the day when the Transaction was Registered. If that Member agrees to cancel the transaction, Turquoise shall notify both parties that the transaction has been cancelled. If a Member objects to a cancellation or a price adjustment, Turquoise will determine whether the transaction shall be deemed to be obviously erroneous in accordance with the rules set forth below. If so required to ensure the integrity of the market or in any other extraordinary situations, Turquoise may, on its own initiative or upon request by a Member cancel a Transaction which has occurred due to: (i) an obvious error or mistake caused by a technical or manual error at Turquoise, or a Member; or in the opinion of Turquoise, an obvious or material breach of any law, ordinance or the Rules and Regulations; or a technical disruption in Turquoises trading or clearing system which is beyond the control of a Member; or where the Transaction may reasonably be assumed to have taken place on the basis of material, erroneous information published by the issuer whose financial instruments constitute the contract base for the contract in question or where, in connection with any corporate action with respect to such issuer, significant uncertainty existed regarding recalculation of the contract terms at the time of the transaction.

2.16.4A

(ii)

(iii)

(iv)

2.16.5

In determining whether to cancel a transaction in accordance with a request from a Member which is submitted before the Cancellation Deadline where the counterparty to the transaction has not consented to cancellation, Turquoise will compare the price at which the transaction was effected against representative market prices (the Fair Market Bid and Offer) in order to determine whether the price of such transaction is obviously incorrect. The Fair Market Bid and Offer will be determined as follows: Turquoise will, in conjunction with Oslo Brs, request bid and offer prices from at least three Market Makers not involved in the incorrect transaction. Where the price for the incorrect transaction is less than 2 NOK, 0.2 EUR or 0.2 USD the market makers shall be requested to quote a price equivalent to the mid point of their bid and ask price for such transaction. Where the price for the incorrect transaction is more than 2 NOK, 0.2 EUR or 0.2 USD the prices to be provided by the Market Makers must be based on the price of the underlying at the time of the transaction and have a spread in accordance with the Prescribed Spread for Quotes set out in Rule 2.16.20.

2.16.6

41

RULE BOOK

The respective bid and offer or mid point prices provided by the Market Makers will be averaged by Turquoise to determine the Fair Market Bid and Offer. Turquoise may at its sole discretion decide not to use one or more of the prices provided or to establish the Fair Market Bid and Offer by other means. 2.16.7 If the transaction requested to be cancelled was effected during a period in which Turquoise had declared a Fast Market, Turquoise shall establish the lowest and highest transaction price for the underlying during the period between one minute before and one minute after the time at which the transaction was effected. Turquoise shall then, in conjunction with co-operating exchanges, request at least three Market Makers to quote one bid and one ask price for the relevant Contract at each of these two NOK, 0.2 EUR or 0.2 USD of the underlying. Where the price for the incorrect transaction is less than two NOK, 0.2 EUR or 0.2 USD, the market makers shall be required to quote mid point prices for such transactions at each of the said price levels. Each bid and offer to be provided by the Market Makers must have a spread in accordance with the Prescribed Spread for Quotes in Rule 2.16.20. Turquoise will determine an average bid price and an average offer price at each of the two price levels of the underlying. Turquoise will then determine the Fair Market Bid and Offer as the lowest average bid price and the highest average offer price. 2.16.8 Where a request for cancellation of a transaction is received by Turquoise before the Cancellation Deadline, Turquoise will direct that the transaction be cancelled if the price at which it was effected deviates by more than the maximum permitted deviation from the Fair Market Bid and Offer for the contract in question at the time at which the transaction was effected. The maximum permitted deviation for the Contract in question is specified as such in Rule 2.16.21. If the transaction requested to be cancelled was effected during a period in which Turquoise had declared a Fast Market the maximum permitted deviation will be the Fast Market Deviation specified in Rule 2.16.21. 2.16.10 Where Turquoise decides that the procedures relating to price adjustment should be applied it will compare the price at which the transaction was effected against the Price Adjustment Range for such Contract at the time in question. The Price Adjustment Range for the Contract will be determined by subtracting from and adding to the Fair Market Bid and Offer, the relevant Permitted Deviation specified in Rule 2.16.21. If the price at which the transaction was effected is outside the Price Adjustment Range for the contract, Turquoise shall adjust the price of the transaction to the price in the said range which is nearest to the price of the original transaction. 2.16.11 In the absence of express authorisation from the Members in question, the identity of parties involved in a transaction which is the subject of a request for cancellation or adjustment under this Rule shall not be disclosed. In determining the Price Adjustment Range in connection with a request for cancellation or adjustment of the price of a transaction, Turquoise may depart from the procedures set out in this Rule if it is satisfied that such action is appropriate. Where it takes such action it shall inform the Members involved in the transaction of that fact and of the reasons for taking such action. In the event that the underlying security for a Contract is subject to suspension of trading on the exchange on which it is principally listed, Turquoise shall be entitled at its absolute discretion to cancel some or all transactions in Contracts based on the underlying security in question. Where the transaction has taken place during a period of time in which no price is quoted for the underlying Product in question, the first price quoted thereafter shall be used to determine the spread.

2.16.9

2.16.12

2.16.13

2.16.13A

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RULE BOOK

Where the transaction has taken place during a period of time in which no continuous trading takes place with respect to all or parts of the contract base, Turquoise shall determine the spread based on the information which, at the time of the assessment, is available in Turquoises system regarding pricing with respect to the contract base. When calculating a reasonable spread pursuant to the first and the second paragraph, the permitted deviation shall be determined as specified at Rule 2.16.21. 2.16.14 If a Transaction relates to a Standardised Combination Order, special rules for cancellation and price adjustment shall be applied. The situations that may occur under these special rules are as follows: (i) an incorrect transaction where the error was in an order which was not a Standardised Combination Order which was executed against a Standardised Combination Order and the price for the combination was reasonable; an incorrect transaction where the error was in an order which was not a Standardised Combination Order which was executed against a Standardised Combination Order and the price for the combination was judged by Turquoise at its sole discretion to be incorrect; an incorrect transaction where the error was in a Standardised Combination Order which was executed against another Standardised Combination Order placed by another Member; an incorrect Transaction where the error was in a Standardised Combination Order which was executed against an order which was not a Standardised Combination Order.

(ii)

(iii)

(iv)

2.16.15

In cases referred to in Rule 2.16.14(i), firstly it will be determined whether a cancellation or price adjustment could be made in accordance with Rules 2.16.2 to 2.16.12. If that would not be possible, the price for the incorrect Transaction shall then be adjusted to a price equal to the price for the correct Transaction in the Standardised Combination plus or minus, as appropriate, the price at which the Standardised Combination was placed. In cases referred to in Rule 2.16.14(ii), firstly it will be determined whether a cancellation or price adjustment could be made in accordance with Rules 2.16.2 to 2.16.12. If that would not be possible, the price shall be adjusted in accordance with the following procedure: Turquoise shall, in conjunction with Oslo Brs, request Market Makers to quote prices at which they are willing to substitute for the Member that placed the Standardised Combination Order. Turquoise shall offer to the Member that entered the Combination to adjust the price of the incorrect Transaction to a price equal to the price for the correct Transaction in the Standardised Combination plus or minus, as appropriate, the best price offered by one of the Market Makers. If the Member that placed the Standardised Combination Order objects to price adjustment, then both Transactions in the Standardised Combination will be cancelled for that Member, and the position will be transferred to the Market Maker that has offered the best price for the Standardised Combination, and price adjustment will take place accordingly.

2.16.16

2.16.17

In cases referred to in Rule 2.16.14(iii), the question as to whether cancellation or price adjustment shall take place or not shall be assessed for the Standardised Combination as a whole under Rules2.16.2 to2.16.12. In cases referred to in Rule 2.16.14(iv), the question as to whether cancellation or price adjustment shall take place or not shall be assessed separately for each Transaction in the Standardised Combination under Rules 2.16.2 to 2.16.12. Where Turquoise determines that an incorrect transaction should be dealt with by way of price adjustment Turquoise shall cancel the existing transaction and re-register it at the adjusted price. The Maximum Market Spreads to be used in this Rule 2.16 are as follows: Prescribed Spread for Quotes NOK 1.5 2.25

2.16.18

2.16.19

2.16.20

43

RULE BOOK
3.00 3.75 Quoted Bid or Offer EUR or USD 0.21 1 1.01 2 2.01 3 3.01 Prescribed Spread for Quotes EUR or USD 0.2 0.3 0.4 0.6

Where the price for the transaction is less than 2 NOK, or 0.2 EUR or 0.2 USD, the market makers shall provide quotes for a mid price for such transaction. 2.16.21 The permitted price deviations to be used in this Rule2.16 are as follows: Maximum Fast Market Quoted Bid or Offer Permitted Deviation NOK Deviation NOK NOK 2.01 - 10 1 2 10.01 - 20 1.5 3 20.01 - 30 2 4 30.01 3 6 Maximum Permitted Deviation EUR or USD 0.1 0.15 0.2 0.3 Fast Market Deviation EUR or USD 0.2 0.3 0.4 0.6

Quoted Bid or Offer EUR or USD 0.21 1 1.01 2 2.01 3 3.01

Where the price for the transaction is less than 2 NOK, 0.2 EUR or 0.2 USD, the maximum permitted deviation which shall be applied to the mid point price quoted by a market maker shall be whichever is the greater of 50% of such mid point price or 0.1 NOK, or 0.01 EUR or 0.01 USD, or, in cases where a Fast Market applies, 100% of such mid point price or 0.2 NOK, or 0.02 EUR or 0.02 USD.

2.17
2.17.1 2.17.2 .2.17.3

Market Supervision
Turquoise supervises trading and price building in Listed Products and the general activity of Members with a view to ensuring that trading at Turquoise is conducted properly. Where Turquoise believes that the activity of a Member requires investigation it may request the FSA or any other body which it considers appropriate to assist in any such investigation. Members shall co-operate fully with Turquoise's Compliance Department or other body appointed pursuant to Rule 2.17.2 in any such investigation and shall take appropriate action in accordance with any direction issued by Turquoise following such investigation.

2.18
2.18.1

Position Limits
Turquoise may set Position Limits prescribing the maximum number of Registered Contracts in a Listed Product which may be held by a Member or a customer at any time. Such Position Limits will be set by Turquoise in the interests of maintaining a proper market in the Product in question. Position Limits may also be set by Turquoise following discussions with the Designated Clearing House where Turquoise and the Designated Clearing House are satisfied that such action is necessary in order to manage the risk represented by the Member in question. Turquoise will notify Members in writing of the imposition of Position Limits in relation to an Listed Product or of any variation in existing Position Limits. Such notice will normally be given

2.18.2

2.18.3

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not less than three Trading Days for the Product in question before the Position Limits come into effect. 2.18.4 A Member shall not enter into any transaction in a Listed Product if such transaction would result in Position Limits applicable to the Product in question being breached by the Member or the customer for whom the Member is acting in relation to the transaction. A Member shall take such action as Turquoise may direct in order to rectify any breach of a Position Limit by the Member. Where the Member fails to act in accordance with instructions given by Turquoise in accordance with this Rule, Turquoise may take such action as it considers necessary in the circumstances including, without limitation, excluding the Member from participation in trading at Turquoise and effecting in the name of and at the expense of the Member such transactions as Turquoise at its sole discretion considers are necessary to cure the breach of the relevant Position Limit. Breach of a Position Limit shall be a disciplinary offence under the Rules of Turquoise. A Member which has breached a Position Limit imposed by Turquoise will be subject to disciplinary action in accordance with Rule 1.9 Turquoise may investigate positions registered in Accounts held by a Member to establish whether the Member has registered positions in more than one Account in an attempt to circumvent Position Limits applicable to such Member.

2.18.5

2.18.6

2.18.7

2.19
2.19.1

Prohibition of Market Manipulation

A Member shall not act whether in isolation or in concert with one or more Members or with members of other exchanges on which an Underlying Product is traded or with any other party in such a way as would tend to distort the market in a Listed Product. Without limiting the generality of Rule 2.19.1, a Member shall not: (i) (ii) distribute any inaccurate or misleading information which might affect the price of an Listed Product; place any order or report any transaction for registration pursuant to these Rules with a view to distorting the market in an Listed Product.

2.19.2

2.19.3

A Member which acts in breach of this Rule shall be subject to disciplinary action in accordance with Rule1.9. Members shall co-operate fully with Turquoise in investigating any conduct which allegedly contravenes this Rule. For the avoidance of doubt, a Member shall not be considered to have acted in breach of this Rule if it can satisfy Turquoise that in placing an Order or executing a transaction in a Listed Product it was acting for bona fide trading purposes relative to the Product in question.

2.19.4

2.20
2.20.1

Trading Hours
Orders may be placed and Trades may be executed during the hours in which Turquoise is open for trading. Turquoise's normal trading hours for each Listed Product is set out in the Contract Specification relative thereto at Part 4. The normal trading hours may be varied by Turquoise in conjunction with public holidays or in exceptional circumstances. Turquoise will give notice in writing to Members of any variation in its normal trading hours. Outside the hours when Turquoise is open for trading, Orders may be varied or cancelled and Indications of Interest may be posted or withdrawn.

2.20.2

2.20.3

2.21
2.21.1

Emergency Closure or Suspension of Trading

Where Turquoise is satisfied that circumstances have arisen which prejudice the quality of the market in Listed Products or the proper and timely performance by the Designated Clearing House of its functions in relation to the resulting Registered Contract, Turquoise may take such action as it considers necessary. Such action may include the closure of Turquoise or the suspension of trading in a particular Listed Product. Where such action is taken, notice thereof and of the reasons giving rise to the action shall be given to Members as soon as possible by the most appropriate method.

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2.21.2

Circumstances which may give rise to action under Rule 2.21.1 include technical or other problems which affect Turquoise's trading system, communication systems or information systems or any comparable problem affecting the systems used by the Designated Clearing House or by an exchange on which the Underlying Instruments are principally traded. Where Turquoise considers that the problem which has caused the emergency closure or the suspension of trading in particular Listed Products will be resolved within fifteen minutes, both the electronic trading system and the Marketplace Service will be suspended generally or in relation to the Product in question. Where Turquoise considers that such problem will continue for more than fifteen minutes, it may arrange for trading to be resumed by way of the Marketplace Service only provided that it is satisfied that such action is consistent with the maintenance of a proper market in Listed Products. Turquoise shall inform Members if such action is to be taken. On emergency closure or the suspension of trading in particular Listed Products, the placement of Orders and the execution of Transactions will cease until further notice either generally or in relation to the Products in which trading has been suspended. Orders relating to a Listed Product which are stored in the Orderbook at the time at which trading in such Product is suspended will normally remain in the Orderbook but will not be capable or being executed until trading in such Product resumes. In these circumstances, Stored Orders will retain their normal priority in accordance with Rule 2.7. If for technical reasons, the procedures described above cannot be followed, Turquoise will inform Members of the circumstances and of the need to re-enter Orders in the Orderbook. Indications of Interest, Instructions and Orders placed with the Marketplace Service prior to the time at which the emergency closure or suspension of trading in the Product to which such Interest, Instruction or Order relates are not capable of being executed until trading in such Product resumes. The Member which gave such Interest, Instruction or Order shall inform the Marketplace Service prior to such resumption of trading whether it wishes to confirm it or to withdraw it. Normal trading shall be resumed following emergency closure or the suspension of trading in a particular Listed Product as soon as Turquoise is satisfied that the circumstances permit. Turquoise shall inform Members of such resumption of trading not less than ten minutes before the appointed time.

2.21.3

2.21.4

2.21.5

2.21.6

2.21.7

2.21.8

2.21.9

2.22
2.22.1 2.22.2

Information Concerning Listed Series

Turquoise disseminates information regarding Orders and Trades in Listed Series as specified in Rule 1.12. During the normal trading hours for each Listed Product, Turquoise disseminates information regarding Orders and Transactions in accordance with the Information List as amended from time to time. During such hours Turquoise also provides to Members the further information described in such Information List. In the absence of an express statement to the contrary, information relating to a Listed Series which is listed in conjunction with Oslo Brs reflects the combined activity in such Series of Members of Turquoise and members of Oslo Brs. On request from a Member, Turquoise will provide information about the terms of any Indications of Interest for the relevant Series which have been posted with Turquoise or Oslo Brs.

2.22.3

2.22.4

2.23

Eligible U.S. Investors

Rule2.23 will be subject to the Filing of Updated Options Disclosure Documents pursuant to Rule 9b-1 U.S. Securities Exchange Act

2.23.1

Members should note that Stock Options and Index Options may be offered and sold to those U.S. persons that are broker-dealers registered with the U.S. Securities and Exchange Commission (SEC) or large financial institutions that, in either case, are Eligible BrokerDealers or Eligible Institutions (collectively, U.S. Eligible Investors) subject to the provisions of this Rule. To be Eligible, each such entity must:

46

RULE BOOK
(i) be a qualified institutional buyer as defined in Rule 144A(a)(1) under the U.S. Securities Act of 1933 (Securities Act), or an international organization excluded from the definition of U.S. person by Rule 902(k)(2)(vi) under the Securities Act; and have had prior actual experience with options traded in the U.S. standardized or listed options market (who would therefore already have received the disclosure document for U.S. standardized options called for by Rule 9b-1 under the U.S. Securities Exchange Act of 1934 (Exchange Act).

(ii)

2.23.2 2.23.3

For the purposes of this Rule, Stock Option means a Norwegian Stock Option and Index Option means an OBX Index Option. Members shall obtain written representations from any U.S. Eligible Investor, signed by an appropriate officer, to the following effect: (i) it is a qualified institutional buyer as defined in Rule 144A(a)(1) under the Securities Act and, as such, it (i) owns and invests on a discretionary basis a specified amount of eligible securities sufficient to be a qualified institutional buyer under Rule 144A (and if a bank, savings and loan, or other thrift institution, has a net worth meeting the requirements of Rule 144A); it has had prior actual experience in the U.S. standardized options markets and as a result thereof has received the options disclosure document entitled Characteristics and Risks of Standardized Options that is prepared by the Options Clearing Corporation and U.S. options exchanges; it has received a copy of Turquoises document entitled Special Characteristics and Risks of Standardised Options Contracts Traded at Turquoise; its transactions in Options will be for its own account or for the account of another U.S. Eligible Investor or for the managed account of a non-U.S. person within the meaning of Rule 902(k)(2)(i) under the Securities Act; it will not transfer any interest or participation in an Option it has purchased or written to any other U.S. person, or to any person in the U.S., who is not an U.S. Eligible Investor; it will cause any disposition of an Option that it has purchased or written to be effected only on Turquoise and to be settled at the Designated Clearing House appointed by Turquoise. It understands that any required payments for premium, settlement, exercise or closing of any Stock Option or Index Option in respect of which it has a contract with a Member must be made in London and in Norwegian Kronor. It also understands that, if in relation to an Option it has a contract with a Member as a writer of such Option, margin must be provided to that Member, and maintained, measured and deposited in Norwegian Kronor; if it is an U.S. Eligible Investor acting on behalf of another U.S. Eligible Investor that is not a managed account, it has obtained from the other a written representation to the same effect as the foregoing and will provide it to the Member upon demand; and it will notify the Member of any change in the foregoing representations prior to placing any future order, and the foregoing representations will be deemed to be made with respect to each order it gives to a Member.

(ii)

(iii) (iv)

(v)

(vi)

(vii)

(viii)

2.23.4

Members that are not U.S. registered broker-dealers may deal in Stock Options or Index Options with U.S. Eligible Investors only in accordance with Rule 15a-6 under the Exchange Act, principally through U.S. registered broker-dealers as provided in such Rule.

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PART 3 3.1
3.1.1

CLEARING AND SETTLEMENT Introduction

Turquoise has made arrangements which provide for the Designated Clearing House to act as the central counterparty for Registered Contracts which result from transactions which are executed by means of the facilities of Turquoise or reported to it for registration in accordance with its Rules. The Clearing House Regulations provide for the clearing and settlement of the obligations in respect of Registered Contracts to be performed by the Member directly if it is a Clearing Member at the Designated Clearing House or by the General Clearing Member acting on behalf of the Member. A Member shall ensure that it makes all arrangements which are required in order to ensure such obligations will be duly discharged in the manner provided for in the Clearing House Regulations, or where applicable, for such matters to be discharged by the General Clearing Member acting on behalf of the Member.

3.1.2

Members should ensure that they or, where applicable, the General Clearing Member acting on their behalf, comply with the Clearing House Regulations which require them to: (i) make arrangements with a bank approved by the Designated Clearing House for such purposes to enable its settlement and payment obligations to the Designated Clearing House to be performed by way of a PPS Transfer. The list of banks approved for such purposes together with copies of the documents required to be completed by Members in connection with the PPS arrangements are available from the Designated Clearing House on request; complete the necessary administrative procedures specified by the Designated Clearing House concerning the performance of delivery obligations appropriate to its activities at the Designated Clearing House.

(ii)

3.1.3 3.1.4

Registered Contracts shall be settled on Expiration or Exercise as the case may be in accordance with the Clearing House Regulations applicable to the Contract in question. Settlement of Registered Contracts shall be effected between the Designated Clearing House and the Clearing Member or General Clearing Member of the Designated Clearing House responsible for the Account in which the Contract which has expired or has been exercised was registered at the relevant time. Members which act as Clearing Members of the Designated Clearing House shall ensure that they comply with their obligations to provide collateral to the Designated Clearing House in the manner provided for in the Clearing House Regulations to cover the Margin Requirement in relation to Registered Contracts in the Clearing Account at the Designated Clearing House. Members which use the services of a General Clearing Member in relation to the clearing and settlement of Registered Contracts shall ensure that such General Clearing Member complies with the abovementioned obligations to provide Collateral to the Designated Clearing House.

3.1.5

3.1.6

Members should note that in accordance with the Clearing House Regulations, the Designated Clearing House may decline to enter into a Registered Contract or to cancel a Registered Contract where it is required to take such action in order to comply with Applicable Laws or Regulations or any order or direction given by or a requirement imposed by any relevant regulator or pursuant to the rules of any such regulator. In such circumstances Turquoise shall take the necessary steps in conjunction with the Designated Clearing House. Where any such action is taken, Turquoise may at its sole discretion effect such Transactions in the name of and for the account of the Member to whom such law, regulation, order, direction or requirement applies as may be necessary in order to ensure that following such action and the Registration of the resulting Registered Contracts at the Designated Clearing House, the balanced position of the Designated Clearing House is maintained.

3.2
3.2.1

Registration and Requests for Registration of Off-Exchange Transactions

On execution of an Transaction in an Listed Product or the acceptance of a Request for Registration in accordance with these Rules relating to any such Product, the Clearing House Regulations provide that the Designated Clearing House shall enter into a Registered Contract so that:

48

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(i) (ii)

where a Clearing Member is the seller in such Transaction, the Designated Clearing House shall enter into a Registered Contract as buyer from the Clearing Member; and where a Clearing Member is the buyer in such Transaction, the Designated Clearing House shall enter into a Registered Contract as seller to the Clearing Member.

As a party to such Registered Contracts, the Designated Clearing House is responsible for the performance of its obligations to the Clearing Member in question. 3.2.2 If the counterparty to a transaction in a Listed Product entered into by a Member is a member of Oslo Brs, the Clearing House Regulations provide that it shall enter into a Balance Contract with identical economic content with Oslo Clearing which will in turn enter into a contract as buyer or seller as the case may be with the other party involved in the transaction. In its capacity as central counterparty to Registered Contracts the Designated Clearing House accordingly maintains a neutral position at all times by entering into matching contracts as buyer and seller contemporaneously Where a transaction in a Listed Product is effected by means of Turquoises electronic trading system the resulting Registered Contract will normally be registered immediately in the clearing system of the Designated Clearing House. Where a transaction is effected by other means provided for in these Rules or is reported to Turquoise for Registration in accordance with these Rules, the resulting Registered Contract will be registered at the time that the contract in question is accepted for clearing by the Designated Clearing House and matched in the clearing system of the Designated Clearing House. 3.2.5 The acceptance of a Request for Registration shall be at the sole discretion of Turquoise and the Designated Clearing House. Requests for Registration may be submitted to Turquoise by the Member or Members which are the counterparties to the transaction referred to in such Request. Requests for Registration relating to transactions in Listed Products which have been effected off-exchange may be submitted during the normal trading hours for the Product in question or outside of such hours. A Request for Registration may be submitted by way of the electronic connection of a Member to Turquoise during the normal trading hours for the Contract in question. Requests for Registration that are submitted by way of the electronic connection of a Member to Turquoise may be submitted using any of the following three trade types: Normal trade (NT): The agreed price may not, at the moment of Registration, be less than the bid price or greater than the ask price quoted in Turquoises trading system or if such prices are missing, prices regarded by Turquoise as being reasonable - regarding Transactions in Products based on shares, Depository Receipts or stock indices. Late Trade (LT) If NT is not applicable but the agreed price has been not less than the bid price or greater than the ask prices quoted in Turquoises trading system or if such prices are missing, the prices regarded by Turquoise as being reasonable during a period of five minutes prior to the application for Registration regarding Transactions in Products based on shares, Depository Receipts or stock indices.

3.2.3

3.2.4

MTF Granted 1 (EG 1): If neither NT or LT are applicable, EG 1 shall be used if the agreed price, has been not less than the bid price or greater than the ask price quoted in Turquoises exchange trading system or if such prices are missing, the prices regarded by Turquoise as being reasonable during the day of the application for Registration regarding Transactions in Products based on shares, Depository Receipts or stock indices. Prior to the application of Registration an approval, via telephone, shall be acquired from Turquoise.

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A Request for Registration submitted to Turquoise in accordance with this Rule shall provide information regarding the buyer and the seller of the Contract, the Series, the price or premium for the Contract, the volume and the Accounts in which such Contract is to be registered. A Request submitted by way of the electronic connection of a Member to Turquoise shall in addition specify the country code and prefix for the Member or Members in question. Requests for Registration relating to transactions in a Listed Product which have been effected off-exchange during trading hours for the Product in question shall be submitted to Turquoise as soon as possible following the execution of the transaction. The provisions governing Requests for Registration of off-exchange transactions are set out in the section of Part 4 applicable to the Product in question. Turquoise may use alternative procedures to those specified in the relevant section of Part 4 where it is satisfied that such action is required in the applicable circumstances. 3.2.6 Where a Request for Registration is submitted to Turquoise via the telephone, and the agreed price is at or within the spread of the bid and ask for the Series in question which was obtained during the period of five minutes immediately prior to the time at which the Request for Registration is submitted, the Request for Registration will normally be accepted by Turquoise. Where the price at which an off-exchange transaction which is reported to Turquoise for Registration during the trading hours for the Product in question is outside the spread of prices for the Contract in question prevailing in the period of five minutes preceding the time at which the Request is submitted or where prices for the Contract in question have not been quoted during such period, such request shall only be accepted by Turquoise where it is satisfied at its sole discretion that the Registration of such transaction is appropriate in the circumstances having regard to the interests of the market generally. 3.2.7 Requests for Registration of off-exchange transactions which have been concluded outside the normal trading hours for the Contract in question may be submitted to Turquoise for Registration prior to the commencement of trading on the following trading day for such Contract. Such Requests shall be considered by Turquoise for Registration in accordance with the relevant provisions of the section of Part 4 of these Rules which apply to the Contract in question. In exceptional circumstances, Turquoise will consider a Request for Registration which is submitted during trading hours for the Contract in question which relates to a transaction which was entered into prior to the start of the current trading session. Any such Request for Registration shall be submitted by telephone to Turquoises Surveillance Department. There are no restrictions on the price at which such Contract may be registered. No information regarding the Registration of such Contract will be published by Turquoise. In considering any such Request for Registration, Turquoise shall have regard to the time and price at which the off-exchange transaction was effected and any other factors which it considers to be material to its determination with regard to the Request. 3.2.9 Where the price was within the spread at the time of the Request for Registration, Turquoise shall publish information regarding the price, volume and time at which such Contract was registered and will update all the information published by Turquoise. Where the price was: (i) (ii) outside the spread within the five minutes preceding the submission of the Request for Registration; or within the spread that was obtained during the day on which the Request for Registration was submitted;

3.2.8

Turquoise will publish the Trade Report price and quantity and update the daily high and low and turnover fields. The last published price, last quantity and open fields will not be updated in the information published by Turquoise. The foregoing provisions shall not apply in relation to a Contract which is registered pursuant to a Request for Registration accepted by Turquoise pursuant to Rule 3.2.8. 3.2.10 Notwithstanding the preceding paragraphs, if the price of the transaction has been defined by factors other than the current prices quoted in the order book of the Product, an explanation of the source of the agreed price shall be presented to Turquoise. Such factors may for instance be that the quantity of the transaction is significantly larger than the volumes presented in the

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order book, that the transaction has been executed using an average price as benchmark (VWAP) or that it is part of a combination trade involving other Products. The circumstances explaining the background of the transaction and the definition of the price shall be presented to Turquoise, who will decide whether to register the transaction. Turquoise has no obligation to register a transaction where the price is lower than the bid price or higher than the ask price quoted in the trading system.

3.3
3.3.1

Protests
Turquoise shall issue Settlement Statements to each Member specifying the Registered Contracts which have been registered in the Clearing Accounts at the Designated Clearing House of the Member or the General Clearing Member used by the Member for such purposes on each day on which Turquoise is open for trading the Listed Product in question. In relation to a Member which has arranged for its obligations with regard to the provision of Collateral and the clearing and settlement of transactions it effects at Turquoise to be discharged by a General Clearing Member, the Settlement Statements shall be sent by Turquoise to such General Clearing Member and to the Member in question. The Member shall satisfy itself that the information contained in the Settlement Statement is complete and correct in all respects and that the Settlement Statement records accurately the terms of the transactions effected by the Member at Turquoise on the day in question. A Member which uses the services of a General Clearing Member shall confirm with such General Clearing Member that the particulars of transactions shown in the Settlement Statements as having been entered in to by the Member are complete and correct in all respects. In accordance with the Clearing House Regulations, the Member or General Clearing Member as the case may be shall be bound by the terms of a Registered Contract recorded on a Settlement Statement if a valid Protest is not submitted to Turquoise by the Member within the prescribed time limit following the issue of the Settlement Statement in which the Contract in question is recorded.

3.3.2

3.3.3

3.3.4

If a Member alleges that there is an error or omission in any Settlement Statement issued by Turquoise, it shall submit a Protest to Turquoise within the prescribed time limit. Such Protest shall be in writing and shall provide details of the alleged error. A Protest which relates to a Contract registered in the Clearing Account of a General Clearing Member (other than an Account used solely for the registration of transactions entered into by such General Clearing Member on its own account) shall be submitted in writing by both the General Clearing Member and the Member interested in such Protest. Except where a different time is specified in the relevant section of Part4 applicable to a given Contract, any Protest submitted in accordance with this Rule will not be entertained by Turquoise unless it is received not later than thirty minutes before the close of trading on the First Trading Day for the Product to which it relates following the day to which the Settlement Statement refers except where Registration took place on the Expiration Date of the Product in which case the Protest must be received prior to 17:20 London time on the Expiration Date. Protests may be submitted at a later time and modifications or cancellations may be effected as long as affected Members provide consent. However, in such cases Protests must be submitted not later than 60 minutes after the close of trading for the specified contract on the Bank Day after the day on which Registration took place. Where Registration has or should have taken place on the same day as the Expiration Date of the Contract in question, Protests must be submitted prior to the closing of the clearing system on the Expiration Date or, where the Protest affects another clearing organisation, not later than 60 minutes prior to the closing of the clearing system or the closing of the other clearing organisations clearing system on the same day, whichever is the earliest. Exceptions to time limits in this paragraph can be made if operationally possible, following approval from Turquoise and Oslo Brs.

3.3.4A

In its own authority or following a request by a Member, Turquoise may effect an amendment of an incorrectly executed or non-executed Exercise or Cash Settlement, which Turquoise has processed or failed to process, on behalf of a Member. A Member, who wishes to submit a Protest in respect of an incorrectly executed or nonexecuted Exercise or Cash Settlement, that Turquoise has processed or failed to process, on behalf of a Member, must submit a request to Turquoise. Such a Protest in accordance with this Rule will not be entertained by Turquoise unless it is received no later than thirty minutes

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prior to the open of trading on the First Trading Day for the Product to which it relates following the day after the Exercise or Cash Settlement was carried out or should have been carried out. Information regarding the series and number of contracts affected shall be provided as part of the Protest. In order that Turquoise can effect an amendment of an incorrectly executed or non-executed Exercise or Cash Settlement, that Turquoise has processed or failed to process, on behalf of a Member, it shall, not later than 120 minutes after the normal opening of trading on the First Trading Day after the Exercise or Cash Settlement was carried out, or should have been carried out, notify any Member concerned, that an amendment will be effected. Turquoise will inform the Members concerned how the amendment will be effected. 3.3.4B In its own authority or following a request by a Member, Turquoise may carry out the following measures, as a result of an incorrectly executed or non-executed Exercise or Cash Settlement, which a Member has processed or failed to process. A Member, who wishes to submit a Protest in respect of an incorrectly executed or nonexecuted Exercise or Cash Settlement, which that Member has processed or failed to process, must submit a request therefore to Turquoise as soon as the error is discovered, however not later than 60 minutes after the normal opening of trading for the contract in question on the Bank Day after the Exercise or Cash Settlement was carried out, or not, as the case may be. In connection with such a request, the Member shall provide information regarding the Series, number of Contracts affected, and the specific account in question. When a Member has made such a Protest, Turquoise shall forward the request to all other Members concerned as soon as is possible. If in Turquoises opinion, a Members request for Exercise or Cash Settlement has been incorrectly executed, Turquoise may contact Members concerned on its own initiative, even if no protest has been made. Such contact shall be taken no later than 90 minutes after the normal opening of trading for the contract in question on the Bank Day after the Exercise or Cash Settlement request was carried out. Turquoise will cancel or amend the Exercise and Cash Settlements in question if Members concerned consent to such a measure. If the Members concerned have not approved the measure 120 minutes after the normal opening of trading for the contract in question on the Bank Day after the Exercise or Cash Settlement was carried out no cancellation will be made. 3.3.5 On receipt of a valid Protest, Turquoise shall investigate the matter. Turquoise shall inform the Member submitting the Protest of its decision as soon as possible. Where the Member so requests, Turquoise shall confirm its decision and the reasons therefor in writing as soon as possible after the decision is given. Turquoise shall inform the Designated Clearing House of its decision concerning the Protest and shall arrange for the terms of any Registered Contract affected by the Protest to be adjusted as required in accordance with its decision. The adjustment of the terms of any Registered Contract pursuant to a Protest shall be effected by the Designated Clearing House in accordance with the Clearing House Regulations.

3.4
3.4.1

Re-registration
A Request for Re-registration requesting the transfer of all or certain specified Contracts registered in a Clearing Account at the Designated Clearing House or the transfer of all or certain specified Contracts registered in the account of a member at a Co-Operating Clearing House to the Clearing Account of a Member at the Designated Clearing House may be submitted to Turquoise in accordance with the following provisions of this Rule. A Request for Re-registration may be submitted to Turquoise on the grounds that: (i) the Member has decided to use the services of a General Clearing Member and seeks the Re-registration of Contracts registered in its Account to the Account of the General Clearing Member; the Member has decided to terminate its existing arrangements with a General Clearing Member and seeks the Re-registration of Contracts registered in the Account of such General Clearing Member pursuant to the execution of transactions by such

3.4.2

(ii)

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Member to the Account of the Member or the Account of another General Clearing Member whose services the Member has decided to use; (iii) the Registered Contracts to which the Request relates were effected on behalf of a Client or customer who has requested that its positions be transferred to another Broker; the Registered Contracts to which the Request relates were effected on behalf of a Member as a Client or a customer of a Broker, and the Member has requested that the positions in question be transferred to its Proprietary Account; the Re-registration is requested following the transfer of the business of the transferor Member to the transferee Member or other similar event; or that the Registration of the Contract in the Account in question was the result of an error.

(iv)

(v) (vi) 3.4.3

Requests for Re-registration shall be submitted by a person authorised in this regard to Turquoise either by way of the Members electronic connection to Turquoise or by submitting a duly completed request in writing in the form specified by Turquoise on behalf of both the transferor and the transferee. Any Request which seeks the Re-registration of a Contract to or from a Client Account shall not be considered unless the Member requesting Re-registration provides satisfactory confirmation that the Clients affected thereby have consented to the Reregistration. Requests for Re-registration seeking the Re-registration of a Registered Contract to or from the Clearing Account of a General Clearing Member (other than a Clearing Account used solely for the Registration of positions entered into by such General Clearing Member on its own account) shall be submitted by a person authorised in this regard to Turquoise either by way of the Members electronic connection to Turquoise or by submitting a duly completed request in writing in the form specified by Turquoise by both the General Clearing Member and the Member affected by such Request. Where the Contract in question is also listed by Oslo Brs or Clearing House, a Request for Re-registration may seek Re-registration of all or certain specified Contracts to an Account held by a member of Oslo Brs or Clearing House PROVIDED THAT the acceptance of any such request shall be subject to the specific approval of Turquoise, the Designated Clearing House and Oslo Brs or Clearing House and further that no such request shall be considered unless satisfactory confirmation is provided by the Members in question to Turquoise, the Designated Clearing House and to Oslo Brs or Clearing House that any customer affected thereby has consented to the Re-registration. A Request for Re-registration shall provide the information specified in and shall be submitted by the time prescribed in the section of Part 4 of these Rules applicable to the Contract in question. All Requests for Re-registration will be considered at the discretion of Turquoise and the Designated Clearing House and shall, if accepted, result in the Re-Registration of the Contract in question being effected at the time specified by the Designated Clearing House. Turquoise will inform the Member which submitted the Request for Re-registration of the decision with regard to the Request as soon as practicable following receipt of the Request. The decision of Turquoise and the Designated Clearing House in this respect shall be final and binding. Where a Request for Re-Registration is accepted, Turquoise shall arrange for the terms of any Registered Contract affected by its decision to be amended by the Designated Clearing House. A Re-registration fee will be payable in respect of all Contracts which are re-registered in accordance with this Rule.

3.4.4

3.4.5

3.4.6

3.4.7

3.4.8

The procedures for Re-registration set out in this Rule shall not be applied in connection with the amendment of an error or omission in the registration of a transaction or the terms thereof. Such matters are subject to the rule governing Protests at Rule 3.3.

3.5

Exercise of Options Contracts

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3.5.1 The Contract Specification of an Options Contract will indicate whether the Option is an American Style Option or a European Style Option. The Holder of an American Style Option may exercise the Option at any time during the Lifetime of the Option by submitting an Exercise Order to Turquoise. The Holder of a European Style Option may only exercise such Option on its Exercise Day. The procedures governing the exercise of Options Contracts based on particular Listed Products are set out in the section of Part 4 applicable to the Product in question. The holder of an Option which wishes to exercise it shall, or, where applicable, shall arrange for its General Clearing Member to, submit an Exercise Order to Turquoise relating to the Option in question. Any such Exercise Order shall be submitted to Turquoise either by the Members electronic connection or by submitting a duly completed request in writing in the form specified by Turquoise for the time being. Requests for Exercise submitted to Turquoise in other forms or by other means shall not be valid. 3.5.4 Exercise Orders relating to Option Contracts must be submitted to Turquoise in accordance with the time limits specified in the section of Part 4 applicable to the Contract in question. Turquoises determination of the time at which an Exercise Order was received by it shall be final and binding. Where an Exercise Order has been accepted by Turquoise or an Options Contract is exercised in accordance with the procedures governing Standard Exercise of such Contract, Turquoise will select a corresponding Written Options Contract to be exercised against. Such Contract will be selected on a random basis from the available Contracts. Where a valid Exercise Order or an instruction negating Standard Exercise has been received by Turquoise, it shall inform the Designated Clearing House accordingly so that the necessary action may be taken in relation to the Registered Contracts affected by such Exercise Order. 3.5.6 The procedures governing settlement and delivery of Futures and Options Contracts which have expired or been exercised and any other conditions or restrictions applicable to the Exercise of particular Options Contracts are set out in the section of Part 4 applicable to the Product in question.

3.5.2

3.5.3

3.5.5

3.6
3.6.1

Fees and Cash Settlement Obligations

Members should note that all fees payable in relation to the execution, registration, clearing, settlement, exercise or expiration of a Registered Contract relating to a Turquoise Transaction and other matters relative thereto shall be payable to the Designated Clearing House in accordance with instructions and Settlement Statements relating to such fees issued by the Designated Clearing House in respect of each calendar month. The Member shall pay fees in accordance with Turquoises schedule of fees for the time being. The fees payable in respect of transactions in particular Listed Products are set out in the section of Part 4 applicable to the Product in question. Fees are payable by a Member in respect of the following events: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) on Registration of a Contract; on Re-registration of a Contract; on Settlement of a Contract; on Exercise of an Options Contract; on Delivery; on failure to deliver or settle at the prescribed time; fees relating to custody services provided by the Designated Clearing House; for miscellaneous administrative services.

3.6.2

3.6.3

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The times at which the above mentioned fees are payable in respect of particular Listed Productss are specified in the Fee Schedule at Appendix A. 3.6.4 The penalty fee for failure to perform delivery or settlement obligations at the prescribed time shall be payable on the day specified by Turquoise or the Designated Clearing House (as the case may be) in the notice requiring payment of the said penalty fee. Miscellaneous administrative fees are payable at the time specified in the invoice issued by Turquoise or the Designated Clearing House (as the case may be) relative to the services in question. The foregoing provisions of this Rule 3.6 shall not apply in relation to the performance of daily or other periodic cash settlement obligations. Such obligations shall be performed by the payment by the Member of the amount specified in the Daily Settlement Statements issued by Turquoise in accordance with the section of Part 4 of these Rules or the Rules for Cleared Only Contracts applicable to the Contract in question.

3.6.5

3.6.6

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PART 4.1 4.1.1

4.1.1.1

FUTURES AND OPTIONS CONTRACTS BASED ON INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPTS (IOB DRs) International Order Book Depositary Receipt (IOB DR)
The Contract Specifications for IOB DR Contracts listed by Turquoise and the rules and procedures relating specifically to the trading, clearing and settlement of such Contracts are set out in this Part 4.1. The Trading Hours for IOB DR Futures and Options Contracts shall normally be from 8.15 am to 3.30 pm London time on IOB Trading Days.

4.1.1.2

The rules and procedures set out in this Part 4.1 apply to the following IOB DR Contracts: IOB DR Futures IOB DR Options and references to IOB DR Contracts in this Part 4.1 shall be construed as references to each of the above Contracts unless the context requires to the contrary.

4.1.1.3

The settlement of IOB DR on exercise or expiration is performed by the delivery of the Underlying Depositary Receipt against the payment of the Exercise Settlement Amount in the case of an Options Contract and the Expiration Settlement Amount in the case of a Futures Contract in accordance with the Clearing House Regulations. Members should ensure that they comply with any instructions given by the Designated Clearing House and complete any documents specified by the Designated Clearing House relating to the settlement of IOB DR. The rights and obligations concerning delivery of the Underlying Depositary Receipt following the expiration of a Futures Contract or the Exercise of an Options Contract under this Part 4.1 shall be performed by means of the Designated Settlement Venues system in accordance with instructions issued by Turquoise relative thereto. The Member shall make arrangements with a nominee holding an account at the Designated Settlement Venue to act on its behalf in relation to such deliveries where necessary.

4.1.1.4

4.1.1.5

The Member shall open and maintain a securities account(s) and a related cash account(s) ("the IOB DR Securities Account ") at a Custodian(s) or directly with the Designated Settlement Venue(s) for purposes of delivery settlement in accordance with the Regulations of the Designated Clearing House. The application and interpretation of this Part 4.1 shall be governed by English law and the Courts of England and Wales shall have exclusive jurisdiction to determine any dispute arising out of or in connection with this Part 4.1. Save where there is an express indication to the contrary, all references to time in this Part 4.1 shall be construed as references to London time.

4.1.1.6

4.1.1.7

4.1.2

Interpretation
In this Part 4.1 the following terms shall have the meanings ascribed thereto: Custodian means a bank or other institution which is used by a Member for delivery or receipt of securities deliverable under the terms of a Registered Contract; "Daily Cash Settlement" in relation to an IOB DR Futures means the process of cash settlement effected for such Contracts on each IOB Trading Day where applicable during its lifetime in accordance with Rule 4.1.15; "Daily Settlement Amount" means the amount payable to or by a Member in relation to each Daily Cash Settlement; "Daily Settlement Statement" in relation to an IOB DR Contract, means the note issued by Turquoise showing the amount payable to or by a Member on the Daily Cash Settlement of the Contract in question;

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Deliverable Depositary Receipts in relation to the settlement of a Depositary Receipt Futures or Depositary Receipt Options Contract means the Underlying Depositary Receipt for the Contract in question; Delivery in relation to the settlement of a Depositary Receipt Contract means the process of delivering the Underlying Depositary Receipt against payment of the Delivery Settlement Amount; Delivery Fee means the fee payable in relation to the delivery of the Underlying Depositary Receipt Contract following Expiration of a Futures Contract or Exercise of an Options Contract; Delivery Settlement Amount means the amount payable by the party entitled to receive delivery of the Underlying DR under the contract in question; Depositary Receipt (DR) means either a Global Depositary Receipt or American Depositary Receipt which is listed or traded on the IOB and which corresponds to a share, shares or to a percentage of a share of the company in question; Derivatives Leg means that part of a Derivatives Cash Market Combination that comprises an IOB DR; Designated Market Maker (DMM) means a Member which has agreed to act in such capacity in relation to IOB DR Products in accordance with Rule 4.1.8. Designated Settlement Venue means Euroclear for any DR that falls within the LSEs IOB CCP Securities list as published on the LSE website, or means either the DTCC or Euroclear for all DRs that do not fall within the LSEs IOB CCP Securites list (and known as the Default Settlement Location) as specified in the IOB Depositary Receipt List for the provision of settlement services of IOB DRs Designated Settlement Venue System means the system used by the Designated Settlement Venue for the transfer of title to American Depositary Receipts or Global Depositary Receipts as amended from time to time; DR Issuer in relation to a Contract, means the depositary that issues the DRs on which such contract is based; DTCC means Depository Trust and Clearing Corporation, the American Securities Settlement System; Euroclear means the settlement system for domestic and international securities transactions, covering bonds, equities and investment funds and acts as the Central Securities Depository (CSD) for Dutch, French, Irish and UK securities; ex- Day shall mean the day on which the DR is first available for trading without risks to participate in the corporate action; Exercise Order means an instruction given by the Holder of an Option to Turquoise pursuant to Rule 4.1.18 requesting the Exercise of the Option in question; Exercise Settlement Amount means the amount payable following Exercise of an IOB DR by the party entitled to receive delivery of the Underlying Depositary Receipt under the Contract in question; Exercise Settlement Statement in relation to an IOB DR Contract, means the note issued by Turquoise showing the amount payable to or by the Member on Exercise of the Contract in question; Exercise Value in relation to an IOB DR, means the Strike Price for such Contract multiplied by the number of Depositary Receipts of the Underlying Depositary Receipt represented by such Contract; Expiration Date in relation to a standardised IOB DR Series means the third Friday of the Expiration Month or, if that day is not an IOB Trading Day, the immediately preceding IOB Trading Day and, in relation to a Non-Standardised IOB DR, means the day agreed upon by the Counterparties as the day on which such Contract will expire; Expiration Exercise Window means the time at which Members normally can submit Exercise Order transactions via the electronic connection, usually between 6.10 pm and 6.40 pm London time;

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Expiration Year in relation to a standardised IOB DR Series means the year designated by Turquoise as the year in which such Series shall expire and, in relation to a Non-Standardised IOB DR, means the year agreed upon by the Counterparties as the year in which such Contract will expire; Expiration Month in relation to a standardised IOB DR Series means the month designated by Turquoise as the month in which such series will expire and, in relation to a NonStandardised IOB DR Contract means the month agreed upon by the Counterparties as the month in which such Contract will expire; "Expiration Settlement Amount" means the monetary amount due to or payable by a Member on Expiration of an IOB DR Futures Contract as specified in the Expiration Settlement Statement; Expiration Settlement Date in relation to an IOB Contract means the third IOB Bank Day where applicable after the Expiration Date for the Contract in question; Expiration Delivery Settlement Price (EDSP) means the closing price as determined by the London Stock Exchange (LSE) in accordance with the LSEs Guide to Trading Services on the Expiration Date. The EDSP as applied by Turquoise shall normally be rounded to 2 decimal places unless Turquoise provides otherwise; International Order Book (IOB) means the London Stock Exchanges International Order Book which is an order-driven trading service for trading international equity market securities; International Order Book Depositary Receipt Contracts (IOB DR Contracts) means standardised and Non-Standardised Futures and Options Contracts listed by Turquoise which are based on any of the Depositary Receipts included in the International Order Book Depositary Receipt List for the time being the terms of which are in accordance with the Product Specifications for such Contracts, and International Order Book Depositary Receipt Futures and International Order Book Depositary Receipt Option shall be construed accordingly; IOB Depositary Receipt List (IOB DR List) means the list published by Turquoise on its website at www.tradeturquoise.com as amended from time to time showing the DRs on which IOB DR Contracts are based and other relevant information concerning such Contracts; IOB DR Options Series means IOB DR Options having the same Expiration Date, Expiration Month, Expiration Year and the same Exercise Price and Series shall be construed accordingly; IOB Bank Day means a day other than a Saturday or a Sunday or other holiday on which banks in the United States or in the United Kingdom are generally open for business as published in Turquoises trading and settlement calendar on its website at www.tradeturquoise.com ; IOB Trading Day means a day other than a Saturday or Sunday or other UK public holiday on which the IOB is generally open for trading as published in Turquoises trading and settlement calendar on its website at www.tradeturquoise.com ; Issuing Company in relation to a Contract, means the company on whose DRs such Contract is based; LSEs IOB CCP Securities List means the list published by the London Stock Exchange at www.londonstockexchange.com as amended from time to time showing those IOB DRs on which IOB DR Contracts are based that are eligible for Central Counterparty (CCP) clearing; LSE trading system means the London Stock Exchanges electronic trading system; Premium Settlement Day in relation to an IOB DR Option, means the first IOB Bank Day following Registration; Primary Market Maker (PMM) means a Member which has agreed to act in such capacity in relation to IOB DR Products in accordance with Rule 4.1.8; Recalculation Day shall mean the IOB Trading Day on which recalculation of IOB Contracts is effected; Request for Listing means the request submitted to Turquoise by a Member in accordance with Rule 4.1.5 relating to the listing of a new IOB DR for trading at Turquoise;

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Settlement Statement means: (i) in relation to an IOB DR Futures Contract, the note issued by Turquoise showing the rights and obligations of the Counterparties to such Contract with regard to the delivery of the Underlying Depositary Receipt and the associated cash payments following its Expiration; and in relation to an IOB DR Options Contract, the note issued by Turquoise showing the rights and obligations of the Counterparties to such Contract with regard to the delivery of the Underlying Depositary Receipt and the associated cash payments following its Exercise;

(ii)

Trading Hours has the meaning given in Rule 4.1.1.1; UK Trading Day means a day other than a Saturday or Sunday or other UK public holiday on which the London Stock Exchange is generally open for trading as published in Turquoises trading and settlement calendar on its website at www.tradeturquoise.com ; UK Stock Contracts means Non-Standardised Futures and Options Contracts which are based on any of the stocks included in the UK Stock List for the time being, the terms of which are in accordance with the Product Specifications for such Contracts. UK Stock List means the lists published by Turquoise on its website at www.tradeturquoise.com as amended from time to time showing the Underlying UK Stocks on which UK Stock Contracts are based and other relevant information concerning such Contracts; Underlying Depositary Receipt in relation to a DR Futures or Options Contract, means the Depositary Receipt as the case may be on which such Contract is based;

4.1.3 4.1.3.1

Contract Specifications Contract Specifications: Standardised Futures on an International Order Book Depositary Receipt (IOB DR)
Standardised Futures Contracts with Daily Cash Settlement and Delivery of the Underlying Depositary Receipt The DR listed or traded on which the Future is based as shown in Turquoise's IOB DR List as published on the Turquoise website. DRs listed or traded on the IOB are denominated in US Dollars. The relevant Underlying DR. 0.10

Type of Contract

Contract Base

Currency Deliverable Instruments Minimum Price Movement Contract Size

Normally one hundred DRs except where shown on the IOB Depositary Receipt List. Recalculation of the number of DRs represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for IOB DR Contracts set out at Rules.4.1.20. Three, six or twelve months in accordance with the Series Designation. The Expiration Date. Futures Series will be listed for trading by Turquoise in accordance with Rule 4.1.4. Each Series shall be designated by a maximum of eleven symbols, where a maximum of five symbols designates the Underlying Depositary Receipt, one symbol designates the Expiration Year and one symbol designates the Expiration Month. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Futures Contracts in question.

Lifetime Last day of Trading Listing of New Series Series Designation

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Daily Settlement

IOB DR Contracts shall be subject to Daily Cash Settlement on each IOB Bank Day based upon the Daily Settlement Price of the Contracts calculated on the preceding IOB Trading Day in accordance with Rule 4.1.15. The third Friday of the Expiration Month of the Expiration Year, or where such day is not an IOB Trading Day or is declared by Turquoise in advance to be a half trading day, the preceding IOB Trading Day. If there is a Suspension of Trading on the IOB or any other market or exchange approved by Turquoise in the DR in question at Closing on the Expiration Date or if the Suspension of Trading terminates less than one hour from Closing, the Expiration Date shall be postponed to the following IOB Trading Day The month indicated in the Series designation. The year indicated in the Series designation. The closing price as determined by the LSE in accordance with its Guide to Trading Services on the Expiration Date rounded to 2 decimal places (with numbers from 0 to 4 being rounded down and numbers from 5 to 9 being rounded up). A Standardised Futures Contract based on an IOB DR is settled by delivery of the DR in accordance with Rule 4.1.16. The third IOB Bank Day after the Expiration Date.

Expiration Date

Expiration Month Expiration Year Expiration Delivery Settlement Price (EDSP)

Delivery

Expiration Settlement Day Expiration Settlement

Payment of the Expiration Settlement Amount against delivery of the Underlying DR shall occur in accordance with Turquoise's instructions pursuant to Rules 4.1.16 and 4.1.17. As specified in Rule 4.1.1.1.

Trading Hours

4.1.3.2

Contract Specifications: Standardised Options on an International Order Book Depositary Receipt (IOB DR")
Standardised Options Contracts with Delivery. European Style. Calls and Puts. The DR listed or traded on the IOB on which the Option is based as shown in Turquoise's IOB DR List as published on the Turquoise website. The relevant Underlying DR. For Options with a Premium below USD 0.1: 0.01 For Options with a Premium from USD 0.1 to USD 3.95: 0.05 For Options with a Premium from USD 4 to USD 9.90: 0.10 For Options with a Premium above USD 10: 0.25 Normally one hundred DRs except where shown on the IOB Depositary Receipt List. Recalculation of the number of DRs represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for IOB DR Contracts set out at Rules 4.1.20. The amount agreed to by the parties as the premium payable for the Contract multiplied by the number of DRs represented by the Contract. The first IOB Bank Day following Registration. The Strike Price contained in the Series designation. Recalculation of the Strike Price may occur in certain cases in accordance with the Recalculation Rules for DR Contracts set out at Rules 4.1.20. As shown in the Scale of Strike Prices.

Type of Contract Style of Options Types Contract Base

Deliverable Instruments Minimum Price Movement

Contract Size

Premium

Premium Settlement Day Strike Price

Strike Price Interval

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Lifetime Last day of trading Listing of New Series Series Designation

Three, six or twelve months in accordance with the Series Designation. The Expiration Date. Options Series will be listed for trading by Turquoise in accordance with Rule 4.1.4. Each Series shall be designated by a maximum of eleven symbols, where a maximum of five symbols designates the Underlying Depositary Receipt, one symbol designates the Expiration Year, one symbol designates the Expiration Month and a number of symbols designate the Strike Price. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Futures Contracts in question. The third Friday of the Expiration Month of the Expiration Year, or where such day is not an IOB Trading Day the preceding IOB Trading Day. If there is a Suspension of Trading on the IOB in the DR in question at Closing on the Expiration Date or if the Suspension of Trading terminates less than one hour from Closing, the Expiration Date shall be postponed to the following IOB Trading Day. The month indicated in the Series designation. The year indicated in the Series designation. IOB DR Options are subject to Exercise in accordance with Rule 4.1.18. IOB DR Options shall be subject to Standard Exercise in accordance with Rule 4.1 19. A Standardised Options Contract based on an IOB DR is settled by delivery of the DR in accordance with Rule 4.1.16. Payment of the Premium and of the Exercise Settlement Amount against delivery of the DR shall occur in accordance with Turquoise's instructions pursuant to Rules 4.1.18 and 4.1.19. The third IOB Bank Day following the day on which Exercise of the Contract is effected in accordance with Rule 4.1.19. As specified in Rule 4.1.1.1.

Expiration Date

Expiration Month Expiration Year Exercise Standard Exercise

Delivery

Exercise Settlement

Exercise Settlement Day

Trading Hours

4.1.4
4.1.4.1

Listing of New Series

The First Listing Day for new Futures and Options Contracts based on an IOB DR shall normally be the fourth IOB Trading Day prior to the Expiration Date for the Contract in question in each calendar month. On the First Listing Day for an IOB DR Options Series Turquoise shall list at least five Series for each applicable Options Type. Turquoise reserves the right to adjust either of the First Listing Day or the Expiration Date in respect of any given Series where such adjustment is deemed necessary in the interests of the market. Members shall be informed in advance in writing of any such intended adjustment. For one Call and one Put Options Series, the Strike Price shall be set at the point in Turquoise's Scale of Strike Prices for the Contract in question which is closest to the last transaction price of the Underlying Depositary Receipt at the close of trading on the IOB on the immediately preceding IOB Trading Day. Where there is no transaction price, the last bid price shall be used instead. Where neither a last transaction price nor a bid price is recorded for the immediately preceding IOB Trading Day, the latest available transaction price from the preceding IOB Trading shall be used. For other Series, the Strike Price shall be set so that it is higher for at least two Call and two Put Options Series and lower for at least two Call and two Put Options Series than the first Strike Price.

4.1.4.2 4.1.4.3

4.1.4.4

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4.1.4.5 The Strike Price for the second Series shall be set at the point in such scale of Strike Prices for Stock Contracts immediately above the first Strike Price. The Strike Price for the third Series shall be set at the point in such scale immediately below the first Strike Price. If during the Lifetime of an IOB DR Options Contract the closing transaction price for the Underlying Depositary Receipt on the IOB is above the second highest or below the second lowest Strike Price for Listed Series for such Contracts, at least one new Series for each applicable Options Type will be listed by Turquoise on the next IOB Trading Day. On listing new Series under this Rule, the Strike Prices for the newly listed Series will be set at the appropriate point or points in Turquoise's Scale of Strike Prices for such Contracts.

4.1.4.6

4.1.4.7

4.1.5
4.1.5.1

Request for Listing of New Series

The Listing of new Futures and Options Contracts based on an IOB DR Series shall be effected in accordance with the provisions of this Rule 4.1.5. The Expiration Date for such Futures and Options Contracts shall be the day designated as such by Turquoise in the Expiration Month indicated in the Series Designation. Turquoise reserves the right to adjust the Expiration Date in respect of any given Series where such adjustment is deemed necessary in the interests of the market. Members shall be informed in advance in writing of any such intended adjustment.

4.1.5.2

New IOB DR Series based on an IOB DR will be listed for trading by Turquoise where a Request for Listing submitted to it by one of its members has been accepted. Where a Member is interested in trading a particular IOB DR Series based on an IOB DR which is not available for trading at Turquoise at such time, it may submit a Request for Listing to the Turquoise Surveillance Department at Turquoise, specifying the following details: (i) (ii) (iii) (iv) the Underlying Instrument; the Type of Contract; the Expiration Month; the Strike Price for the Options Series in question or the Futures Contract price as applicable.

4.1.5.3

Such Request for Listing may be submitted to the Turquoise Surveilance Department at Turquoise by telephone or by email. Where Turquoise is satisfied that it is appropriate in the interests of the market to list for trading the IOB DR Series specified in the Request for Listing, it shall arrange for such Series to be listed for trading as soon as reasonably practicable. Where the relevant Request for Listing is received by Turquoise during the Trading Hours for IOB DR Contracts on the day in question, the new IOB DR Series will normally be available for trading on such day. Turquoise shall inform the Member which submitted the Request for Listing of its decision forthwith.

4.1.6
4.1.6.1

Designation of Expiration Month

The Expiration Month for an IOB DR Options Contract shall be designated as follows: Expiration Month January February March April May June July August September October November Call Option A B C D E F G H I J K Put Option M N O P Q R S T U V W

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December L X

4.1.6.2

The Expiration Month for an IOB DR Futures Contract shall be designated as follows: January February March April May June July August September October November December M N O P Q R S T U V W X

4.1.7
4.1.7.1

Payment of Fees
Fees in respect of IOB DR Contracts are payable by Members in the amount and at the time specified in Appendix A for the Contract in question. Such fees shall be paid to the Designated Clearing House at the time specified in the relevant Settlement Statement. Penalty fees for late deliveries in relation to an IOB DR Contract shall be payable in accordance with Rule 4.1.16.

4.1.7.2

4.1.8
4.1.8.1

Market Making Obligations

Market Makers who have agreed to act as such in respect of standardised Futures and Options Contracts based on IOB DR Products may elect to act in one of two categories and shall perform the obligations applicable to the market making category in which they have agreed to act set out below. For the purposes of this Rule, IOB DR Product shall mean: (i) (ii) any of the DRs shown in Turquoises IOB DR List for the time being; and the FTSE Russia IOB Index.

A Market Maker in IOB DR Products may elect to act as either: (a) a Primary Market Maker (PMM) in IOB DR Futures IOB DR Options FTSE Russia IOB Index Futures FTSE Russia IOB Index Options; or (b) a Designated Market Maker (DMM) .

References in Part 4.1 of these Rules to a Market Maker shall be construed as references to Primary Market Makers and Designated Market Makers collectively unless the context requires to the contrary. The obligations of Primary Market Makers and Designated Market Makers are set out in Rule 4.1.8.4 below. Market Makers will only be obligated to provide continuous quotes in accordance with this Rule 4.1.8 when the IOB market is open for trading, normally from 9.00 am to 3.30 pm London time. Where a Market Maker operates more than one Market Maker Account in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, the Market Maker shall make a separate election for each such Account regarding the capacity in which it intends to act and the IOB DR Products in which the applicable market making obligations are to be performed. In

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such circumstances, the performance of the applicable market making obligations shall similarly be assessed by reference to the Market Making Account in question. 4.1.8.2 The Primary Market Maker shall provide quotes in the Products which it has agreed to act as such in writing with Turquoise and such arrangements may only be varied with the prior consent in writing of Turquoise. A Designated Market Maker may, subject to the agreement of Turquoise, elect to act as a market maker in one or more IOB DR Products. Turquoise shall inform the Designated Market Maker in writing of the IOB DR Products in which it has agreed to provide quotes. Such arrangements may only be changed with the prior consent in writing of Turquoise. 4.1.8.3 The Primary Market Maker shall provide quotes in respect of the IOB DR Products in which it acts as such for a minimum period equivalent to 85% of Turquoises ordinary Trading Hours in each calendar month. A Designated Market Maker shall provide quotes in respect of the Products in which it acts as such for a minimum period equivalent to 75% of Turquoises ordinary Trading Hours in each calendar month. For each IOB DR Product in respect of which it acts as such, a Market Maker shall quote continuous two way prices within the applicable Prescribed Spread and in the minimum amount applicable to the Contract in question as published on the Turquoise website. For a Primary Market Maker such quotes shall be provided in all Expiration Months provided always that the Primary Market Maker shall not be required to provide quotes in relation to any Series for the week in which the Expiration Date falls for such Series. However, Turquoise may ask a Primary Market Maker to provide quotes for such series on request. In any such week in which the Expiration Date falls, the Primary Market Maker shall be required to provide quotes in all Expiration Months following the month in which such Expiration Date falls. For a Designated Market Maker such quotes shall be provided in both of the nearest two Expiration Months provided always that the Designated Market Maker shall not be required to provide quotes in relation to any Series on a day which is the Expiration Date for such Series. On any such Expiration Date, the Market Maker shall be required to provide quotes in each of the next two Expiration Months after the month in which such Expiration Date falls. 4.1.8.4 The IOB DR Products in respect of which a Designated Market Maker shall be required to provide quotes shall be determined by such Market Maker and Turquoise in accordance with the procedures published by Turquoise for such purposes from time to time. The Primary Market Maker which performs its obligations as such to the satisfaction of Turquoise shall pay fees in respect of all Contracts entered into by it in IOB DR Products on the basis specified in Rule 4.1.9. A Designated Market Maker which performs its obligations as such to the satisfaction of Turquoise shall pay fees in respect of the IOB DR Products in which it acts as a market maker on the basis specified in Rule 4.1.9. The Primary Market Maker shall provide quotes for each IOB DR Product in respect of which it has agreed to act in such capacity: (i) in respect of either all IOB DR Options or FTSE Russia IOB Index Options listed by Turquoise in a minimum of five Call and five Put Options Series, such quotes to be provided for Call or Put Options in the Series that is at the money, in the two Series that is out of the money and in the two Series that is in the money in respect of either all IOB DR Futures or all FTSE Russia IOB Index Futures Contracts listed by Turquoise.

(ii)

A Designated Market Maker shall provide quotes for each Product in respect of which it has agreed to act in such capacity: (i) in respect of Options expiring in the next Expiration Month in a minimum of three Call and three Put Options Series, such quotes to be provided for Call or Put Options in the Series that is at the money, in the first Series that is out of the money and in the first Series that is in the money;

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(ii) in respect of Options expiring in the second Expiration Month in for a minimum of three Call and three Put Options Series, such quotes to be provided for Call and Put Options in each Series that is at the money and in the first two out of the money Series. in respect of Futures Contracts expiring in the nearest two Expiration Months.

(iii)

If a Designated Market Maker satisfies Turquoise that it is unable to provide quotes in Futures Contracts as required by this Rule, the Designated Market Maker may, subject to the prior consent in writing of Turquoise, perform its obligations by providing: (i) (ii) in relation to the nearest Expiration Month, quotes in Call and Put Options in respect of the second Series that is out of the money; and in relation to the second Expiration Month, quotes in Call and Put Options in respect of the first in the money Series

in substitution for its obligation to provide quotes in the relevant Futures Contracts. The performance by the Market Maker of its obligation to provide quotes in the IOB DR Products in which it agrees with Turquoise to act as a Market Maker will determine the entitlement of the Market Maker to the benefits specified in Rule 4.1.9. 4.1.8.5 4.1.8.6 4.1.8.7 The Prescribed Spread for both Primary and Designated Market Makers in relation to Standardised IOB DR Futures shall be published on the Turquoise website. The Prescribed Spread for both Primary and Designated Market Makers in relation to Standardised IOB DR Options shall be published on the Turquoise website. Each Primary Market Maker will be granted a total of ten days per calendar year in relation to each IOB DR Product in which it acts as a Primary Market Maker on which it is not required to fulfil its obligations as a Primary Market Maker in relation to the IOB DR Product in question as set out in this Rule 4.1.8.7. Any such day is referred to in this Rule as an Exempt Day. For the Primary Market Maker an Exempt Day is allowed only when the Primary Market Maker is unable to fulfil its obligations due to technical reasons. Each Designated Market Maker will be granted a total of twenty days per calendar year in relation to each IOB DR Product in which it acts as a Designated Market Maker on which it is not required to fulfil its obligations as a Designated Market Maker in relation to the IOB DR Product in question as set out in this Rule 4.1.8.7. Any such day is referred to in this Rule as an Exempt Day. A Market Maker that wishes to nominate a trading day as an Exempt Day shall inform Turquoises Market Operations Department in writing prior to 08:20 London time on the day in question. Turquoise shall confirm by notice in writing to the Market Maker that it will be exempt from the obligation to provide quotes in the IOB DR Product or Products in question on that day. Where a Market Maker operates more than one Market Maker Account in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, the Market Maker shall make a separate election regarding such Exempt Days for each Market Maker Account that is used for the registration of transactions in IOB DR Products. 4.1.8.8 When extreme market conditions arise, Turquoise will issue a general notice to the market declaring that there is a "fast market" indicating that the obligations of Market Makers are modified or, in extreme circumstances, suspended as appropriate.

4.1.9
4.1.9.1

Market Maker Fees

A Market Maker in IOB DR Products which performs its obligations as such to the satisfaction of Turquoise shall pay fees in respect of transactions it effects in standardised IOB DR Products on the basis set out at Appendix A. Such fees are referred to in this Part 4.1 as Market Maker Fees. The fees payable in respect of IOB DR Products by a Primary Market Maker which performs its quoting obligation under Rules 4.1.8.3 and 4.1.8.4 to the satisfaction of Turquoise shall be determined in accordance with Appendix A to these Rules.

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The fees payable in respect of the IOB DR Products by a Designated Market Maker which performs its quoting obligations under Rules 4.1.8.3 and 4.1.8.4 to the satisfaction of Turquoise shall be determined in accordance with Appendix A to these Rules. 4.1.9.2 Where a Designated Market Maker operates more than one Market Maker Account for the execution of transactions in IOB DR Products in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, the fees payable by the Designated Market Maker in relation to such transactions in IOB DR Products shall be determined for each such Account by reference to the number of transactions registered in the Account in question and the performance of the obligations of the Designated Market Maker in relation to such Account.

4.1.10
4.1.10.1

Market Making: Sanctions

In this Rule 4.1.10, references to Quoting Obligations shall be construed as references to the obligations to provide quotes in relation to IOB DR Products applicable to the relevant category of Market Maker set out in Rule 4.1.8. If a Primary Market Maker fails properly to perform its obligations as such in relation to standardised IOB DR Products, Turquoise shall have the right: (i) (ii) to impose a financial sanction on the Primary Market Maker in the manner specified in the Primary Market Maker Agreement; to terminate the Primary Market Maker Agreement;

If a Designated Market Maker fails properly to perform its obligations as such in relation to standardised IOB DR Products, Turquoise shall have the right: (i) (ii) (iii) 4.1.10.2 to exclude the Designated Market Maker temporarily from acting in such capacity in relation to such Contracts; to terminate the Designated Market Maker Agreement with immediate effect; to require the Designated Market Maker to pay fees in the manner prescribed in Rule 4.1.10.2 below.

A Designated Market Maker which fails to perform its quoting obligations under Rules 4.1.8.3 and 4.1.8.4 to the satisfaction of Turquoise shall be liable to pay fees in respect of the IOB DR Products in respect of which it is eligible to pay Market Maker Fees at the higher rate applicable having regard to the level of performance of such party in the monthly period in question as shown in Appendix A to these Rules. Where a Designated Market Maker fails to perform its obligations under Rule 4.1.8.3 in any three months in a calendar year, Turquoise may suspend such party from acting as a Designated Market Maker for such period as it considers appropriate in the circumstances. Where in any monthly period, a Designated Market Maker provides quotes in the IOB DR Products in which it acts as a market maker for less than 25% of the normal Trading Hours of Turquoise for such Products in the period in question, Turquoise may suspend such party from acting as a Designated Market Maker in IOB DR Products for such period as it considers appropriate in the circumstances. Without prejudice to its general power to terminate the Designated Market Maker Agreement under Rule 4.1.10.1(ii) above, where a Designated Market Maker fails to fulfil its obligations in any three months in a calendar year, the Members right to act as a Designated Market Maker shall be suspended for such period as Turquoise considers appropriate in the circumstances. Turquoise may also suspend a Designated Market Maker from acting in such capacity at any time if it considers that the Designated Market Maker has abused its position as a Designated Market Maker.

4.1.10.3

Turquoise shall maintain a record of the manner in which each Market Maker performs its obligations in each calendar month. In determining whether a Market Maker has performed its obligations as such in relation to standardised IOB DR Products on any day, Turquoise will have regard to its overall activities as a Market Maker in such Contracts on the day in question. Turquoise maintains an electronic record of the aggregate time on an IOB Bank Day during which a Market Maker provides quotes to satisfy its quoting obligations in respect of each

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series in which quotes are required. This record will be used to determine whether the Market Maker in question has provided quotes for the minimum period specified in Rule 4.1.8.3. 4.1.10.4 Where a Market Maker operates more than one Market Maker Account for the execution of transactions in IOB DR Products in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, Turquoise shall assess the performance of the applicable obligations relating to market making in IOB DR Products separately for each such Market Maker Account.

4.1.11
4.1.11.1 4.1.11.2 4.1.11.3

Orders
Orders relating to IOB DR Futures and Options Contracts may be placed as Single Orders or Block Orders. A Block Order for IOB DR Futures and Options Contracts comprises five Contracts. A Single Order consists of an offer to buy or sell the number of IOB DR Contracts specified in the Order. This number may be any whole number in excess of one. A Member placing a Single Order may stipulate that the Order may only be executed in its entirety. In the absence of such stipulation, the offer may be accepted in any amount up to the specified number. Where an Order is executed partially, the unfilled portion of the Order will remain in the Orderbook. A Block Order consists of an offer to buy or to sell the number of Blocks of IOB DR Contracts specified in the Order. A Member placing a Block Order may stipulate that the Order may only be executed in its entirety. In the absence of such stipulation, the offer may be accepted in any number of Blocks up to the specified maximum. Where a Block Order is executed partially, the unfilled portion of the Order will remain in the Orderbook. Orderbook Orders, Market Orders, Combination Orders and Standardised Combinations relating to IOB DR Contracts may only be placed as Block Orders.

4.1.11.4 4.1.11.5

4.1.11.6

4.1.12
4.1.12.1

Registration of Off-Exchange Transactions

Where a Member enters into an off-exchange transaction in a standardised IOB DR Contract with another Member or with a member of Oslo Brs, the Member shall submit a Request for Registration relating to such transaction to Turquoise at the earliest opportunity if it wishes the transaction to be registered. Such Request for Registration shall: (i) (ii) specify the Product which forms the subject of the off-exchange transaction; identify the counterparty to such transaction, the Series, the agreed price, the number of contracts involved in the transaction and the Account for registration.

4.1.12.2

A Request for Registration shall only be considered for acceptance by Turquoise and the Designated Clearing House if the counterparties to the off-exchange transaction submit identical requests specifying the Contracts to be registered, the Accounts in which the Contract is to be registered and the terms of the transaction in question to Turquoise or to Turquoise and to the Oslo Brs in question as appropriate. A Request for Registration of an off-exchange transaction may be submitted to Turquoise by a Member either by way of its electronic connection to Turquoises clearing system or by telephone to Turquoises Market Operations Department as set out in Rule 3.2.5. A Request for Registration of an IOB DR Contract shall be considered for acceptance by Turquoise and the Designated Clearing House in accordance with rule 3.2 and the following provisions of this Rule.

4.1.12.3

4.1.12.4

A Request for Registration of an IOB DR Contract in respect of an off-exchange transaction which has been concluded at a time when Turquoise is not open for trading such Contracts, will not normally be accepted by Turquoise and the Designated Clearing House unless the agreed price does not deviate by more than 10% from the closing price or such price as Turquoise determines. Where a Request for Registration of an IOB DR Contract is submitted in respect of a Series for which bid and ask prices are not quoted at the time, Turquoise shall obtain bid ask quotes for such Series in conjunction with Oslo Brs as it considers appropriate. Where in the opinion of Turquoise an acceptable quote is obtained, the Request for Registration shall be considered for acceptance by Turquoise and the Designed Clearing House if it is within the spread of the

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quoted prices. If Turquoise considers that an acceptable price has not been provided for such purposes, the acceptance of the Request for Registration shall be determined at their discretion. 4.1.12.5 The acceptance of a Request for Registration submitted under this Rule is at the discretion of Turquoise and the Designated Clearing House. Without limiting the generality of the foregoing, a Request for Registration shall not be accepted if such acceptance would not be conducive to the maintenance of a proper market in the Product in question or would not be consistent with the Designated Clearing Houses obligation to maintain a sound basis to its clearing services. Where a Request for Registration of an IOB DR Contract which is submitted by a Member during trading hours for such Contracts is accepted by Turquoise and the Designated Clearing House, Turquoise shall arrange with the Designated Clearing House for the resulting Registered Contract to be registered by the Designated Clearing House forthwith. Where a Request for Registration in relation to an IOB DR Contract is submitted by a Member after the close of trading in such Contracts on an IOB Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day if it is received and accepted by Turquoise and the Designated Clearing House before 5.30 pm London time. Where a Request for Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next IOB Trading Day. 4.1.12.7 Turquoise shall inform the Member as soon as possible if a Request for Registration submitted under this Rule is not accepted for registration.

4.1.12.6

4.1.13
4.1.13.1

Requests for Re-Registration

A Request for Re-Registration of an IOB DR Contract made pursuant to Rule 3.4.2(vi) will not be considered by Turquoise and the Designated Clearing House unless it is received by other means or electronic connection no later than 30 minutes prior to the close of the clearing system, normally 5.30 pm London time, for IOB DR Contracts on the IOB Trading Day following the day on which the position in question is registered by the Designated Clearing House. A Request for Re-Registration of an IOB DR made pursuant to Rule 3.4.2(i) to (v) inclusive will not be considered by Turquoise and the Designated Clearing House unless it is received by electronic connection or by other means no later than 5.30 pm London time on the Expiration Date for the Contract in question. A Request for Re-Registration of an IOB DR shall specify the following details: (i) (ii) (iii) the Contracts to be re-registered; the Account of the transferor; the Account of the transferee.

4.1.13.2

4.1.13.3

4.1.13.4 4.1.13.5

The acceptance of a Request for Re-Registration submitted under this Rule is at the discretion of Turquoise and the Designated Clearing House. Where a Request for Re-Registration is received and accepted by Turquoise and the Designated Clearing House before 5.30 pm London time on an IOB Trading Day the Contract in question shall be registered by the Designated Clearing House on that day. Where a Request for Re-Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next IOB Trading Day. Turquoise shall inform the Member or Members in question as soon as possible if a Request for Re-Registration submitted under this Rule is not accepted.

4.1.13.6

4.1.14
4.1.14.1 4.1.14.2

Cancellation of Incorrect Transactions

The provisions of Rule 2.16 concerning the cancellation of incorrect transactions shall be applied in relation to IOB DR Contracts in accordance with the following provisions of this Rule. Turquoise will not direct that an IOB DR transaction shall be cancelled in the absence of the agreement of the Counterparty to the transaction unless the period between the time at which the transaction is effected and the time at which the request is submitted is less than ten minutes. The Fair Market Spread or Price Adjustment Range for IOB DR Options and Futures Contracts is defined as 10% deviation outside the relevant Prescribed Spread for Designated Market Makers as described in Rule 4.1.8.

4.1.14.3

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4.1.14.4

Turquoise will notify the Member or Members involved in the transaction of its decision in the case of a request relating to an IOB DR Contract no later than 15 minutes before trading starts on the IOB Trading Day following the day on which the transaction in question was effected.

4.1.15
4.1.15.1

Daily Cash Settlement

IOB DR Futures Contracts are subject to Daily Cash Settlement. The first such Daily Cash Settlement shall be due for settlement on the first IOB Bank Day following the Registration of the Contract. Thereafter, Daily Cash Settlement shall be effected on each IOB Bank until the Expiration Date for the Contract in accordance with the provisions of this Rule. On the transaction day, settlement shall take place in an amount corresponding to the difference between the Daily Settlement Price on the transaction day and the futures price. After that settlement takes place in an amount corresponding to the difference between the Daily Settlement Price on the Mark-to-Market day and the Daily Settlement Price from the immediately preceding IOB Trading Day. On the Expiration Date settlement shall take place in an amount corresponding to the difference between the Expiration Delivery Settlement Price and the Daily Settlement Price from the immediately preceding IOB Bank Day. Daily Settlement Price for IOB DR Futures: During the term of a Futures Contract, the Daily Settlement Price is normally determined as the price for the Futures Contract at 3.30 pm London time on the relevant IOB Trading Day. Turquoise determines the price for the Futures Contract with reference to the last traded price if within bid and ask prices for the Futures Contract. In the event that bid and ask prices are unavailable, Turquoise may calculate the Daily Settlement Price by using another method. Deleted Turquoise shall issue Daily Settlement Statements to Members having registered positions in IOB DR Futures Contracts normally no later than 10.00 pm London time on each IOB Trading Day. The Daily Settlement Statement for IOB DR Futures shall show the Daily Settlement Amount for such settlement which is payable in US Dollars. The Daily Settlement Amount for IOB DR Futures shall be payable on the first IOB Bank Day following the IOB Trading Day in question in accordance with the instructions of the Designated Clearing House.

4.1.15.2

4.1.15.3

4.1.15.4 4.1.15.5

4.1.16
4.1.16.1

Settlement and Delivery of IOB DR Contracts

The rights and obligations of a Member and Turquoise regarding the settlement of Registered Contracts relating to IOB DR and DR Futures Contracts are set out in the following provisions of this Rule 4.1.16. If the Member holds a net sold position in a DR Futures and Options Series, Turquoise shall send to it a Delivery Instruction Note by means of the electronic connection with the Member normally prior to 10:00 pm London time on the Expiration Date which shall specify the IOB DRs to be delivered by the Member in settlement of its obligations in respect of own account transactions and of transactions executed on behalf of a Client or customer together with the settlement amount payable to the Member in respect thereof. If the Member holds a net bought position in IOB DR Futures and Options Series, Turquoise shall send to it a Delivery Instruction Note by means of the electronic connection with the Member normally prior to 10.00 pm London time on the Expiration Date which shall specify the IOB DRs to be delivered to the Member in settlement of its rights, together with the related settlement amount. Where a Member exercises an IOB DR Option or where such Option is exercised against the Member, Turquoise shall issue a Delivery Instruction Note normally prior to 10.00 pm London time on the day on which the Exercise Order is accepted by Turquoise which shall specify the IOB DRs to be delivered by or to the Member in settlement of its obligations in respect of own account transactions and of transactions executed on behalf of a Client or customer together with the settlement amount payable to or by the Member in respect thereof. The Delivery Instruction Note issued by Turquoise to a Member which is required to deliver IOB DRs following the Exercise or Expiration of IOB DR Options or Futures Contracts shall specify the Designated Settlement Venue Account to which the Member is required to transfer the specified IOB DR. The Member shall ensure that the IOB DR in question is credited to the

4.1.16.2

4.1.16.3

4.1.16.4

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specified Designated Settlement Venue Account no later than the time specified in the Delivery Instruction Note. Where delivery of an IOB DR is to be made to a Member, the Member shall ensure that the correlative settlement amount is paid to the Designated Clearing House no later than the day specified in the Delivery Instruction Note. On performance of such obligations, the Designated Clearing House shall arrange for the transfer of the relevant IOB DR to the Designated Settlement Venue Account specified by the Member for such purposes. Where a Member fails to deliver IOB DRs in accordance with the instructions of the Designated Clearing House for a period of three business days from the Expiration settlement day, a penalty fine of Federal Funds Rate (FFR) + 300 Basis Points (BP) based on the value of the payment amount to be received will be charged to the Member by the Designated Clearing House on behalf of Turquoise. This amount will accrue on a daily basis from the third business day following the Expiration settlement day until such time that the IOB DRs are settled in accordance with the instructions of the Designated Clearing House. If the Member fails to deliver IOB DRs for a period of five days after the Expiration Settlement Day, the buyer may at its sole discretion request the Designated Clearing House to initiate either Buying in (with guaranteed delivery only) or cash settlement for the delivery. If after a period of thirty business days the seller has not settled in accordance with the instructions of the Designated Clearing House, or the buyer has not opted for Buying in (with guaranteed delivery only) or cash settlement, the Designated Clearing House will initiate Buying in (with guaranteed delivery only) or where it is unable to do this, compulsory cash settlement. For purposes of cash settlement, the specified Delivery Settlement Amount will be calculated based on either the Expiration Delivery Settlement Price (EDSP) on the Expiration Date or the closing price defined by the London Stock Exchange on the day on which cash settlement was initiated, the better price for the buyer will be used. 4.1.16.5 The Member shall ensure that the information specified in the Delivery Instruction Note is accurate in all respects and notify Turquoise of any discrepancy no later than 5.30 pm London time on the IOB Trading Day after the date of the Delivery Instruction Note. Where the Member is to deliver IOB DRs to the Designated Clearing House it shall ensure that the said IOB DRs are deposited in the Members IOB DR Securities Account on the Expiration Settlement Date for the Contract in question. The Member which is to receive IOB DRs as stated in the Delivery Instruction Note sent to the Member shall ensure that the settlement amount stated therein is deposited in the IOB DR Securities Account on the Expiration Settlement Day for the Contract in question. A confirmation of the satisfactory completion of the transaction shall be given by the Designated Clearing Houses Custodian involved in the settlement procedures to the Designated Clearing House only and not to the Member. If a Member alleges that delivery or settlement regarding IOB DRs is calculated or carried out in a defective manner, the Member must submit a claim in respect thereof to their Designated Clearing House no later than the fifth IOB Bank Day following the relevant settlement day. Protests concerning delivery or settlement made after such time will not be considered by the Designated Clearing House. The Designated Clearing House shall calculate corrected delivery or settlement and shall notify the Member in question of the revised obligations where it considers that such action is required in relation to a valid protest. The settlement day for corrected delivery or settlement is the third IOB Bank Day following the issue of such notice. 4.1.16.10 The time at which delivery of an Underlying Depositary Receipt is to be effected following the Exercise or Expiration of an IOB DR may be modified where trading in such Depositary Receipts on the IOB is suspended at the relevant time or decides that such action is required in line with the principles set out in Rule 4.1.20. Turquoise shall inform Members if any such action is applied to an IOB DR.

4.1.16.6

4.1.16.7

4.1.16.8

4.1.16.9

4.1.17
4.1.17.1 4.1.17.2

IOB DRs: Expiration Settlement Procedures

The rights and obligations of the Buyer and the Seller in respect of the settlement of an IOB DR Contract shall be performed in accordance with this Rule 4.1.17. Expiration Settlement of an IOB DR Contract comprises two elements:

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(i) the delivery of the quantity of the Underlying Depositary Receipt represented by the Contract in question by the Seller to the Buyer; and the payment of the Delivery Settlement Amount by the Buyer to the Seller. the Final Daily Settlement Amount as determined in accordance with Rule 4.1.17.5.

(ii) 4.1.17.3

On the Expiration Date for an IOB DR Contract, Turquoise shall issue a Delivery Instruction Note to each Member holding one or more positions in an expiring Futures Series based on an IOB DR showing the quantity of the Underlying Depositary Receipt in question to be delivered to or by the Member together with the correlative payment obligation in respect of such settlement. The Seller of an IOB DR Contract shall deliver the Underlying Depositary Receipt in the specified amount against payment in accordance with Turquoises instructions on the third IOB Bank Day following the Contracts Expiration Date. The Buyer of an IOB DR Contract shall pay the Delivery Settlement Amount to the Seller against the delivery of the underlying DRs on the third IOB Bank Day following the Contracts Expiration Date. The Delivery Settlement Amount is determined by reference to the Expiration Delivery Settlement Price for the Underlying Depositary Receipt for the Futures Contract on its Expiration Date.

4.1.17.4

4.1.17.5

The Final Daily Settlement Amount for an IOB DR Contract is determined by reference to the Expiration Delivery Settlement Price (EDSP) and carried out in accordance with Rule 4.1.15.

4.1.18
4.1.18.1 4.1.18.2 4.1.18.3

Options: Exercise
Standardised and Non-Standardised IOB DR are European Style and are accordingly only subject to Exercise on Expiration. IOB DRs are also subject to Standard Exercise in accordance with Rule 4.1.19. Where the Holder of an Option wishes to exercise an Option which is not subject to Standard Exercise, it shall submit an Exercise Order to Turquoise providing full details of the Option in question. An Exercise Order relative to an IOB DR which is received electronically by Turquoise after 6.00 pm London time and outside of the allotted Expiration Exercise Window or, in the case of an Exercise Order submitted by other means, 5.30 pm London time on the Expiration Date for such Contract is void. On receiving a valid Exercise Order, Turquoise shall inform the Member which submitted it that it has been accepted and shall select at random a correlative IOB DR position respectively to be exercised against. Turquoise shall also inform the Designated Clearing House of such Exercise so that the necessary action may be taken in relation to the Registered Contracts in question. On Exercise of an IOB DR Contract in accordance with this Rule, Turquoise shall issue an Exercise Settlement Statement confirming the amount of Depositary Receipts to be delivered to the Member specified in such note against payment by it of the Exercise Settlement Amount specified therein. On Exercise of an IOB DR, the Holder of a Call Option or the Writer of a Put Option shall be entitled to receive delivery of the Underlying Depositary Receipt in the quantity represented by the exercised Option against payment of the Exercise Settlement Amount for such Contract. The Exercise Settlement Amount shall be determined by multiplying the Strike Price for the Depositary Receipt Options Contract on the day on which the Exercise Order is registered by the number of Depositary Receipts in the Underlying Depositary Receipt represented by the exercised Option. The Exercise Settlement Amount for an IOB DR Options Contract shall be payable in US Dollars. The Exercise Settlement Amount for an IOB DR Contract shall be due for settlement and the correlative obligation to deliver the Underlying Depositary Receipt shall be due for performance on the third IOB Bank Day following the contracts Expiration Date.

4.1.18.4

4.1.18.5

4.1.18.6

4.1.18.7

4.1.18.9

4.1.18.10 4.1.18.11

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4.1.19
4.1.19.1 4.1.19.2

Standard Exercise of IOB DR

IOB DR Contracts will be subject to Standard Exercise in accordance with the following procedures. A base price shall be calculated by reference to the EDSP rounded up to 2 decimal places only (with numbers from 0 to 4 being rounded down and numbers from 5 to 9 being rounded up) for the underlying DR on its Expiration Date. A Call Option Series which has an Exercise Price lower than (In-the-money) the base price for the Underlying Depositary Receipt on the Expiration Date, calculated in the manner described above, will be subject to Standard Exercise. A Put Option Series which has an Exercise Price greater than (In-the-money) the base price for the Underlying Depositary Receipt on the Expiration Date, calculated in the manner described above, will be subject to Standard Exercise. If no qualifying transaction in an Underlying Depositary Receipts reported by the IOB on the Expiration Date for the related Depositary Receipt, the last bid price for such Depositary Receipt quoted on the IOB on the day in question, shall be taken as its base price. If no bid price has been quoted on the Expiration Date, the base price shall be determined by reference to the most recent trading day on which either: (i) (ii) it is possible to calculate an average price for such Underlying Depositary Receipt as described above; or a bid price for such Underlying Depositary Receipt has been quoted,

4.1.19.3

4.1.19.4

4.1.19.5

provided always that, if on any such day it is possible to use both of the above methods to determine the base price for the Depositary Receipt in question, the method described in (i) above shall be used. 4.1.19.6 4.1.19.7 Deleted In calculating the base price of an Underlying Depositary Receipt for the purposes of this Rule, Turquoise will normally use official trade information published by the LSE. In the event that the required information is not published on the Expiration Date for an IOB DR Option Series, however, alternative trade information will be used. The method of determining the base price of the relevant Underlying Depositary Receipt may be varied in such cases. In such circumstances, Turquoise will inform Members of the alternative information or mode of calculation used. At approximately 5.00 pm London time on the Expiration Date for an IOB DR Turquoise will send to Members holding positions in such Options a list of the relevant Series expiring that day which will be subject to Standard Exercise in accordance with the above procedures. All Call Options and all Put Options shown on such list will be exercised by Turquoise unless a written objection (or submitted by other means) from the Holder of any such Option is received by Turquoise no later than 5.45 pm London time. Turquoise shall inform the Designated Clearing House of all positions that will be subject to Standard Exercise so that the Designated Clearing House may take the necessary action in relation to the Registered Contracts in question.

4.1.19.8

4.1.20.1
4.1.20.1.1

Recalculation Rules for IOB DR

The terms of IOB DRs are subject to adjustment in accordance with the following provisions of this Rule 4.1.20 If the share capital of a company on which an IOB DR is based is amended in a material way which affects the underlying economic value of futures and options contracts based on such DRs Turquoise will effect a recalculation of the futures and options contracts based on such Underlying DR in accordance with its rules governing such matters. In the event that a Corporate Action taken by a DR Issuer is such that the Recalculation Rules set out at Rule 4.1.20 are not sufficient to cover such Corporate Action, Turquoise may at its sole discretion adjust Futures and Options Contracts using a method other than described at Rule 4.1.20 which it deems to benefit the market.

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4.1.20.1.2 Turquoise will normally issue a Market Notice to Members confirming the recalculation method to be applied in any particular case as soon as possible following the publication of the decision by the DR Issuer which gives rise to the recalculation.

4.1.20.2
4.1.20.2.1

General Principles Applicable to Recalculation of IOB Depositary Receipt Contracts

This Rule describes the general principles applied by Turquoise in effecting a recalculation, including the manner in which the price of the relevant DR is determined for the purposes of these Recalculation Rules and the circumstances in which the Expiration Date for a Contract affected by a recalculation may be amended. Volume Weighted Average Price (VWAP) Except where these Recalculation Rules provide expressly to the contrary, the price for the DR Contract in question used in the application of this Rule 4.1.20 shall be the Volume Weighted Average Price (VWAP) for such DR for the relevant period.

4.1.20.2.2

4.1.20.2.2.1

Calculation of VWAP In determining the price of a DR on an IOB Trading Day for the purposes of these Recalculation Rules, Turquoise shall calculate the VWAP for such DR on the day in question. The VWAP shall be determined by reference to all electronically matched trades automatically executed on the IOB order book as published in the official price list of the IOB, or any other exchange or marketplace approved by Turquoise. In determining the VWAP for a given DR on an IOB Trading Day, Turquoise shall ignore any off-order book transactions reported to the IOB. The VWAP is calculated by Turquoise and shall be the total turnover in US Dollars for the DR Contract, during the particular time period applicable to such recalculation in accordance with Rule 4.1.20.2.2.2 divided by the number of DRs bought and sold during the time period. The principles set out in Rule 4.1.20.2.4 shall be applied in rounding off the total turnover.

4.1.20.2.2.2

Time Period The time period applied for the purposes of determining the VWAP for a DR in accordance with these Recalculation Rules shall normally be the entire IOB Trading Day where applicable prior to the ex-day. The time period may be extended to cover a greater number of IOB Trading Days where, in Turquoises discretion, it is necessary in order to provide a more equitable average calculation. If the VWAP is calculated on the IOB Trading Day prior to the ex-day, extension of the time period shall only cover IOB Trading Days prior to the ex-day. If the VWAP is calculated on the ex-day, extension of the time period shall only cover Trading Days following the ex-day. If there is no transaction in the DR in question during the said time period, the VWAP shall instead be calculated on the closing bid prices for the same period.

4.1.20.2.2.3

Valuation Range Where Turquoise considers it appropriate, a Valuation Range shall be established when calculating the VWAP. The Valuation Range shall be based upon the median value of not less than five valuations from members of Turquoise or Oslo Brs which, in Turquoise's opinion, conduct appropriate stock analysis operations. Following the close of trading on the Trading Day prior to the ex-day, Turquoise will publish a Market Notice confirming whether the requisite number of valuations has been obtained, and an addition and reduction from the median value established by Turquoise. The established values form the applicable Valuation Range. If the VWAP for the DR on the Trading Day in question is less than the lowest point in such Valuation Range, the value used for such DR for the purposes of these Recalculation Rules for such day shall be the lowest point of the valuation range. If the VWAP for the DR on the Trading Day in question is more than the highest point in such Valuation Range, the value used for the purposes of these Recalculation Rules for such day shall be the highest point of the valuation range. If Turquoise and Oslo Brs receive less than five valuations in accordance with the above, the valuation shall be made solely on the basis of the measured VWAP.

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4.1.20.2.3 Recalculation Day The earliest day on which a recalculation can be effective is the Trading Day after the relevant VWAP has been established. 4.1.20.2.4 Rounding and Fractional DRs and UK shares The recalculated Exercise Price and Futures Price shall be rounded off to two decimal places, with numbers from 0 to 4 being rounded down and numbers from 5 to 9 being rounded up. Unless Turquoise has stated otherwise at the time of the relevant recalculation, when calculating the VWAP and market value of a DR, the calculation shall be rounded to eight decimal places and the adjustment factor shall be rounded to six decimal places. Where the recalculation of the number of DRs which the Contract covers in accordance with these Recalculation Rules would result in the Contract covering a number of DRs other than a whole number, any fractional element from 0 to 4 shall be rounded down and any fractional element from 5 to 9 shall be rounded up. 4.1.20.2.5 Amendment of Expiration Date and Other Miscellaneous Provisions Turquoise may change the Expiration Date for the Contracts in question and take the following action in relation to Futures and Options Contracts in the particular circumstances specified below: (i) (ii) in the circumstances prescribed in Rule 4.1.20.4.7 where the Issuing Company is the subject of a bankruptcy order or other equivalent process; in the circumstances prescribed in Rule 4.1.20.4.8 where the Issuing Company effects a merger with another company or where its DRs are the subject of compulsory purchase proceedings; any other circumstances relating to the actions taken by the Issuing Company or other factors affecting the trading of DRs on the Issuing company which cause Turquoise to conclude that such action is required in the interests of the market generally.

(iii)

Where Turquoise believes that the obligations of Members to deliver the DRs through the Designated Settlement Venues system will be affected by restrictions applied by the Designated Settlement Venues system relating to the delivery of such DRs at the relevant time or other factors exist which will restrict the ability to deliver the DRs in question through the Designated Settlement Venues system at such time, Turquoise may: (i) (ii) (iii) change the Expiration Date for the Contracts in question; prohibit or restrict the Exercise of Options Contracts based on the relevant DR for such period as Turquoise considers to be appropriate in the circumstances; prohibit or restrict trading in the relevant Futures and Options Contracts for such period as Turquoise considers to be appropriate in the circumstances.

These measures may also be applied where the relevant VWAP has not been established or where the Expiration Date falls at a time at which the recalculation has not been completed. 4.1.20.2.6 Prohibition against increased Exercise and Futures prices Other than as provided for in Rules 4.1.20.4.2 and 4.1.20.4.7, Recalculation shall not be allowed to result in an increase in the Exercise Price or the Futures Price nor shall such Recalculation result in a negative Exercise Price or Futures Price. 4.1.20.2.7 Listing of new contracts With effect from the ex-day, Turquoise may list new Series regarding Options Contracts and Futures Contracts based on the Original DR. 4.1.20.2.8 Valuation model The valuation is based on a generally accepted valuation model determined by Turquoise and carried out on the Trading Day prior to the ex-day, in which the VWAP for such DR, determined in accordance with the principles set forth in 4.1.20.2.2 is applied. Prior to carrying out the

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valuation, Turquoise shall notify Members in respect of the assumptions concerning interest rates, volatility, and any dividends, which shall be applied in the valuation model. 4.1.20.2.9 Valid Delivery Where the Exercise of the Options Contracts or the Expiration Date for the Contract occurs at a time when the Underlying DR is the subject of a Corporate Action, Turquoise may prescribe that, during a particular period of time and to a particular extent, the obligation of the seller regarding the delivery of DRs may, instead, be performed by the delivery of subscription rights, purchase rights, paid subscription DRs or equivalent.

4.1.20.3
4.1.20.3.1

Recalculation Methods
Introductory There are two principal methods used by Turquoise in the recalculation of Futures and Options Contracts: (i) (ii) the Ratio Method; the Reduction in Strike Price Method.

The principles applied in each of these methods are described in this Rule 4.1.20.3. The circumstances in which each Method may be applied are described in Rule 4.1.20.4. In addition to the two methods above the Fair Value method may also be used in connection to a Merger or De-listing in accordance with Rules 4.1.20.4.7A and 4.1.20.4.7B. More information regarding the Fair Value method can be found at Appendix 1 to Part 4.1. 4.1.20.3.2 Ratio Method The Ratio Method will be used where it is necessary to establish an adjustment factor to determine the appropriate ratio between the number of DRs represented by a Contract or the number of Contracts held by a Member before and after the Corporate Action undertaken by the issuing Company or to reflect the effect of any cash payment made in connection with the Corporate Action on the relative value of the contracts in question before or after such event. The circumstances in which the Ratio Method may be used are specified in Rule 4.1.20.4. 4.1.20.3.2(1) Uniform formula for calculating the adjustment factor The adjustment factor to be applied in relation to a Bonus Issue, Reverse Split, Split or Rights Issue involving the issue of DRs of the same type as the UK share shall be determined in accordance with the following formula: A = N cum / N ex (1 (P / VWAP cum)) + P / VWAP cum Where: A = adjustment factor N cum = Number of Contracts or DRs per Contract prior to the offer N ex = Number of Contracts or DRs per Contract after the offer P = Issue price VWAP cum = Volume weighted average price prior to the offer 4.1.20.3.2(2) Application of the adjustment factor The recalculated Exercise Price or Futures Price shall be the Exercise Price or Futures Price prior to the recalculation multiplied by the adjustment factor determined in accordance with this Rule 4.1.20. The recalculated number of Contracts shall be the number of Contracts prior to the recalculation divided by the adjustment factor determined in accordance with this Rule 4.1.20. If the recalculation of the number of Contracts results in a fraction of a Contract, the number of DRs covered by each Contract shall be recalculated. This adjustment factor shall be used to determine: (i) the number of DRs represented by a Contract following the Corporate Action;

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(ii) the adjusted Exercise Price or Futures Price following such Corporate Action;

by applying the applicable formula: N ex = N cum / A EP ex = EP cum * A Where: A = adjustment factor EP cum = Exercise Price or Futures Price prior to the offer EP ex = Exercise Price or Futures Price after the offer N cum = Number of Contracts or DRs per Contract prior to the offer N ex = Number of Contracts or DRsper Contract after the offer The recalculated Exercise Price, Futures Price or number of Contracts determined in accordance with this Rule shall be applied with effect from the ex-day or such subsequent Trading Day as is specified by Turquoise in the circumstances provided for in this Rule 4.1.20. 4.1.20.3.4 Reduction in Strike Price Method The Exercise Price or Futures Price shall be recalculated with effect from the ex-day, or a following IOB Trading Day as described under the specific Corporate Action. The Exercise Price or Futures Price shall be reduced by a value calculated according to the following formula: EP ex = EP cum R Where: EP cum = Exercise Price or Futures Price prior to the offer EP ex = Exercise Price or Futures Price after the offer R = Value of Right

4.1.20.4

Corporate Actions
This Rule 4.1.20.4 describes the various types of Corporate Action which may be taken by an Issuing Company for an IOB Depositary Receipt which will give rise to the recalculation of such Contracts.

4.1.20.4.1

Bonus Issue Where the DR issuer carries out a bonus issue of DRs, pursuant to which it issues new DRs, in conjunction with the Issuing Company, the conditions for the Contract shall be adjusted by Turquoise, with effect from the ex-day as determined by the London Stock Exchange. Where the conditions for the bonus issue result in DR holders receiving one or more bonus DRs of the same type for each Original DR, a recalculated number of Contracts as well as a recalculated Exercise Price or Futures Price shall be applied. The adjustment factor for such purposes shall be established in accordance with Rule 4.1.20.3.2(1), and the recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2). Where the bonus issue covers DRs of a type other than those covered by the original Option or Futures Contract, the new DRs which are received in accordance with the terms and conditions for the bonus issue shall be regarded as equivalent to the Original DRs and can be used for the purpose of valid delivery. Where the new DRs deviate with respect to right to dividends, a recalculation of the number of DRs per Contract and a recalculation of the Exercise and Futures Price shall be carried out by Turquoise as follows: N ex = (N cum x M ex) / M cum Where: N ex = Number of DRs per contract after recalculation

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N cum = Number of DRs per contract prior to recalculation M ex = Number of DRs after recalculation M cum = Number of DRs prior to recalculation EP ex = (EP cum x M cum + O x U) / M ex` Where: EP ex = Exercise or futures price after recalculation EP cum = Exercise or futures price prior to recalculation M cum = Number of DRs prior to recalculation M ex = Number of DRs after recalculation O = Number of newly issued DRs U = Difference in dividend entitlement

4.1.20.4.2

Reverse Split Where the DR Issuer, in conjunction with the Issuing Company, carries out a reverse DR split, a corresponding recalculation of the number of DRs which the Contract covers as well as of the Exercise Price or the Futures Price shall be made by Turquoise, with effect from the ex-day. The adjustment factor to be used for such purposes shall be established in accordance with Rule 4.1.20.3.2(1). The recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2).

4.1.20.4.3

Split Where the Issuing Company carries out a DR split, a corresponding recalculation of the number of Contracts as well as of the Exercise Price or the Futures Price shall be made by Turquoise with effect from the ex-day. The adjustment factor to be used for such purposes shall be established in accordance with Rule 4.1.20.3.2(1). The recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2).

4.1.20.4.4

Rights Issue Where the DR Issuer, in conjunction with the Issuing Company, carries out a rights issue where the new DRs, are to be paid for with money and where the DR holders have preferential rights to the new DRs, or other securities, a recalculation shall be carried out by Turquoise, with effect from the ex-day, or a following Trading Day if so described. If the rights issue originates in the same DR type as the Contract Base, the recalculation shall be carried out in accordance with Rule 4.1.20.4.4(1). In other cases, the recalculation shall be effected in accordance with Rule 4.1.20.4.4(2). Recalculation of the number of DRs, which are covered by the Contract, shall be rounded to the nearest whole number.

4.1.20.4.4(1)

Rights Issue originating in the same DR A recalculated Exercise Price or Futures Price and a recalculated number of Contracts shall be applied with effect from the ex-day. An adjustment factor shall be established in accordance with Rule 4.1.20.3.2(1) and the recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2).

4.1.20.4.4(2)

Rights Issue involving the issue of different DRs Where the terms of the Rights Issue involve the issue to the holders of a Contract DRs of a different type from the Underlying DRs for such Contract, the Contracts in question shall be recalculated in accordance with this Rule 4.1.20.4.4(2).

4.1.20.4.4(2)(a)

Ratio Turquoise will apply the Ratio Method if it is satisfied that the liquidity in the trading of the new security will be sufficient. One of the following two ratio methods will be used as determined by Turquoise, the preferred method being as set out in Rule.4.1.20.4.4(2)(a)(i).

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Where Turquoise considers that the liquidity in the trading of the new security will not be sufficient, it shall reduce the Strike Prices of the relevant Contract in accordance with Rule 4.1.20.4.4(2)(b). 4.1.20.4.4(2)(a)(i) Ratio with Valuation Model The recalculation shall be effective on the ex-day. The adjustment factor shall be calculated according to the formula below. The valuation of the right to participate per Contract DR shall be based on a generally accepted Valuation Model determined by Turquoise. The recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2). The following formula shall be applied: A = (VWAP cum R) / VWAP cum Where: A = Adjustment factor VWAP cum = Volume weighted average price of the DR which constitute the Contract base, prior to the offer R = Calculated value of the right to participate per DR Contract according to a generally accepted Valuation Model 4.1.20.4.4(2)(a)(ii) Ratio calculated with VWAP on the ex-day The recalculation shall be effective on the Trading Day following the ex-day or applicable Trading Day thereafter. In effecting such recalculation, Turquoise shall use the Valuation Range procedure in accordance with Rule 4.1.20.2.2.3 in determining the VWAP for the DR in question on the ex-day. The adjustment factor shall be calculated in accordance with the formula below and the recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2). A = (VWAP ex + D) / VWAP cum Where: A = Adjustment factor VWAP cum = Volume weighted average price of the DR , which constitute the Contract base, prior to the offer VWAP ex = Volume weighted average price of the which constitute the Contract base, after the offer D = Distribution of ordinary dividend during the period which occurs on the ex-day or a Trading Day thereafter on which the VWAP ex is established 4.1.20.4.4(2)(b) Reduction in Strike Prices Where Turquoise considers that the liquidity in such DR will be insufficient, the recalculation of the relevant Contracts shall be effected by way of the Reduction in Strike Prices method. In these circumstances, the recalculation will be effected by reference to the Reduction in Strikes with Valuation Method described in Rule 4.1.20.4.4(2)(b)(i) or, in cases where Turquoise considers such method to be inappropriate, by reference to the Reduction of Strikes calculated with VWAP on the ex-day method described in Rule 4.1.20.4.4(2)(b)(ii). 4.1.20.4.4(2)(b)(i) Reduction in Strikes with Valuation Model The recalculation shall be effected on the ex-day. The valuation of the right to participate per Contract DR shall be based on a generally accepted Valuation Model determined by Turquoise. The recalculation shall be carried out in accordance with Rule 4.1.20.3.4.

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R = Calculated value of the right to participate per Contract DR according to a generally accepted Valuation Model 4.1.20.4.4(2)(b)(ii) Reduction in Strike Prices calculated with VWAP on the ex-day The recalculation shall be effected on an IOB Trading Day following the ex-day or an applicable IOB Trading Day thereafter. A Valuation Range will be applied to the VWAP on the ex-day in accordance with Rule 4.1.20.2.2.3. The value of the right shall be calculated in accordance with the formula below and the recalculation shall be carried out in accordance with Rule 4.1.20.3.4. R = VWAP cum VWAP ex + D Where: R = Value of the right VWAP cum = Volume weighted average price of the DR , which constitutes the Contract base, prior to the offer VWAP ex = Volume weighted average price of the DR , which constitutes the Contract base, after the offer D = Distribution of ordinary dividend during the period which occurs on the ex-day or an IOB Trading Day thereafter on which the VWAP ex is established 4.1.20.4.5 De-merger Where the DR Issuer, in conjunction with the Issuing Company, directs an offer to its DR holders, without consideration, the terms and conditions for the Contract shall be adjusted by Turquoise according to one of the following provisions according to Turquoises determination of the most appropriate method, listed in preferred order: 4.1.20.4.5(1) Ratio Where Turquoise considers that the liquidity in the DR, which constitutes the Contract Base to be sufficient, the ratio method shall be applied. The recalculation shall be effective from the ex-day, or a following applicable IOB Trading Day. Recalculation shall be carried out in accordance with Rule 4.1.20.4.4(2)(a) 4.1.20.4.5(2) Reduction in Strike Prices Where the liquidity in the DR, which constitutes the Contract Base is considered, by Turquoise, to be insufficient, the reduction in strike prices method shall be applied. The recalculation shall be effective from the ex-day, or a following applicable IOB Trading Day. The recalculation shall be carried out in accordance with Rule 4.1.20.4.4(2)(b). 4.1.20.4.6 Dividends Where the DR Issuer, decides and announces prior to the ex-day that it will pay a dividend deemed to be an Extraordinary dividend, Turquoise shall carry out a recalculation effective on the ex-day, according to one of the methods described in the following paragraphs. Dividends will be deemed to be Extraordinary where they are declared to be a special dividend by the DR Issuer or where the dividend is not distributed within the normal dividend pattern for the relevant DR. Where the dividend is declared or deemed to be Extraordinary Turquoise shall adjust in full. Turquoise shall not carry out recalculations where dividends are deemed to be ordinary by the DR Issuer or where the dividend is distributed within the normal dividend pattern for the relevant DR. 4.1.20.4.6 (1) If the liquidity in the Depositary Receipt , which constitutes the Contract Base, is considered by Turquoise to be sufficient, the ratio method shall be applied. The adjustment factor will be calculated according to the formula below and the recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2). A = (VWAP cum D) / VWAP cum

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Where: A = Adjustment factor VWAP cum = Volume weighted average price prior to the dividend D = Extraordinary Dividend 4.1.20.4.6(2) Where Turquoise considers that it is not appropriate to apply the method described above it shall carry out the recalculation in accordance with Rule 4.1.20.3.4 where R is determined as the value of the Extraordinary Dividend. Where an Extraordinary dividend is announced prior to the ex-day but the amount or rate is not announced prior to the ex-day, Turquoise shall suspend trading in the relevant derivative series for the duration of the ex-day and calculate the difference between the VWAP of the relevant underlying on the IOB Trading Day prior to the exday and the VWAP on the ex-day to determine the value of the Extraordinary dividend in accordance with Rule 4.1.20.4.6 (1). Turquoise will also apply a Valuation Range as set out at Rule 4.1.20.2.2.3 when determining the value of the Extraordinary dividend. Liquidation and Insolvency The provisions regarding compulsory purchase in Rule 4.1.20.4.8 will also apply equally should the company in question approve an agreement on merger under which the company would become a part of another company or where a decision is taken to place the company in liquidation. Turquoise shall, if a company, whos DRs constitute the Contract Base, is being delisted from the IOB with the company being placed into bankruptcy, files its own petition for bankruptcy, suspends payments, or the existence of other circumstances which objectively indicate that the company is insolvent or will soon become insolvent, set a new Expiration Date and at Standard Exercise set the VWAP to 0. If a decision to delist is taken, due to any of the events mentioned above, when trading in the Contract Base is halted and that trading halt remains until the delisting of such contract base, Turquoise may, on the Expiration Date, change the contract type from a deliverable to a cash settled contract where the Expiration price will be set to 0 or to another value of the Contract Base if such is available on the Expiration Date. 4.1.20.4.7A Merger Where a company approves a merger agreement whereby the company shall be merged with another company or where the company is the subject of a public offer, Turquoise shall be entitled, as an alternative to setting a new Expiration Date in accordance with Rule 4.1.20.4.8, to replace the Contract base in the merged or acquired company with DRs in the acquiring company, and where applicable, to change the number or DRs per contract and the Exercise Price or Futures Price in accordance with the terms and conditions of the merger or public offer. Turquoise may replace the Contract Base in the merged or acquired company with DRs where applicable in the acquirer company and, where applicable, to change the number of DRs per Contract and the Exercise Price and Futures Price in accordance with the terms and conditions of the merger or the public offer, according to the Ratio Method. Change of contract base shall be used when the offer consists of DRs where applicable in the acquirer company or of a combination of DRs and payment, where the payment consists of not more than 67 % of the total offer, provided that DRs where applicable in the acquirer company are, or in the near future will be, traded on the IOB in the same currency as the original Contract Base. The above shall also apply if the DR of the acquiring company is traded on the IOB determined at the time the offer is made public. Once Turquoise has determined the proportion of the payment to the total offer, the methodology will not be changed due to DR price movements of the offered DR. A bid is considered to be made public when a price is mentioned and may also include an indicative bid. The adjustment shall be carried out when the acquirer company announces holding of at least 90% of the DRs and votes of the merged or acquired company, whose DRs constitute the Contract Base. Turquoise may, as an alternative to making a change to the Contract Base, set a new Expiration Date earlier than the previously determined Expiration Date. On the new Expiration Date contracts will undergo cash settlement according to the Contracts theoretical value (Fair Value). The Fair value method will be used when

4.1.20.4.6(3)

4.1.20.4.7

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(i) the offer consists solely of cash, or (ii) the offer consists of a combination of cash and DRs where the cash part exceeds 67 % of the offer; or (iii) where the offered DR is not traded on the IOB or any other exchange or market place approved by Turquoise in the same currency as the original Contract Base. Alternatively, the above adjustment shall be carried out where the share that constitutes the Contract Base is delisted when trading in that underlying DR is considered insufficient to support related derivatives trading. 4.1.20.4.7B Delisting If a company, whose DRs or relevant UK shares constitute the Contract Base, decides to delist the DRs or relevant UK share from the current list, for other reasons than Liquidation and Insolvency according to Rule 4.1.20.4.7 and if the DRs or relevant UK shares thereafter are no longer available for trading on the IOB or The London Stock Exchange or on any other exchange or marketplace approved by Turquoise, Turquoise may set a new Expiration Date earlier than the previously determined Expiration Date. On the new Expiration Date contracts will undergo cash settlement according to the Contracts theoretical value (Fair Value) calculated as described at Appendix 1 to Part 4.1. 4.1.20.4.8 Compulsory purchase proceedings If a DR constituting the Contract Base for an IOB Depositary Receipt Contract, is based upon an Issuing Company that becomes the object of compulsory purchase proceedings, or if such DRs will be de-listed for trading and clearing, Turquoise shall be entitled, for the respective series in respect of the Contract Base in question, to set a new Expiration Date earlier than the original Expiration Date for the Contracts in question. 4.1.20.4.9 Decreased share capital Should the share capital of an Issuing Company for an IOB DR Contract be decreased through a repayment to the share holders, Turquoise shall carry out a recalculation in accordance with one of the methods described in the following paragraphs: 4.1.20.4.9(1) Ratio If the liquidity in the DR which constitutes the Contract Base, is considered by Turquoise to be sufficient, the ratio method shall be applied. In other cases Rule 4.1.20.4.9(2) shall be applied. The recalculation shall be effective on the ex-day. The adjustment factor shall be calculated in accordance with the formula below and the recalculation shall be carried out in accordance with Rule 4.1.20.3.2(2). A = (VWAP cum b) / VWAP cum Where: A = Adjustment factor VWAP cum = Volume weighted average price prior to the decrease in DRs b = Amount repaid per DR 4.1.20.4.9(2) Reduction in Strikes If Turquoise considers that it is not appropriate to apply the above method, the recalculation shall be effected in accordance with this Rule by calculating the value of the repayment in accordance with the formula below: R=b Where: R = Value of repaid amount b = Amount repaid per DR The recalculation shall be carried out in accordance with Rule 4.1.20.3.4. The recalculation shall be effective on the ex-day.

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PART 4.1.A

FUTURES CONTRACTS BASED ON INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPT DIVIDENDS (IOB DR DIVIDEND FUTURES) AND LATE DIVIDEND FUTURES ON INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPT (LATE IOB DR DIVIDEND FUTURES) International Order Book Depositary Receipt Dividend Futures (IOB DR Dividend Futures) and Late Dividend Futures on International Order Book Depositary Receipt (Late IOB DR Dividend Futures) - Introductory
The Contract Specifications for IOB DR Dividend Futures Contracts and Late IOB DR Dividend Futures listed by Turquoise and the rules and procedures relating specifically to the trading, clearing and settlement of such Contracts are set out in this section - Part 4.1.A. The Trading Hours for IOB DR Dividend Futures Contracts shall normally be from 8.15 am to 3.30 pm London time on IOB Trading Days.

4.1.A.1

4.1.A.1.1

4.1.A.1.2

The rules and procedures set out in this Part 4.1.A apply to the following Contracts: IOB DR Dividend Futures Late IOB DR Dividend Futures and references in Part 4.A.1 of these Rules to an IOB DR Dividend Futures and Late IOB DR Dividend Futures shall be construed as references to IOB DR Dividend Futures collectively unless the context requires to the contrary.

4.1.A.1.3

Members should ensure that they comply with any instructions given by the Designated Clearing House and complete any documents specified by the Designated Clearing House relating to the settlement of IOB DR Dividend Futures. The application and interpretation of this Part 4.1.A shall be governed by English law and the Courts of England and Wales shall have exclusive jurisdiction to determine any dispute arising out of or in connection with this Part 4.1.A. Save where there is an express indication to the contrary, all references to time in this Part 4.1.A shall be construed as references to London time.

4.1.A.1.4

4.1.A.1.5

4.1.A.2

Interpretation
In this Part 4.1.A the following terms shall have the meanings ascribed thereto: "Daily Cash Settlement" in relation to an IOB DR Dividend Futures, means the process of cash settlement effected for such Contracts on each IOB Trading Day during its lifetime in accordance with Rule 4.1.A.13; "Daily Settlement Amount" means the amount payable to or by a Member in relation to each Daily Cash Settlement; "Daily Settlement Statement" in relation to an IOB DR Dividend Futures Contract, means the note issued by Turquoise showing the amount payable to or by a Member on Daily Cash Settlement of the Contract in question; Depositary Receipt (DR) means either a Global Depositary Receipt or American Depositary Receipt which is listed or traded on the IOB and which corresponds to a share, shares or to a percentage of a share of the company in question; Dividend means an Ordinary Dividend; Dividend Information Provider means a supplier of dividend data; DR Bank in relation to a Contract, means the depositary bank that issues the DRs on which such contract is based; DR Issuer in relation to a Contract, means the depositary that issues the DRs on which such contract is based;

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Expiration Date in relation to an IOB DR Dividend Futures Series means the third Friday of the Expiration Month or, if that day is not an IOB Trading Day, the immediately preceding IOB Trading Day; Expiration Year in relation to an IOB DR Dividend Futures Series means the year designated by EDX London as the year in which such Series shall expire; Expiration Month in relation to a standardised IOB DR Dividend Futures Series means the month designated by Turquoise as the month in which such series will expire; "Expiration Settlement Amount" means the monetary amount due to or payable by a Member on Expiration of an IOB DR Dividend Futures Contract as specified in the Expiration Settlement Statement; Expiration Settlement Date in relation to an IOB DR Dividend Futures Contract means the first Bank Day where applicable after the Expiration Date for the Contract in question; Expiration Delivery Settlement Price (EDSP) means the closing price as determined by Turquoise and normally rounded to 4 decimal places unless Turquoise provides otherwise; Gross Dividend means the amount of a dividend paid by the Depositary Bank in USD on each DR prior to deductions of any tax or any DR Bank fees; International Order Book (IOB) means the London Stock Exchanges International Order Book which is an order-driven trading service for trading international equity market securities; International Order Book Depositary Receipt Dividend Futures Contracts (IOB DR Dividend Futures Contracts) means standardised Futures Contracts listed by Turquoise which are based on the gross dividend paid out on one hundred Depositary Receipts for a specific company as traded or listed on the International Order Book for the time being the terms of which are in accordance with the Contract Specifications for such Contracts, and International Order Book Depositary Receipt Dividend Futures shall be construed accordingly; IOB Bank Day means a day other than a Saturday or a Sunday or other holiday on which banks in the United States or in the United Kingdom are generally open for business as published in Turquoises trading and settlement calendar on its website at www.tradeturquoise.com; IOB Trading Day means a day other than a Saturday or Sunday or other UK public holiday on which the IOB is generally open for trading as published in Turquoises trading and settlement calendar on its website at www.tradeturquoise.com; Issuing Company in relation to a Contract, means the company on whose DRs such Contract is based; Late Dividend Futures contract shall mean a contract created should a portion of an Ordinary Dividend be paid after the Expiration Date of an IOB DR Dividend Futures contract; LSE trading system means the London Stock Exchanges electronic trading system; Market Maker means a Member which has agreed to act in such capacity in relation to IOB DR Dividend Futures Contracts in accordance with Rule 4.1.A.7. Net Dividend means the amount of dividend that is physically paid by the DR Bank in USD on each DR after deductions of withholding tax and any DR Bank fees; Ordinary Dividend shall mean dividends defined as ordinary by the DR Bank; Recalculation Day shall mean the IOB Trading Day on which recalculation of IOB DR Futures Contracts is effected; Settlement Statement in relation to an IOB DR Dividend Futures Contract, means the note issued by Turquoise showing the rights and obligations of the Counterparties to such Contract with regard to the cash payments following its Expiration; SOLA trading system means Turquoises derivatives electronic trading system; Trade Registration means reporting of an off-exchange transaction to Turquoise;

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Trading Hours has the meaning given in Rule 4.1.A.1.1; Withholding Tax means the tax deducted by the DR issuer.

4.1.A.3 4.1.A.3.1

Contract Specifications Contract Specifications: Standardised Futures on International Order Book Depositary Receipt Dividends (IOB DR Dividend Futures)
Standardised Futures Contracts with Expiration Cash Settlement and Daily Cash Settlements. The Annual Gross Dividend paid per relevant DR. Annual is defined as having gone ex between the first Bank Day after the third Friday of December and the third Friday of December the following year. US Dollars. Futures price < USD 0.9995 USD 1.0000 USD 4.9990 > USD 5.00 tick size USD 0.0005 USD 0.0010 USD 0.0100

Type of Contract

Contract Base

Currency Minimum Price Movement

Contract Multiplier

One hundred. Recalculation of the multiplier for a Contract can occur in certain cases in accordance with the Recalculation Rules for IOB DR Dividend Futures Contracts set out at Rules 4.1.A.15. Two years in accordance with the Series Designation. Normally the Expiration Date. Futures Series will be listed for trading by Turquoise in accordance with Rule 4.1.A.4. Each Series shall be designated by a maximum of nine symbols, where a maximum of six symbols designates the Underlying Depositary Receipt and the year of dividend capture, one symbol designates the Expiration Year and one symbol designates the Expiration Month. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Futures Contracts in question. IOB DR Dividend Futures Contracts shall be subject to Daily Cash Settlement on each IOB Bank Day based upon the Daily Settlement Price of the Contracts calculated on the preceding IOB Trading Day in accordance with Rule 4.1.A.13. The third Friday of January in the Expiration Year, or where such day is not an IOB Trading Day or is declared by Turquoise in advance to be a half trading day, the preceding IOB Trading Day. Normally January. The year as indicated in the year field of the Series designation. The amount of Gross Ordinary Dividend as paid by the DR bank on or before the close of trading on the Expiration Date. This is in relation to dividends which are marked ex between between the first Bank Day after the third Friday of December and the third Friday of December the following year and normally be rounded to 4 decimal places unless Turquoise provides otherwise. Calculated in accordance with Rule 4.1.A.14.

Lifetime Last day of Trading Listing of New Series

Series Designation

Daily Cash Settlement

Expiration Date

Expiration Month Expiration Year Expiration Settlement Price

Expration Settlement Amount Expiration Settlement Day

The first IOB Bank Day after the Expiration Date.

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Expiration Settlement

Payment of the Expiration Settlement Amount is due on the Expiration Settlement Day in accordance with the instructions of the Designated Clearing House. As specified in Rule 4.1.A.1.1.

Trading Hours

4.1.A.3.2

Contract Specifications: Standardised Late Futures on International Order Book Depositary Receipt Dividends (Late IOB DR Dividend Futures)
Late IOB DR dividend futures will only come into existence, when a dividend that was marked ex in relation to a normal IOB DR dividend futures contract, has not been physically paid in its entirety by the DR Bank before the close of trading on the Expiration Date of the normal IOB DR Dividend Futures contract. This will usually be due to a late payment of ordinary dividends by the underlying company. Late IOB DR Dividend Futures contracts act as extensions of normal contracts to protect against late payment.

Contract Trigger

Automatic allocation

In the event that not all dividends are paid on the underlying DR within the relevant timeframe, an equal position in a Late IOB DR Dividend Contract will automatically be created for any normal IOB DR Dividend Future contract position that has been carried to expiration. The position will be opened at a price of zero and is subject to Daily Cash Settlement calculations as specified in Rule 4.1.A.13 Standardised Futures Contracts with Expiration Settlement and Daily Cash Settlements. The remaining amount of an ordinary dividend that went ex in the relevant period for the normal contract but was not physically paid by the DR Bank before expiration. US Dollars. Futures price <USD 0.9995 USD 1.0000 USD 4.9990 >USD 5.00 tick size USD 0.0005 USD 0.0010 USD 0.0100

Type of Contract

Contract Base

Currency Minimum Price Movement

Contract Multiplier Lifetime

As per contract size on the corresponding IOB DR Dividend Future at expiration. Normally One year. Turquoise reserves the right to bring forward the Expiration Date once all outstanding dividends have been physically paid. Normally the Expiration Date. Late Futures Series will be listed for trading by Turquoise in accordance with Rule 4.1.A.4. Each Series shall be designated by a maximum of nine symbols, where a maximum of six symbols designates the Underlying Depositary Receipt and the year of dividend capture, one symbol designates the Expiration Year and one symbol designates the Expiration Month. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Futures Contracts in question. IOB DR Late Dividend Futures Contracts shall be subject to Daily Cash Settlement on each IOB Bank Day based upon the Daily Settlement Price of the Contracts calculated on the preceding IOB Trading Day in accordance with Rule 4.1.A.13. The third Friday of the Expiration Month of the Expiration Year, or where such day is not an IOB Trading Day or is declared by Turquoise in advance to be a half trading day, the preceding IOB Trading Day. Turquoise reserves the right to bring forward the Expiration Date once all outstanding dividends have been physically paid. The month indicated in the Series designation. The year as indicated in the year field of the Series designation.

Last day of Trading Listing of New Series

Series Designation

Daily Cash Settlement

Expiration Date

Expiration Month Expiration Year

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Expiration Settlement Price Expiration Settlement Amount

The remaining dividend amount prior to Withholding Tax and DR Bank fees paid by the DR Bank during the lifetime of the Late contract which applies in relation to dividends captured by the corresponding normal IOB DR Dividend Futures The remaining amount captured by the Late contract which was not paid during the lifetime of the corresponding normal contract. Calculated in accordance with Rule 4.1.A.14

Expiration Settlement Day Expiration Settlement

The first IOB Bank Day after the Expiration Date.

Payment of the Expiration Settlement Amount is due on the Expiration Settlement Day in accordance with the instructions of the Designated Clearing House As specified in Rule 4.1.A.1.1.

Trading Hours

4.1.A.4
4.1.A.4.1

Listing of New Series

The First Listing Day for a new Futures Contracts based on IOB DR Dividends shall normally be the fourth IOB Trading Day prior to the Expiration Date for the Contract in question in each calendar year. The First Listing Day for a Late IOB DR Dividend Futures contract based on IOB DR Dividends shall be the first IOB Trading Day following expiration of the corresponding IOB DR Dividend Futures contract. This shall only occur were part of a relevant dividend has not been physically paid before expiration of the corresponding normal IOB DR Dividend Futures contract. Turquoise reserves the right to adjust either the First Listing Day or the Expiration Date in respect of any given Series where such adjustment is deemed necessary in the interests of the market. Members shall be informed in advance in writing of any such intended adjustment.

4.1.A.4.2

4.1.A.4.3

4.1.A.5
4.1.A.5.1

Designation of Expiration Month

The Expiration Month for an IOB DR Dividend Futures Contract and the corresponding Late IOB DR Dividend Futures contract shall be designated as follows: January M

4.1.A.6
4.1.A.6.1

Payment of Fees
Fees in respect of IOB DR Dividend Futures Contracts are payable by Members in the amount and at the time specified in Appendix A for the Contract in question. Such fees shall be paid to the Designated Clearing House at the time specified in the relevant Settlement Statement.

4.1.A.7
4.1.A.7.1

Market Making Obligations

A Market Maker shall provide quotes in respect of IOB DR Dividend Futures Contracts in which it acts for a minimum period equivalent to 75% of Turquoises ordinary Trading Hours in each calendar month. The obligations of Market Makers are set out in Rule 4.1.A.7.4 below. Market Makers will only be obligated to provide continuous quotes in accordance with this Rule 4.1.A.7 when the IOB DR Dividend Futures market is open for trading.

4.1.A.7.2 4.1.A.7.3

Market Maker obligations are applied on an account level and in accordance with an arrangement made by it with Turquoise under Rule 2.5.6. For each IOB DR Dividend Futures Contracts in respect of which it acts as such, a Market Maker shall quote continuous two way prices within the applicable Prescribed Spread and in the minimum amount applicable to the Contract in question as published on the Turquoise website.

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Such quotes shall be provided in both of the nearest two Expiration months provided always that the Market Maker shall not be required to provide quotes in relation to any Series on a day which is the Expiration Date for such Series. On any such Expiration Date, the Market Maker shall be required to provide quotes in each of the next two Expiration months after the month in which such Expiration Date falls 4.1.A.7.4 The IOB DR Dividend Futures Contracts in respect of which a Market Maker shall be required to provide quotes shall be determined by such Market Maker and Turquoise in accordance with the procedures published by Turquoise for such purposes from time to time. The performance by the Market Maker of its obligation to provide quotes in IOB DR Dividend Futures Contracts will determine the entitlement of the Market Maker to the benefits specified in Rule 4.1.A.8. 4.1.A.7.5 4.1.A.7.6 The Prescribed Spread for Market Makers in relation to Standardised IOB DR Dividend Futures shall be published on the Turquoise website. Each Market Maker will be granted a total of twenty days per calendar year in relation to each IOB DR Dividend Futures Contract in which it acts as a Market Maker on which it is not required to fulfil its obligations as a Market Maker in relation to the IOB DR Dividend Futures Contract in question as set out in this Rule 4.1.A.7. Any such day is referred to in this Rule as an Exempt Day. A Market Maker that wishes to nominate a trading day as an Exempt Day shall inform Turquoise in writing prior to 08:20 London time on the day in question. Turquoise shall confirm by notice in writing to the Market Maker that it will be exempt from the obligation to provide quotes in the IOB DR Dividend Futures Contracts in question on that day. Where a Market Maker operates more than one Market Maker Account in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, the Market Maker shall make a separate election regarding such Exempt Days for each Market Maker Account that is used for the registration of transactions in IOB DR Dividend Futures Contracts. 4.1.A.7.7 When extreme market conditions arise, Turquoise will issue a general notice to the market declaring that there is a "fast market" indicating that the obligations of Market Makers are modified or, in extreme circumstances, suspended as appropriate.

4.1.A.8
4.1.A.8.1

Market Making Fees

A Market Maker in IOB DR Dividend Futures Products which performs its obligations as such to the satisfaction of Turquoise shall pay fees in respect of transactions it effects in standardised IOB DR Dividend Futures Products on the basis set out at Appendix A. Such fees are referred to in this Part 4.1.A. as Market Maker Fees.

4.1.A.9
4.1.A.9.1

Market Making: Sanctions

In this Rule 4.1.A.9, references to Quoting Obligations shall be construed as references to the obligations to provide quotes in relation to IOB DR Dividend Futures Contracts applicable to the Market Maker set out in Rule 4.1.A.7. If a Market Maker fails properly to perform its obligations as such in relation to standardised IOB DR Dividend Futures Contracts, Turquoise shall have the right: (i) (ii) (iii) to exclude the Market Maker temporarily from acting in such capacity in relation to such Contracts; To terminate the Market Maker Agreement with immediate effect; To require the Market Maker to pay fees in the manner prescribed in Rule 4.1.A.9.2 below.

4.1.A.9.2

A Market Maker which fails to perform its quoting obligations under Rules 4.1.A.7.3 and 4.1.A.7.4 to the satisfaction of Turquoise shall be liable to pay fees in respect of the IOB DR Dividend Futures Contracts in respect of which it is eligible to pay Market Maker Fees at the higher rate applicable having regard to the level of performance of such party in the monthly period in question as shown in Appendix A to these Rules.

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Where a Market Maker fails to perform its obligations under Rule 4.1.A.7. in any three months in a calendar year, Turquoise may suspend such party from acting as a Market Maker for such period as it considers appropriate in the circumstances. Where in any monthly period, a Market Maker provides quotes in the IOB DR Dividend Futures Contracts in which it acts as a market maker for less than 25% of the normal Trading Hours of Turquoise for such Contracts in the period in question, Turquoise may suspend such party from acting as a Market Maker in IOB DR Dividend Futures Contracts for such period as it considers appropriate in the circumstances. Without prejudice to its general power to terminate the Dividend Futures Market Maker Agreement under Rule 4.1.A.9.1(ii) above, where a Market Maker fails to fulfil its obligations in any three months in a calendar year, the Members right to act as a Market Maker shall be suspended for such period as Turquoise considers appropriate in the circumstances. Turquoise may also suspend a Market Maker from acting in such capacity at any time if it considers that the Market Maker has abused its position as a Market Maker. 4.1.A.9.3 Turquoise shall maintain a record of the manner in which each Market Maker performs its obligations in each calendar month. In determining whether a Market Maker has performed its obligations as such in relation to standardised IOB DR Dividend Futures Contracts on any day, Turquoise will have regard to its overall activities as a Market Maker in such Contracts on the day in question. Turquoise maintains an electronic record of the aggregate time on an IOB Bank Day during which a Market Maker provides quotes to satisfy its quoting obligations in respect of each series in which quotes are required. This record will be used to determine whether the Market Maker in question has provided quotes for the minimum period specified in Rule 4.1.A.7. 4.1.A.9.4 Where a Market Maker operates more than one Market Maker Account for the execution of transactions in IOB DR Dividend Futures Contracts in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, Turquoise shall assess the performance of the applicable obligations relating to market making in IOB DR Dividend Futures Contracts separately for each such Market Maker Account.

4.1.A.10
4.1.A.10.1

Registration of Off-Exchange Transactions

Where a Member enters into an off-exchange transaction in an IOB or Late IOB DR Dividend Futures Contract with another Member or with a member of Oslo Brs, the Member shall submit a Request for Registration relating to such transaction to Turquoise at the earliest opportunity if it wishes the transaction to be registered. Such Request for Registration shall: (i) (ii) specify the Instrument which forms the subject of the off-exchange transaction; identify the counterparty to such transaction, the Series, the agreed price, the number of contracts involved in the transaction and the Account for registration.

Where the off-exchange transaction in question has been arranged by an OTC Broker, the Member may arrange for the Request for Registration relating to such transaction to be submitted to Turquoise by the OTC Broker. 4.1.A.10.2 A Request for Registration shall only be considered for acceptance by Turquoise and the Designated Clearing House if the counterparties to the off-exchange transaction or an OTC Broker acting on their behalf submit identical requests specifying the Contracts to be registered, the Accounts in which the Contract is to be registered and the terms of the transaction in question to Turquoise or to Turquoise and to Oslo Brs in question as appropriate. A Request for Registration of an off-exchange transaction may be submitted to Turquoise by a Member or by an OTC Broker acting on behalf of the Member either by way of its electronic connection to Turquoises clearing system or by telephone to Turquoises Market Operations Department as set out in Rule 3.2.5. A Request for Registration of an IOB or Late IOB DR Dividend Futures Contract shall be considered for acceptance by Turquoise and the Designated Clearing House in accordance with Rule 3.2 and the following provisions of this Rule.

4. 1.A.10.3

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4. 1.A.10.4 A Request for Registration of an IOB or Late IOB DR Dividend Futures Contract in respect of an off-exchange transaction can only be accepted if the off-exchange transaction has been concluded at a time when Turquoise is open for trade registration. If Turquoise considers that an acceptable price has not been provided for such purposes, the acceptance of the Request for Registration shall be determined at their discretion. 4. 1.A.10.5 The acceptance of a Request for Registration submitted under this Rule is at the discretion of Turquoise and the Designated Clearing House. Without limiting the generality of the foregoing, a Request for Registration shall not be accepted if such acceptance would not be conducive to the maintenance of a proper market in the Instrument in question or would not be consistent with the Designated Clearing Houses obligation to maintain a sound basis to its clearing services. Where a Request for Registration of an IOB or Late IOB DR Dividend Futures Contract which is submitted by a Member or an OTC Broker acting on behalf of the Member during trading hours for such Contracts is accepted by Turquoise and the Designated Clearing House, Turquoise shall arrange with the Designated Clearing House for the resulting Registered Contract to be registered by the Designated Clearing House forthwith. Where a Request for Registration in relation to an IOB or Late IOB DR Dividend Futures Contract is submitted by a Member or an OTC Broker acting on behalf of the Member after the close of trading in such Contracts on an IOB Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day if it is received and accepted by Turquoise and the Designated Clearing House before 5.30 pm London time. Where a Request for Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next IOB Trading Day. 4. 1.A.10.7 Turquoise shall inform Members and, where applicable, the OTC Broker in question as soon as possible if a Request for Registration submitted under this Rule is not accepted for registration.

4. 1.A.10.6

4.1.A.11
4.1.A.11.1

Requests for Re-Registration

A Request for Re-Registration of a normal IOB DR Dividend Futures contract made pursuant to Rule 3.4.2(vi) will not be considered by Turquoise and the Designated Clearing House unless it is received by other means or electronic connection no later than 30 minutes prior to the close of the clearing system, normally 5.30 pm London time, for IOB or Late IOB DR Dividend Futures Contracts on the IOB Trading Day following the day on which the position in question is registered by the Designated Clearing House. For the purpose of this Rule 4.1A.11, Turquoise will not accept Requests for Re-Registration for Late IOB DR Dividend Futures Contracts.

4. 1.A.11.2

A Request for Re-Registration of an IOB DR Dividend Futures Contract made pursuant to Rule 3.4.2(i) to (v) inclusive will not be considered by Turquoise and the Designated Clearing House unless it is received by electronic connection or by other means no later than close of trading on the Expiration Date for the Contract in question. A Request for Re-Registration of an IOB DR Dividend Futures Contract shall specify the following details: (i) (ii) (iii) the Contracts to be re-registered; the Account of the transferor; the Account of the transferee.

4. 1.A.11.3

4. 1.A.11.4 4. 1.A.11.5

The acceptance of a Request for Re-Registration submitted under this Rule is at the discretion of Turquoise and the Designated Clearing House. Where a Request for Re-Registration is received and accepted by Turquoise and the Designated Clearing House before 5.30 pm London time on an IOB Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day. Where a Request for Re-Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next IOB Trading Day. Turquoise shall inform the Member or Members in question as soon as possible if a Request for Re-Registration submitted under this Rule is not accepted.

4. 1.A.11.6

4.1.A.12

Cancellation of Incorrect Transactions

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4.1.A.12.1 The provisions of Rule 2.16 concerning the cancellation of incorrect transactions shall be applied in relation to IOB or Late IOB DR Dividend Futures Contracts in accordance with the following provisions of this Rule. Turquoise will not direct that an IOB or Late IOB DR Dividend Futures transaction shall be cancelled in the absence of the agreement of the Counterparty to the transaction unless the period between the time at which the transaction is effected and the time at which the request is submitted is less than ten minutes. The Fair Market Spread or Price Adjustment Range for IOB DR Dividend Futures Contracts is defined as 10% deviation outside the relevant Prescribed Spread for Market Makers as described in Rule 4.1.A.7 or where no spread is available, Turquoise may after consulting with Members of Turquoise define the Fair Market Spread or Price Adjustment Range at its sole discretion. Turquoise will notify the Member or Members involved in the transaction of its decision in the case of a request relating to an IOB or Late IOB DR Dividend Futures Contract no later than 15 minutes before trading starts on the IOB Trading Day following the day on which the transaction in question was effected.

4.1.A.12.2

4.1.A.12.3

4.1.A.12.4

4.1.A.13
4.1.A.13.1

Daily Cash Settlement

IOB DR Dividend Futures Contracts and any corresponding Late IOB DR Dividend Futures Contracts are subject to Daily Cash Settlement. The first such Daily Cash Settlement shall be due for settlement on the first IOB Bank Day where applicable following the Registration of the Contract. Thereafter, Daily Cash Settlement shall be effected on each IOB Bank Day where applicable until the Expiration Date for the Contract in accordance with the provisions of this Rule. On the transaction day, settlement shall take place in an amount corresponding to the difference between the Daily Settlement Price on the transaction day and the futures price. After that settlement takes place in an amount corresponding to the difference between the Daily Settlement Price and the Daily Settlement Price from the immediately preceding IOB Trading Day. On the Expiration Date settlement shall take place in an amount corresponding to the difference between the Expiration Delivery Settlement Price and the Daily Settlement Price from the immediately preceding IOB Bank Day. Turquoise determines the Daily Settlement price for the Futures Contract with reference to the most up to date announcement by the DR bank relating to the dividend. In the period of time before any announcements are made, Turquoise will use relevant dividend forcasts as supplied by its chosen Dividend Information Provider. For Late IOB DR Dividend Futures contracts, the Daily Settlement Price shall be determined by subtracting the Expiration Settlement value of the corresponding IOB DR Dividend Future from the most up to date announcement by the DR Bank relating to the relevant dividend period.

4.1.A.13.2

4.1.A.13.3

4.1.A.13.4

Turquoise shall issue Daily Settlement Statements to Members having registered positions in IOB or Late IOB DR Dividend Futures Contracts normally no later than 10.00 pm London time on each IOB Trading. The Daily Settlement Statement for IOB or Late IOB DR Dividend Futures shall show the Daily Settlement Amount for such settlement which is payable in US Dollars. The Daily Settlement Amount for IOB or Late IOB DR Dividend Futures shall be payable on the first IOB Bank Day following the IOB Trading Day in question in accordance with the instructions of the Designated Clearing House.

4.1.A.14
4.1.A.14.1

IOB DR Dividend Futures and Late IOB DR Dividend Futures: Expiration Settlement Procedures
The rights and obligations of the Buyer and the Seller in respect of the settlement of an IOB DR Dividend Futures Contract or corresponding Late IOB DR Dividend Futures Contract shall be performed in accordance with this Rule 4.1.A.14. Expiration Settlement of an IOB or Late IOB DR Dividend Futures Contract comprises one element: The Final Settlement Amount for the IOB DR Dividend contract is determined as the amount of Gross Ordinary Dividend paid by the DR Bank on or before the close of trading on the Expiration Date and normally rounded to 4 decimal places unless Turquoise provides otherwise. This is in relation to dividends which are marked ex

4.1.A.14.2

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between the first Bank Day after the third Friday of December and the third Friday of December the following year. The Final Settlement Amount for the Late IOB DR Dividend contract is determined as the amount of the Gross Ordinary Dividend paid by the DR bank during the Late contract lifetime in relation to dividends marked ex between the first Bank Day after the third Friday of December and the third Bank Day of December the following year for the corresponding IOB DR Dividend contract 4.1.A.14.3 The Final Daily Settlement Amount for an IOB DR Dividend Futures Contract is determined by reference to the Expiration Settlement Price (ESP) and carried out in accordance with Rule 4.1.A.13. The payment of the Expiration Settlement Amount shall be due on the Expiration Settlement Day for the IOB DR Dividend Futures Contract in question. All payments required to be made under the settlement procedures set out in Rule 4.1.A.13 to Rule 4.1.A.14 shall be made in accordance with instructions issued by the Designated Clearing House. Such payments shall be made in USD. Turquoise will issue Daily Settlement and Expiration Settlement Statements showing the amount due to or payable by the Member and the time at which such payments are due. In the absence of manifest error, Turquoise's Settlement Statements shall be final and binding. Where the Expiration Settlement Price for an IOB DR Dividend Futures Contract or corresponding Late IOB DR Dividend Futures Contract is higher than the Daily Settlement Price for such Contract on the day before its Expiration Date, the Expiration Settlement Amount shall be payable to the Buyer and by the Seller. Where the Expiration Settlement Price for an IOB DR Dividend Futures Contract or corresponding Late IOB DR Dividend Futures Contract is lower than the Daily Settlement Price for such Contract on the day before its Expiration Date, the Expiration Settlement Amount shall be payable by the Buyer and to the Seller. The Expiration Settlement Price for the Expiration Date for an IOB DR Dividend Futures Contracts or corresponding Late IOB DR Dividend Futures Contract shall be calculated by Turquoise in accordance with the principles set out in this Rule. Turquoise publishes the Expiration Settlement Price for the Expiration Date of the IOB DR Dividend Futures or corresponding Late IOB DR Dividend Futures Contract that is to be used as the basis for cash settlement of IOB DR Dividend Futures Contracts or corresponding Late IOB DR Dividend Futures Contract which expire on the Expiration Date in question on the IOB Trading Day immediately following the Expiration Date. Turquoise shall notify all Members of the determined Expiration Settlement Price of the IOB DR Dividend Futures or corresponding Late IOB DR Dividend Futures Contract. The published Expiration Settlement Price for the Expiration Date is final and binding. Turquoise may defer its Expiration Settlement procedures for IOB DR Dividend Futures Contracts or corresponding Late IOB DR Dividend Futures Contract if abnormal circumstances occur which prevent settlement being effected at the normal time. Turquoise shall inform Members at the earliest opportunity of any such occurrence.

4.1.A14.4 4.1.A.14.5

4.1.A14.6

4.1.A.15
4.1.A.15.1

Recalculation Rules for IOB DR Dividend Futures Contracts

Recalculation rules for IOB DR Dividend contracts will be applied in accordance with the relevant Turquoise Recalculation Rules for IOB DR Contracts at Rule 4.1.20.1.

APPENDIX 1 TO PART 4.1 - Adjustment Method - Fair Value

1 Valuation Variables The Table below shows the variables used in the respective valuation models as well as a short description of how these variables are determined. Turquoise will use a the binomial Cox-Ross-Rubinstein calculation model for DR options using 100 steps Turquoise will use a The Black-Scholes Method calculation model for DR option contracts

Calculation

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Turquoise will use The cash and carry arbitrage calculation Model for DR futures contracts Underlying In order to calculate the Theoretical Fair Value, the value of the underlying is defined as the Volume Weighted Average Price (VWAP) for the underlying in question on the day of the adjustment. Volatilities relate to the underlying DRs. The arithmetic mean of the volatilities implicit in the daily settlement prices provided by the CC&G clearing system on the ten days before the date of the announcement of the offer. In cases where offers are revised or competing offers are issued, Turquoise will always use the volatilities calculated at the time of the first offer being made public. For a merger, the date of the announcement is the date in which the essential financial elements of the corporate action are released. In abnormal situations, to define the volatility Turquoise may apply adjustments using linear interpolation. Those estimated dividends consistent with the residual life of the contract by Turquoise and used to calculate the daily closing prices on the day preceding the delisting of the DR Prevailing domestic interbank offered rate, consistent with the residual life of the contract, observed on the last day before the closure and cash settlement of DR contracts Number of days between the date of adjustment and the original Expiration Date.

Volatility

Dividends:

Interest Rate:

Time to expiration

When the bid has been made public Turquoise shall publish the volatility and dividend estimates that will be used to calculate the Fair Value in a Market Notice. A bid is considered to be public when a price has been mentioned by the bid company and may also include an indicative bid. The underlying DR and the interest rate can change until the time of the adjustment and is published in a Market Notice at the time of the adjustment.

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PART 4.2 4.2.1

4.2.1.1

FUTURES AND OPTIONS CONTRACTS BASED ON THE FTSE RUSSIA IOB INDEX Introductory

The Contract Specifications for FTSE Russia IOB Contracts listed by Turquoise and all rules and procedures relating specifically to the trading, clearing and settlement of such Contracts are set out in this Part 4.2. The Trading Hours for FTSE Russia IOB Index Futures Contracts shall normally be from 8.00 am to 4.00 pm London time on IOB Trading Days. On the Expiration Date the Trading Hours for expiring FTSE Russia IOB Index Futures Contracts shall normally be from 8.00 am to 3.30 pm London time. The Trading Hours for FTSE Russia IOB Index Options Contracts shall normally be from 8.15 am to 3.30 pm London time on IOB Trading Days.

4.2.1.2

The rules and procedures set out in this Part 4.2 apply to the following Contracts based on the FTSE Russia IOB Index: FTSE Russia IOB Index Futures FTSE Russia IOB Index Options and references to FTSE Russia IOB Index Contracts in this Part 4.2 shall be construed as references to each of the above Contracts unless the context otherwise requires.

4.2.1.3 4.2.1.4

The FTSE Russia IOB Index is described in the Ground Rules for the management of the FTSE Russia IOB Index are available from www.ftse.com/Indices. The FTSE Russia IOB Index is calculated continuously during the day on each IOB Trading Day by FTSE in its capacity as the Index Calculator for the FTSE Russia IOB Index appointed by Turquoise. In the event of computer failure or lack of information the frequency of calculations and reports may be altered. Save where there is an express indication to the contrary, all references to time in this Part 4.2 shall be construed as references to London time. The application and interpretation of this Part 4.2 shall be governed by English law and the Courts of England and Wales shall have exclusive jurisdiction to determine any dispute arising out of or in connection with this Part 4.2.

4.2.1.5 4.2.1.6

4.2.2
4.2.2.1

Interpretation
In this Part 4.2 the following terms shall have the meanings ascribed thereto: Closing Settlement in relation to a FTSE Russia IOB Index Futures Contract, means the process of cash settlement effected for such Contracts following the execution of a Closing Transaction as provided for in Rule 4.2.15; "Closing Settlement Amount" means the amount payable to or by a Member in relation to a Closing Settlement; "Closing Transaction" in relation to a FTSE Russia IOB Index Futures position, means a transaction which liquidates an existing futures position by registration of an equal and opposite position; "Daily Cash Settlement" in relation to a FTSE Russia IOB Futures Contract, means the process of cash settlement effected for such Contracts on each IOB Bank Day during its lifetime in accordance with Rule 4.2.14; "Daily Settlement Amount" means the amount payable to or by a Member in relation to each Daily Cash Settlement; "Daily Settlement Statement" in relation to a FTSE Russia IOB Index Futures Contract, means the note issued by Turquoise showing the amount payable to or by a Member on Daily Cash Settlement of the Contract in question;

1 FTSE RUSSIA IOB Index is a trade and service mark of the Financial Times Limited, the London Stock Exchange Plc and FTSE International Limited (FTSE)

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Daily Settlement Price in relation to a FTSE Russia IOB Index Futures Contract, means the value certified as such by Turquoise on each IOB Trading Day as being the value of a FTSE Russia IOB Index Futures Contract at the close of trading at Turquoise on such day; Depositary Receipt means a depositary receipt which is listed or traded on the IOB and which corresponds to a share, shares or to a percentage of a share of the company in question; Designated Market Maker (DMM) means a Member which has agreed to act in such capacity in relation to FTSE Russia IOB Index products in accordance with Rule 4.1.8; Exercise Settlement Amount means the monetary amount determined in accordance with Rule 4.2.17 due to or payable by a Member on Exercise of a FTSE Russia IOB Index Options Contract as specified in the Exercise Settlement Statement; Exercise Settlement Statement in relation to a FTSE Russia IOB Index Options Contract, means the note issued by Turquoise showing the amount payable to or by the Member on Exercise of the Contract in question; Expiration Date in relation to a standardised Series, means the third Friday in the Expiration Month for such Series, or, if that day is not an IOB Trading Day, the immediately preceding IOB Trading Day and in relation to a Non-Standardised Contract, means the IOB Trading Day agreed upon by the counterparties as the day on which the Contract will expire; Expiration Month in relation to a standardised Series, means the month designated by Turquoise as the month in which such Series will expire and in relation to a Non-Standardised Contract, means the month agreed upon by the counterparties as the month in which the Contract will expire; Expiration Settlement Amount means the monetary amount due to or payable by a Member on expiration of a FTSE Russia IOB Index Futures Contract in accordance with Rule 4.2.16 as specified in the Expiration Settlement Statement for the Contract in question; Expiration Settlement Day in relation to a FTSE Russia IOB Index Contract means the first IOB Bank Day after the Expiration Date for the Contract in question; Expiration Settlement Price in relation to a FTSE Russia IOB Index Contract, means the price certified as such in accordance with Rule 4.2.12; Expiration Settlement Statement in relation to a FTSE Russia IOB Index Futures Contract, means the note issued by Turquoise showing the amount payable to or by the Member on Expiration of the Contract in question; Expiration Year in relation to a standardised Series, means the year designated by Turquoise as the year in which such Series will expire and in relation to a Non-Standardised Contract means the year agreed upon by the counterparties as the year in which the Contract will expire; FTSE Russia IOB Index Contracts means Standardised and Non-Standardised Futures and Options Contracts listed by Turquoise which are based on the FTSE Russia IOB Index, the terms of which are in accordance with the Contract Specifications for such Contracts and FTSE Russia IOB Index Options and FTSE Russia IOB Index Futures shall be construed accordingly; FTSE Russia IOB Index described more particularly in the Conditions for the FTSE Russia IOB Index which are set out at www.ftse.com/Indices as amended from time to time; FTSE Russia IOB Index Options Series means FTSE Russia IOB Index Options having the same Expiration Date, Expiration Month, Expiration Year and the same Exercise Price and Series shall be construed accordingly; "First Daily Cash Settlement" in relation to a FTSE Russia IOB Index Futures Contract means the first cash settlement for the Contract in question carried out following Registration of the Contract; First Listing Day means the day on which a Series is first listed by Turquoise; Futures Contract Price in relation to a FTSE Russia IOB Index Futures Contract, means the price for such Contract agreed by the counterparties to the transaction in question;

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Ground Rules for the management of the FTSE Russia IOB Index means the conditions governing the composition of the FTSE Russia IOB Index, the calculation of the Index Value, and adjustments thereto and other similar factors relating to the FTSE Russia IOB Index as amended from time to time and which have been adopted by FTSE and can be found on www.ftse.com/Indices; Index Calculator means FTSE, the organisation appointed by Turquoise having responsibility for the calculation of the FTSE Russia IOB Index in accordance with these Rules and the Conditions for the FTSE Russia IOB Index; Index Provider means FTSE; Index Constituent means a Depositary Receipt which is included in the FTSE Russia IOB Index for the time being; International Orderbook Depositary Receipt means a depositary receipt which is listed or traded on the IOB; IOB Bank Day means a day other than a Saturday or a Sunday or other holiday on which banks in the United States or in the United Kingdom are generally open for business as published in Turquoises trading and settlement calendar on its website at www. tradeturquoise.com; IOB Trading Day means a day other than a Saturday or Sunday or other UK public holiday on which the IOB is generally open for trading as published in Turquoises trading and settlement calendar on its website at www. tradeturquoise.com; Primary Market Maker means a Member which has agreed to act in such capacity in relation to FTSE Russia IOB Index products in accordance with Rule 4.1.8; Opening Transaction means a FTSE Russia IOB Index Futures transaction which is not a Closing Transaction; Settlement Statement means any of the following: (i) (ii) (iii) a Daily Settlement Statement; an Expiration Settlement Statement; or the note issued by Turquoise in relation to a FTSE Russia IOB Index Options Contract showing the rights and obligations of the Counterparties to such Contract with regard to the associated cash payments following its Exercise.

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4.2.3 4.2.3.1
Type of Contract

Contract Specifications Contract Specifications: Standardised FTSE Russia IOB Index Futures
Standardised Futures Contracts with Expiration Settlement and Daily Cash Settlement. The FTSE Russia IOB Index. USD 50 per Index Point. 0.25 and 0.05 where the Future is traded as part of a standard combination.

Contract Index Index Multiplier Minimum Price Movement Lifetime Daily Settlement Price Last Day for Trading Listing of New Series

Three, six, nine or twelve months in accordance with the Series Designation. The Daily Settlement Price is determined in accordance with Rule 4.2.14. The Expiration Date. Futures Contracts are listed in each calendar month on the First Listing Day.

Series Designation

Each Series shall be designated by a maximum of eleven symbols, where a maximum of six symbols designates the Contract Index, one symbol designates the Expiration Year and one symbol designates the Expiration Month. The first IOB Bank Day following Registration. FTSE Russia IOB Index Futures Contracts are subject to Daily Settlement on each IOB Bank Day following Registration in accordance with Rule 4.2.14. The index value for the Expiration Date calculated in accordance with Rule 4.2.12.1.

Initial Daily Settlement Daily Settlement

Expiration Settlement Price Expiration Date

The third Friday of the Expiration Month of the Expiration Year, or where such day is not a IOB Trading Day, the preceding IOB Trading Day The month indicated in the Series designation. The year indicated in the Series designation. Calculated in accordance with Rule 4.2.16.

Expiration Month Expiration Year Expiration Settlement Amount Expiration Settlement

Payment of the Expiration Settlement Amount is due on the Expiration Settlement Day in accordance with the instructions of the Designated Clearing House. The first IOB Bank Day following the Expiration Date.

Expiration Settlement Day Trading Hours

As specified in Rule 4.2.1.1.

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4.2.3.2
Type of Contract Style of Options Type Contract Index Index Multiplier Minimum Price Movement

Contract Specifications: Standardised FTSE Russia IOB Index Options

Standardised Options Contracts with Cash Settlement. European Style. Calls and Puts. The FTSE Russia IOB Index. USD 50 per Index Point. For Options with a Premium below USD 0.1: 0.01 of an Index Point; For Options with a Premium from USD 0.1 to USD 3.95: 0.05 of an Index Point; For Options with a Premium of USD 4 to USD 9.90: 0.10 of an Index Point. For Options with a Premium of USD 10 or above: 0.25 of an Index Point. The amount agreed to by the parties as the premium payable for the Contract multiplied by the Index Multiplier. The first IOB Bank Day following Registration. The index value contained in the Series designation. As shown in the Scale of Strike Prices. Three, six, nine or twelve months in accordance with the Series Designation. The Expiration Date for the Series in question. On or around the fourth IOB Trading Day prior to the Expiration Date in each month in accordance with Rule 4.2.4. Each Series shall be designated by a maximum of eleven symbols, where a maximum of four symbols designates the Contract Index, one symbol designates the Expiration Year, one symbol designates the Expiration Month and a maximum of four symbols designates the Strike Price. The use of the symbol X indicates that the Contracts in the FTSE Russia IOB Series in question have been adjusted in accordance with the Conditions for the FTSE Russia IOB Index. The index value for the Expiration Date calculated in accordance with Rule 4.2.12.1.

Premium

Premium Settlement Day Strike Price Strike Price Interval Lifetime Last Day for Trading Listing of New Series

Series Designation

Expiration Settlement Price Expiration Date

The third Friday of the Expiration Month of the Expiration Year, or where such day is not an IOB Trading Day, the preceding IOB Trading Day. The month indicated in the Series designation. Calculated in accordance with Rule 4.2.17.

Expiration Month Exercise Settlement Amount Expiration Year Expiration Settlement

The year indicated in the Series designation. Payment of the Exercise Settlement Amount shall occur on the Expiration Settlement Day in accordance with the instructions of the Designated Clearing House. The first IOB Bank Day following the Expiration Date.

Expiration Settlement Day Exercise

FTSE Russia IOB Index Options are subject to exercise in accordance with Rule 4.2.17. FTSE Russia IOB Index Options which are In the Money at expiration are subject to Standard Exercise in accordance with Rule 4.2.18.

Standard Exercise

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Trading Hours

As specified in Rule 4.2.1.1.

4.2.4
4.2.4.1

Listing of New Series

The First Listing Day for new FTSE Russia IOB Index Contracts shall normally be the fourth IOB Trading Day prior to the Expiration Date in each calendar month. On the First Listing Day for an Options Series Turquoise shall list at least five Call Options Series and five Put Options Series, or in accordance with the Scale of Strike Prices as published on the Turquoise website.

4.2.4.2

Turquoise reserves the right to adjust either of the First Listing Day or the Expiration Date in respect of any given Series where such adjustment is deemed necessary in the interests of the market. Members shall be informed in advance of any such intended adjustment. For one Call and one Put Options Series, the Strike Price shall be set at the point in Turquoise's Scale of Strike Prices for FTSE Russia IOB Index Contracts which is closest to the value of the FTSE Russia IOB Index at the close of trading on the IOB on the immediately preceding IOB Trading Day. For other Series, the Strike Price shall be set so that it is higher for at least two Calls and two Put Options Series and lower for at least two Call and two Put Options Series than the first Strike Price. The Strike Price for the second Series shall be set at the point in such scale immediately above the first Strike Price. The Strike Price for the third Series shall be set at the point in such scale immediately below the first Strike Price.

4.2.4.3

4.2.4.4

If the final value of the FTSE Russia IOB Index at the end of a IOB Trading Day is higher than the second highest or lower than the next lowest Strike Price for the Contracts based on the Index in question at least one new Call and one new Put Options Series will be listed above the previously highest or below the previously lowest Strike Price, respectively, for Series having the same Expiration Month. Such listing shall be effected on the next IOB Trading Day. FTSE Russia IOB Index Contracts are listed for trading with a Lifetime of three months, six months or twelve months. FTSE Russia IOB Index Contracts with a Lifetime of twelve months will be listed in December in each calendar year. FTSE Russia IOB Index Contracts with a Lifetime of six months will be listed in December, March, June and September in each calendar year. Index Contracts with a Lifetime of three months will be listed in all other months.

4.2.4.5

4.2.5
4.2.5.1 4.2.5.2

Designation of Expiration Months

The Expiration Month for a Listed Series shall be designated in accordance with the following provisions of this Rule. The Expiration Month for FTSE Russia IOB Index Futures Contracts shall be designated as follows: January February March April May June July August September October November December A B C D E F G H I J K L

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4.2.5.3

The Expiration Month for a FTSE Russia IOB Index Options Contract shall be designated as follows: Expiration Month January February March April May June July August September October November December Call Option A B C D E F G H I J K L Put Option M N O P Q R S T U V W X

4.2.6
4.2.6.1

Payment of Fees
Fees in respect of FTSE Russia IOB Index Contracts are payable by Members in the amount and at the time specified in Appendix A applicable to the Contract in question. Such fees shall be paid to the Designated Clearing House at the time specified in the relevant statement issued to the Member by the Designated Clearing House.

4.2.7
4.2.7.1 4.2.7.2 4.2.7.3

Market Making Obligations, Market Making Fees, Market Making Sanctions

The provisions of Rule 4.1.8 shall apply to the provision of quotes by Market Makers in relation to FTSE Russia IOB Index Futures and Options. The provisions of Rule 4.1.9 shall apply to the provision of Market Maker Fees in relation to FTSE Russia IOB Index Futures and Options. The provisions of Rule 4.1.10 shall apply to the provision of Market Making Sanctions in relation to FTSE Russia IOB Index Futures and Options.

4.2.8
4.2.8.1 4.2.8.2

Orders
Orders relating to Futures and Options Contracts based on the FTSE Russia IOB Index may be placed in the Single Order Market. A Single Order consists of an offer to buy or sell the number of FTSE Russia IOB Index Contracts specified in the Order. This number may be any whole number in excess of one. A Member placing a Single Order may stipulate that the Order may only be executed in its entirety. In the absence of such stipulation, the offer may be accepted in any amount up to the specified number. Where an Order is executed partially the unfilled portion of the Order will remain in the Orderbook. Price quotations for FTSE Russia IOB Index Futures Contracts normally relate to one-fiftieth of a Contract and are quoted in Index Points. The minimum price movement is described at Rule 4.2.3.1. Price quotations for FTSE Russia IOB Index Options Contracts normally relate to one-fiftieth of a Contract and are quoted in Index Points. The minimum price movement is described at Rule 4.2.3.2.

4.2.8.3

4.2.8.4

4.2.9
4.2.9.1

Registration of off-exchange transactions

Where a Member enters into an off-exchange transaction in a FTSE Russia IOB Index Contract with another Member or with a member of Oslo Brs, the Member shall submit a

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Request for Registration relating to such transaction to Turquoise at the earliest opportunity if it wishes the transaction to be registered. Such Request for Registration shall: (i) (ii) specify the Product which forms the subject of the off-exchange transaction; identify the counterparty to such transaction, the Series, the agreed price, the number of contracts involved in the transaction and the Account for registration.

4.2.9.2

A Request for Registration shall only be considered for acceptance by Turquoise and the Designated Clearing House if the counterparties to the off-exchange transaction submit identical requests specifying the Contracts to be registered, the Accounts in which the Contract is to be registered and the terms of the transaction in question to Turquoise or to Turquoise and to Oslo Brs as appropriate. A Request for Registration of an off-exchange transaction may be submitted to Turquoise by a Member either by way of its electronic connection to Turquoises clearing system or by telephone to Turquoise Market Operations as set out in Rule 3.2.5. A Request for Registration of a FTSE Russia IOB Index Contract shall be considered for acceptance by Turquoise and the Designated Clearing House in accordance with Rule 3.2 and the following provisions of this Rule.

4.2.9.3

4.2.9.4

A Request for Registration of a FTSE Russia IOB Index Contract in respect of an off-exchange transaction which has been concluded at a time when Turquoise is not open for trading such Contracts, will not normally be accepted by Turquoise and the Designated Clearing House unless the agreed price does not deviate by more than 10% from the closing price or such price as Turquoise determines. Where a Request for Registration of a FTSE Russia IOB Index Contract is submitted in respect of a Series for which bid and ask prices are not quoted at the time, Turquoise shall obtain bid ask quotes for such Series in conjunction with Oslo Brs as it considers appropriate. Where in the opinion of Turquoise an acceptable quote is obtained, the Request for Registration shall be considered for acceptance by Turquoise and the Designated Clearing House if it is within the spread of the quoted prices. If Turquoise considers that an acceptable price has not been provided for such purposes, the acceptance of the Request for Registration shall be determined at their discretion.

4.2.9.5

The acceptance of a Request for Registration submitted under these Rules is at the discretion of Turquoise and the Designated Clearing House. Without limiting the generality of the foregoing, a Request for Registration shall not be accepted if such acceptance would not be conducive to the maintenance of a proper market in the Product in question or would not be consistent with the Designated Clearing Houses obligation to maintain a sound basis to its clearing services. Where a Request for Registration of a FTSE Russia IOB Index Contract which is submitted by a Member during trading hours for such Contracts is accepted by Turquoise and the Designated Clearing House, Turquoise shall arrange with the Designated Clearing House for the resulting Registered Contract to be registered by the Designated Clearing House forthwith. Where a Request for Registration relating to a FTSE Russia IOB Index Contract is submitted by a Member after the close of trading in such Contracts on an IOB Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day if it is received and accepted by Turquoise and the Designated Clearing House before 5.30 pm London time. Where a Request for Registration is received by the Designated Clearing House after such time, it shall, if accepted, be registered on the next IOB Trading Day.

4.2.9.6

4.2.9.7

Turquoise shall inform the Member or Members as soon as possible if a Request for Registration submitted under this Rule is not accepted for registration.

4.2.10
4.2.10.1

Requests for Re-Registration

A Request for Re-Registration of a FTSE Russia IOB Index Contract made pursuant to Rule 3.4.2(vi) will not be considered by Turquoise and the Designated Clearing House unless it is received by other means or electronic connection no later than 30 minutes prior to the close of the clearing system, normally 5.30 pm London time, for FTSE Russia IOB Index Contracts on the IOB Trading Day following the day on which the position in question is registered by the Designated Clearing House.

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4.2.10.2

A Request for Re-Registration of a FTSE Russia IOB Index Contract made pursuant to Rule 3.4.2(i) to (v) inclusive will not be considered by Turquoise and the Designated Clearing House unless it is received by electronic connection or other means no later than 5.30 pm London time on the Expiration Date for the Contract in question. A Request for Re-Registration of a FTSE Russia IOB Index Contract shall specify the following details: (i) (ii) (iii) the Contracts to be re-registered; the Account of the transferor; the Account of the transferee.

4.2.10.3

4.2.10.4 4.2.10.5

The acceptance of a Request for Re-Registration submitted under this Rule is at the discretion of Turquoise and the Designated Clearing House. Where a Request for Re-Registration is received and accepted by Turquoise and the Designated Clearing House before 5.30 pm London time on an IOB Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day. Where a Request for Re-Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next IOB Trading Day. Turquoise shall inform the Member or Members in question as soon as possible if a Request for Re-Registration submitted under this Rule is not accepted for Re-Registration.

4.2.10.6

4.2.11
4.2.11.1

Cancellation of Incorrect Transactions

The provisions of Rule 2.16 concerning the cancellation of incorrect transactions shall be applied in relation to FTSE Russia IOB Index Contracts in accordance with the following provisions of this Rule. Turquoise will not direct that a FTSE Russia IOB Index transaction shall be cancelled in the absence of the agreement of the Counterparty to the transaction unless the period between the times at which the transaction is effected and the time at which the request is submitted is less than ten minutes. The Fair Market Spread or Price Adjustment Range for FTSE Russia IOB Index Options and Futures Contracts is defined as 10% deviation outside the relevant Prescribed Spread for Designated Market Makers as described in Rule 4.1.8. Turquoise will notify the Member or Members involved in the transaction of its decision in the case of a request relating to a FTSE Russia IOB Index Contract no later than 15 minutes before trading starts in the relevant contract on the IOB Trading Day following the day on which the transaction in question was effected.

4.2.11.2

4.2.11.3

4.2.11.4

4.2.12
4.2.12.1

Expiration Settlement Price

The Expiration Settlement Price for the FTSE Russia IOB Index is the closing value for the FTSE Russia IOB Index as established during the IOBs closing auction for IOB DRs normally at 3.40 pm London time. Turquoise shall determine the Expiration Settlement Price of the FTSE Russia IOB Index that is to be used as the basis for cash settlement on Expiration of the Futures Contracts in question. Such determination shall be made no later than 9.00 am London time on the IOB Bank Day immediately following the Expiration Date for the Contract in question, and may not be appealed. Turquoise shall notify all Members of the determined Expiration Settlement Price in question.

4.2.13
4.2.13.1

Expiration and Settlement FTSE Russia IOB Index Futures Contracts

A standardised FTSE Russia IOB Index Futures Contract is an agreement to buy or sell the value of the Contract Index on the Expiration Date to be settled in accordance with the rules regarding cash settlement below. The agreed Futures Contract Price, being the amount the buyer agrees to pay for the Contract Index value, is determined when the Index Futures transaction is effected at Turquoise.

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4.2.13.2 Daily Cash Settlement of a FTSE Russia IOB Index Futures Contract shall be effected in accordance with the Daily Cash Settlement procedures set out in Rule 4.2.14 on each IOB Bank Day prior to the Expiration Date. Expiration Settlement of a FTSE Russia IOB Index Futures Contract shall be effected on the Expiration Settlement Day for such Contract in accordance with the procedures specified in Rule 4.2.16. 4.2.13.3 All obligations to make cash payments under the procedures governing Daily Cash Settlement or Expiration Settlement of FTSE Russia IOB Index Futures Contracts shall be effected by way of the PPS arrangements established by the Designated Clearing House for such purposes. Such payments shall be effected in accordance with the instructions issued by the Designated Clearing House. All payments required to be made under the settlement procedures set out in Rule 4.2.13 to Rule 4.2.18 shall be made in accordance with instructions issued by the Designated Clearing House. Such payments shall be made in USD. Turquoise will issue Daily Settlement and Expiration Settlement Statements showing the amount due to or payable by the Member and the time at which such payments are due. In the absence of manifest error, Turquoise's Settlement Statements shall be final and binding. In the absence of an express statement to the contrary, the procedures set out in Rules 4.2.13 to 4.2.18 apply equally to the settlement of standardised and Non-Standardised FTSE Russia IOB Index Futures. Where the performance of any cash settlement obligation relating to a standardised FTSE Russia IOB Index Futures Contract falls due on the same day as a settlement obligation relating to a corresponding non standardised Contract such obligations shall be combined so as to produce a single net settlement entitlement for the Member.

4.2.13.4

4.2.13.5

4.2.13.6

4.2.14
4.2.14.1

Daily Cash Settlement : FTSE Russia IOB Index Futures Contracts

FTSE Russia IOB Index Futures Contracts are subject to Daily Cash Settlement. The first such Daily Cash Settlement shall be due for settlement on the first IOB Bank Day following the Registration of the Contract. Thereafter, Daily Cash Settlement shall be effected on each IOB Bank Day until the Expiration Date for the Contract in accordance with the provisions of this Rule.

4.2.14.2

During the term of a FTSE Russia IOB Index Futures Contract, the Daily Settlement Price shall normally be determined as the price for the FTSE Russia IOB Index Futures Contract at the close of trading for FTSE Russia IOB Index Contracts on the relevant IOB Trading Day, such price being determined by reference to the bid and ask prices for FTSE Russia IOB Index Futures Contracts at the relevant time. If such bid and ask prices are not available at such time, Turquoise may determine the Daily Settlement Price by using another method. Turquoise shall publish the Daily Settlement Price on each IOB Trading Day.

4.2.14.3

The First Daily Settlement Amount for a FTSE Russia IOB Index Futures Contract shall be determined by reference to the difference between the Registered Price for the Contract in question and the Daily Settlement Price for the Contract on the day on which the Contract is registered by the Designated Clearing House. Where the Registered Price for such Contract is higher than the Daily Settlement Price on the day in question, the First Daily Settlement Amount shall be payable to the Seller. Where the Registered Price for such Contract is lower than the Daily Settlement Price on the day in question, the First Daily Settlement Amount shall be payable to the Buyer.

4.2.14.4

The Daily Settlement Amount for a FTSE Russia IOB Index Futures Contract (other than the First Daily Settlement Amount) shall be determined by reference to the difference between the Daily Settlement Price for the FTSE Russia IOB Index Futures Contract on the IOB Trading Day in question and the Daily Settlement Price for the immediately preceding IOB Trading Day for such Contract. Where the Daily Settlement Price for a FTSE Russia IOB Index Futures Contract on an IOB Trading Day is higher than, the Daily Settlement Price for the immediately preceding IOB

4.2.14.5

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Trading Day for such Contract the Daily Settlement Amount for such Settlement shall be payable to the Buyer. Where the Daily Settlement Price for a FTSE Russia IOB Index Futures Contract on an IOB Trading Day is lower than the Daily Settlement Price for the immediately preceding IOB Trading Day for such Contract, the Daily Settlement Amount for such Settlement shall be payable to the Seller. 4.2.14.6 Turquoise shall issue Daily Settlement Statements to Members having registered positions in FTSE Russia IOB Index Futures Contracts normally no later than 10:00 pm London time on each IOB Trading Day. The Daily Settlement Statement shall show the Daily Settlement Amount for such settlement which is payable in US Dollars. The Daily Settlement Amount shall be payable on the first IOB Bank Day following the IOB Trading Day in question in accordance with the instructions of the Designated Clearing House.

4.2.15
4.2.15.1

Closing Transactions: FTSE Russia IOB Index Futures Contracts

Where bought and sold positions in FTSE Russia IOB Index Futures Contracts are registered in an Account at the Designated Clearing House, the positions will be closed out in accordance with the provisions of this Rule 4.2.15. Where both the Opening Transaction and the Closing Transaction are registered on the same day, cash settlement between the Designated Clearing House and the Member shall be effected by reference to the difference between the Futures Contract Prices for the two transactions. Where the Futures Contract Price for the Contract bought by the Member is higher than the Futures Contract Price for the Members sold Contract, the Closing Settlement Amount shall be payable by the Member. Where the Futures Contract Price for the Contract bought by the Member is lower than the Futures Contract Price for the Members sold Contract, the Closing Settlement Amount shall be payable to the Member.

4.2.15.2

4.2.15.3

Where the Opening Transaction and the Closing Transaction are registered on different IOB Trading Days, the Closing Settlement between the Designated Clearing House and the Member shall be effected by reference to the difference between the Daily Settlement Price for the immediately preceding IOB Trading Day and the Futures Contract Price for the Closing Transaction. Where the relevant price for the Members bought position is higher than the corresponding price for the Members sold position, the Closing Settlement Amount shall be payable by the Member. Where the relevant price for the Members bought position is lower than the corresponding price for the Members sold position, the Closing Settlement Amount shall be payable to the Member.

4.2.15.4

The Closing Settlement Amount shall be payable to or by the Designated Clearing House on the first IOB Bank Day following the day on which the Closing Transaction is registered at the Designated Clearing House.

4.2.16
4.2.16.1 4.2.16.2

FTSE Russia IOB Index Futures Contracts: Expiration Settlement

FTSE Russia IOB Index Futures Contracts are subject to cash settlement on Expiration in accordance with the provisions of this Rule. The Expiration Settlement Amount for a FTSE Russia IOB Index Futures Contract shall be determined by reference to the difference between the Daily Settlement Price for such Contract on the day before its Expiration Date and the Expiration Settlement Price calculated in accordance with Rule 4.2.12. The payment of the Expiration Settlement Amount shall be due on the Expiration Settlement Day for the FTSE Russia IOB Index Futures Contract in question. Where the Expiration Settlement Price for a FTSE Russia IOB Index Futures Contract is higher than the Daily Settlement Price for such Contract on the day before its Expiration Date, the Expiration Settlement Amount shall be payable to the Buyer and by the Seller.

4.2.16.3 4.2.16.4

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Where the Expiration Settlement Price for a FTSE Russia IOB Index Futures Contract is lower than the Daily Settlement Price for such Contract on the day before its Expiration Date, the Expiration Settlement Amount shall be payable by the Buyer and to the Seller. The Expiration Settlement Price for the Expiration Date for FTSE Russia IOB Index Futures Contracts shall be calculated by Turquoise in accordance with the principles set out in this Rule. Turquoise publishes the Expiration Settlement Price for the Expiration Date of the FTSE Russia IOB Index that is to be used as the basis for cash settlement of FTSE Russia IOB Index Futures Contracts which expire on the Expiration Date in question on the IOB Trading Day immediately following the Expiration Date. Turquoise shall notify all Members of the determined Expiration Settlement Price of the FTSE Russia IOB Index. The published Expiration Settlement Price for the Expiration Date is final and binding. Turquoise may defer its Expiration Settlement procedures for FTSE Russia IOB Index Futures Contracts if abnormal circumstances occur which prevent settlement being effected at the normal time. Turquoise shall inform Members at the earliest opportunity of any such occurrence. 4.2.16.5 The Expiration Settlement Amount shall be payable to or by the Designated Clearing House on the first IOB Bank Day following the Expiration Date in accordance with the instructions of the Designated Clearing House.

4.2.17
4.2.17.1 4.2.17.2

Options: Exercise
Standardised and Non-Standardised FTSE Russia IOB Index Options are European Style and are accordingly only subject to Exercise on Expiration. FTSE Russia IOB Index Options are also subject to Standard Exercise in accordance with Rule 4.2.18. Accordingly, a FTSE Russia IOB Index Option held by a Member, the Exercise of which would result in the Exercise Settlement Amount for such Contract being payable to that Member will be subject to Standard Exercise provided that such Expiration Settlement Amount is greater than the fees payable by the Member on Exercise of the Contract in question. Where the Holder of an Option wishes to exercise an Option which is not subject to Standard Exercise, it shall submit an Exercise Order to Turquoise providing full details of the Option in question. An Exercise Order relative to a FTSE Russia IOB Index Option which is received by Turquoise after 6.00 pm London time or, in the case of an Exercise Order submitted by other means, 5.30 pm London time on the Expiration Date for such Contract is void. On receiving a valid Exercise Order, Turquoise shall inform the Member which submitted it that it has been accepted and shall select at random a correlative FTSE Russia IOB Index Options position to be exercised against. Turquoise shall also inform the Designated Clearing House of such Exercise so that the necessary action may be taken in relation to the Registered Contracts in question. On Exercise of a FTSE Russia IOB Index Options Contract in accordance with this Rule, Turquoise shall issue an Exercise Settlement Statement confirming the cash payment which such Member is entitled to receive or is obliged to make as the case may be. On Exercise of a FTSE Russia IOB Index Option, the Exercise Settlement Amount for such Contract shall be payable to the Holder of a Call Option or the Holder of a Put Option and shall be payable by the Member whose position has been exercised against pursuant to Rule 4.2.17.5. The Exercise Settlement Amount shall be determined by multiplying the amount by which the Strike Price for the FTSE Russia IOB Index Option Contract in question exceeds the Exercise Settlement Price on the Expiration Date for such Contract by the Index Multiplier. The Exercise Settlement Amount for a FTSE Russia IOB Index Option Contract shall be due for settlement on the first IOB Bank Day following the Contract's Expiration Date.

4.2.17.3

4.2.17.4

4.2.17.5

4.2.17.6

4.2.17.7

4.2.17.8

4.2.17.9

4.2.18
4.2.18.1

Options: Standard Exercise

FTSE Russia IOB Index Options Contracts will be subject to Standard Exercise in accordance with the following procedures.

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4.2.18.2

Turquoise effects Standard Exercise of FTSE Russia IOB Index Options Contracts where such Exercise would result in the payment of an Exercise Settlement Amount to the Holder of the Option which is larger than the fees payable by it to Turquoise on such exercise. At about 5.00 pm London time on the Expiration Date for a FTSE Russia IOB Index Option, Turquoise will send to Members holding positions in such Options a list of the relevant Series expiring that day which will be subject to Standard Exercise in accordance with the above procedures. All Call Options and all Put Options shown on such list will be exercised by Turquoise automatically. Turquoise shall inform the Designated Clearing House of all positions that will be subject to Standard Exercise so that the Designated Clearing House may take the necessary action in relation to the Registered Contracts in question.

4.2.18.3

4.2.18.4

The Exercise Settlement Amount for a FTSE Russia IOB Index Contract which is subject to Standard Exercise in accordance with this Rule shall be determined in the manner provided for in Rule 4.2.17.9.

PART 4.3 PART 4.5

DELETED DELETED

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PART 4.5 4.5.1

4.5.1.1

FUTURES AND OPTIONS CONTRACTS BASED ON NORWEGIAN STOCK Norwegian Stock - Introductory
Turquoise provides a combined market in Norwegian Stock Contracts in conjunction with Oslo Brs. These arrangements are governed by a Co-operation Agreement entered into by Turquoise with Oslo Brs and are designed to ensure that members of each trading venue may participate equally in the markets of these Contracts. Turquoise has adopted rules which are consistent with the rules of Oslo Brs governing Norwegian Stock Contracts. Trading in the combined market in Norwegian Stock Contracts will be conducted on an anonymous basis so that Members will not be aware of the identity of their trading counterparty or the trading venue of which it is a member. The Designated Clearing House will be responsible for the clearing and settlement of Norwegian Stock Contracts entered into by Members of Turquoise. The Contract Specifications for Norwegian Stock Contracts listed by Turquoise and all rules and procedures relating specifically to the trading, clearing or settlement of such Contracts are set out in this Part 4.5. The rules and procedures set out in this Part 4.5 apply to the following Norwegian Stock Contracts: Norwegian Stock Futures Norwegian Stock Options and references to Norwegian Stock Contracts in this Part 4.5 shall be construed as references to each of the above Contracts unless the context requires to the contrary.

4.5.1.2

4.5.1.3

4.5.1.4

The settlement of Norwegian Stock Contracts on exercise or expiration is performed by the delivery of the Underlying Stock against the payment of the Exercise Settlement Amount in the case of an Options Contract and the Expiration Settlement Amount in the case of a Futures Contract. Members should note that Norwegian Stock Futures Contracts are subject to Daily Cash Settlement.

4.5.1.5

The Member shall open and maintain a securities account and a related cash account ("the Norwegian Securities Account") at a Norwegian Stock Custodian for purposes of delivery settlement in accordance with the Regulations of the Designated Clearing House. Members should ensure that they comply with any instructions given by the Designated Clearing House and complete any documents specified by the Designated Clearing House relating to the settlement of Norwegian Stock Contracts. The rights and obligations concerning delivery of the Underlying Stock following the expiration of a Futures Contract or the Exercise of an Options Contract under this Part 4.5 shall be performed by instructions for the transfer of rights to the relevant Underlying Stock by means of the VPS's VP system in accordance with instructions issued by Turquoise relative thereto. The Member shall make arrangements with a nominee holding an account at the VPS to act on its behalf in relation to such deliveries where necessary.

4.5.1.6 4.5.1.7

The application and interpretation of this Part 4.5 shall be subject to Norwegian law. Save where there is an express indication to the contrary, all references to time in this Part 4.5 shall be construed as references to Oslo time.

4.5.2

Interpretation
In this Part 4.5 the following terms shall have the meanings ascribed thereto: "Deliverable Stock" in relation to the settlement of a Norwegian Stock Futures or Norwegian Stock Options Contract means the Underlying Stock for the Contract in question; "Delivery" in relation to the settlement of a Norwegian Stock Futures or Norwegian Stock Options Contract means the process of delivering the Underlying Stock against payment of the Settlement Sum;

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"Delivery Fee" means the fee payable to Turquoise in relation to the delivery of the Underlying Stock following Expiration of a Norwegian Stock Futures Contract or Exercise of a Norwegian Stock Options Contract; "Exercise Order" means an instruction given by the Holder of an Option to Turquoise pursuant to Rule 4.5.15 requesting the Exercise of the Option in question; "Exercise Settlement Amount" means the amount payable following Exercise of a Norwegian Stock Option by the party entitled to receive delivery of the Underlying Stock under the Contract in question; "Exercise Value" in relation to a Norwegian Stock Option, means the Strike Price for such Contract multiplied by the number of shares of the Underlying Stock represented by such Contract; "Expiration Date" in relation to a Norwegian Stock Series means the third Thursday of the Expiration Month or, if that day is not a Norwegian Trading Day, the immediately preceding Norwegian Trading Day; "Expiration Month" in relation to a Norwegian Stock Series means the month designated by Turquoise as the month in which such series will expire; "Expiration Settlement Amount" means the monetary amount due to or payable by a Member on Expiration of a Norwegian Stock Futures Contract as specified in the Expiration Settlement Statement; "Expiration Settlement Day" in relation to a Norwegian Stock Futures Contract, means the fourth Norwegian Bank Day after the Expiration Date for the Contract in question; "Expiration Year" in relation to a Norwegian Stock Series means the year designated by Turquoise as the year in which such Series shall expire; "First Listing Day" in relation to a Norwegian Stock Futures Contract or a Norwegian Stock Options Contract, means the day on which such series is first listed by Turquoise; "Norwegian Bank Day" means a day other than a Saturday or a Sunday or other public holiday on which banks in Norway are generally open for business; "Norwegian Stock Contracts" means Futures and Options Contracts listed by Turquoise which are based on any of the Underlying Stocks included in the Norwegian Stock List for the time being, the terms of which are in accordance with the Product Specifications for such Contracts, and "Norwegian Stock Futures" and "Norwegian Stock Option" shall be construed accordingly; "Norwegian Stock Custodian" means a bank or other institution which is a member of the VPS and which is used by a Member for delivery or receipt of securities deliverable under the terms of a Registered Contract; "Norwegian Stock List" means the list published by Turquoise on its web site at www.tradeturquoise.com as amended from time to time showing the stocks on which Norwegian Stock Contracts are based and other relevant information concerning such Contracts; "Norwegian Stock Market Maker" means a member which has agreed to act as a market maker in respect of Norwegian Stock Contracts; "Norwegian Trading Day" means a day other than a Saturday or Sunday on which Oslo Brs is generally open for trading; "Premium Settlement Day" in relation to a Norwegian Stock Option, means the first Norwegian Bank Day following Registration; Record Date means the date established by an issuer of a security by which a shareholder must officially own shares in order to be entitled to a dividend or other such distribution; "Registered Price" in relation to a Norwegian Stock Futures Contract means the price at which the Contract in question is traded;

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Settlement Delivery Instruction in relation to Norwegian Stock deliveries means the instruction given by the Member to fulfil their delivery obligations; "Settlement Statement" means: (i) in relation to a Norwegian Stock Futures Contract, the note issued by Turquoise showing the rights and obligations of the Counterparties to such Contract with regard to the delivery of the Underlying Stock and the associated cash payments following its Expiration; and in relation to a Norwegian Stock Options Contract, the note issued by Turquoise showing the rights and obligations of the Counterparties to such Contract with regard to the delivery of the Underlying Stock and the associated cash payments following its Exercise;

(ii)

Transaction Date for Settlement Delivery instruction in relation to Norwegian Stock deliveries is defined as Exercise +1 or Expiration Date +1; "Underlying Stock" in relation to a Norwegian Stock Futures or Options Contract, means the stock on which such Contract is based; "VP System" means the system used by the VPS for the transfer of title to Norwegian shares as amended from time to time; "VPS" means Verdipapirsentralen, the Norwegian Registry of Securities.

4.5.3 4.5.3.1
Type of Contract

Contract Specifications Contract Specifications: Standardised Norwegian Stock Futures

Standardised Futures Contracts with Daily Cash Settlement and Delivery of the Underlying Stock. The share listed on Oslo Brs on which the Future is based as shown in Turquoise's Norwegian Stock List. Price in NOK per Underlying Share. The relevant Underlying Stock. For Futures with a Contract Price at or below NOK 9.99: 0.01. For Futures with a Contract Price from NOK 10 to NOK 49.95: 0.05 For Futures with a Contract Price from NOK 50 to NOK 149.90: 0.10 For Futures with a Contract Price from NOK 150 to NOK 999.75: 0.25 For Futures with a Contract Price of NOK 1,000 or above: 0.50 One hundred shares of the Underlying Stock. Recalculation of the number of shares represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for Norwegian Stock Contracts set out at Rule 4.5.17. Three, six, nine and twelve months in accordance with Rule 4.5.4. The Expiration Date. Futures Series will be listed for trading by Turquoise in March, June, September and December respectively. Each Series shall be designated by a maximum of eleven symbols, where a maximum of five symbols designates the Underlying Stock, one symbol designates the Expiration Year and one symbol designates the Expiration Month. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Futures Contracts in question. Norwegian Stock Futures Contracts are subject to Daily Cash Settlement on each Norwegian Bank Day based upon the Daily Settlement Price of the Contract calculated on the preceding Norwegian Trading Day in accordance with Rule 4.5.12A.

Underlying Stock

Futures Price Deliverable Instruments Minimum Price Movement

Contract Size

Lifetime Last day of trading Listing of New Series

Series Designation

Daily Settlement

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Expiration Date

The third Thursday of the Expiration Month of the Expiration Year, or where such day is not a Norwegian Trading Day, the immediately preceding Norwegian Trading Day. The month indicated in the Series designation. The year indicated in the Series designation. The fourth Norwegian Bank Day after the Expiration Date.

Expiration Month Expiration Year Expiration Settlement Day Expiration Settlement

A Standardised Norwegian Stock Futures Contract is settled by payment of the Cash Settlement Amount and delivery of the Underlying Stock at the Fixing Price in accordance with Rule 4.5.14. Normally between 9.00 am and 5.20 pm Oslo time. Norwegian Stock Futures Contracts are subject to adjustment in the circumstances prescribed in Rule 4.5.17. As determined by Oslo Brs. Setting-Off of Contracts may take place at any time during the lifetime of the Contract.

Trading Hours Contract Adjustment

Fixing Price Setting-Off of Contracts

4.5.3.2
Type of Contract Style of Options Types Underlying Stock

Contract Specifications: Standardised Norwegian Stock Options

Standardised Options Contracts with Delivery. American. Calls and Puts. The Underlying Stock listed on Oslo Brs on which the Option is based as shown in Turquoise's Norwegian Stock List. The relevant Underlying Stock.

Deliverable Instruments

Minimum Price Movement For Options with a Premium below NOK 0.1: 0.01 For Options with a Premium from NOK 0.1 to 3.95: 0.05 For Options with a Premium from NOK 4 to 7.90: 0.10 For Options with a Premium of NOK 8 or above: 0.25 Contract Size One hundred shares of the Underlying Stock. Recalculation of the number of shares represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for Norwegian Stock Contracts set out at Rule 4.5.17. The amount payable per share expressed in Norwegian Kroner agreed to by the parties as the premium payable for the Contract. The first Norwegian Bank Day following the trade in question. The Strike Price in NOK per underlying share contained in the Series Designation. Recalculation of the Strike Price may occur in certain cases in accordance with the Recalculation Rules for Norwegian Stock Contracts set out at Rule 4.5.17. As shown in the Scale of Strike Prices. Three, six and twelve months in accordance with Rule 4.5.4. The Expiration Date. Options Series will be listed for trading by Turquoise in March, June, September and December in accordance with Rule 4.5.4.

Premium

Premium Settlement Day Strike Price

Strike Price Interval Lifetime Last day of trading Listing of New Series

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Series Designation

Each Series shall be designated by a maximum of eleven symbols, where a maximum of five symbols designates the Underlying Stock, one symbol designates the Expiration Year, one symbol designates the Expiration Month and one symbol designates the Option Type. The Strike Price shall also be designated in the Series Designation. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to Contracts in the Stock Series in question. The third Thursday of the Expiration Month of the Expiration Year, or where such day is not a Norwegian Trading Day, the preceding Norwegian Trading Day.

Expiration Date

Expiration Settlement Day The fourth Norwegian Bank Day after the Expiration Date. Expiration Month Expiration Year Exercise The month indicated in the Series Designation. The year indicated in the Series Designation. A Standardised Norwegian Stock Options Contract may be exercised at any time during its Lifetime subject to Turquoise's rules relating thereto and subject to the restrictions specified in Rule 4.5.15 The holder of a Call Option will only be recorded as a shareholder of an underlying stock on the given Record Date for a specified corporate action in that underlying stock if the option is exercised at least two Norwegian Trading Days prior to the Ex Day for the underlying stock in question. Turquoise shall not accept any responsibility for failure of a Member to exercise an option within the required time. Adjustments made to derivative contracts due to corporate actions will be calculated in accordance with Addendum to Rule 4.5.17. A Standardised Norwegian Stock Options Contract is settled by delivery of the Underlying Stock in accordance with Rule 4.5.13. Payment of the Premium and of the Exercise Settlement Amount against delivery of the Underlying Stock shall occur in accordance with the instructions of the Designated Clearing House pursuant to Rules 4.5.13 and 4.5.15. The fourth Norwegian Trading Day following the day on which the Contract is traded. Norwegian Stock Options Contracts shall be subject to Standard Exercise in accordance with Rule 4.5.16. Normally between 9.00 am and 5.20 pm Oslo time. Norwegian Stock Options Contracts are subject to adjustment in the circumstances prescribed in Rule 4.5.17

Corporate Actions

Delivery

Exercise Settlement

Exercise Settlement Day Standard Exercise

Trading Hours Contract Adjustment

4.5.4
4.5.4.1

Listing of New Futures and Options Contracts

Turquoise will list Norwegian Stock Futures and Options Contracts in conjunction with Oslo Brs in accordance with the following procedures. The Norwegian Stocks on which Norwegian Stock Contracts are listed for trading at Turquoise are shown at the Norwegian Stock List on the Turquoise website at www.tradeturquoise.com. The stocks shown in the Norwegian Stock List are classified in one of two Groups as shown in the Norwegian Stock List. Turquoise shall normally list Norwegian Stock Futures and Options Contracts three Norwegian Trading Days prior to the Expiration Date in each Expiration month according to the following two Groups: Contracts in Group 1 (DnB NOR ASA, Norsk Hydro ASA, Orkla ASA, Renewable Energy Corp ASA, Statoil ASA, Telenor ASA, Yara International ASA) have a Lifetime of three months and will be listed in every month and fall due for expiration in January, February, April, May, July, August, October and November. Twelve month contracts are listed in March, June, September and December. Contracts in Group 2 (Marine Harvest ASA, Norske Skogindustrier ASA, Petroleum GeoServices ASA, Royal Caribbean Cruises Ltd, Subsea 7 S.A., Gjensidige Forsikring ASA, Aker Solutions ASA, Seadrill Ltd, Statoil Fuel & Retails ASA, Storebrand ASA, Tomra Systems ASA, TGS-Nopec Geophysical Company ASA) have a lifetime of six months and fall due for expiration in March, June, September and December.

4.5.4.2

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4.5.4.3 4.5.4.4 On the First Listing Day for a Norwegian Stock Options Series Turquoise shall list at least five Series for each applicable Options Type. For one Call and one Put Options Series, the Strike Price shall be set at the point in Turquoise's Scale of Strike Prices for the Contract in question which is closest to the last transaction price of the Underlying Stock at the close of trading at Oslo Brs on the immediately preceding Norwegian Trading Day. Where there is no transaction price, the last bid price shall be used instead. Where neither a last transaction price nor a bid price is recorded for the immediately preceding Norwegian Trading Day, the latest available transaction price from the preceding day shall be used. For other Series, the Strike Prices shall be set so that they are higher for at least one Call and one Put Options Series and lower for at least one Call and one Put Options Series than the first Strike Price. The Strike Price for the second and third Series shall be set at the points in such Scale of Strike Prices for Stock Contracts immediately above the first Strike Price. The Strike Price for the other Series shall be set at the points in such scale immediately below the first Strike Price. If during the Lifetime of a Norwegian Stock Options Contract the closing transaction price for the Underlying Stock on Oslo Brs is above the second highest or below the second lowest Strike Price for Listed Series for such Contracts, at least one new Series for each applicable Options Type will be listed by Turquoise on the next Norwegian Trading Day. On listing new Series under this Rule, the Strike Prices for the newly listed Series will be set at the appropriate point or points in Turquoise's Scale of Strike Prices for such Contracts. Turquoise may depart from the procedures set out in this Rule 4.5.4 if it is satisfied that such action is justified in the particular circumstances.

4.5.4.5

4.5.4.6

4.5.4.7 4.5.4.8

4.5.5
4.5.5.1

Designation of Expiration Month

The Expiration Month for a Norwegian Stock Options Contract shall be designated as follows: Expiration Month January February March April May June July August September October November December Call Option A B C D E F G H I J K L Put Option M N O P Q R S T U V W X

4.5.5.2

The Expiration Month for a Norwegian Stock Futures Contract shall be designated as follows: January February March April May June July August September M N O P Q R S T U

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October November December 4.5.5.3 V W X

The Expiration Year for Norwegian Stock Futures and Options Contracts shall be designated by a number appearing before the designation of the Expiration Month for the Contract. The number shall be the final digit of the year in question.

4.5.6
4.5.6.1

Payment of Fees and Premium

Fees in respect of Norwegian Stock Contracts are payable by Members in the amount and at the time specified in Appendix A for the Contract in question. Such fees shall be paid to the Designated Clearing House at the time specified in the relevant Settlement Statement. The penalty fee for failure to perform delivery or settlement obligations in relation to a Norwegian Stock Contract at the prescribed time shall be payable to Turquoise or in accordance with its instructions on the first Norwegian Bank Day after the date of the notice requiring payment of the said penalty fee issued to the Member by Turquoise.

4.5.6.2

4.5.7
4.5.7.1

Market Making Obligations

Market Makers who have agreed to act as such in respect of standardised Future and Options Contracts based on Norwegian Products may elect to act in one of three categories and shall perform the obligations applicable to the market making category in which they have agreed to act set out below. For the purposes of this Rule, Norwegian Product shall mean: (i) (ii) any of the stocks shown in Turquoises Norwegian Stock List for the time being; and the OBX Index.

A Market Maker in Norwegian Products may elect to act as either: (a) (b) (c) a Large Market Maker; a Small Market Maker; or a Market Maker in OBX Index Futures.

References in Part 4.3 of these Rules to a Market Maker shall be construed as references to Large Market Makers, Small Market Makers and Market Makers in OBX Index Futures collectively unless the context requires to the contrary. The obligations of Large and Small Market Makers are set out in Rule 4.3.7.3 below. The obligations of a Market Maker in OBX Index Futures are set out in Rule 4.3.7.3A below. A Market Maker who has elected to be a Small Market Maker may also enter into an agreement to be a Market Maker in OBX Index Futures, and a Market Maker who has elected to be a Market Maker in OBX Index Futures may also enter into an agreement to be a Small Market Maker. 4.5.7.2 Where a Market Maker operates more than one Market Maker Account in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, the Market Maker shall make a separate election for each such Account regarding the capacity in which it intends to act and the Norwegian Products in which the applicable market making obligations are to be performed. In such circumstances, the performance of the applicable market making obligations shall similarly be assessed by reference to the Market Making Account in question. A Large Market Maker shall provide quotes in five or more Norwegian Products. The specific products in which a Market Maker will be obliged to provide quotes shall be determined by the Market Maker and Turquoise in accordance with the procedures published by Turquoise for such purposes by Turquoise and shall be confirmed in writing by Turquoise. Such arrangements may only be varied with the prior consent in writing of Turquoise. A Small Market Maker may, subject to the agreement of Turquoise, elect to act as a market maker in one or more Norwegian Products. Turquoise shall inform the Small Market Maker in

4.5.7.3

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writing of the Norwegian Product(s) in which it has agreed to provide quotes. arrangements may only be changed with the prior consent in writing of Turquoise. Such

A Market Maker acting as such in standardised Norwegian Products shall quote two way prices within the Prescribed Spread continuously in a minimum amount of twenty Contracts in each of the nearest two Expiration Months in the Norwegian Products for which it has agreed to act as a Norwegian Market Maker. In the absence of specific agreement to the contrary, such quotes shall be provided in respect of: (i) Options expiring in the next Expiration Month in a minimum of three Call and three Put Options Series, such quotes to be provided for Call and Put Options in the Series that is at the money, in the first Series that is out of the money and in the first Series that is in the money; Options expiring in the second Expiration Month in a minimum of three Call and three Put Options Series, such quotes to be provided for Call and Put Options in each Series that is at the money and in the first two out of the money Series; and Futures expiring in the nearest two Expiration Months.

(ii)

(iii) 4.5.7.3A

A Market Maker in OBX Index Futures shall provide continuous quotes in all listed OBX Index Futures series. Any arrangements may only be varied with the prior consent in writing of Turquoise. A Market Maker shall provide quotes in respect of the Norwegian Products in which it acts as such for a minimum period equivalent to 75% of Turquoises ordinary Trading Hours for such products in each calendar month. A Market Maker shall not be required to provide quotes in relation to any Series on a day which is the Expiration Date for such Series. On any such Expiration Date, the Market Maker shall be required to provide quotes in each of the next two Expiration Months after the month in which such Expiration Date falls.

4.5.7.4

4.5.7.5

A Small Market Maker which performs its obligations to the satisfaction of Turquoise shall pay fees in respect of the Norwegian Product(s) in which it acts as a market maker on the basis specified in Rule 4.5.7A. The Small Market Maker will pay proprietary fees on all other Norwegian Products. A Large Market Maker which performs its obligations to the satisfaction of Turquoise shall pay fees in respect of all Norwegian Product(s) on the basis specified in Rule 4.5.7A. A Market Maker in OBX Index Futures which performs its obligations to the satisfaction of Turquoise shall pay fees in respect of OBX Index Futures in which it acts as a market maker on the basis specified in Rule 4.5.7A. A Market Maker in OBX Index Futures will pay proprietary fees on all other Norwegian Products. The performance by the Market Maker of its obligation to provide quotes in the Norwegian Products in which it agrees with Turquoise to act as a Market Maker will determine the entitlement of the Market Maker to the benefits specified in Rule 4.1.11.

4.5.7.6

The Market Maker is obliged to start quoting within 15 minutes of the opening of the market, or in the case of a suspension of trading, within 15 minutes of the re-opening of the market. Where the Market Makers quote is matched in the Orderbook, the Market Maker must requote within three minutes of the trade. A Norwegian Market Maker shall additionally be required to quote two way prices within the Prescribed Spread in Options and Futures Series for which they are not required to quote continuously as soon as possible following Turquoise requesting a quote. For the purposes of this Rule 4.5.7.7, Norwegian Market Makers shall be required to provide quotes upon request only in those instruments for which they are required to quote continuously. All quotes provided by a Norwegian Market Maker in response to a request issued under this Rule 4.5.7.2 shall be in a minimum amount of twenty Contracts.

4.5.7.7

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4.5.7.8 The Prescribed Spread for a quote for a standardised Norwegian Stock Future is as follows: Bid Price 0 50 50.25 150 150.25 300 300.25 600 600.25 1000 More than 1000 4.5.7.9 Spread (NOK) Normal Market 1 1.5 2 2.5 3 3.5 Fast Market 2 3 4 5 6 7

The Prescribed Spread for a quote for a standardised Norwegian Option is as follows: Bid Premium 02 2.05 10 10.25 20 20.25 30 More than 30 Spread (NOK) Normal Market 0.75 1.5 2.25 3 3.75 Fast Market 1.5 3 4.5 6 7.5

4.5.7.10

Turquoise may vary the Prescribed Spread for quotes in a fast market if it considers that such action is justified in the circumstances. If it takes such action it will inform Norwegian Market Makers promptly of the spread to be applied. The quotes provided by the Market Maker are valid for that business day only. Each Market Maker will be granted a total of twenty-five days per calendar year in relation to each Norwegian Product in which it acts as a Market Maker on which it is not required to fulfil its obligations as a Market Maker in relation to the Norwegian Product in question as set out in this Rule 4.3.7.3. Any such day is referred to in this Rule as an Exempt Day. A Market Maker which wishes to nominate a trading day as an Exempt Day shall inform Turquoises Surveillance Department in writing three days in advance of the day in question. Turquoise shall confirm by notice in writing to the Market Maker that it will be exempt from the obligation to provide quotes in the Norwegian Product or Products in question on such day(s). In special circumstances, and at its discretion, Turquoise will grant an Exempt Day at short notice.

4.5.7.11 4.5.7.12

4.5.7.13

Where a Market Maker operates more than one Market Maker Account in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, the Market Maker shall make a separate election regarding such Exempt Days for each Market Maker Account that is used for the registration of transactions in Norwegian Products.

4.5.7A
4.5.7A.1

Market Making Fees

A Market Maker in Norwegian Products which performs its obligations as such to the satisfaction of Turquoise shall pay fees in respect of transactions it effects in standardised Norwegian Products on the basis set out at Appendix A. Such fees are referred to in this Part 4.3 as Market Maker Fees. The fees payable in respect of Norwegian Products by a Market Maker which performs its quoting obligation under Rules 4.5.7.3, 4.5.7.3A and 4.5.7.4 to the satisfaction of Turquoise shall be determined in accordance with Part 2 of Appendix A to these Rules.

4.5.7A.2

A Market Maker which performs its obligations to the satisfaction of Turquoise may qualify for a discount on the standard rates of fees payable by Market Makers for the contracts in question specified in Appendix A. A Market Maker in Norwegian Products which has traded in excess of 450,000 contracts in a calendar year shall be entitled to pay fees in respect of all further Norwegian Products that are traded by it in the calendar year in question at the discounted rates specified in paragraph 2.3 of Appendix A that is applicable to the Market Maker, having regard to the number of contracts traded by it in the calendar year in question and its quoting performance over such period.

4.5.7A.3

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4.5.7A.4

Where a Market Maker operates more than one Market Maker Account for the execution of transactions in Norwegian Products in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, the fees payable by the Market Maker in relation to such transactions in Norwegian Products shall be determined for each such Account by reference to the number of transactions registered in the Account in question and the performance of the obligations of the Market Maker in relation to such Account.

4.5.8
4.5.8.1

Market Making: Sanctions

In this Rule 4.5.8, references to Quoting Obligations shall be construed as references to the obligations to provide quotes in relation to Norwegian Products applicable to Market Makers set out in Rule 4.5.7. If a Large Market Maker, a Small Market Maker or A Market Maker in OBX Index Future Contracts fails properly to perform its obligations as such in relation to standardised Norwegian Products, Turquoise shall have the right: (i) (ii) (iii) to exclude the Market Maker temporarily from acting in such capacity in relation to such Contracts; to terminate the Market Maker Agreement with immediate effect; to require the Market Maker to pay fees in the manner prescribed in Rule 4.5.8.2 below.

4.5.8.2

Turquoise shall maintain a record of the manner in which each Market Maker performs its obligations as such in each calendar month. A Market Maker which fails to perform its quoting obligations under Rules 4.5.7.3 and 4.5.7.4 to the satisfaction of Turquoise shall be liable to pay fees in respect of the Norwegian Products in respect of which it is eligible to pay Market Maker Fees at the higher rate applicable having regard to the level of performance of such party in the monthly period in question as shown in paragraph 2.3 of Appendix A to these Rules. Where a Market Maker fails to perform its obligations under Rules 4.3.7.3 and 4.5.7.4 in any three months in a calendar year, Turquoise may suspend such party from acting as a Market Maker for such period as it considers appropriate in the circumstances. Where in any monthly period, a Market Maker provides quotes in the Norwegian Products in which it acts as a market maker for less than 25% of the normal Trading Hours of Turquoise for such Products in the period in question, Turquoise may suspend such party from acting as a Market Maker in Norwegian Products for such period as it considers appropriate in the circumstances. Without prejudice to its general power to suspend the Market Maker Agreement under Rule 4.5.8.1(ii) above, where a Market Maker fails to fulfil its obligations in any three months in a calendar year, the Members right to act as a Market Maker shall be suspended for such period as Turquoise considers appropriate in the circumstances. Turquoise may also suspend a Market Maker from acting in such capacity at any time if it considers that the Market Maker has abused its position as a Market Maker.

4.5.8.3

In determining whether a Market Maker has performed its obligations as such in relation to standardised Norwegian Products on any day, Turquoise will have regard to its overall activities as a Market Maker in such Contracts on the day in question. Turquoise maintains an electronic record of the aggregate time on a Norwegian Bank Day during which a Market Maker provides quotes to satisfy its quoting obligations in respect of each series in which quotes are required. This record will be used to determine whether the Market Maker in question has provided quotes for the minimum period specified in Rule 4.5.7.4.

4.5.8.4

Where a Market Maker operates more than one Market Maker Account for the execution of transactions in Norwegian Products in accordance with an arrangement made by it with Turquoise under Rule 2.5.6, Turquoise shall assess the performance of the applicable obligations relating to market making in Norwegian Products separately for each such Market Maker Account.

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4.5.8.5 When extreme market conditions arise, Turquoise will issue a general notice to the market declaring that there is a "fast market". In such cases the obligations of Market Makers will be modified in accordance with Rule 4.5.7 or, in extreme circumstances, suspended as appropriate.

4.5.9
4.5.9.1 4.5.9.2

Orders
Orders relating to Norwegian Stock Futures and Options Contracts may be placed in the Single Order Market. A Single Order consists of an offer to buy or sell the number of Norwegian Stock Contracts specified in the Order. This number may be any whole number in excess of one. A Member placing a Single Order may stipulate that the Order may only be executed in its entirety. In the absence of such stipulation, the offer may be accepted in any amount up to the specified number. Where an Order is executed partially, the unfilled portion of the Order will remain in the Orderbook. Orderbook Orders, Market Orders and Non-standardised Combination Orders relating to Norwegian Stock Contracts may be placed as Single Orders and the Order must be executed in its entirety.

4.5.9.3

4.5.10
4.5.10.1

Registration of off-exchange transactions

Where a Member enters into an off-exchange transaction in a standardised Norwegian Stock Contract with another Member or with a member of Oslo Brs, the Member shall submit a Request for Registration relating to such transaction to Turquoise at the earliest opportunity if it wishes the transaction to be registered. Such Request for Registration shall: (i) (ii) specify the Product which forms the subject of the off-exchange transaction; identify the counterparty to such transaction, the Series, the agreed price, the number of contracts involved in the transaction and the Account for registration.

4.5.10.2

A Request for Registration will only be considered for acceptance by Turquoise and the Designated Clearing House if the counterparties to the off-exchange transaction submit identical requests specifying the Contracts to be registered, the Accounts in which the Contract is to be registered and the terms of the transaction in question to Turquoise and to Oslo Brs as appropriate; and Such requests shall be submitted by telephone and confirmed by telefax or other means to the Market Operations Department at Turquoise.

4.5.10.3

A Request for Registration of an off-exchange transaction may be submitted to Turquoise by a Member either by way of its electronic connection to Turquoises clearing system or by telephone to Turquoises Market Operations Department as set out in Rule 3.2.5. A Request for Registration of a Norwegian Stock Contract shall be considered for acceptance by Turquoise and the Designated Clearing House in accordance with Rule 3.2 and the following provisions of this Rule.

4.5.10.4

A Request for Registration of a Norwegian Stock Contract in respect of an off-exchange transaction which has been concluded at a time when Turquoise is not open for trading such Contracts, will not be accepted by Turquoise and the Designated Clearing House unless the agreed price does not deviate from the average of the median of the bid and ask quotes for the Series in question during the period of thirty minutes prior to the close of trading on the day in question or, in the case of a request submitted before the start of trading on any Norwegian Trading Day, the close of trading on the immediately preceding Norwegian Trading Day by more than whichever is the greater of thirty per cent or NOK 2. Where a Request for Registration of a Norwegian Stock Contract in respect of a Series for which bid and ask prices are not quoted at the time at which the Request is submitted, Turquoise shall obtain bid ask quotes for such Series in conjunction with Oslo Brs. Where in the opinion of Turquoise and the Designated Clearing House acceptable quote is obtained, the Request for Registration shall be accepted if it is within the spread of the quoted prices. If Turquoise considers that an acceptable price has not been provided for such purposes the acceptance of the Request for Registration shall be determined at their discretion.

4.5.10.5

The acceptance of a Request for Registration submitted under this Rule is at the discretion of Turquoise and the Designated Clearing House. Without limiting the generality of the foregoing, a Request for Registration shall not be accepted if such acceptance would not be conducive to

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the maintenance of a proper market in the Product in question would not be consistent with the Designated Clearing Houses obligation to maintain a sound basis to its clearing services. 4.5.10.6 Where a Request for Registration of a Norwegian Stock Contract which is submitted by a Member during trading hours for such Contracts is accepted by Turquoise and the Designated Clearing House, Turquoise shall arrange with the Designated Clearing House for the resulting Registered Contract to be registered by the Designated Clearing House forthwith. Where a Request for Registration is received and accepted by Turquoise and the Designated Clearing House before 6.30 pm Oslo time on a Norwegian Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day. Where a Request for Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next Norwegian Trading Day. 4.5.10.7 Turquoise shall inform the Member or Members as soon as possible if a Request for Registration submitted under this Rule is not accepted for registration.

4.5.11
4.5.11.1

Requests for Re-Registration

A Request for Re-Registration of a Norwegian Stock Contract made pursuant to Rule 3.4.2(vi) will not be considered by Turquoise and the Designated Clearing House unless it is received by electronic connection or other means no later than 30 minutes prior to the close of trading for Norwegian Stock Contracts on the Norwegian Trading Day following the day on which the Contract in question is registered by the Designated Clearing House. A Request for Re-Registration of a Norwegian Stock Contract made pursuant to Rule 3.4.2(i) to (v) inclusive will not be considered by Turquoise and the Designated Clearing House unless it is received by electronic connection or other means no later than 6.30 pm Oslo time on the last Norwegian Trading Day prior to the Expiration Date for the Contract in question. A Request for Re-Registration of a Norwegian Stock Contract shall specify the following details: (i) (ii) (iii) the Contracts to be re-registered; the Account of the transferor; and the Account of the transferee.

4.5.11.2

4.5.11.3

4.5.11.4 4.5.11.5

The acceptance of a Request for Re-Registration submitted under this Rule4.5.11 is at the discretion of Turquoise and the Designated Clearing House. Where a Request for Re-Registration is received and accepted by Turquoise and the Designated Clearing House before 7.20 pm Oslo time on a Norwegian Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day. Where a Request for Re-Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next Norwegian Trading Day. Turquoise shall inform the Member or Members in question as soon as possible if a Request for Re-Registration submitted under this Rule is not accepted.

4.5.11.6

4.5.12
4.5.12.1

Cancellation of Incorrect Transactions

The provisions of Rule 2.16 concerning the cancellation of incorrect transactions shall be applied in relation to Norwegian Stock Contracts in accordance with the following provisions of this Rule. Turquoise will not direct that a Norwegian Stock transaction shall be cancelled in the absence of the agreement of the Counterparty to the transaction unless the period between the time at which the transaction is effected and the time at which the request is submitted is less than ten minutes and unless the loss suffered by the member, as a consequence of the error in the execution of the transaction, is NOK 1000 or more. Turquoise will notify the Member or Members involved in the transaction of its decision in the case of a request relating to Norwegian Stock transaction no later than 15 minutes before trading starts on the relevant Trading Day following the day on which the transaction in question was effected.

4.5.12.2

4.5.12.3

4.5.12A

Norwegian Stock Contracts: Daily Cash Settlement

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4.5.12A.1 Norwegian Stock Futures Contracts are subject to Daily Cash Settlement. The first such Daily Cash Settlement shall be due for settlement on the first Norwegian Bank Day following the Registration of the Contract. Thereafter, Daily Cash Settlement shall be effected on each Norwegian Bank Day until the Expiration Date for the Contract in accordance with the provisions of this Rule. On the transaction day, settlement shall take place in an amount corresponding to the difference between the Daily Settlement Price on the transaction day and the futures price. After that settlement takes place in an amount corresponding to the difference between the Daily Settlement Price on the Mark-to-Market day and the Daily Settlement Price from the immediately preceding Norwegian Bank Day. On the Expiration Date settlement shall take place in an amount corresponding to the difference between the average price for the Underlying Stock and the Daily Settlement Price from the immediately preceding Norwegian Bank Day. Delivery shall occur at the last paid price for the Underlying Stock. Daily Settlement Price: During the term of a Futures Contract, the Daily Settlement Price is normally determined as the price for the Norwegian Futures Contract at 17.20 Oslo time on the relevant Norwegian Bank Day. Turquoise in conjunction with Oslo Brs will determine the price for the Futures Contract with reference to the bid and ask prices for the Future. In the event that bid and ask prices are unavailable, the average of the bid and offer prices for the corresponding Norwegian stock forward will be used instead. In case none of these prices are available, Turquoise in conjunction with Oslo Brs may calculate the Daily Settlement Price by using another method Daily Settlement Price for the Expiration Date is the volume weighted average price for the Underlying Stock calculated on the Expiration Date. In calculating the volume weighted average price on the Expiration Date for the Underlying Stock, usually only transactions executed in the electronic trading system during normal Trading Hours on the Expiration Date shall be included. If no such transaction in a given Underlying Stock has been executed in the system that day, the latest paid price from the immediately preceding Bank Day is used instead as the volume weighted average price. Turquoise shall issue Daily Settlement Statements to Members having registered positions in Stock Futures Contracts no later than 8.00am on the following Norwegian Trading Day in relation to each Norwegian Trading Day for the Norwegian Stock Futures Contract. The Daily Settlement Statement shall show the Daily Settlement Sum for such settlement and payable in Norwegian Kroner The Daily Settlement Sum shall be payable no later than 9.00 am time London time on the first Norwegian Bank Day following the Norwegian Trading Day in question.

4.5.12A.2

4.5.12A.3

4.5.12A.4

4.5.12A.5

4.5.13
4.5.13.1

Settlement and Delivery of Norwegian Stock Contracts

The rights and obligations of a Member and Turquoise regarding the settlement of Registered Contracts relating to Norwegian Stock Options and Stock Futures Contracts are set out in the following provisions of this Rule 4.5.13. If the Member holds a net sold position in a Norwegian Futures and Options Series, Turquoise shall send to it a Delivery Instruction Note by means of the electronic connection with the Member normally prior to 22:00 London Time on the Expiration Date which shall specify the Norwegian Stocks to be delivered by the Member in settlement of its obligations in respect of own account transactions and of transactions executed on behalf of a Client or customer together with the settlement amount payable to the Member in respect thereof. If the Member holds a net bought position in Norwegian Stock Futures and Options Series, Turquoise shall send to it a Delivery Instruction Note by means of the electronic connection with the Member normally prior to 22:00 London time on the Expiration Date which shall specify the Norwegian Stocks to be delivered to the Member in settlement of its rights, together with the related settlement amount. Where a Member exercises a Norwegian Stock Option or where such Option is exercised against the Member, Turquoise shall issue a Delivery Instruction Note normally prior to 22:00 London time on the day on which the Exercise Order is accepted by Turquoise which shall specify the Norwegian Stocks to be delivered by or to the Member in settlement of its obligations in respect of own account transactions and of transactions executed on behalf of a Client or customer together with the settlement amount payable to or by the Member in respect thereof. The Delivery Instruction Note issued by Turquoise to a Member which is required to deliver Norwegian Stock following the Exercise or Expiration of Norwegian Stock Options or Futures Contracts respectively shall specify the VPS Account to which the Member is required to

4.5.13.2

4.5.13.3

4.5.13.4

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transfer the specified Norwegian stock. The Member shall ensure that the Norwegian Stock in question is credited to the specified VPS Account no later than the time specified in the Delivery Instruction Note. All Settlement Delivery instructions by the Member to Turquoises Designated Clearing House in relation to Norwegian Stock delivery must have a specified Transaction Date of Exercise+1 or Expiration Date+1 in order for the delivery to be made on the intended Settlement Date unless otherwise notified by Turquoises Designated Clearing House. Where delivery of Norwegian Stock is to be made to a Member, the Member shall ensure that the correlative settlement amount is paid to the Designated Clearing House no later than the day specified in the Delivery Instruction Note. On performance of such obligations, the Designated Clearing House shall arrange for the transfer of the relevant Norwegian Stock to the VPS Account specified by the Member for such purposes. Where a Member fails to deliver Norwegian Stock in accordance with the instructions of Turquoise up to a period of five applicable Bank Days following the intended Settlement Day, the Designated Clearing House may at its sole discretion purchase or borrow the relevant Norwegian Stock to enable it to perform its obligations to the party entitled to receive such Stock. Where the Designated Clearing House takes such action, the Member which failed to deliver the Norwegian Stock at the required time shall be liable to the Designated Clearing House in respect of the costs incurred in borrowing or purchasing the Stock in question. Where the Designated Clearing House has been obliged to borrow or purchase Norwegian Stock in such circumstances, it may give notice to the party entitled to receive delivery of the Stock that delivery may be delayed for a period not exceeding five Norwegian Trading Days. 4.5.13.5 The Member shall ensure that the information specified in the Delivery Instruction Note is accurate in all respects and notify Turquoise of any discrepancy no later than 6.30 pm Oslo time on the Norwegian Trading Day after the date of the Delivery Instruction Note. Where the Member is to deliver Norwegian Stock to the Designated Clearing House it shall ensure that the said stock is deposited in the Member's Norwegian Securities Account no later than 10.00 am Oslo time two Norwegian Trading Days prior to the Expiration Settlement Day for the Contract in question. The Member which is to receive Norwegian Stock as stated in the Delivery Instruction Note sent to the Member shall ensure that the settlement amount stated therein is deposited in the Norwegian Securities Account no later than 10.00 am Oslo time on the Expiration Settlement Day for the Contract in question. A confirmation of the satisfactory completion of the transaction shall be given by the Custodian involved in the settlement procedures to Turquoise and the Designated Clearing House only and not to the Member. If a Member alleges that delivery or settlement regarding Norwegian Stock Futures or Options is calculated or carried out in a defective manner, the Member must submit a claim in respect thereof to Turquoise no later than the fifth Norwegian Trading Day following the relevant settlement day. Protests concerning delivery or settlement made after such time will not be considered by Turquoise. Turquoise shall calculate corrected delivery or settlement and shall notify the Member in question of the revised obligations where it considers that such action is required in relation to a valid protest. The settlement day for corrected delivery or settlement is the third Norwegian Trading Day following the issue of such notice. 4.5.13.10 The time at which delivery of an Underlying Stock is to be effected following the Exercise or Expiration of a Norwegian Stock Contract may be modified where trading in such stock on the Oslo Brs is suspended at the relevant time or Oslo Brs decides that such action is required in line with the principles set out in the Addendum to Rule 4.5.17. Turquoise shall inform Members if any such action is applied to a Norwegian Stock Contract.

4.5.13.6

4.5.13.7

4.5.13.8

4.5.13.9

4.5.14
4.5.14.1 4.5.14.2

Norwegian Stock Futures: Settlement Procedures

The rights and obligations of the Buyer and the Seller in respect of the settlement of a Norwegian Stock Futures Contract shall be performed in accordance with this Rule 4.5.14. Norwegian Stock Futures Contracts are subject to Daily Cash settlement and settlement at Expiration.

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RULE BOOK
4.5.14.3 Expiration Settlement of a Norwegian Stock Futures Contract comprises two elements: (i) the delivery of the quantity of the Underlying Stock represented by the Contract in question by the Seller to the Buyer through the Norwegian Securities Registry against payment of the Fixing Price for such stock in accordance with Rule 4.5.14.5; and the payment of the Expiration Settlement Amount by the Buyer or the Seller as the case may be in accordance with Rule 4.5.14.6.

(ii) 4.5.14.4

On the Expiration Date for a Norwegian Stock Futures Contract, Turquoise shall issue a Delivery Instruction Note to each Member holding one or more positions in an expiring Futures Series based on a Norwegian Stock showing the quantity of the Underlying Stock in question to be delivered to or by the Member together with the correlative payment obligation in respect of such settlement. The Seller of a Norwegian Stock Futures Contract shall deliver the Underlying Stock in the specified amount against payment in accordance with Turquoises instructions no later than 4.00pm on the fourth Norwegian Bank Day following the Contracts Expiration Date. The Buyer of a Norwegian Stock Futures Contract shall pay the Stock Delivery Settlement Amount to the Seller against the delivery of the underlying stock on the fourth Norwegian Bank Day following the Contracts Expiration Date. The Stock Delivery Settlement Amount is determined by reference to the Fixing Price for the Underlying Stock for the Futures Contract on its Expiration Date.

4.5.14.5

4.5.14.6

The Expiration Settlement Amount for a Norwegian Stock Futures Contract is determined by reference to the difference between the Futures Contract Price agreed upon by the counterparties to the Contract and the Fixing Price for its Underlying Stock on the Expiration Date for the Contract. If the Fixing Price is lower than the Futures Contract Price, the Expiration Settlement Amount shall be payable to the Seller. If the Fixing Price is higher than the Futures Contract Price, the Expiration Settlement Amount shall be payable to the Buyer. The Expiration Settlement Amount is due and payable no later than 4.00pm on the fourth Norwegian Bank Day following the Expiration Date for the Contract in question.

4.5.15
4.5.15.1

Exercise of Norwegian Stock Options

Norwegian Stock Options are American Style and may accordingly be exercised by the Holder at any time during the Lifetime of the Option. The right to exercise a Norwegian Stock Option may be suspended by Turquoise in the circumstances where Oslo Brs takes corresponding action in line with the principles described in the Addendum to Rule 4.5.17. Turquoise shall inform Members if any such restrictions are applied in relation to a Norwegian Stock Contract. Norwegian Stock Options are also subject to Standard Exercise in accordance with Rule 4.5.16. Where the Holder of a Norwegian Stock Option wishes to exercise it, it shall submit an Exercise Order to Turquoise providing full details of the Option in question. Turquoise will accept Exercise Orders relating to Norwegian Stock Options Contracts between the hours of 9.30 am and 6.30 pm Oslo time on each Norwegian Trading Day. If an Exercise Order is received by Turquoise after 6.30 pm Oslo time on a Norwegian Trading Day, such Order shall take effect on the next Norwegian Trading Day. An Exercise Order relative to a Norwegian Stock Option which is received by Turquoise after 6.30 pm Oslo time on the Expiration Date for such Contract is void. On receiving a valid Exercise Order, Turquoise shall inform the Member which submitted it that it has been accepted and shall select at random a correlative Norwegian Stock Option position to be exercised against. Turquoise shall also inform the Designated Clearing House of such Exercise so that the necessary action may be taken in relation to the Registered Contracts in question. On Exercise of a Norwegian Stock Option in accordance with this Rule, Turquoise shall issue an Exercise Settlement Statement confirming the amount of shares to be delivered to the Member specified in such note against payment by it of the Exercise Settlement Amount specified therein.

4.5.15.4 4.5.15.5

4.5.15.6 4.5.15.7

4.5.15.8

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RULE BOOK
4.5.15.9 On Exercise of a Norwegian Stock Option, the Holder of a Call Option or the Writer of a Put Option shall be entitled to receive delivery of the Underlying Stock in the quantity represented by the exercised Option against payment of the Exercise Settlement Amount for such Contract. The Exercise Settlement Amount shall be determined by multiplying the Strike Price for the Stock Options Contract on the day on which the Exercise Order is registered by the quantity of the Stock represented by the exercised Option. The Exercise Settlement Amount for a Norwegian Stock Options Contract shall be payable in Norwegian Kroner. The Exercise Settlement Amount for a Norwegian Stock Options Contract shall be due for settlement and the correlative obligation to deliver the Underlying Stock shall be due for performance on the fourth Norwegian Bank Day following the day on which the Exercise Order in question has been registered by Turquoise or, in the case of an Options Contract which is exercised pursuant to the Standard Exercise procedures, on the fourth Norwegian Bank Day following the Contract's Expiration Date.

4.5.15.10

4.5.15.11 4.5.15.12

4.5.16
4.5.16.1 4.5.16.2

Standard Exercise of Norwegian Stock Options

Norwegian Stock Options Contracts will be subject to Standard Exercise in accordance with the following procedures. On the Expiration Date for a Norwegian Stock Option the base price for the Underlying Stock in question will be determined by Oslo Brs. This base price shall be calculated by dividing the turnover in Norwegian Kroner for qualifying transactions in such stock by the number of shares of that type traded in such transactions on Oslo Brs on such Expiration Date. For these purposes, however, a transaction at a price which is outside the spread for such stock at the time the transaction is effected shall not be regarded as a qualifying transaction and will not be taken into account. If Oslo Brs considers that the official turnover in an Underlying Stock is insufficient or that other factors render the procedures for determining the Stocks base price set out in Rule4.5.16.2 inappropriate, the base price shall be determined by Oslo Brs by such other method as it considers appropriate. Turquoise will use the base price determined by Oslo Brs for each Underlying Stock to identify the Norwegian Stock Options registered in Members Accounts which will be subject to Standard Exercise. A Call Option Series which has an Exercise Price more than 1 per cent below the base price for the Underlying Stock on the, calculated in the manner described above, will be subject to Standard Exercise. A Put Option Series which has an Exercise Price more than 1 per cent above the base price for the Underlying Stock on the, calculated in the manner described above, will be subject to Standard Exercise.

4.5.16.3

4.5.16.4

4.5.16.5

In calculating the base price of an Underlying Stock for the purposes of this Rule, Turquoise will normally use official trade information published by Oslo Brs on its information system, MAINS. In the event that the required information is not published by Oslo Brs on the Expiration Date for a Norwegian Stock Option Series, however, alternative trade information will be used. The method of determining the base price of the relevant Underlying Stock may be varied in such cases. In such circumstances, Turquoise will inform Members of the alternative information or mode of calculation used. At about 5.30 pm Oslo time on the Expiration Date for a Norwegian Stock Option, Turquoise will send to Members holding positions in such Options a list of the relevant Series expiring that day which will be subject to Standard Exercise in accordance with the above procedures. All Call Options and all Put Options shown on such list will be exercised by Turquoise unless a written objection from the Holder of any such Option is received by Turquoise within ninety minutes of the close of trading in Norwegian Stock Contracts at Turquoise on such day.

4.5.16.6

4.5.17
4.5.17.1

Recalculation of Norwegian Stock Contracts

The terms of Norwegian Stock Futures and Options Contracts are subject to adjustment in accordance with the following provisions of this Rule 4.5.17. If the share capital of a company on which a Norwegian Stock Contract is based is amended in a material way which affects the underlying economic value of Futures and options contracts

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RULE BOOK
based on such stock, Oslo Brs will effect a recalculation of the Futures and options contracts based on such Underlying Stock in accordance with its rules governing such matters. In such circumstances Turquoise will effect a recalculation of its Norwegian Stock Contracts in the same manner and at the same time as Oslo Brs adjusts its corresponding contracts. 4.5.17.2 The circumstances in which Oslo Brs effects a recalculation of its Norwegian Stock Contracts are shown in the translation of the relevant rule of Oslo Brs which forms the Addendum to this Rule 4.5.17.

Addendum to Rule 4.5.17

A.2.2.1 Introductory provisions regarding contract adjustment. (1) Oslo Brs shall determine which adjustment alternative shall be employed in the event the rules allow for several adjustment alternatives. Where special cause so requires, Oslo Brs may also expand or modify the calculation periods and time of entry into force of an adjustment pursuant to the rules set forth below. (2) Where Oslo Brs determines that an adjustment of Norwegian derivative contracts pursuant to the rules set forth below would result in an unreasonable result, or where a change in the share capital which is not governed by the rules set forth below is imminent, Oslo Brs may establish other adjustment regulations. Except where the contrary is indicated, the contract adjustment will be made on the ex-date. (3) Adjustments may not result in an increase in the Exercise Price or Futures Price other than in connection with a reverse split as described in A.2.2.4. (4) Oslo Brs and Turquoise will give notice to their respective members of the adjustment to the Futures and Options Contracts affected by the recalculation. Recalculated exercise and futures prices are rounded-off to two decimal places, whereupon the integers 1, 2, 3, and 4 are rounded downwards and the integers 5,6,7,8 and 9 are rounded upwards. Recalculated contract sizes are rounded-off to the nearest whole integer, whereupon decimal figures of 1, 2, 3, and 4 are rounded downwards and decimal figures of 5, 6, 7, 8, and 9 are rounded upwards. Adjustment factors are rounded-off to six decimal places. Where recalculation is carried out regarding a previously recalculated contract, rounding-off shall only be carried out after all calculations have been made. (5) In the event of a change in the currency in which the underlying Product is listed, Oslo Brs may decide to convert existing derivative contracts to derivative contracts listed in the new currency. The conversion to the new currency shall be carried out by converting the exercise price, option premium and futures price, as well as any other monetary values, to the currency of the underlying instrument. The conversion of existing derivative contracts shall be carried out in accordance with conversion rates determined by Oslo Brs. A.2.2.2 Recalculation following Bonus Issues

(1) In conjunction with bonus issues of shares, the Exercise Price or the Futures Price as well as the number of shares covered by the contract or the number of contracts shall be adjusted in accordance with Alternative 1 below where the company issues a whole number of shares of the same class as the outstanding shares prior to the bonus issue. In all other circumstances, adjustment shall be carried out pursuant to alternative 2 below. Alternative 1 Pursuant to this alternative, the number of contracts and the Exercise Price or Futures Price is adjusted. The adjusted number of contracts is calculated in accordance with the following:

K ex

K cum * nex ncum

K ex
n ex

K cum ncum

= Recalculated number of Contracts = Previous number of Contracts

= Number of shares following the bonus issue = Number of shares prior to the bonus issue

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Alternative 2 Pursuant to this alternative, the number of shares covered by the contract and the Exercise Price or Futures Price is adjusted. The number of shares covered by the contract is calculated in accordance with the following:

Nex

Ncum * nex ncum

N ex
n ex

Ncum ncum

= Recalculated number of shares covered by the Contracts = Previous number of shares covered by the Contracts

= Number of shares following the bonus issue = Number of shares prior to the bonus issue

(2) In both cases, the adjusted Exercise Price or Futures Price is calculated according to the following:

X ex

X cum * ncum nex

= Recalculated Exercise Price or Futures Price

X ex

X cum = Previous Exercise Price or Future Price ncum

n ex

= Number of shares following the bonus issue

= Number of shares prior to the bonus issue (3) Where, in conjunction with a bonus issue of shares, shares of a class other than the underlying shares are distributed, corresponding principles will be applied by Oslo Brs (the provisions of A.2.2.3 (2) will similarly apply).

A.2.2.3 Recalculation following stock splits and division into several stock classes (1) In conjunction with a stock split which does not involve a change in the total aggregate share capital for the underlying shares, the Exercise Price or the Futures Price as well as the number of contracts shall be adjusted in accordance with the provisions A.2.2.2 governing adjustments in conjunction with bonus issues. (2) In conjunction with a division of the underlying shares into several classes of shares which does not involve a change in the aggregate share capital, all classes of shares after the division shall constitute the underlying shares in their respective proportions, provided all classes of shares are registered in VPS. (3) In such circumstances, the Expiration Settlement Price for the Contract will be determined as set out in the section entitled Expiration Settlement Price and in accordance with A.2.2.15 (2) and A.2.2.16 (2). (4) Recalculations are implemented from and including the ex-date. A.2.2.4 Recalculations in the event of a reverse stock split In conjunction with a reverse split in which a reduction in the number of shares is effected which does not involve a change in the share capital for the underlying shares, the Exercise Price or the Futures Price as well as the number of shares covered by the contract shall be adjusted in accordance with the provisions of A.2.2.2 governing adjustments in conjunction with bonus.The adjustments are executed from and including the ex-date A.2.2.5 New issues of the same class of shares with pre-emptive rights for the shareholders (1) In conjunction with new issues of the same class of shares with pre-emptive rights for the shareholders in which the shares are be paid for in cash at a subscription price which is less than a volume weighted average price for the underlying share on the ex-date calculated in accordance with the provisions set out below, the Exercise Price or the Futures Price as well as the number of shares covered by the contract or the number of contracts shall be adjusted in accordance with one of the following alternatives. Alternative 1

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RULE BOOK

Pursuant to this alternative, the number of contracts and the Exercise Price or Futures Price is adjusted. The Exercise Price and Futures Price are adjusted in accordance with the following:

X ex

X cum A
= Recalculated Exercise price or futures price = Previous Exercise price or futures price

X ex X cum

A = Adjustment factor

The share's theoretical value after the issue is calculated as follows:

K ex K ex K cum

K cum * A
= Recalculated Number of Contracts = Previous number of Contracts

A = Adjustment factor
The adjustment factor is calculated in accordance with the following:

v wap Pc um Pe x

A = Adjustment factor
vwap Pc um = The shares volume-weighted average price prior to the issue, cf. (2) Pex = The shares theoretical value after the issue

The shares theoretical value after the issue is calculated as follows:

Pex

vwap (nc um * Pc um ) (nnew * E) nc um nnew

Pex = The shares theoretical value after the issue ncum = The number of outstanding shares in the share type prior to the issue
vwap Pc um = The shares volume-weighted average price prior to the issue, cf. (2). nnew = The number of new shares E = The price of the shares in the issue

Alternative 2 Pursuant to this alternative, the number of shares covered by the contract and the Exercise Price or Futures Price are adjusted. The adjusted exercise price and Futures price as well as the adjustment factor are calculated in accordance with Alternative 1.

124

RULE BOOK

The number of shares covered by the contract is calculated according to the following:

Nex

Ncum * A

N ex = Recalculated Number of Contracts Ncum = Previous recalculated number of Contracts

A = Adjustment Factor

(2)The stocks volume-weighted average price before the issue is calculated from the trading prices quoted on the last trading day before the ex-date (calculation period) in accordance with the following rules: a) b) The calculation for Norwegian underlying stocks (volume-weighted average prices) will include only automatically matched trades on Oslo Brs. Where special cause so requires, Oslo Brs may extend the calculation period and include additional qualifying criteria for the transactions and may deviate from the stated calculation method.

(3) Alternatively, Oslo Brs may effect an adjustment by multiplying the Exercise Price and the Futures Price by the number of shares before and after all contract adjustments. In the event an options contract is subject to Exercise or the Expiration Day takes place on such a day that share deliveries take place prior to the required recalculation, Oslo Brs shall be entitled to determine that both the underlying shares and the allocated pre-emptive rights or paid up interim shares shall constitute the underlying assets, provided that all instruments are registered with VPS. The principles set out in the second paragraph of the section entitled Expiration Settlement Price shall, in such context, be applied mutatis mutandis. The provisions of A.2.2.15 (2) are similarly applicable. A.2.2.6 Contract adjustments in the event of preferential rights issues with subscription of new convertible bonds, bonds with the right to purchase common stocks or other stock types (1) In conjunction with the issue of convertible debentures, debentures with subscription rights for new shares or other shares, with shareholders pre-emptive rights where payment is made in cash, the Exercise Price and the Futures Price shall be adjusted in accordance with the provisions set forth below. The term "other shares" means shares belonging to another class or shares of the same class which Oslo Brs deems not to be equivalent to the underlying shares. Contract adjustment becomes effective commencing on the Norwegian Trading Day after the ex-date. (2) The Exercise Price and the Futures Price shall be adjusted in accordance with the following: Alternative 1 Pursuant to this alternative, the exercise price or futures price is adjusted as follows:

X ex

X cum T

X ex = The recalculated Exercise or Futures Price

X cum
T
= The Exercise or Futures Price prior to the adjustment = a calculated value of the pre-emptive rights which vest in the owner of the share.

The value of the pre-emptive rights pursuant to the issue (T) shall be calculated in accordance with the following:

125

RULE BOOK
T
vwap vwap Pc um (Pex u) 1

vwap Pc um = The value of the pre-emptive rights, cf. (3) vwap = The share's volume-weighted average price prior to the issue, cf. (4) Pex
vwap Pex

= The share's volume-weighted average price after the issue

u = Dividend during the calculation period for Pe , cf. (4)

Alternative 2 Pursuant to this this alternative, the exercise price or futures price and contract size are adjusted as follows:

X ex

X cum A

Nex

Ncum * A

A = Adjustment factor X ex

= Adjusted exercise price or futures price for the original derivative contracts = Exercise price or futures price before adjustment

X cum N ex Ncum

= Adjusted contract size = Contract size before adjustment

The adjustment factor is calculated as follows:

vwap Pcum vwap Pex

u
vwap Pc um ) is calculated according to the

(3) The stocks volume-weighted average price before the issue ( provisions of A.2.2.5 (2).

(4) The stocks volume-weighted average price after the issue ( ex ) is calculated from the trading prices on the ex-date in accordance with the same rules as in (3). However, if the ex-date for a dividend occurs in the calculation period for
vwap Pex , the calculations shall be adjusted by adding the amount of the dividend.

P vwap

(5) During the calculation period and up to and including such time as the contract adjustment enters into force, Exercise of Norwegian Stock Option Contracts may not occur. Where the Expiration Day for a particular series occurs within this period, the Expiration Day shall be moved to the last Trading Day prior to the commencement of such period. (6) If option contracts are exercised or the expiration date of derivative contracts is such that settlement shall take place before a decision as mentioned in (1) has been made, Oslo Brs may decide that both the underlying stocks and the allotted preferential rights or paid financial instruments shall be underlying instruments, provided they are all registered in VPS. The provisions of A.2.2.15 (2) are similarly applicable. If a Norwegian Stock Option is subject to Exercise or the Expiration Day is so set that delivery of shares would take place before the adjustment provided for in this section takes effect, Oslo Brs shall be entitled to determine that the underlying shares, allocated pre-emptive rights or paid up interim certificates shall constitute the underlying assets. Provided that the Product is registered with VPS, the principles set out in the section headed Expiration Settlement Price, the provisions of A.2.2.15 (2) will be applied similarly in these circumstances.

A.2.2.7 Recalculation following de-mergers or other issues with pre-emptive rights for the shareholders at A.2.2.5 and A.2.2.6.

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RULE BOOK

(1) In conjunction with de-mergers or issues with pre-emptive rights for the shareholders regarding instruments other than those described in the two preceding sections at A.2.2.5 and A.2.2.6, the terms and conditions for the derivatives contracts shall be adjusted in accordance with Alternative 1 or 2 below. Alternative 1 Commencing on the ex-date, both old shares and new instruments shall comprise the underlying assets for the contracts. Oslo Brs shall determine the number of old shares and new instruments which shall be covered by a contract. The above-stated amount shall, following rounding-off, correspond to the proportion between old shares and new instruments pursuant to the terms and conditions for the offer. Prices in conjunction with share delivery are established in accordance with the regulations set forth below. The exercise price futures price, contract size and number of derivatives contracts shall continue unchanged. Such a decision may only be taken where the new shares are registered in VPS and listed, or are anticipated to be listed within the immediate future, on Oslo Brs and where, in the opinion of Oslo Brs, satisfactory liquidity can be anticipated and that the derivatives contracts will comprise a satisfactory number of shares. Alternative 2: Commencing on the Norwegian Trading Day immediately after the ex- date, the Exercise price and the Futures price shall be adjusted in line with the principles applied in relation to a new issue of the same class of shares giving pre-emptive rights to shareholders set out above. in accordance with A.2.2.6 (2), Alternative 1. Alternative 3: If a shareholder is to receive shares in a company other than that to which the underlying shares relate and without consideration, Oslo Brs may determine that each originally held derivative contract shall be converted to separate derivative contracts with the original shares and the new shares as the underlying asset respectively in accordance with the specific terms and conditions set forth below. Such a decision may only be taken where the new shares are registered in VPS and listed, or are anticipated to be listed within the immediate future, on Oslo Brs and where, in the opinion of Oslo Brs, satisfactory liquidity can be anticipated and that the derivatives contracts will comprise a satisfactory number of shares. The Exercise Price and the Futures Price for the originally held contracts shall be adjusted in accordance with the following:

X ex

vwap Pex vwap Pcum

* X cum

X ex = The adjusted Exercise Price or Futures Price for the contract held originally X cum = The Exercise Price or Future Price prior to the adjustment
vwap Pex = The share's volume-weighted average price on the ex- date vwap Pc um = The share's volume-weighted average price on the day before to the ex- date vwap u = Dividends which are distributed during the period for calculation of Pex

The exercise price or futures price for the new derivative contracts is determined as follows:

Xnew

(X cum

X ex ) * nx

Xnew X ex nx X cum

= The adjusted Exercise Price or Futures Price for the new contracts

= The adjusted Exercise Price or Futures Price for contracts held originally = The non-adjusted Exercise Price or Futures Price for contracts held originally

= The number of shares held originally which are required in order to purchase one new financial instrument

The number of shares covered by the new derivatives contracts is calculated in the following manner:

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RULE BOOK
Ncum nx

Nex

N ex Ncum nx

= The recalculated number of shares covered by the Contract = The number of shares previously covered by the Contract = The number of shares held originally which are required in order to purchase one new financial

instrument The volume-weighted average prices are determined in accordance with the provisions of A.2.2.6 (3) and (4). The contract adjustments are executed on the trading day after the ex-date. Alternative 4 This alternative provides for the exercise price or futures price and the contract size to be adjusted as follows:

X ex

X cum A

Nex

Ncum * A

A = Adjustment factor X ex

= Adjusted exercise price or price for the original derivative contracts = Exercise price or price before adjustment

X cum N ex Ncum

= Adjusted contract size = Contract size before adjustment

The adjustment factor is calculated as follows:

vwap Pcum vwap Pex

vwap Pc um = The stocks volume-weighted average price before the ex-date, cf. A.2.2.6 (3) vwap Pex = The stocks volume-weighted average price on the ex-date, cf. A.2.2.6 (4) vwap u = Dividend in the calculation period for Pex , cf. A.2.2.6 (4)

Option contracts may not be exercised in the calculation period up to and including the date when contract adjustment is performed. If the expiration date of a derivative contract falls within this period, the expiration date shall be brought forward to the last trading day before the start of the period. The contract adjustments are applied on the trading day following the ex-date. Alternative 5: Contract adjustments shall take place in accordance with the provisions of a), b), or c) below. a) With effect from and including the ex-date, both the original underlying stocks and the new financial instruments shall be underlying instruments for the derivative contract. Oslo Brs stipulates the number of original stocks and new financial instruments to which the derivative contracts shall apply. This number shall, after rounding, correspond to the ratio of the original stocks to the new financial instruments after the decision. Trading amounts for stock settlements are determined in accordance with the provisions of Alternative 3. b) With effect from and including the ex-date, the exercise price and futures price shall be adjusted in accordance with the following formula:

X ex X ex

X cum

= Adjusted exercise price or /futures price

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X cum = Exercise price or futures price before adjustment

F = Value of the stockholders preferential right

The value of the stockholders preferential right is calculated in accordance with the following formula:
vwap Px

Enew

nx

F = Value of the stockholders preferential right

vwap Px = The volume-weighted average price for the new financial instruments, cf. A.2.2.5 (2) Enew = The subscription price for the new financial instruments

nx

= The number of original stocks required to subscribe for the new financial instrument c) With effect from and including the trading day after the ex-date, the exercise prices and futures prices are adjusted in accordance with the principles described in A.2.2.5, adapted as appropriate.

(2) If option contracts are exercised or if the expiration date of derivative contracts is such that settlement will take place before a decision as stated in (1) above has been made, Oslo Brs may decide that both allotted preferential rights or interim certificates for issued financial instruments, and the original underlying stocks, shall be underlying instruments. The provisions of A.2.2.15 (2) and A.2.2.16 (2) are similarly applicable.

A.2.2.8 Dividends (1) Adjustments will be carried out following the rules in class a) or class b) below. The exercise and futures prices are adjusted with effect from and including the ex-date a) On payment of a dividend to the stockholders in excess of 5% of the calculated stock value (excess dividend), the calculations shall be as follows:
vwap Pcum D 5% D o vwap Pcum D 5%

A = Adjustment factor
vwap Pc um = The stocks volume-weighted average price before the ex-date vwap D5% = Dividend (5% of Pc um ) vwap Do = Excess dividend (dividend that exceeds 5% of Pc um )

X ex

X cum * A

X ex

X cum

= Adjusted exercise price or futures price = Exercise price or futures price before adjustment

A = Adjustment factor

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N cum A

N ex

N ex

= Adjusted contract size

Ncum = Contract size before adjustment A = Adjustment factor

b) Fully Adjusted Dividend On payment of a dividend to the stockholders, the whole dividend amount shall be adjusted for. Derivatives governed by this rule are listed in the quotation list (available on the Oslo Brs website at Appendix B2) and are recognized by the letters AD in the series designation, for instance ABCAD9100. Oslo Brs will consider which derivatives are to be included in this class on a semi-annually basis or when needed. The calculations shall be as follows:

vwap Pcum vwap Pcum

A
vwap Pc um

= Adjustment factor = The stocks volume-weighted average price before the ex-date = Dividend

The exercise and futures prices are adjusted as in a). (2) The stock value in (1) is calculated in accordance with the principles, duly adapted, for volume-weighted average price as described in A.2.2.5 (2). A.2.2.9 Reduction of share capital

(1) If the share capital is reduced in conjunction with a repayment to shareholders, the Exercise price and the Futures price shall be adjusted in accordance with the following:

A
A
vwap Pc um

vwap Pcum vwap Pcum

= Adjustment factor = The stocks volume-weighted average price before the ex-date = Amount repayable per stock

X ex
Xex Xcum A

X cum * A

= Adjusted exercise price or futures price = Exercise price or futures price before adjustment = Adjustment factor

N ex
Nex Ncum A

N cum A

= Adjusted contract size = Contract size before adjustment = Adjustment factor

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(2) The contract adjustments take effect from and including the ex-date.

A.2.2.10

Compulsory redemption, liquidation or insolvency

If an underlying stock is subject to compulsory redemption, liquidation or insolvency, Oslo Brs determines a new Expiration Day or a new form for Settlement and Delivery regarding the derivative contracts cf. also the provisions of A.2.2.12. A.2.2.11 Merger

If a company whose shares are an Underlying Stock for a Norwegian Stock Contract, resolves to merge with another company which shall be the acquiring company, Oslo Brs may determine to convert existing derivative contracts to derivative contracts with the merged company as the new underlying share. Oslo Brs shall calculate a new exercise price and number of shares by adapting the provisions of A.2.2.5. appropriately, but by using the conversion ratio as the adjustment factor. If the acquiring company is not listed on Oslo Brs, Oslo Brs may determine a new Expiration Day or a new form for Settlement and Delivery regarding the derivative contracts. cf. also the provisions of A.2.2.12. A.2.2.12 Other contract adjustments

Provided special cause exists, Oslo Brs may resolve to impose a temporary prohibition on Exercise, to change the Expiration Day or the form for Settlement and Delivery or to resolve that Cash Settlement may only take place based upon an Expiration Settlement Price determined by Oslo Brs. A.2.2.13 Contract adjustments in the event of suspension or deletion of underlying stocks for Norwegian derivative contracts (1) The following shall apply following a suspension in trading in the underlying shares by Oslo Brs. a) The Expiration Day for the derivative contracts will not be changed, unless otherwise provided pursuant to this section. b) Standard Exercise will not be applied and Exercise must consequently be registered manually. Oslo Brs may impose a prohibition on Exercise during the entire period in which trading is suspended, or a part thereof. c) Settlement of Norwegian Stock Futures contracts and delivery of underlying shares shall be settled by delivery of the shares in exchange for the Futures price, cf. A.2.1.2 (4). d) Registration of the share settlement in Oslo Brs electronic trading system is postponed until the first trading day the share is readmitted for quotation. Share Delivery shall take place on the third Norwegian Trading Day after the day on which the share is once again listed for trading on Oslo Brs. (2) Oslo Brs may resolve to change the Expiration Day or may resolve that only Cash Settlement may be executed following de-listing or long-term suspensions in trading of the underlying share. Oslo Brs shall determine the Expiration Settlement Price in such circumstances. A.2.2.14 Expiration settlement price

(1) The Expiration Settlement Price for Norwegian derivative contracts is calculated by Oslo Brs as a volumeweighted average price in respect of the automatically matched trades in the electronic orderbook in the shares on Oslo Brs on the Expiration Day. (2) Where a contract adjustment has been made in accordance with A.2.2.3 (2), A.2.2.5 (4), A.2.2.6 (6) or A.2.2.7 and results in both the original shares and the new instruments qualifying as underlying instruments to the derivative contracts, the Expiration Settlement Price shall be calculated in the following manner: Fixing value = kO + n1 * k1 + n2 * k2......

n1,2 = the original number of shares kO = the volume-weighted average price for automatically matched trades in the electronic orderbook in the
original share

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k1,2, = the volume-weighted average price for automatically matched trades in the electronic orderbook in the
new share Oslo Brs will determine the Expiration settlement price if the new share are not listed on Oslo Brs. (3) Oslo Brs may depart from the above rules and may establish another Expiration Settlement Price where special cause exists, e.g. where Oslo Brs believes that the turnover basis is insufficient. (4) The daily fixing of stock futures is calculated as the average of the bid and offer prices. If these prices are not available, the average of the bid and offer prices for the corresponding stock forward will be used. In case none of these prices are available or the average price is considered unsuitable, Oslo Brs will establish a fixing price.

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PART 4.6 4.6.1

4.6.1.1

FUTURES AND OPTIONS CONTRACTS BASED ON THE OBX INDEX Introductory

Turquoise provides a combined market in OBX Contracts in conjunction with Oslo Brs. Theses arrangements are governed by a Co-operation Agreement entered into by Turquoise with Oslo Brs and are designed to ensure that members of each trading venue may participate equally in the markets of these Contracts. Turquoise has adopted rules which are consistent with the rules of Oslo Brs governing OBX Contracts. Trading in the combined market in OBX Contracts will be conducted on an anonymous basis so that Members will not be aware of the identity of their trading counterparty or the trading venue of which it is a member. The Designated Clearing House will be responsible for the clearing and settlement of OBX Contracts entered into by Members of Turquoise. The arrangements for the clearing of contracts in the combined market in OBX Contracts are governed by a Clearing Co-operation Agreement entered into by the Designated Clearing House with Oslo Clearing.

4.6.1.2

The Contract Specifications for OBX Contracts listed by Turquoise and all rules and procedures relating specifically to the trading, clearing or settlement of such Contracts are set out in this Part 4.6. The rules and procedures set out in this Part 4.6 apply to the following Contracts based on the OBX Index: OBX Futures OBX Options and references to OBX Contracts in this Part4.6 shall be construed as references to each of the above Contracts.

4.6.1.3

4.6.1.4

OBX Futures Contracts are subject to Daily Cash Settlement and to cash settlement on Expiration or when a Closing Transaction is effected. OBX Options Contracts which are exercised are subject to cash settlement. The procedures governing settlement of OBX Futures and Options Contracts are set out in Rules 4.6.14 to 4.6.18. All obligations to make cash payments under the settlement procedures for OBX Contracts shall be effected by way of the PPS arrangements established by the Designated Clearing House. All payments required to be made under the settlement procedures set out in Rules 4.6.14 to 4.6.18 shall be made in accordance with the instructions of the Designated Clearing House. Such payments shall be made in NOK. Turquoise will issue Daily Cash Settlement Statements and Expiration Settlement Statements showing the sum due to or payable by the Member. In the absence of manifest error, Turquoises Settlement Statements shall be final and binding.

4.6.1.5 4.6.1.6

The OBX Index is described more fully in the Conditions for the OBX Index of Oslo Brs and can be found on http://www.oslobors.no/ob_eng/Oslo-Boers/Regulations/Derivatives-rules. The OBX Index is calculated continuously during the day on each Norwegian Trading Day by Oslo Brs by way of automated data retrieval. In the event of computer failure or lack of information from Oslo Brs other sources of information and other methods for the calculation and distribution of the OBX Index Value may be adopted. As a result of this, the frequency of calculations and reports may be altered. Save where there is an express indication to the contrary, all references to time in this Part 4.6 shall be construed as references to Oslo time. The application and interpretation of this Part 4.6 shall be subject to Norwegian law.

4.6.1.7 4.6.1.8

4.6.2
4.6.2.1

Interpretation
In this Part 4.6 the following terms shall have the meanings ascribed thereto: "Closing Settlement" in relation to an OBX Futures Contract, means the process of cash settlement effected for such Contracts following the execution of a Closing transaction;

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"Closing Settlement Amount" means the amount payable to or by a Member in relation to a Closing Settlement; "Closing Transaction" in relation to an OBX Futures position, means a transaction which liquidates an existing futures position by registration of an equal and opposite position; "Conditions for the OBX Index" means the rules governing the composition of the OBX Index, the calculation of the Index Value, and adjustments thereto and other similar factors relating to the OBX Index which have been adopted by Oslo Brs and can be found on http://www.oslobors.no/ob_eng/Oslo-Boers/Regulations/Derivatives-rules as amended from time to time; "Daily Cash Settlement" in relation to an OBX Futures Contract, means the process of cash settlement effected for such Contracts on each Norwegian Trading Day during its lifetime; "Daily Settlement Amount" means the amount payable to or by a Member in relation to each Daily Cash Settlement; "Daily Settlement Price" in relation to an OBX Futures Contract, means the value certified as such by Oslo Brs on each Norwegian Trading Day as being the value of the OBX Index at the close of trading at Oslo Brs on such day; "Daily Settlement Statement" in relation to an OBX Futures Contract, means the note issued by Turquoise showing the amount payable to or by a Member on Daily Cash Settlement of the Contract in question; "Exercise Order" means an instruction given by the Holder of an OBX Option to Turquoise pursuant to Rules4.6.17 and4.6.18 requesting the Exercise of the Option in question; "Exercise Settlement Amount" means the monetary amount due to or payable by a Member on Exercise of an OBX Option Contract as specified in the Exercise Settlement Statement; "Exercise Value" in relation to an OBX Option, means the Strike Price for such Contract multiplied by the Index Multiplier. "Expiration Day" in relation to an OBX Contract, means the third Thursday in the Expiration Month for such Contract, or, if that day is not a Norwegian Trading Day, the immediately preceding Norwegian Trading Day; "Expiration Month" means the month designated by Turquoise as the month in which such Series will expire; "Expiration Settlement Amount" means the monetary amount due to or payable by a Member on expiration of an OBX Futures Contract as specified in the Settlement Statement; "Expiration Settlement Day" in relation to an OBX Futures Contract, means the first Norwegian Bank Day after the Expiration Day for the Contract in question; "Expiration Settlement Value" in relation to an OBX Contract, means the value certified as such by Oslo Brs in accordance with Rule 4.6.16; "Expiration Year" means the year designated by Turquoise as the year in which the Contract in question will expire; "First Daily Cash Settlement" in relation to an OBX Futures Contract entered into by a Member, means the first settlement carried out following registration of the Contract in question; "First Listing Day" in relation to an OBX Series, means the day on which such Series is first listed by Turquoise; "Norwegian Bank Day" means a day other than a Saturday or a Sunday or other public holiday on which banks in Norway are generally open for business; "Norwegian Trading Day" means a day other than a Saturday or Sunday on which the Oslo Stock Exchange is generally open for trading; "OBX Contracts" means standardised Futures and Options Contracts listed by Turquoise which are based on the OBX Index, the terms of which are in accordance with the Contract

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Specifications for such Contracts and "OBX Option" and "OBX Future" shall be construed accordingly; "OBX Expiration Value" means the average of the OBX Index Values for the Expiration Day for an OBX Contract, calculated in accordance with the Conditions for the OBX Index; "OBX Index" means the Norwegian Stock Index described more particularly in the Conditions for the OBX Index; "OBX Index Stock" means a stock which is included in the OBX Index for the time being; "OBX Market Maker" means a Member which has agreed to act as a market maker in respect of OBX Futures and Options Contracts; "OBX Options Series" means OBX Options having the same Expiration Day Expiration Month, Expiration Year and the same Exercise Price and "Series" shall be construed accordingly; "Opening Transaction" means an OBX Futures transaction which is not a Closing Transaction; "Premium Settlement Day" in relation to an OBX Option, means the first Norwegian Bank Day following registration; "Registered Price" in relation to an OBX Futures Contract means the price at which the Contract in question is traded; "Settlement Statement" means: (i) in relation to an OBX Futures Contract the note issued by Turquoise showing the rights and obligations of the Counterparties to such Contract with regard to the associated cash payments following its Expiration; and in relation to an OBX Options Contract, the note issued by Turquoise showing the rights and obligations of the Counterparties to such Contract with regard to the associated cash payments following its Exercise.

(ii)

4.6.3 4.6.3.1
Type of Contract

Contract Specifications Contract Specifications: Standardised OBX Futures

Standardised Futures Contracts with Expiration Settlement and Daily Cash Settlement. The OBX Index. NOK 100 per Index Point. 0.10 of an Index Point, equivalent to NOK 10, where the Futures price is less than 1000 0.25 of an Index Point, equivalent to NOK 25, where the Futures price is greater than or equal to 1000. Three and six months. Closing transactions may be executed on any Norwegian Trading Day up to and including the Expiration Day. The Expiration Day. Futures Contracts are listed in each calendar month on the First Listing Day. Each OBX Futures Contract shall be designated by a maximum of eleven symbols, where a maximum of four symbols designates the Contract Index, one symbol designates the Expiration Year, a maximum of four symbols designates the Futures Price and one symbol designates the Expiration Month. The first Norwegian Bank Day following Registration.

Contract Index Index Multiplier Minimum Price Movement

Lifetime Closing

Last Day for Trading Listing of New Series Series Designation

Initial Daily Settlement

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Daily Settlement

Cash Settlement on each Norwegian Bank Day based on the Daily Settlement Price of the Contract calculated on the preceding Norwegian Trading Day in accordance with Rule 4.6.14. Determined in accordance with Rule 4.6.16.

Expiration Settlement Value Expiration Day

The third Thursday of the Expiration Month of the Expiration Year, or where such day is not a Norwegian Trading Day, the preceding Norwegian Trading Day. The month indicated in the Series Designation. The year indicated in the Series Designation. Calculated in accordance with Rule 4.6.16.

Expiration Month Expiration Year Expiration Settlement Amount Expiration Settlement

Payment of the Expiration Settlement Amount is due on the Expiration Settlement Day in accordance with the instructions of the Designated Clearing House. The first Norwegian Bank Day following the Expiration Day.

Expiration Settlement Day Trading Hours

Normally between 9.00 am and 5.20 pm Oslo time.

4.6.3.2
Type of Contract Style of Options Type Contract Index Index Multiplier Minimum Price Movement

Contract Specifications: Standardised OBX Options

Standardised Options Contracts with Cash Settlement on Expiration. European Style. Calls and Puts. The OBX Index. NOK100 per Index Point. For Options with a Premium below NOK 0.1: 0.01 of an Index Point; For Options with a Premium from NOK 0.1 to NOK 3.95: 0.05 of an Index Point; For Options with a Premium from NOK 4 to NOK 7.90: 0.10 of an Index Point. For Options with a premium of NOK 8 or above: 0.25 of an Index Point. The amount in Norwegian Kroner agreed to by the parties as the premium payable for the Contract multiplied by the Index Multiplier. The first Norwegian Bank Day following Registration. The index value contained in the Series Designation. As shown in the Scale of Strike Prices. Three and six months. Closing transactions may be executed on any Norwegian Trading Day up to and including the Expiration Day for the Contract. The Expiration Day for the Series in question. The third Norwegian Trading Day prior to the Expiration Day in each month.

Premium

Premium Settlement Day Strike Price Strike Price Interval Lifetime Closing

Last Day for Trading Listing of New Series

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Series Designation

Each Series shall be designated by a maximum of eleven symbols, where a maximum of four symbols designates the Contract Index, one symbol designates the Expiration Year, one symbol designates the Expiration Month and a maximum of four symbols designates the Strike Price. The use of the symbol X indicates that the Contracts in the OBX Series in question have been adjusted in accordance with the Conditions for the OBX Index. The average index value for the Expiration Day calculated in accordance with Rule 4.6.16. The third Thursday of the Expiration Month or where such day is not a Norwegian Trading Day, the preceding Norwegian Trading Day. The month indicated in the Series Designation. The year indicated in the Series Designation. Payment of the Expiration Settlement Amount shall occur on the Expiration Settlement Day in accordance with Turquoise's instructions. The first Norwegian Bank Day following the Expiration Day.

Expiration Settlement Value Expiration Day

Expiration Month Expiration Year Expiration Settlement

Expiration Settlement Day Exercise Standard Exercise

OBX Options are subject to exercise in accordance with Rule 4.6.17. OBX Options which are In the Money at Expiration are subject to Standard Exercise in accordance with Rule 4.6.18. Normally between 9.00 am and 5.20 pm Oslo time.

Trading Hours

4.6.3.3 4.6.4
4.6.4.1 4.6.4.2

Deleted Listing of New OBX Contracts

On the third Norwegian Trading Day prior to the Expiration Date for OBX Contracts in each calendar month, Turquoise shall list OBX Futures Contracts with a Lifetime of three months. Turquoise lists standardised OBX Options Series having Lifetimes of three months. New Options Series with a Lifetime of three months are listed on the third Norwegian Trading Day prior to the Expiration Date for OBX Contracts in each month. On the First Listing Day for an OBX Options Series Turquoise shall list at least five Call Options Series and five Put Options Series. The equivalent contracts with a lifetime of six months are also listed every third calendar month. For one Call and one Put Options Series, the Strike Price shall be set at the point in Turquoise's scale of Strike Prices for OBX Contracts which is closest to the value of the OBX Index at the close of trading on Oslo Brs on the immediately preceding Norwegian Trading Day. For other Series, the Strike Price shall be set so that it is higher for at least one Call and one Put Options Series and lower for at least one Call and one Put Options Series than the first Strike Price. The Strike Price for the second Series shall be set at the point in such scale immediately above the first Strike Price. The Strike Price for the third Series shall be set at the point in such scale immediately below the first Strike Price.

4.6.4.3

4.6.4.4

If the final value of the OBX Index at the end of a Norwegian Trading Day is higher than the second highest or lower than the next lowest Strike Price at least one new Call and one new Put Options Series will be listed above the previously highest or below the previously lowest Strike Price, respectively, for Series having the same Expiration Month. Such listing shall be effected on the next Norwegian Trading Day.

4.6.5 4.6.6
4.6.6.1

Deleted Designation of Expiration Months

The Expiration Month for an Listed Series shall be designated in accordance with the following provisions of this Rule.

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4.6.6.2

The Expiration Month for an OBX Futures Contract shall be designated as follows: January February March April May June July August September October November December A B C D E F G H I J K L

4.6.6.3

The Expiration Month for an OBX Options Contract shall be designated as follows: Expiration Month January February March April May June July August September October November December Call Option A B C D E F G H I J K L Put Option M N O P Q R S T U V W X

4.6.7
4.6.7.1

Payment of Fees
Fees in respect of OBX Contracts are payable by Members in the amount and at the time specified in Appendix A for the Contract in question. Clearing fees for OBX Contracts are payable on the first Norwegian Bank Day following Registration of a Contract. Such fees shall be paid to the Designated Clearing House at the time specified in the relevant statement issued to the Member by the Designated Clearing House.

4.6.7.2

The penalty fee for failure to perform settlement obligations in relation to an OBX Contract at the prescribed time shall be payable to Turquoise or in accordance with its instructions on the first Norwegian Bank Day after the date of the notice requiring payment of the said penalty fee issued to the Member by Turquoise.

4.6.8
4.6.8.1 4.6.8.2

Market Making Obligations, Market Making Fees, Market Making Sanctions

The provisions of Rules 4.5.7, 4.5.7A and 4.5.8 shall apply to the provision of quotes by Market Makers in relation to OBX Futures and Options. Notwithstanding Rule 4.6.8.1, the following specific obligations apply in relation to OBX Futures and Options: The Prescribed Spread for a quote for a standardised OBX Future is as follows:

4.6.8.3

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Spread (NOK) Normal Market 0.6 0.9 1.3 2 2.5 3 4 Fast Market 1.2 2 3 4 5 7 8

Bid Price 0 150 150.10 350 350.10 500 500.10 700 700.10 850 850.10 - 1000 More than 1000

4.6.8.4

A Market Maker acting as such in standardised OBX Futures and Options shall quote two way prices within the Prescribed Spread continuously in a minimum amount of one hundred Contracts in each of the nearest two Expiration Months and a minimum of fifty Contracts in the third nearest Expiration Month in the OBX Index products for which it has agreed to act as a Norwegian Market Maker.

4.6.9 4.6.10
4.6.10.1 4.6.10.2

Deleted Orders
Orders relating to Futures and Options Contracts based on the OBX Index may be placed in the Single Order Market. A Single Order consists of an offer to buy or sell the number of OBX Contracts specified in the Order. This number may be any whole number in excess of one. A Member placing a Single Order may stipulate that the Order may only be executed in its entirety. In the absence of such stipulation, the offer may be accepted in any amount up to the specified number. Where an Order is executed partially the unfilled portion of the Order will remain in the Orderbook. Price quotations for OBX Futures and Options Contracts normally relate to one-hundredth of a Contract and are quoted in Index Points. The minimum price movements are detailed in the relevant Contract Specifications at Rule 4.6.3

4.6.10.3

4.6.11
4.6.11.1

Registration of off-exchange transactions

Where a Member enters into an off-exchange transaction in an OBX Contract with another Member or with a member of Oslo Brs, the Member shall submit a Request for Registration relating to such transaction to Turquoise at the earliest opportunity if it wishes the transaction to be registered. Such Request for Registration shall: (i) (ii) specify the Product which forms the subject of the off-exchange transaction; identify the counterparty to such transaction, the Series, the agreed price, the number of contracts involved in the transaction and the Account for registration.

4.6.11.2

A Request for Registration shall only be considered for acceptance by Turquoise and the Designated Clearing House if the counterparties to the off-exchange transaction submit identical requests specifying the Contracts to be registered, the Accounts in which the Contract is to be registered and the terms of the transaction in question to Turquoise and to Oslo Brs in question. A Request for Registration of an off-exchange transaction may be submitted to Turquoise by a Member either by way of its electronic connection to Turquoises clearing system or by telephone to Turquoises Market Operations Department as set out in Rule 3.2.5. A Request for Registration of an OBX Contract shall be considered for acceptance by Turquoise and the Designated Clearing House in accordance with Rule 3.2 and the following provisions of this Rule.

4.6.11.3

4.6.11.4

A Request for Registration of an OBX Contract in respect of an off-exchange transaction which has been concluded at a time when Turquoise is not open for trading OBX Contracts, will not normally be accepted by Turquoise and the Designated Clearing House unless the agreed price does not deviate from the average of the median of the bid and ask quotes for the Series

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in question during the period of thirty minutes prior to the close of trading on the day in question or, in the case of a request submitted before the start of trading on the morning of a Norwegian Trading Day, the close of trading on the immediately preceding Norwegian Trading Day for the Product in question by more than whichever is the greater of thirty per cent or 2 NOK. Where a Request for Registration of an OBX Contract is submitted in respect of a Series for which bid and ask prices are not quoted at the time, Turquoise shall obtain bid and ask quotes for such Series in conjunction with Oslo Brs as it considers appropriate. Where in the opinion of Turquoise an acceptable quote is obtained, the Request for Registration will be accepted by Turquoise and the Designated Clearing House if its price is within the spread of the quoted prices. If Turquoise considers that an acceptable quote has not been provided for such purposes, the acceptance of the Request for Registration shall be determined at their discretion. 4.6.11.5 The acceptance of a Request for Registration submitted under this Rule is at the discretion of Turquoise and the Designated Clearing House. Without limiting the generality of the foregoing, a Request for Registration shall not be accepted if such acceptance would not be conducive to the maintenance of a proper market in the Product in question or would not be consistent with the Designated Clearing Houses obligation to maintain a sound basis to its clearing services. Where a Request for Registration of an OBX Contract which is submitted by a Member during trading hours for such Contracts is accepted by Turquoise and the Designated Clearing House, Turquoise shall arrange with the Designated Clearing House for the resulting Registered Contract may be registered by the Designated Clearing House forthwith. Where a Request for Registration relating to an OBX Contract is submitted by a Member after the close of trading in such Contracts on a Norwegian Trading Day, the Contract in question shall be registered by the Designated Clearing House on that day if it is received and accepted by Turquoise and the Designated Clearing House before 6.30pm Oslo time. Where a Request for Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next Norwegian Trading Day. 4.6.11.7 Turquoise shall inform the Member or Members as soon as possible if a Request for Registration submitted under this Rule is not accepted for registration.

4.6.11.6

4.6.12
4.6.12.1

Requests for Re-Registration

A Request for Re-Registration of an OBX Contract made pursuant to Rule 3.4.2(vi) will not be considered by Turquoise and the Designated Clearing House unless it is received by electronic connection or other means no later than 30 minutes prior to the close of the clearing system for the OBX Contract on the Norwegian Trading Day following the day on which the Contract in question is registered by the Designated Clearing House. A Request for Re-Registration of an OBX Contract made pursuant to Rule 3.4.5.2(i) to (v) inclusive will not be considered by Turquoise and the Designated Clearing House unless it is received by electronic connection or by other means no later than 6.00 pm Oslo time on the last Norwegian Trading Day prior to the Expiration Date for the Contract in question. A Request for Re-Registration of an OBX Contract shall specify the following details: (i) (ii) (iii) the Contracts to be re-registered; the Account of the transferor; the Account of the transferee.

4.6.12.2

4.6.12.3

4.6.12.4 4.6.12.5

The acceptance of a Request for Re-Registration submitted under this Rule 4.6.12 is at the discretion of Turquoise and the Designated Clearing House. Where a Request for Re-Registration is received and accepted by Turquoise and the Designated Clearing House before 6.00 pm Oslo time on a Norwegian Trading Day, the Contract in question shall be registered by the Designed Clearing House on that day. Where a Request for Re-Registration is received by Turquoise after such time, it shall, if accepted, be registered by the Designated Clearing House on the next Norwegian Trading Day. Turquoise shall inform the Member or Members in question as soon as possible if a Request for Re-Registration submitted under this Rule is not accepted for Re-Registration.

4.6.12.6

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4.6.13
4.6.13.1 4.6.13.2

Cancellation of Incorrect Transactions

The provisions of Rule 2.14 concerning the cancellation of incorrect transactions shall be applied in relation to OBX Contracts in accordance with the following provisions of this Rule. Turquoise will not direct that an OBX transaction shall be cancelled in the absence of the agreement of the Counterparty to the transaction unless the period between the time at which the transaction is effected and the time at which the request is submitted is less than ten minutes and unless the loss suffered by the Member, as a consequence of the incorrect transaction not being cancelled, is NOK 1000 or more. The Fair Market Spread for OBX Futures and Options Contracts is as follows: Maximum Spread for Quotes (Index Points) 2 3 4 6 Maximum permitted deviation from Bid and Offer points of the Fair Market Spread 1 1.5 2 3

4.6.13.3

Quoted Bid or Offer (Index Points) 10 or less 10.01 20 20.01 30 more than 30 4.6.13.4

The Price Adjustment Range for OBX Contracts is as follows: Quoted Bid or Offer (Index Points) 10 or less 10.01 20 20.01 30 more than 30 Prescribed Spread for Quotes (Index Points) 2 3 4 6 Maximum Permitted Deviation 1 1.5 2 3

4.6.13.5

Turquoise will notify the Member or Members involved in the transaction of its decision in the case of a request relating to an OBX Contract no later than 8.00am on the Norwegian Trading Day following the day on which the transaction in question was effected.

4.6.14
4.6.14.1

Daily Cash Settlement

OBX Futures Contracts are subject to Daily Cash Settlement. The first such Daily Cash Settlement shall be due for settlement on the first Norwegian Bank Day following the Registration of the Contract. Thereafter, Daily Cash Settlement shall be effected on each Norwegian Bank Day until the Expiration Day for the Contract in accordance with the provisions of this Rule. The First Daily Settlement Price for an OBX Futures Contract shall be determined by reference to the difference between the Registered Price for the Contract in question and the Daily Settlement Price for the Contract on the day on which the Contract is registered at the Designated Clearing House. The Daily Settlement Amount for an OBX Futures Contract (other than the First Daily Cash Settlement Price) shall be determined by reference to the difference between the Daily Settlement Price for the OBX Futures Contract on the Norwegian Trading Day in question and the Daily Settlement Price for the immediately preceding Norwegian Trading Day for such Contract. Turquoise shall publish the Daily Settlement Price for each Listed OBX Futures Contract on the Norwegian Trading Day following the day to which the Daily Settlement Price relates. Where the Daily Settlement Price for an OBX Futures Contract on a Norwegian Trading Day is higher than: (i) (ii) on the First Daily Cash Settlement, the Registered Price for the Contract; or on each subsequent Daily Cash Settlement, the Daily Cash Settlement Price for the immediately preceding Norwegian Trading Day for such Contract

4.6.14.2

4.6.14.3

4.6.14.4 4.6.14.5

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the Daily Settlement Amount for such Settlement shall be payable to the buyer. Where the Daily Settlement Price for an OBX Futures Contract on a Norwegian Trading Day is lower than: (i) (ii) on the First Daily Settlement, the Registered Price for the Contract; or on each subsequent Daily Settlement, the Daily Settlement Price for the immediately preceding Norwegian Trading Day for such Contract

the Daily Settlement Amount for such Settlement shall be payable to the seller. 4.6.14.6 Turquoise shall issue Daily Settlement Statements to Members having registered positions in OBX Futures Contracts no later than 8.00am on the following Norwegian Trading Day in relation to each Norwegian Trading Day for the relevant OBX Futures Contract. The Daily Settlement Statement shall show the Daily Settlement Amount for such settlement and payable in Norwegian Kroner. The Daily Settlement Amount shall be payable no later than 9.00 am time London time on the first Norwegian Bank Day following the Norwegian Trading Day in question.

4.6.15
4.6.15.1

Closing Transactions
Where bought and sold positions in OBX Futures Contracts are registered in an Account at the Designated Clearing House, the positions will be closed out in accordance with the provisions of this Rule 4.6.15. Where both the Opening Transaction and the Closing Transaction are registered on the same day, cash settlement between the Designated Clearing House and the Member shall be effected by reference to the difference between the Futures Contract Prices for the two transactions. Where the Futures Contract Price for the Contract bought by the Member is higher than the Futures Contract Price for the Members sold Contract, the Closing Settlement Amount shall be payable by the Member. Where the Futures Contract Price for the Contract bought by the Member is lower than the Futures Contract Price for the Members sold Contract, the Closing Settlement Amount shall be payable to the Member. Where the Opening Transaction and the Closing Transaction are registered on different Norwegian Trading Days, the Closing Settlement between the Designated Clearing House and the Member shall be effected by reference to the difference between the Daily Settlement Price for the Opening Transaction on the immediately preceding Norwegian Trading Day and the Futures Contract Price for the Closing Transaction. Where the Daily Settlement Price or Futures Contract Price (as the case may be) for the Members bought position is higher than the Daily Settlement Price or Futures Contract Price for the Members sold position, the Closing Settlement Amount shall be payable by the Member. Where the Daily Settlement Price or Futures Contract Price (as the case may be) for the Members bought position is lower than the Daily Settlement Price or Futures Contract Price for the Members sold position, the Closing Settlement Amount shall be payable to the Member. The Closing Settlement Amount shall be payable to or by the Designated Clearing House on the first Norwegian Bank Day following the day on which the Closing Transaction is registered at the Designated Clearing House.

4.6.15.2

4.6.15.3

4.6.15.4

4.6.16
4.6.16.1 4.6.16.2

OBX Futures Contracts: Expiration Settlement

OBX Futures Contracts are subject to cash settlement on Expiration in accordance with the provisions of this Rule. The Expiration Settlement Amount for an OBX Futures Contract shall be determined by reference to the difference between the Daily Settlement Price for such Contract on the day before its Expiration Day and its Expiration Settlement Value. The payment of the Expiration Settlement Amount shall be due on the Expiration Settlement Day for the OBX Futures Contract in question. Where the Expiration Settlement Value for an OBX Futures Contract is higher than the Daily Settlement Price for such Contract on the day before its Expiration Day, the Expiration Settlement Amount shall be payable to the Buyer and by the Seller.

4.6.16.3 4.6.16.4

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Where the Expiration Settlement Value for an OBX Futures Contract is lower than the Daily Settlement Price for such Contract on the day before its Expiration Day, the Expiration Settlement Amount shall be payable by the Buyer and to the Seller. The Expiration Settlement Value for OBX Futures Contracts is calculated by Oslo Brs in accordance with the principles set out in this Rule. Oslo Brs publishes the Expiration Settlement Value of the OBX Index that is to be used as the basis for cash settlement of OBX Contracts which expire on the Expiration Day in question on the Norwegian Trading Day immediately following the Expiration Day. Turquoise shall notify all Members of the determined Expiration Settlement Price of the OBX Index. The published Expiration Settlement Value is final and binding. Turquoise may defer its Expiration Settlement procedures for OBX Futures Contracts if similar circumstances to those specified above occur which prevent settlement being effected at the normal time. Turquoise shall inform Members at the earliest opportunity if any such circumstances occur. A standardised OBX Futures Contract is an agreement to buy or sell the value of the Contract Index on the Expiration Day to be settled in accordance with the rules regarding cash settlement below. The agreed Futures Contract Price is determined when the transaction is effected at Turquoise. 4.6.16.5 All obligations to make cash payments under the OBX Futures Settlement Procedures shall be effected by way of the PPS arrangements established by the Designated Clearing House for such purposes. Such payments shall be effected in accordance with the instructions issued by Turquoise. All payments required to be made under the settlement procedures set out in Rules 4.6.14 to Rules 4.6.18 shall be made in accordance with Turquoise's instructions. Such payments shall be made in NOK. Turquoise will issue Daily Cash Settlement Statements and Expiration Settlement Statements showing the sum due to or payable by the Member no later than the time specified in the Settlement Statement. In the absence of manifest error, Turquoise's Settlement Statements shall be final and binding. The Expiration Settlement Value for an OBX Futures Contract is calculated in accordance with the following provisions of this Rule. The OBX Index Value is calculated in accordance with the following formula: MC 1 I1 I0 MC 0

4.6.16.6

4.6.16.7

I1

= = = =

New index value Index value at the close of the preceding Trading Day Index groups market capitalisation at the time of calculation Index groups adjusted market capitalisation at the close of the preceding Trading Day.

I0
MC 1

MC 0

The Market Capitalisation of the OBX Index for the purposes of determining the Expiration Settlement Value is calculated by reference to the volume weighted average of the automatically matched trades in the electronic orderbook of each OBX Index Stock on Oslo Brs on the Expiration Day. The formula used by Oslo Brs for such purposes is: MC sum of PI i J AI i

PI i =

volume weighted average of the official turnover of the index share i number of shares issued in the share class i adjustment factor resulting from capital alterations

AI i = J =

If Oslo Brs considers that it is not possible to make a satisfactory calculation of the Expiration Settlement Value in accordance with the above mentioned principles as a result of the inadequate level of trading on the Expiration Day, the officially registered traded prices of each OBX Index on the last Norwegian Trading Day prior to the Expiration Day on which Oslo Brs considers the level of trading to be adequate shall be used in the calculation of the Expiration Settlement Value.

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If Oslo Brs considers the price of an index share to be influenced so that a representative fixing value cannot be calculated, the volume weighted average of trading prices of the index share from the last Norwegian Trading Day on which Oslo Brs considers the level of trading to be adequate shall be used in the calculation. If all the shares included in the index group are suspended from trading on the Expiration Day, the Expiration Settlement Value shall be calculated from the prices on the first Trading Day after the end of the suspension, and the Expiration Day will be changed to this day.

4.6.17
4.6.17.1 4.6.17.2

Options: Exercise
Standardised OBX Options are European Style and are accordingly only subject to Exercise on Expiration. OBX Options are also subject to Standard Exercise in accordance with Rule4.6.18. Accordingly, an OBX Option held by a Member the Exercise of which would result in the Expiration Settlement Amount for such Contract being payable to that Member will be subject to Standard Exercise provided that such Expiration Settlement Amount is greater than the fees payable by the Member on Exercise of the Contract in question. Where the Holder of an Option wishes to exercise an Option which is not subject to Standard Exercise, it shall submit an Exercise Order to Turquoise providing full details of the Option in question. An Exercise Order relative to an OBX Option which is received by Turquoise after 6.30 pm Oslo time on the Expiration Day for such Contract is void. On receiving a valid Exercise Order, Turquoise shall inform the Member which submitted it that it has been accepted and shall select at random a correlative OBX Options position to be exercised against. Turquoise shall also inform the Designated Clearing House of such Exercise so that the necessary action may be taken in relation to the Registered Contracts in question. On Exercise of an OBX Options Contract in accordance with this Rule, Turquoise shall issue an Exercise Settlement Statement confirming the cash payment which such Member is entitled to receive or is obliged to make as the case may be. On Exercise of an OBX Option, the Exercise Settlement Amount for such Contract shall be payable to the Holder of a Call Option or the Holder of a Put Option and shall be payable by the Member whose position has been exercised against pursuant to this Rule 4.6.17. The Exercise Settlement Amount shall be determined by multiplying the amount by which the Strike Price for the OBX Option Contract in question exceeds the Exercise Settlement Price on the Expiration Day for such Contract by the Index Multiplier. The Exercise Settlement Amount for an OBX Option Contract shall be due for settlement on the first Norwegian Bank Day following the Contract's Expiration Day.

4.6.17.3

4.6.17.4 4.6.17.5

4.6.17.6

4.6.17.7

4.6.17.8

4.6.17.9

4.6.18
4.6.18.1 4.6.18.2

Options: Standard Exercise

OBX Options Contracts will be subject to Standard Exercise in accordance with the following procedures. Standard Exercise will be applied to all OBX Options Contracts the exercise of which would result in a positive cash payment to the Member entitled to exercise such Option. Accordingly: (i) a Call Option Series which has a Strike Price which is less than the Exercise Settlement Price on the Expiration Day, calculated in the manner described in Rule4.6.17 will be subject to Standard Exercise. a Put Option Series which has a Strike Price which is above the Exercise Settlement Price on the Expiration Date, calculated in the manner described in Rule4.6.17, will be subject to Standard Exercise.

(ii)

In applying these Standard Exercise procedures, Turquoise does not take the fees payable by the Member in question in respect of such Exercise into account. 4.6.18.3 At about 6.00 pm Oslo time on the Expiration Day for an OBX Option, Turquoise will send to Members holding positions in such Options a list of the relevant Series expiring that day which

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will be subject to Standard Exercise in accordance with the above procedures. All Call Options and all Put Options shown on such list will be exercised automatically by Turquoise. Turquoise shall inform the Designated Clearing House of all positions that will be subject to Standard Exercise so that the Designated Clearing House may take the necessary action in relation to the Registered Contracts in question. 4.6.18.4 The Exercise Settlement Amount for an OBX Contract which is subject to Standard Exercise in accordance with this Rule shall be determined in the manner provided for in Rule 4.6.17.9.

4.6.19
4.6.19.1

OBX Composition and Related Matters

The responsibility for the calculation of the OBX Index, the determination of the composition of the OBX Index, the distribution of OBX Index Values, the determination of the Expiration Settlement Value of the OBX Index and dealing with all objections to such matters rests with Oslo Brs. Where a Member of Turquoise wishes to object to any such issue, it shall inform Turquoise of its grounds of complaint. Turquoise shall refer the matter to Oslo Brs which shall resolve the matter in accordance with its established procedures outlined in its rules governing such matters.

4.6.19.2

The rules of Oslo Brs which govern the above mentioned matters can be found on http://www.oslobors.no/ob_eng/Oslo-Boers/Regulations/Derivatives-rules;

Addendum to Rule 4.6.19: The Rules for the Construction and maintenance of the OBX contains the basis for calculation of the OBX Index, including the rules how adjustments shall be made in issue, corporate restructuring, etc and under what circumstances shares can be excluded upon calculation of the index. The conditions for the OBX can be found at http://www.oslobors.no/ob_eng/Oslo-Boers/Regulations/Derivativesrules.

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PART 4.7
4.7.1 4.7.1.1

FUTURES AND OPTIONS CONTRACTS BASED ON THE FTSE 100 INDEX

Introductory The product specifications for Index Futures Contracts and Index Options Contracts (the Derivative Contracts) based on the FTSE 100 Index, listed by Turquoise, and all rules and procedures relating specifically to the trading, clearing and settlement of such Derivative Contracts are set out in this Part 4.7. These Derivative Contracts are offered for trading on Turquoise during Trading Hours on UK Trading Days. The FTSE 100 Index is described in the Ground Rules for the management of the FTSE 100 Index and is available from www.ftse.com/Indices. The FTSE 100 Index is licensed to Turquoise by FTSE International Limited in its capacity as the Index Provider and calculated continuously during the day on each UK Trading Day by FTSE International Limited (both FTSE) in its capacity as the Index Calculator for the FTSE 100 Index. In the event of computer failure or lack of information the frequency of calculations and reports may be altered. All references to time in this Part 4.7 shall be construed as references to London time unless indicated otherwise. The application and interpretation of this Part 4.7 shall be governed by English law and the Courts of England and Wales shall have exclusive jurisdiction to determine any dispute arising out of or in connection with this Part 4.7 Interpretation In this Part 4.7 the following terms shall have the meanings ascribed thereto: In relation to Derivative Contracts (Futures Contracts and Option Contracts) Clearing Application means the application used by Members to perform back office functions on Turquoise (also referred to as BCS Application); Contract means the individual traded unit of a Derivative; Closing Settlement means the process of cash settlement effected for derivative Contracts following the execution of a Closing Transaction;; "Closing Settlement Amount" means the amount payable to or by a Member in relation to a Closing Settlement; "Closing Transaction" means the closing of a position in a Derivatives Contract; Daily Settlement Price means the price against which a Future Contract is settled at the end of each UK Trading Day or the price against which American style Option Contracts are early exercised; Derivatives means an Option or a Future; Expiration means the moment that a Derivatives Contract ceases to exist, and therefore is no longer tradable; Expiration Day is the date on which Expiration occurs; Expiration Settlement Amount means the monetary amount due to or payable by a Member on Expiration of a Derivatives Contract as specified in the statement for the Contract in question; these statements are made available to Members through the Clearing Application each Trading Day Expiration Settlement Price in relation to a Derivative Contract, means the price against which Derivative Contracts are settled upon Expiration; Expiration Year means the year in which Expiration occurs.

4.7.1.2 4.7.1.3 4.7.1.4

4.7.1.5 4.7.1.6

4.7.2 4.7.2.1 4.7.2.2

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FTSE 100 Index (and the FTSE 100 Index compilation and calculation methods) is described more particularly in the conditions for the FTSE 100 Index which are set out at www.ftse.com/Indices as amended from time to time; Index means (a) a nominated sector of share issuance, (b) a list of shares in such sector (the constituent shares); and (c) the algorithm in accordance with which prices of such constituent shares are combined to generate a single figure which is calculated by the Index Provider or the Index Calculator, as the case may be (an Index figure) and published from time to time; Index Calculator or Index Provider means the organisation that has responsibility for provision and/or the calculation of the Index in accordance with its Rules; Listing Day means the date on which a Derivative Contract is first listed by Turquoise; Opening Transaction means the opening of a position in a Derivatives Contract; Open position means a position that has not been closed; Registration means the entering into the system of a trade that was bilaterally negotiated away from Turquoise; Series means a Derivative Contract; Settlement means the process of moving cash and/or the physical underlying (where applicable) between Members, normally resulting from trading activities such as Assignment, Exercise, Opening Transactions, Closing Transactions, etc; Settlement Day means the day on which cash and/ or stock is moved between Members. For FTSE100 Derivatives Contracts, this is the first UK Trading Day following the Trade Day or Expiration Day; Trading Hours means the time during which Derivative Contracts are available for trading as further detailed in the relevant contract specifications; Trade Day means the date on which a Contract is traded (T); Trading Day means a day other than a Saturday or a Sunday or other holiday on which banks in the United Kingdom are generally open for business as published in Turquoises trading and settlement calendar on its website at www.tradeturquoise.com; Underlying means the Index, commodity, share or any other financial instrument on which a Derivative Contract is based;

4.7.2.3

In relation to Futures Contracts only "Daily Cash Settlement" means the process of cash settlement effected for such Future Contracts on each UK Trading Day during its lifetime in accordance with Rule 4.7.11; "Daily Settlement Amount" means the amount payable to or by a Member in relation to each Daily Cash Settlement; Fair Value means the theoretical Daily Settlement Price calculated using the following elements: the closing value of the FTSE 100 Index as calculated by FTSE International each UK Trading Day at 16:35 following the closing auction on the London Stock Exchange, applicable interest rate, dividend amount and ex dividend day; Future Contract means a Contract that confers an obligation to trade the Underlying at a pre-defined price on a pre-defined date in the future; Future Price means the level (price) at which the counterparties agree to trade on Expiration;

4.7.2.4

In relation to Option Contracts only Assignment means the act effective on the seller (the Writer) of an Option Contract where the buyer (the Holder) has exercised its right to Settlement under the terms of the Option Contract and the seller must deliver on those terms.

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At-The-Money means an Options Contract whose strike price is equal to the spot price at a given point in time (e.g. at Expiration); Call Option means an Option Contract that gives the buyer the right but not the obligation to buy the Underlying at the agreed price from the seller; End of Day Price means price used to calculate theoretical value of Option Contractpositions in order to facilitate the margining process at the clearing level. This price is calculated in accordance with standard Black Scholes options pricing model (www.tradeturquoise.com); Exercise means the act whereby the buyer (the Holder) of an Options Contract chooses to exercise its right to buy or sell the Underlying to the seller (the Writer) under the terms of the Option Contract and will receive Settlement on those terms. Exercise Fee means the fee charged by Turquoise for exercising and being assigned. This fee is charged to both counterparties in line with all other types of fee; Exercise Settlement Price means the price of the Underlying (the Spot Price), against which an Option Contract is exercised; on Expiration this Exercise Settlement Price shall be equal to the Expiration Settlement Price, on all other UK Trading Days, it shall be equal to the Daily Settlement Price Exercise Settlement Amount means the monetary amount due to or payable by a Member on Exercise of an Options Contract as specified in the relevant statement. Exercise Window means the period of time during which Options Contracts are automatically exercised in accordance with the particular Option Contract specifications; In-the-Money means an Options Contract that would result in a profit to the buyer if exercised at that moment; Options Contract means a Contract that confers the right but not the obligation to trade the Underlying at a pre-defined price on a pre-defined date in the future; Out-Of-The-Money means an Options Contract that would result in a loss to the buyer if exercised at that moment in time; Premium means the level (price) at which an Option Contract is valued and is payable by the buyer to the seller upon completion of a trade. This payment secures the right to buy or the right to sell at the Strike Price on Exercise; Premium Settlement Day means the date on which the Premium is settled; Put Option means a Derivative Contract that gives the buyer the right but not the obligation to sell the Underlying at the agreed price to the seller; Strike Price means the price at which an Option Contract will be settled if exercised. The right to buy or sell at the Strike Price is secured by the payment of a Premium on the Trade Day.

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4.7.3 Type of Contract

Standardised FTSE 100 Index Futures Contract Specifications Index Futures Contract The FTSE 100 Index GBP 10 per Index point 0.5 points

Contract Underlying Index Multiplier Tick Size (Minimum Price Movement) Quotation display Daily Settlement Price

Index points The closing value of the FTSE 100 Index as calculated by FTSE each UK Trading Day at 16:35 following the closing auction on the London Stock Exchange. This value is adjusted by Turquoise to reflect Fair Value and rounded to two decimal places. The Expiration Day The Monday preceding the Expiration Day each month. Where this is not a normal UK Trading Day, the preceding UK Trading Day shall be used.

Last Trading Day Listing Day

Series Designation

Each series on the Turquoise derivatives platform is designated by a maximum of eight symbols where; a maximum of six symbols designates the Contract Underlying, one symbol designates the Expiration Year and one symbol designates the Expiration Month. The value of the FTSE 100 expiry Index as calculated by FTSE at 10:15am on the Expiration Day or as soon as reasonably practicable, following the intraday auction on the London Stock Exchange (http://www.londonstockexchange.com/tradersand-brokers/rules-regulations/exchange-delivery-settlement-price.htm) (plus up to 30 seconds random interval and any price monitoring extensions or market order extensions in any of the constituent stocks). Turquoise shall take this value and round to the nearest 0.5 index points to establish the Expiration Settlement Price. The third Friday in the Expiration Month. Where this is not a normal UK Trading Day, the preceding UK Trading Day shall be used. March, June, September, December. One year lifetime The year indicated in the Series designation As indicated on the statement

Expiration Settlement Price

Expiration Day

Expiration Months Lifetime Expiration Year Expiration Settlement Amount Expiration Settlement Day Settlement Style Trading Hours

First UK Trading Day following the Expiration Day

Cash settled 08:00 16:30 London time 07:30 17:30 London time phone reporting of block trades On Expiration Day, trading finishes as soon as reasonably practicable after 10:15am once the Expiration Settlement Price of the Index has been determined

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4.7.4 Type of Contract Contract Underlying Index Multiplier Tick Size (Minimum Price Movement) Quotation display End of Day Price Standardised FTSE 100 Index Options Contract Specifications European style Index Options Contract FTSE 100 Index GBP 10 per Index point 0.5 points

Premium in Index points Price used to calculate theoretical value of Option Contract positions in order to facilitate the margining process at the clearing level. This price is calculated in accordance with standard Black Scholes options pricing model (www.tradeturquoise.com);. The closing value of the FTSE 100 Index as calculated by FTSE each UK Trading Day at 16:35 following the closing auction on the London Stock Exchange. This value is rounded to the nearest 0.5 index points. The Expiration Day The Monday preceding the Expiration Day each month. Where this is not a normal UK Trading Day, the preceding UK Trading Day shall be used. Each series on the Turquoise derivatives platform is designated by a maximum of eight symbols where; a maximum of six symbols designates the Contract Underlying, one symbol designates the Expiration Year and one symbol designates the Expiration Month. Remaining numeric characters in the series code indicate the Strike Price of the Option Contract. The value of the FTSE 100 expiry Index as calculated by FTSE at 10:15am on the Expiration Day or as soon as reasonably practicable, following the intraday auction on the London Stock Exchange (http://www.londonstockexchange.com/tradersand-brokers/rules-regulations/exchange-delivery-settlement-price.htm) (plus up to 30 seconds random interval and any price monitoring extensions or market order extensions in any of the constituent stocks). Turquoise shall take this value and round to the nearest 0.5 index points to establish the Expiration Settlement Price. The third Friday in the Expiration Month. Where this is not a normal UK Trading Day, the preceding UK Trading Day shall be used. March, June, September, December, plus front two non-quarterly months Two-year lifetime for quarterly Options Contracts Three-month lifetime for all other Options Contracts The year indicated in the Series designation As indicated on the statement

Daily Settlement Price

Last Trading Day Listing Day

Series Designation

Expiration Settlement Price

Expiration Day

Expiration Months Lifetime

Expiration Year Expiration Settlement Amount Expiration Settlement Day Settlement Style Exercise Window Automatic Exercise Rule

First UK Trading Day following the Expiration Day

Cash settled 18:10 - 18:40 London Time on the Last Trading Day only Applicable to all Series that are In-The-Money

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Trading

08:00 16:30 London time 07:30 17:30 London time phone reporting of block trades On Expiration Date, trading finishes as soon as reasonably practicable after 10:15am once the Expiration Settlement Price of the Index has been determined

4.7.5 4.7.5.1

Changing of the Listing or Expiration Day of a Series Turquoise reserves the right to adjust either of the Listing Day or the Expiration Day in respect of any given Series where such adjustment is deemed necessary in the interest of the market. Members shall be informed in advance via a market notice of any such intended adjustment. For newly listed Options Contracts Turquoise shall list Call Options and Put Options in accordance with the Strike Price Generation document published on the Turquoise website (www.tradeturquoise.com). Designation of Expiration Months The Expiration Month for Derivative Contracts shall be designated as follows: Months January February March April May June July August September October November December Futures Contracts H M U Z Options Contracts Call Options Put Options A M B N C O D P E F G H I J K L Q R S T U V W X

4.7.5.2

4.7.6 4.7.6.1

4.7.7 4.7.7.1

Payment of Fees Fees are payable by Members in the amount and at the time specified in the Turquoise Derivatives Tariff (Fee) Schedule published on the Turquoise website (www.tradeturquoise.com), as amended from time to time. Details of any fee incentive programs or temporary adjustments to any fees shall be notified to Members by way of a market notice and corresponding update to the Tariff Schedule on the Turquoise website. Orders A single order consists of an offer to buy or sell the number of Derivative Contracts specified in the order. Registration of off-exchange transactions This service is available in accordance with Rules 2.9 to 2.12. Rules for Non-Standardised Contracts (tailor made contracts) Such Non-Standardised Contracts are available in accordance with Rule 2.13. Market Making All details covering market making activity are outlined in Rule 2.5 and in the Market Making document on the Turquoise website.

4.7.7.2

4.7.8 4.7.8.1 4.7.9 4.7.9.1 4.7.10 4.7.10.1 4.7.11 4.7.11.1

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4.7.12 4.7.12.1 4.7.12.2

Expiration Settlement Price Members shall be aware that the Expiration Settlement Price may vary from that trading days highs and lows. Turquoise shall notify all Members of the determined Expiration Settlement Price in question via a market notice. Statements Detailed statements/ reports in relation to account/ position activity referred to in the Rules below are available to Members through the Clearing Application. These statements include information that show the amounts due to or payable by the Member. The statements are available normally no later than 10:00pm on each UK Trading Day.

4.7.13 4.7.13.1

4.7.13.2

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4.7.14 4.7.14.1 Index Futures Contracts: Expiration and Settlement A Futures Contract is an agreement to buy or sell an Underlying on the Expiration Day and to be settled in accordance with the Rules regarding Cash Settlement. The agreed Futures Price is the amount the buyer agrees to pay for an Underlying on Expiration Day. Daily Cash Settlement of an Index Futures Contract shall be effected in accordance with the Daily Cash Settlement procedures set out in Rule 4.7.14 on each UK Trading Day prior to the Expiration Day. Expiration Settlement of an Index Futures Contract shall be effected as a final Daily Cash Settlement on the Expiration Settlement Day for such Contract in accordance with the procedures specified in Rule 4.7.14. 4.7.14.3 All obligations to make cash payments under the procedures governing Daily Cash Settlement or Expiration Settlement of Index Futures Contracts shall be effected by way of the Protected Payment System (PPS) arrangements established by the Designated Clearing House for such purposes. Such payments shall be effected in accordance with the instructions issued by the Designated Clearing House. All payments required to be made under the settlement procedures shall be made in accordance with instructions issued by the Designated Clearing House. Such payments shall be made in the currency of the Index Futures Contract. Index Futures Contracts: Daily Cash Settlement Index Futures Contracts are subject to Daily Cash Settlement. The first Daily Cash Settlement shall be due on the first UK Trading Day following the Registration of the Index Futures Contract. Thereafter, Daily Cash Settlement shall be effected on each UK Trading Day until the Expiration Day for the Index Futures Contract in accordance with the provisions of this Rule. During the term of an Index Futures Contract, the Daily Settlement Price shall normally be determined in accordance with the process provided for in the relevant Contract specification. The First Daily Settlement Amount for an Index Futures Contract shall be determined by reference to the difference between the Future Price for the Index Futures Contract in question and the Daily Settlement Price for the Index Futures Contract on the UK Trading Day on which the Index Futures Contract is registered by the Designated Clearing House. Where the Future Price for such Index Futures Contract is higher than the Daily Settlement Price on the UK Trading Day in question, the First Daily Settlement Amount shall be payable to the seller. Where the Future Price for such Contract is lower than the Daily Settlement Price on the UK Trading Day in question, the First Daily Settlement Amount shall be payable to the buyer. 4.7.15.5 The Daily Settlement Amount for an Index Futures Contract (other than the First Daily Settlement Amount) shall be determined by reference to the difference between the Daily Settlement Price for the Index Futures Contract on the UK Trading Day in question and the Daily Settlement Price for the immediately preceding UK Trading Day for such Index Futures Contract. Where the Daily Settlement Price for an Index Futures Contract on a UK Trading Day is higher than the Daily Settlement Price for the immediately preceding UK Trading Day for such Contract the Daily Settlement Amount shall be payable to the buyer. Where the Daily Settlement Price for an Index Futures Contract on a UK Trading Day is lower than the Daily Settlement Price for the immediately preceding UK Trading Day for such Index Futures Contract, the Daily Settlement Amount shall be payable to the seller. 4.7.15.7 The Daily Settlement Amount shall be payable on the first UK Trading Day following the UK Trading Day in question in accordance with the instructions of the Designated Clearing House. Index Futures Contracts: Closing Transactions Open positions in Index Futures Contracts registered in an account at the Designated Clearing House will be closed out in accordance with the provisions of this Rule.

4.7.14.2

4.7.14.4

4.7.15
4.7.15.1

4.7.15.2 4.7.15.3

4.7.15.4

4.7.15.6

4.7.16 4.7.16.1

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4.7.16.2 Where both the Opening Transaction and the Closing Transaction are registered on the same UK Trading Day, cash Settlement between the Designated Clearing House and the Member shall be effected by reference to the difference between the Futures Price for the two transactions. Where the Futures Price for the Members bought Contract is higher than the Futures Price for the Members sold Contract, the Closing Settlement Amount shall be payable by the Member. Where the Future Price for the Members bought Contract is lower than the Future Price for the Members sold Contract, the Closing Settlement Amount shall be payable to the Member. 4.7.16.3 Where the Opening Transaction and the Closing Transaction are registered on different UK Trading Days, the Closing Settlement between the Designated Clearing House and the Member shall be effected by reference to the difference between the Daily Settlement Price for the immediately preceding UK Trading Day and the Future Price for the Closing Transaction. The Closing Settlement Amount shall be payable to or by the Designated Clearing House on the first UK Trading Day following the day on which the Closing Transaction is registered at the Designated Clearing House. Index Options Contracts: Exercise European style Options Contracts are only subject to automatic Exercise on Expiration. American style Options Contracts are subject to automatic Exercise on Expiration but may also be exercised on any UK Trading Day during the lifetime of the Options Contract. All Options Contracts are subject to automatic Exercise provided that they are In-the-Money on Expiration. Option Contracts At-The-Money and Out-Of-The-Money are not subject to automatic Exercise and will expire worthless, unless Exercise is expressly requested as per Rule 4.7.17.5
Exercise Window / manual Exercises Open Close 07:30 18:10 18:00 18:40 All times are London times

4.7.16.4

4.7.17 4.7.17.1 4.7.17.2 4.7.17.3

Option style American style European style and American style

Exercise Any UK Trading Day from Trade Day until the UK Trading Day before Expiration Day Expiration Day only

4.7.17.4 4.7.17.5 4.7.17.6 4.7.17.7 4.7.17.8

On Expiration Day, at the start of the Expiration Window, a report detailing all the Options Contracts subject to automatic Expiration shall be made available in the clearing system. Where the holder of an Option Contract wishes to exercise an Option if possible (as per the table above), it shall exercise such Option Contract via the BCS clearing application. This request must be submitted during the relevant Exercise Window as per the table above for the Option Contract in question. On Exercise of an Option Contract, the Exercise Settlement Amount will be indicated on the statements made available to Members in accordance with Rule 4.7.13. If the Option Contract is a Put Option, the Exercise Settlement Amount shall be determined by multiplying the amount by which the Strike Price for the Options Contract in question exceeds the Exercise Settlement Price for such Options Contract by the Index Multiplier and the number of Option Contracts. If the Option Contract is a Call Option, the Exercise Settlement Amount shall be determined by multiplying the amount by which the Strike Price for the Options Contract in question is below the Exercise Settlement Price for such Options Contract by the Index Multiplier and the number of Option Contracts. The Exercise Settlement Amount for an Options Contract shall be due for Settlement on the first UK Trading Day following the Contract's Expiration Day.

4.7.17.9

4.7.17.10

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PART 5 5.1

DEFAULT RULES Definitions and Interpretation

In this Part 5: "Account" means an Account opened in accordance with the LCH Regulations; "Declared a defaulter" in relation to a Member or a designated non-member, means declared a defaulter under Rule 5.4.1 or deemed to have been declared a defaulter by virtue of Rule 5.4.2; "Default" or "in default" in relation to a Member or designated non-member, means that an event or circumstance referred to in Rules 5.3 or 5.4.1 has occurred in respect of such Member or designated non-member; "Defaulter" means a Member or designated non-member whom Turquoise has declared a defaulter; "Default Rules" has the meaning ascribed to it in Part 1; "Default Settlement Amount" means the amount arrived at on each account drawn up under Rule5.5.6 by, on each such account, aggregating all settlement amounts credited and all settlement amounts debited to such account and setting-off the aggregated amounts of such credits against the aggregated amount of such debits; "designated non-member" means a person designated or a person falling within a description of persons designated from time to time by Turquoise as a person or persons in respect of whom action may be taken under Rules 5.4 and 5.5; "Market Maker" has the meaning given in Part 1; "Associated Clearing House" means any clearing house which Turquoise designates as such from time to time; "Member" has the meaning given in Part 1; "Market Contract" for the purposes of these Default Rules means a Futures Contract or an Options Contract or any other Contract, whether platform traded or a bilateral Contract reported to Turquoise in accordance with its Rules for Cleared Only Contracts, registered under the terms of the Rules of Turquoise and the Clearing House Regulations including, without limitation, the default Rules incorporated in the Clearing House Regulations; Every Market Contract is a market contract on Turquoise under section 155(2)(a) of the Companies Act 1989. The principals to each such Market Contract are the Member, or the Members General Clearing Member, and the Designated Clearing House. The Designated Clearing House enters into each such contract for the purpose of the provision of clearing services to Turquoise. Every Market Contract is also a market contract at the Designated Clearing House under section 155(3) of the Companies Act 1989. "Relevant office-holder" has the meaning given in section 189 of the Companies Act 1989; "Settlement amount" in relation to an unsettled Market Contract means the amount determined as being due to or from the Designated Clearing House in accordance with the Default Rules or, where applicable, the corresponding provisions of the Rules governing the unsettled Market Contract in question; "Unsettled Market Contract" means a Market Contract in respect of which the rights and liabilities of the parties thereto have not been discharged whether by performance, compromise or otherwise.

5.2
5.2.1 5.2.2

Application
Rules 5.4, 5.5 and all other provisions of the Default Rules other than Rule 5.14 shall apply to Members and designated non-members who are defaulters. The provisions of the Default Rules other than Rules 5.4 and 5.5 shall apply to Members and designated non-members who are not defaulters.

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5.2.3

This Part 5 is without prejudice to, but in the case of any conflict takes precedence over, any other provisions of these Rules or of any other rules or the terms of any other agreement which provide for the settlement of Market Contracts whether on a default or otherwise.

5.3
5.3.1

Events of Default
If: (a) a Member or designated non-member fails to fulfil any obligations arising from Futures and Options Contracts registered in his Account whether arising under these Rules or otherwise: or a Member is in breach of these Rules, the Membership Agreement (where applicable), the Market Maker Agreement (where applicable) or any other rules or regulations from time to time applicable to trading in and/ or clearing of the Contracts or any other contracts made with Designated Clearing House or any other agreement entered into between Turquoise and a Member relating thereto or to the provision of trading and clearing services by Turquoise or fails to pay any sums due to Turquoise pursuant to the Rules or any other such agreements, rules or regulations; or a Member or designated non-member fails to pay any sum due and payable or is otherwise in default under the terms of any agreement; or a Member or designated non-member generally not paying its debts as such debts become due, or admitting its inability to pay its debts generally or becoming or being deemed to have become unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986, or making a general assignment for the benefit of creditors or any proceedings being instituted or steps being taken by or against a Member or a designated non-member seeking to adjudicate it bankrupt or insolvent, or seeking liquidation, winding-up, re-organisation, dissolution, administration, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or re-organisation or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, administrative receiver, liquidator, provisional liquidator, administrator, trustee or other similar official for it or for any substantial part of its revenues and assets (except, in each case, for the purpose of a reconstruction or amalgamation by a member, the terms of which have previously been approved by Turquoise in writing); or a Member or designated non-member taking any corporate action or other step to authorise, institute or commence any of the actions referred to in paragraph (d) above; or an execution distress sequestration attachment or other process being levied or enforced against a Member or designated non-member or against any substantial part of its revenues and assets and not being discharged within seven days of being so levied or enforced; or any event occurs or proceedings are brought in respect of a Member or designated non-member analogous to any of those referred to in paragraphs (d) to (f) inclusive in any jurisdiction outside England and Wales; or a Member or designated non-member being in breach of the terms of its membership of, or being refused an application for or being suspended or expelled from membership of, a regulatory body or being in breach of the rules of a regulatory body to which he is subject or a regulatory body taking or threatening to take any action in relation to the member or designated non-member under the Financial Services and Markets Act 2000 or taking or threatening to exercise its powers under its rules to restrict or prohibit the Member or designated non-member from entering into transactions or carrying on its business or dealing with its assets; or any licence authorisation consent or registration at any time necessary to enable a Member or designated non-member to comply with its obligations to Turquoise or to any other Member or designated non-member or to carry on its business in the normal course being revoked, withheld or materially modified or failing to be granted or perfected or ceasing to remain in full force and effect; or a Member becoming or being declared in default under the default rules of any Recognised Investment Exchange or Multilateral Trading Facility or a Recognised Clearing House or being declared in breach of the terms of membership of, or being

(b)

(c) (d)

(e)

(f)

(g)

(h)

(i)

(j)

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suspended or expelled from membership of, any recognised, designated or overseas investment exchange or clearing house or any Associated Clearing House or Oslo Brs or any action being taken by any such body in relation to such Member which is similar to the action which may be taken by Turquoise under this Rule; or (k) any other event or circumstance arising or occurring which may give grounds for Turquoise to determine in its opinion that a Member may not (or may be or become unable to) perform or comply with its obligations under one or more Market Contracts; or a Member fails to provide Collateral to the Designated Clearing House as required by the Rules or the LCH Regulations; or Turquoise considers it necessary or desirable to take action under this Part 5 for its own protection

(l) (m)

then, on the occurrence of any such event, Turquoise shall (subject to Rules 5.2 and 5.8) be entitled without giving notice to the Member or designated non-member in question to take at its absolute discretion any one or more of the steps set out in this Part 5. 5.3.2 A Member shall notify Turquoise immediately if any of the events referred to in paragraphs (a) to (m) of Rule 5.3.1 occur in relation to it and shall respond promptly to all enquiries or requests for information made by Turquoise pursuant to the Default Rules.

5.4
5.4.1

Declaration of Member or Designated Non-Member to be a Defaulter

Subject to Rule 5.4.2, in the event of a Member or designated non-member appearing to Turquoise to be unable, or to be likely to become unable, to meet his obligations in respect of one or more Market Contracts, Turquoise may, in its absolute discretion and without giving prior notice to such Member or designated non-member, if it considers such action to be appropriate in the interests of Turquoise and/ or its marketplace, declare such Member or such designated non-member to be a defaulter. Turquoise may be directed by the FSA pursuant to the provisions of Section 166 of the Companies Act 1989 to take action or not to take action in respect of a Member or designated non-member under these Default Rules. If Turquoise is directed by the FSA pursuant to the aforesaid provisions to take one or more of the steps referred to in Rule 5.5 in relation to a Member or designated non-member, that Member or designated non-member shall (if not already declared a defaulter) be deemed to be declared a Defaulter under Rule 5.4.1. As soon as reasonably practicable after a Member or designated non-member has been declared a defaulter, Turquoise shall take steps to bring this to the attention of: (i) (ii) the defaulter; such other persons as it thinks fit.

5.4.2

5.4.3

5.4.4

Without prejudice to the generality of Rule 5.4.1, Turquoise may take the occurrence of any of the events set out in Rule 5.3 as grounds for forming the view that a Member or designated non-member appears to be unable or is likely to become unable to meet his obligations in respect of one or more Market Contracts.

5.5
5.5.1

Default Proceedings in respect of a Defaulter

Subject to Rule 5.4.1, Turquoise shall, in its absolute discretion, immediately following or at any time after a Member or designated non-member has been declared a defaulter take any one or more of the steps referred to in Rule 5.5.2 in order: (i) that the rights and liabilities between the defaulter and the Designated Clearing House under all Unsettled Market Contracts to which the defaulter is a party as principal are discharged pursuant to Rule 5.5.5 and a settlement amount (if any) payable by one party to the other is determined in respect of each such Contract in accordance with this Rule 5.5; for there to be certified by or on behalf of Turquoise, the net sum (if any) due to or from the defaulter as determined in accordance with Rule 5.5.6 or that no such sum is due, as the case may be.

(ii)

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5.5.2

The steps referred to in Rule 5.5.1 are to implement or to direct that there be implemented any one or more of the steps set out in Rules 5.7 to 5.13 inclusive or any other steps set out in these Rules, or to implement or direct that there be implemented any provision of the rules governing other financial products handled by Turquoise or the terms of any other agreement between Turquoise and the defaulter as in the circumstances appear to it best calculated to complete the process set out in Rule 5.5.1. Where in accordance with Rule 5.5.2 above, Turquoise implements or directs that there be implemented any one or more of the steps set out in Rules .7 to 5.13 inclusive in respect of a Market Contract, the settlement amount (if any) for such Contract shall be determined in the manner prescribed in the Rule or Rules under which such steps have been taken. In determining the settlement amount Turquoise shall take into account any arbitration, award or judgement obtained in respect of any proceedings arising from any dispute, claim or other matter concerning any such Market Contract. The settlement amount so determined by Turquoise shall be final, conclusive and binding. The defaulter shall be liable to pay or shall be entitled to receive, as the case may be, the settlement amount so determined in respect of each such Contract. The rights and liabilities of the defaulter under a Contract to which he is party as principal and which is the subject of one or more steps taken under Rule 5.5.1 shall be discharged upon the later of the completion of the steps taken under such Rule with respect to such Contract or the making of any arbitration, award or judgement resulting from any proceedings being commenced in respect of any dispute, claim or matter arising out of or in connection with such Contract. An account shall be drawn up under which all settlement amounts owed to or by the defaulter in respect of Market Contracts to which the defaulter is party as principal shall be credited or debited, as appropriate so as to produce the Default Settlement Amount payable by or to the defaulter on the Account. Turquoise shall be entitled in its discretion and without notice to the defaulter to make any currency conversions which Turquoise considers necessary or desirable for the purposes of these Default Rules at such rate or rates as Turquoise may reasonably determine.

5.5.3

5.5.5

5.5.6

5.5.8

5.6
5.6.1

Default by a Member or Designated Non-Member who is not declared a Defaulter

If any of the events set out in Rule 5.3.1 or any other event or circumstance occurs in relation to a Member or a designated non-member where such Member or designated non-member is not declared a defaulter, Turquoise shall be entitled to take any one or more of the following steps in relation to the Member or designated non-member in question without giving notice to such party: (i) (ii) terminate all outstanding registered Contracts pursuant to Rule 5.8; or exercise its rights under Rule 5.12.

5.7
5.7.1

Defaulter also declared to be in default by the Designated Clearing House

In the event that the defaulter is also declared to be in default by the Designated Clearing House any Unsettled Market Contracts will be dealt with in accordance with the default LCH Regulations with such rules having priority over these Default Rules. For the avoidance of doubt, Rule 5.7.1 does not preclude Turquoise from taking any action which Turquoise may be required or deems necessary to take either under these Default Rules or in order to assist the Designated Clearing House in dealing with Unsettled Market Contracts under its default rules. The Designated Clearing House may delegate to Turquoise the performance of any function in respect of Unsettled Market Contracts which the Designated Clearing House may be required or deem necessary to exercise under the default LCH Regulations. Any Unsettled Market Contract dealt with in accordance with the default LCH Regulations under this Rule 5.7 will be deemed to have been dealt with in accordance with these Default Rules.

5.7.2

5.7.3

5.7.4

5.8

Termination of Futures and Options Transactions

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5.8.1 In the circumstances described in this Part 5, Turquoise may at such times and at such transaction prices as it may at its absolute discretion determine, buy or sell as many Futures, or Options Contracts, from or to the relevant Member, as Turquoise considers necessary and to close any of the outstanding Contracts of such Member. Any such Contract entered into by Turquoise shall be entered into it by it for the account of the Member in question. The settlement amount for a Contract closed-out under this Rule shall be: (i) in the case of a Futures Contract, the difference between the Daily Settlement Sum for the most recent Daily Cash Settlement and the agreed Futures Contract Price at which the closing-out Contract was made, or where the closing-out Contract is effected prior to the First Daily Cash Settlement for the contract in question, the difference between the agreed Futures Contract Price and the agreed Futures Contract Price at which the closing-out Contract was made; or in the case of an Options Contract, if the Premium under such Contract is due but unpaid, the difference between such Premium and the Premium payable in respect of the closing-out Contract or, if the Premium under such Contract has been paid, the Premium payable in respect of the closing-out;

(ii)

5.8.2

In addition, Turquoise is entitled prematurely to make cash settlement of registered Futures Contracts. Where in relation to such Contracts the Member is a seller, Turquoise shall be entitled to register a new Contract with the Member as buyer that is equivalent in all material respects to such existing Contract. Where in relation to such Contracts the Member is a buyer, Turquoise shall be entitled to register a new Contract with the Member as seller equivalent in all material respects to such existing Contracts. Any sum credited pursuant to action taken under this Rule may be applied towards satisfaction of any amount due or payable by the Member to the Designated Clearing House. The settlement amount for a Contract terminated under this Rule shall be the difference between, in the case of each Contract which is cash-settled under such Rule, the agreed Contract Price under the Contract settled under such Rule and the agreed Contract Price under the new Contract entered into under such Rule. Each such settlement amount shall be credited or debited to the relevant Account as appropriate.

5.8.3

5.9
5.9.1 5.9.2 5.9.3

Exercise of Options
In the circumstances described in this Part 5, Turquoise may on behalf of the Member in question exercise any American Style Option held by the Member as buyer. Any such exercise on behalf of a Member shall be deemed to have been effected by such Member. Turquoise may exercise an American Style Option held by it as buyer against such Member.

5.10
5.10.1

Non-fulfilment of Delivery
If a Member who has sold a Futures Contract, has written a Call Option and has received notice that exercise has been demanded, or has exercised a Put Option and fails to provide Deliverable Stock, Deliverable Bonds or Deliverable Bills as the case may be in accordance with Turquoise's instructions and these Rules, Turquoise may require payment by the Member of the difference between the cost to Turquoise of acquiring the relevant Stock, Bonds or Bills as the case may be and the Strike Price or the agreed Futures Contract Price for the number of shares, bonds or bills as the case may be underlying the Futures or Options Contract, and or the cost to Turquoise of borrowing the relevant Stock, Bonds or Bills as the case may be and/or a special set fee for non-fulfilment of delivery determined by Turquoise and Turquoise shall be entitled to retain for its own account sums received by it on the Exercise Settlement Day or Expiration Settlement Day (as appropriate) in relation to delivery of the relevant Stock, Bonds, Bills or as the case may be. In cases of non-fulfilment of delivery to Turquoise resulting in Turquoise being unable to deliver promptly to the Member entitled to receive delivery from Turquoise, the special set fee for non-fulfilment of delivery shall, if charged by Turquoise, be transferred in full to the Member not receiving prompt delivery from Turquoise due to such non-fulfilment. The settlement amount in respect of each Contract in respect of which Turquoise takes action under this Rule shall be the difference between the cost to Turquoise of acquiring such Stock,

5.10.2

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Bonds, Bills as the case may be and the agreed Futures Contract Price or the Strike Price, as the case may be, under such Contract and or the cost to Turquoise of borrowing the relevant Product and or a special set fee for non-fulfilment of delivery as determined by Turquoise. 5.10.3 Deleted

5.11
5.11.1

Sale of Stock, or Deliverable Instruments

If a Member, who is due to receive the underlying Product in question pursuant to a Futures Contract or has written a Put Option and received notice that Exercise has been demanded or has exercised a Held Call Option, in accordance with these Rules, does not pay on the Exercise Settlement Day or the Expiration Settlement Day (as appropriate) for the Stock, Deliverable Instruments as the case may be related to the Options or the Futures or Contract , Turquoise is entitled to sell the relevant Product if held by the Designated Clearing House. If the amount received from such a sale is less than the agreed Futures Contract Price or the Strike Price as stated in the Option for the number of products underlying the relevant Contract, Turquoise is entitled to require payment by the Member of the difference between the amount received and the agreed Futures Contract Price or the Strike Price of the relevant Contract. The settlement amount in respect of a Contract in respect of which Turquoise takes action under this Rule shall be the difference between the Strike Price or, as the case may be, the agreed Futures Price and the amount received by Turquoise for such Product (if less than such agreed Futures Price or Strike Price).

5.11.2

5.12
5.12.1

Other Actions
Notwithstanding the specific provisions of this Part 5, Turquoise may in the circumstances described in Rule 5.6 take any action it deems necessary for the protection of Turquoise in the name of and at the expense of the relevant Member.

5.13
5.13.1

Prohibition on Further Trading

In addition to any steps taken under this Part 5, Turquoise may also prohibit a defaulter from further trading or registering Contracts with Turquoise.

5.14
5.14.1

Settlement of Open Contracts

On the occurrence of any event referred to in Rule 5.3.1 (d) to (g) inclusive and Rule 5.3.1 (i) in relation to a Member, Turquoise may by notice in writing to such party or to the Broker of the customer or client in question require settlement of all Contracts registered in the Account or Accounts in question to take place in accordance with this Rule 5.14 on the default settlement date which for this purpose shall be the date on which such notice is given. On the occurrence of any of the events set out in Rule 5.3.1 (d), (e) or (g) Turquoise and the Member shall automatically become obliged to settle all Contracts registered in the relevant Account or Accounts in accordance with this Rule 5.14 on the default settlement date which for this purpose shall be the first London Bank Day after the date of the order or resolution for winding up of the defaulter or other relevant event. In these circumstances each Contract shall be settled forthwith by the establishment of the settlement amount in respect of such Contract in accordance with Rule 5.14.2 and by payment in the manner provided for in Rule 5.14.3. The settlement amount in respect of each open Contract for the purposes of this Rule shall be calculated by Turquoise whose calculation in the absence of manifest error shall be conclusive. With respect to each open Contract Turquoise shall calculate the difference between: (i) the value at the agreed Options Contract the value of the Option at the Premium for such Option as stated in the Contract or the value of the Futures Contract at the last successfully settled Daily Settlement Price; and the value of the Futures Contract at the official quotation as at close of trading on the default settlement date for such Futures Contract as published by Turquoise, or in the case of an Options Contract, the value of the Option at the official quotation as at close of trading on the default settlement date for such Option as published by Turquoise, such official quotation being in the case of a Futures Contract or an Options Contract either the published bid or the published offer price as Turquoise in its absolute discretion may determine to be appropriate.

5.14.2

(ii)

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5.14.3

In the case of an open Contract under the terms of which the Member is a buyer, if the value of the Futures Contract or the Options Contract calculated under Rule 5.14.2(i), is less than its value calculated under Rule 5.14.2(ii), or in respect of an open Contract under the terms of which the Member is seller, if the value of the Futures Contract or Options Contract calculated pursuant to Rule 5.14.2(i) is greater than its value calculated pursuant to Rule 5.14.2(ii), the Member shall be entitled to receive (subject to Turquoise's rights of set-off under Rule1.8) an amount equal to the difference between the two values. In respect of an open Contract under the terms of which the Member is a seller, if the value of the Futures Contract or the value of the Option calculated under Rule 5.14.2(i) is less than its value calculated under Rule 5.14.2(ii) or in respect of an open Contract under the terms of which the Member is the buyer, the value of the Futures Contract or value of the Option calculated under Rule 5.14.2(i) is greater than its value calculated under Rule 5.14.2(ii) the Member shall pay to Turquoise an amount equal to the difference between the two values. Turquoise and the Member hereby agree that the amount payable under this Rule 5.14 represents a reasonable pre-estimate of the loss which would have been suffered as a result of the occurrence of the events specified in any of paragraphs (d) to (i) of Rule 5.3 and is not a penalty. No proof of evidence of actual loss may be required in respect of such amount. Such amount represents the amount which would have been payable as damages as a consequence of such loss from the other party.

5.14.4

5.14.5

5.15
5.15.1

Procedures
Turquoise may from time to time prescribe procedures for the purposes of these Default Rules and to provide for the manner in which its rights or obligations under the Companies Act 1989 or the Financial Services and Markets Act 2000 in relation to such rules or proceedings may be exercised by or on behalf of Turquoise. Turquoise may from time to time prescribe procedures for the designation of persons as designated non-members, for reviewing or withdrawing any such designation and for notifying persons of such designation, or the withdrawal of such designation. Such procedures shall ensure that: (i) no person or description of persons shall be so designated or remain designated if the failure by such person or description or persons to meet its obligations in respect of one or more Market Contracts would be unlikely adversely to affect the operation of Turquoise's Market; a person so designated or a person within the description of persons in question is notified promptly that it or the description of persons in question has been designated or that the designation of such person or description of person has been withdrawn; where a description of persons is so designated or such designation withdrawn, procedures are in place to enable Turquoise to ascertain which persons fall within such description for the time being. Turquoise shall publish its procedures for the designation of persons or descriptions of persons from time to time.

5.15.2

(ii)

(iii)

5.15.3

The defaulter shall co-operate fully at all times with Turquoise and shall promptly provide such information as Turquoise or its employees or agents may request in connection with the implementation by Turquoise of these Default Rules or the exercise by it of its rights or the fulfilment by it of its obligations under the Companies Act 1989 or the Financial Services and Markets Act 2000 in respect of such Rules.

5.16
5.16.1

Delegation of Functions
Turquoise may from time to time appoint one or more persons to perform on its behalf any of the functions which it may be required or deem necessary to exercise under these Default Rules and may engage the services of any professional adviser to advise or assist Turquoise with regard thereto. The Designated Clearing House may be appointed under rule 5.16.1.

5.16.2

5.17
5.17.1

Costs
The defaulter shall be liable to indemnify Turquoise in respect of Turquoise's costs, charges and expenses in taking any action under the Default Rules, including the costs of any person

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appointed to perform functions on behalf of Turquoise pursuant to Rule 5.16 or any professional adviser engaged pursuant to Rule 5.16.

5.18
5.18.1

Co-operation with Other Bodies

Turquoise may pass on any details of or other information in its possession relating to a Member or designated non-member or its Market Contracts to the Secretary of State, to the FSA, to any Recognised Investment Exchange or Recognised Clearing House or regulatory body, or to any other exchange or clearing house approved under the Companies Act 1989 for the purposes of Part VII of that Act, or to any relevant office-holder or any other authority or body having responsibility for any matter arising out of, or in connection with, the default of a Member or designated non-member and otherwise co-operate with such persons in connection with such default.

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PART COR 1 INTRODUCTION

COR 1.1
COR 1.1.1

Introduction and Status of Cleared Only Contracts

Turquoise provides a trade matching service in relation to the Cleared Only Contracts which are reported to it in accordance with these Rules for Cleared Only Contracts. Turquoise does not provide facilities for the trading of Cleared Only Contracts. Transactions in Cleared Only Contracts are conducted on a bilateral basis and may be reported to Turquoise for trade matching in accordance with the provisions of these Rules for Cleared Only Contracts. Where matched Trade Reports are received by Turquoise, it will forward the relevant particulars to the Designated Clearing House so that the Designated Clearing House may determine whether to enter into Registered Contracts with the Member or Members in question on the terms specified in the Trade Reports. All such Registered Contracts will be entered into by the Designated Clearing House as principal in accordance with and subject to its Regulations.

COR 1.1.2

The Contract Specifications for Cleared Only Contracts in respect of which Members may submit Trade Reports are set out at Rules COR 3.1, COR 4.1, COR 5.1 and COR 6.1; The rules relating to the submission of Trade Reports relating to Cleared Only Contracts and other rules of general application to such Contracts are set out in Part COR 2. The Contract Specifications for and rules relating specifically to Cleared Only Contracts based on an International Order Book Depositary Receipt (IOB DR) and the FTSE Russia IOB Index are set out in COR 3. The Contract Specifications for and rules relating specifically to Cleared Only Contracts based on UK Stock are set out in Part COR 4. The Contract Specifications for and rules relating specifically to Cleared Only Contracts based on Norwegian Stock and the OBX Index are set out in Part COR 6.

COR 1.1.3

The rules and procedures set out in these Rules for Cleared Only Contracts apply to the following Contracts: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Cleared Only IOB DR Futures; Cleared Only IOB DR Options; Cleared Only FTSE Russia IOB Index Futures; Cleared Only FTSE Russia IOB Index Options Cleared Only Norwegian Stock Futures based on a stock listed in the Norwegian Stock List; Cleared Only Norwegian Stock Options based on a stock listed in the Norwegian Stock List; Cleared Only OBX Index Futures; Cleared Only OBX Index Options;

and references in these Rules for Cleared Only Contracts to "Cleared Only Contracts" shall be construed as references to each of the above Contracts unless the context requires to the contrary. COR 1.1.4 The application and interpretation of this Part COR shall be governed by English law and the Courts of England and Wales shall have exclusive jurisdiction to determine any dispute arising out of or in connection with this Part COR. Save where there is an express indication to the contrary, all references to time in these Rules for Cleared Only Contracts shall be construed as references to London time. Deleted

COR 1.1.5 COR 1.1.6

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COR 1.2
COR 1.2.1

Definitions
In this Part of these Rules unless the contrary intention appears the following terms and expressions shall have the meaning ascribed thereto: "Cleared Only Call Option" means an Option under which the Holder on exercise of the Option has the right in respect of an Option based on Norwegian Stock, or an International Order Book Depositary Receipt to buy the Contract Base against the right to receive the Premium; "Cleared Only Contract" means a standardised or non-standardised Futures Contract or Options Contract of the type described in these Rules for Cleared Only Contracts based on a Cleared Only Product which is reported by Turquoise to the Designated Clearing House for Registration in the Account of the Member and "Cleared Only Future" and "Cleared Only Option" shall be construed accordingly. "Cleared Only Product" means any of the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) an IOB DR Futures; an IOB DR Options; a FTSE Russia IOB Index Futures; a FTSE Russia IOB Index Options; a Norwegian Stock Futures based on a stock listed in the Norwegian Stock List; a Norwegian Stock Options based on a stock listed in the Norwegian Stock List; an OBX Index Futures; an OBX Index Options

"Cleared Only Put Option" means an Options Contract under which the Holder on exercise of the Option has the right in respect of an Option based on Norwegian Stock, or an International Order Book Depositary Receipt to sell the Contract Base against the right to receive the Premium; Cleared Only IOB DR Future means a non-standardised Futures Contract based on a DR listed in the Turquoise IOB DR List (as published on the Turquoise website) entered into on the terms of the Contract Specification at Rule COR.3.1.1; Cleared Only IOB DR Option means a non-standardised Option Contract based on a DR listed in the Turquoise IOB DR List (as published on the Turquoise website) entered into on the terms of the Contract Specification at Rule COR.3.1.2; Cleared Only FTSE Russia IOB Index Futures means a non-standardised Futures Contract based on the FTSE Russia IOB Index entered into on the terms of the Contract Specification at Rule COR.3.1.3; Cleared Only FTSE Russia IOB Index Options means a non-standardised Options Contract based on the FTSE Russia IOB Index entered into on the terms of the Contract Specification at Rule COR.3.1.4; Cleared Only Norwegian Stock Futures means a non-standardised Futures Contract based on a stock listed in the Turquoise Norwegian Stock List entered into on the terms of the Contract Specification at Rule COR 6.1.1; Cleared Only Norwegian Stock Option means a non-standardised Option Contract based on a stock listed in the Turquoise Norwegian Stock List entered into on the terms of the Contract Specification at Rule COR 6.1.2; Cleared Only OBX Index Futures means a non-standardised Futures Contract based on the OBX Index entered into on the terms of the Contract Specification at Rule COR 6.1.3; Cleared Only OBX Index Options means a non-standardised Options Contract based on the OBX Index entered into on the terms of the Contract Specification at Rule COR 6.1.4; "Contract Base" means the, Norwegian Stock, OBX Index, International Order Book Depositary Receipt (IOB DR) or the FTSE Russia IOB Index on which the Contract in question is based; "Delivery Payment Sum" means the sum designated as such by Turquoise as being due to the party making delivery of the Product in question;

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"Delivery Settlement Day" means the third Wednesday of the Expiration Month, or if such day is not an applicable Bank Day, the next applicable Bank Day; Exercise Settlement Statement in relation to a Cleared Only Options Contract, shall mean the statement issued by Turquoise following Exercise of such Option showing the rights and obligations of the parties to such Contract following its Exercise; Exercise Settlement Amount" in relation to an Options Contract which has been exercised, means the amount specified as such by Turquoise in the relevant Settlement Statement issued by it, such amount being determined: (i) (ii) (iii) (iv) for a Cleared Only IOB DR Contract, in the manner specified in Rule 4.1.18; for a Cleared Only FTSE Russia IOB Index Contract in the manner specified in Rule 4.2.17. in relation to a Cleared Only Norwegian Stock Futures Contract, in the manner specified in Rule 4.5.15; for a Cleared Only OBX Index Contract in the manner specified in Rule 4.6.17;

"Expiration Date" in relation to a Cleared Only Contract, means the last day on which Futures Contracts or Options Contracts in a particular series will be accepted for registration by the Designated Clearing House or any applicable Associated Clearing House as indicated in the Product Specification for the product in question; Expiration Delivery Settlement Price (EDSP) means the closing price as determined by the London Stock Exchange (LSE) in accordance with the LSEs Guide to Trading Services on the Expiration Date. The EDSP as applied by Turquoise shall normally be rounded to 2 decimal places unless Turquoise provides otherwise; "Expiration Settlement Amount" for a Cleared Only Future Contract or Futures Contract shall mean the amount specified as such by Turquoise in the relevant Expiration Settlement Statement issued by it, such amount being: (i) (iii) (ii) (iii) in relation to a Cleared Only IOB DR Futures Contract, the amount determined in accordance with Rule 4.1.17 in relation to a Cleared Only FTSE Russia IOB Index Future Contract, the amount determined in accordance with Rule 4.2.16; in relation to a Cleared Only Norwegian Stock Futures Contract, the amount determined in accordance with Rule 4.5.14; in relation to a Cleared Only OBX Futures Contract, the amount determined in accordance with Rule 4.6.16;

Expiration Settlement Day in relation to a Cleared Only Future Contract shall mean the day specified by Turquoise as the day on which Expiration Settlement of the Contract in question is to be effected; "Expiration Settlement Statement in relation to a Cleared Only Futures Contract, shall mean the statement issued by Turquoise specifying the amount due to or payable by a Member on Expiration Settlement of the Contract in question; Expiration Settlement Sum" for a Cleared Only Future Contract shall mean the sum specified as such by Turquoise in the relevant Settlement Statement issued by it for the relevant expiration, "First Listing Day" in relation to a Cleared Only Contract means the first day on which Future Contracts or Options Contracts in a particular series may be reported to Turquoise in accordance with these Rules; "Registered Contract" means a Cleared Only Contract registered in an Account at the Designated Clearing House in accordance with its Regulations and the details specified in a Trade Report of a transaction in a Cleared Only Product submitted to Turquoise in accordance with these Rules and "Contract" shall be construed accordingly; "Registration" means the process applied by the Designated Clearing House for recording Cleared Only Contracts in the Account specified by the relevant Member or in the appropriate

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Account of its General Clearing Member in accordance with the Clearing House Regulations following confirmation given by Turquoise to the Designated Clearing House that matching Trade Reports have been submitted to Turquoise; "Registration Day" in relation to a Cleared Only Contract, means the day on which such Contract is registered by the Designated Clearing House in accordance with its Regulations; "Request for Re-registration" means a request in the form prescribed by Turquoise for the time being submitted by a Member seeking the Re-registration of one or more Registered Contracts; "Re-registration" means the process applied by the Designated Clearing House for transferring a Registered Contract from one Account to another Account pursuant to a Request for Reregistration submitted to Turquoise in accordance with these Rules; "Re-registration Fee" means the fee payable on Re-registration of a Contract pursuant to Rule COR 2.3; Settlement Statement means an Exercise Settlement Statement or an Expiration Settlement Statement collectively; Trade Matching means the process applied by Turquoise and, where appropriate, Oslo Brs whereby reports submitted by their respective Members relating to a transaction in a Cleared Only Contract are matched in accordance with these Rules; Trade Report means a report in the form specified by Turquoise submitted by a Member to Turquoise in accordance with these Rules; COR 1.2.2 Terms which appear in these Rules for Cleared Only Contracts with initial capital letters and which are not defined in this Rule COR 1.2 shall have the meaning given to the term in Rule1.2 unless the context otherwise requires.

PART COR 2 COR 2.1

COR 2.1.1

TRADE MATCHING Trade Reports Concerning Cleared Only Contracts

Where a Member enters into a transaction in a Cleared Only Contract with another Member or with a member of an Associated Clearing House, the Member shall report such transaction to Turquoise in order that such transaction may be reported by Turquoise for Registration at the Designated Clearing House. The Report submitted by the Member to Turquoise in such circumstances shall: (i) (ii) specify the Cleared Only Contract which forms the subject of the transaction; and identify the counterparty to such transaction, the Series, the agreed price, the number of contracts involved in the transaction and the Account at the Designated Clearing House in which the Cleared Only Contract will be Registered.

COR 2.1.2

A Trade Report relating to a Cleared Only Contract shall only be considered for acceptance by Turquoise if: (i) the counterparties to the transaction submit identical notices specifying the Contracts to be registered, the Accounts in which the Contract is to be registered and the terms of the transaction in question to Turquoise or to Turquoise and to the relevant Associated Clearing House as appropriate; the size of the transaction and the Members overall position in the Contract in question does not exceed any limits applied by the Designated Clearing House for the time being.

(ii)

COR 2.1.3

The Member shall submit the Trade Report to Turquoise for matching as soon as possible after the transaction has been concluded. Where Turquoise is satisfied that it is appropriate to do so, it shall forward the information specified in the Trade Report to the Designated Clearing House to enable Registration of a Contract between the Designated Clearing House and the Clearing Member in question in accordance with the Clearing House Regulations to be effected. The acceptance of a Trade Report submitted under this Rule is at the discretion of Turquoise.

COR 2.1.4

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COR 2.1.5 The Registration of a Cleared Only Contract shall be effected by the Designated Clearing House in accordance with Rule COR 2.2 and the Clearing House Regulations. All such matters shall be determined at the sole discretion of the Designated Clearing House. Where the Designated Clearing House is informed by Turquoise that a Trade Report has been received and accepted by Turquoise before the relevant deadline specified in Rule COR 2.1.6 and agrees to enter into a Registered Contract pursuant to such Trade Report, the Contract in question shall be registered by the Designated Clearing House on that day. Where a report relating to the acceptance by Turquoise of the Trade Report is received by the Designated Clearing House after such time, the Contract in question shall be considered for Registration by the Designated Clearing House on the next Bank Day. COR 2.1.6 I. The normal trade reporting hours for Cleared Only Contracts are as follows: For Cleared Only Contracts based on the IOB DR and the FTSE Russia IOB Index normally between 7.30 am and 5.30 pm London time for an existing series on an IOB Trading Day; between 7.30 am and 5.30 pm London time for a new series. On certain days designated by Turquoise as half trading days, the trade reporting hours shall be from 7.30 am to 1.00 pm London time. for Cleared Only Contracts based on Norwegian Stock or the OBX Index normally between 8.00 am and 5.30 pm London time on a Norwegian Bank Day. Turquoise shall inform Members in writing of any days on which the restricted trade reporting hours will apply. COR 2.1.7 Turquoise shall inform the Member or Members in question as soon as possible if a Trade Report submitted under this rule is not accepted for Registration by the Designated Clearing House.

II.

COR 2.2
COR 2.2.1

Registration of Cleared Only Contracts

Where matching Trade Reports relating to a transaction in a Cleared Only Contract are submitted to Turquoise, or in the case of a transaction entered into by a Member with a member of an Associated Clearing House, such Reports are submitted to Turquoise and the Associated Clearing House in question, Turquoise shall, subject to Rule COR 2.1, confirm the details specified in the Trade Reports to the Designated Clearing House in order to enable the Registration of the Cleared Only Contract in question to be effected in accordance with the Clearing House Regulations. The decision to enter into any such Registered Contract following the receipt of such Trade Reports shall be at the discretion of the Designated Clearing House. Any such Registered Contract shall be entered into by the Designated Clearing House at the time that such matched trades are recorded in its clearing system. Where pursuant to the procedures set out in this Rule, a Registered Contract is registered by the Designated Clearing House, Turquoise shall confirm such fact and the terms of such Registered Contract by notice to the Member which submitted the Trade Report in question. Where for any reason the submission of a Trade Report does not result in the Registration of a Registered Contract by the Designated Clearing House, Turquoise shall inform the Member which submitted the Trade Report of that fact and the reasons therefore forthwith.

COR 2.2.2

On Registration of a Cleared Only Contract the Designated Clearing House enters into a Registered Contract so that: (i) where a party is the seller in the transaction in question the Designated Clearing House shall enter into a Registered Contract as buyer from the Clearing Member responsible for the settlement of Contracts effected by such party; and where a party is the buyer in the transaction in question the Designated Clearing House shall enter into a Registered Contract as seller to the Clearing Member responsible for the settlement of Contracts effected by such party.

(ii)

As a party to such Registered Contracts, the Designated Clearing House is responsible for the performance of its obligations to the Clearing Member in question. COR 2.2.3 If the counterparty to the transaction in question entered into by a Member is a member of an Associated Clearing House, the Designated Clearing House shall enter into a Balance Contract

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with identical economic content with the Associated Clearing House which will in turn enter into a contract as buyer or seller as the case may be with its member. COR 2.2.4 Where a Trade Report submitted to Turquoise in accordance with this Rule relates to an Options transaction in a Cleared Only Contract in a Series which is on the opposite side to an existing Registered Contract in the same Series which has previously been registered in the Account of such Clearing Member, the transaction in question shall be reported by Turquoise to the Designated Clearing House for Registration as a Closing Transaction unless the Member, on submitting the Trade Report, gives express notice to the contrary to Turquoise. On registration of a transaction as a Closing Transaction, the rights and obligations of the Clearing Member in respect of the exercise of the Options in question shall cease. COR 2.2.5 Members should note that the Designated Clearing House enters into Registered Contracts only in the circumstances prescribed in the Clearing House Regulations. The Designated Clearing House maintains a neutral position at all times by entering into matching contracts as buyer and seller contemporaneously. Members should note that in accordance with the Clearing House Regulations, the Designated Clearing House may decline to enter into a Registered Contract or to cancel a Registered Contract where it is required to take such action in order to comply with Applicable Laws or Regulations or any order or direction given by or a requirement imposed by any relevant regulator or pursuant to the rules of any such regulator. In such circumstances Turquoise shall take the necessary steps in conjunction with the Designated Clearing House. Where any such action is taken, Turquoise may at its sole discretion effect such Transactions in the name of and for the account of the Member to whom such law, regulation, order, direction or requirement applies as may be necessary in order to ensure that following such action and the Registration of the resulting Registered Contracts at the Designated Clearing House, the balanced position of the Designated Clearing House is maintained.

COR 2.2.6

COR 2.3
COR 2.3.1

Requests for Re-Registration

A Request for Re-registration of all or certain specified Cleared Only Contracts registered in a Clearing Account at the Designated Clearing House may be submitted to Turquoise in accordance with the following provisions of this Rule. A Request for Re-registration may be submitted to Turquoise on the grounds that: (i) the Member has decided to use the services of a General Clearing Member and seeks the Re-registration of Contracts registered in its Account to the Account of the General Clearing Member; the Member has decided to terminate its existing arrangements with a General Clearing Member and seeks the Re-registration of Contracts registered in the Account of such General Clearing Member pursuant to the execution of transactions by such Member to the Account of the Member or the Account of another General Clearing Member whose services the Member has decided to use; the Registered Contracts to which the Request relates were effected on behalf of a Client who has requested that its positions be transferred to another Broker; the Registered Contracts to which the Request relates were effected on behalf of a Member as a Client of a Broker, and the Member has requested that the positions in question be transferred to its Proprietary Account; the Re-registration is requested following the transfer of the business of the transferor Member to the transferee Member or other similar event; or that the Registration of the Contract in the Account in question was the result of an error.

COR 2.3.2

(ii)

(iii) (iv)

(v) (vi) COR 2.3.3

A Request for Re-registration shall be submitted to Turquoise by way of the Members electronic connection or in writing and shall be signed by a person authorised in that regard on behalf of both the transferor and the transferee. Any Request which seeks the Re-registration of a Contract to or from a Client Account shall not be considered unless the Member requesting Re-registration provides satisfactory confirmation that the Clients affected thereby have consented to the Re-registration.

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COR 2.3.4 A Request for Re-registration which seeks the Re-registration of a Registered Contract to or from the Clearing Account of a General Clearing Member (other than a Clearing Account used solely for the Registration of positions entered into by such General Clearing Member on its own account) shall be submitted to Turquoise by way of the Members electronic connection or by submitting a duly completed request in writing in the form specified by Turquoise by both the General Clearing Member and the Member affected by such Request. Where the Contract in question is also listed by Oslo Brs, a Request for Re-registration may seek Re-registration of all or certain specified Norwegian Stock or OBX Index Contracts to a customer Account held by a member of Oslo Brs for the customer in question PROVIDED THAT the acceptance of any such request shall be subject to the specific approval of Turquoise, the Designated Clearing House and Oslo Brs and further that no such request shall be considered unless satisfactory confirmation is provided to Turquoise, the Designated Clearing House and Oslo Brs that the customer affected thereby has consented to the Reregistration. A Request for Re-registration shall provide the information specified in and shall be submitted by the time prescribed in the section of Part 4 of these Rules applicable to the Contract in question. All Requests for Re-registration will be considered at the discretion of Turquoise and the Designated Clearing House. Turquoise will inform the Member which submitted the Request for Re-registration of the decision with regard to the Request as soon as practicable following receipt of the Request. The decision of Turquoise and the Designated Clearing House in this respect shall be final and binding. Where a Request for Registration is accepted, Turquoise shall arrange for the terms of any Registered Contract affected by such decision to be amended by the Designated Clearing House. A Re-registration fee will be payable in respect of all Contracts which are re-registered in accordance with this Rule. COR 2.3.8 A Request for Re-Registration relating to a Cleared Only Contract made pursuant to Rule COR 2.3.2(vi) will not be considered by Turquoise and the Designated Clearing House unless it is received no later than 11.00 am London time on the applicable Bank Day for the contract in question following the day on which the Trade Report relating to the Contract in question was submitted to Turquoise; Where a Request for Re-Registration is received and accepted by Turquoise and the Designated Clearing House within the relevant deadline for trade reporting specified in the respective Contract Specification, the Cleared Only Contract in question shall be re-registered by the Designated Clearing House subject to its Regulations on that day. Where a request for Re-Registration is received by Turquoise after such time, it shall, if accepted, be Re-registered on the next Bank Day except where the request for Re-registration was submitted on the Expiration Date for the Contract in question. The procedures for Re-registration set out in this Rule shall not be applied in connection with the amendment of an error or omission in the registration of a transaction or the terms thereof. Such matters are subject to the rule governing Protests at Rule3.3.

COR 2.3.5

COR 2.3.6

COR 2.3.7

COR 2.3.9

COR 2.3.10

COR 2.4 COR 2.5

COR 2.5.1

Deleted Delivery and Settlement of Cleared Only Contracts - General

The provisions governing the Settlement of Cleared Only Contracts which have been accepted for Registration by the Designated Clearing House are set out as follows: (i) (ii) rules relating to the settlement of International Order Book Depositary Receipt and FTSE Russia IOB Index Contracts are at Rules COR 3.2 and COR 3.3 respectively; rules relating to the settlement of Norwegian Stock Contracts and OBX Index Contracts are at Rules COR 6.2 and COR 6.3 respectively;

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COR 2.5.2 All payments required to be made on Expiration Settlement of a Cleared Only Contract shall be made in accordance with the Designated Clearing Houses instructions. Such payments shall be made in the currency specified by the Designated Clearing House. Turquoise will issue a Settlement Statement showing the sum due to or payable by the Member no later than 3.00 pm London time on the first applicable Bank Day after the Expiration Date. References to "Settlement" in these Rules for Cleared Only Contracts shall be construed as references to Expiration Settlement or to Exercise Settlement as the context may require.

COR 2.5.3

COR 2.6
COR 2.6.1

Fees: General
The fees payable in respect of Cleared Only Contracts are shown in the Schedule of Fees at Appendix A.

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PART COR 3 COR 3.1 COR 3.1.1

CLEARED ONLY CONTRACTS BASED ON THE INTERNATIONAL ORDER BOOK DEPOSITARY RECEIPT (IOB DR) AND THE FTSE RUSSIA IOB INDEX Contract Specifications Contract Specifications: Cleared Only Contracts-IOB DR Futures
These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members.

Type of Contract

Non-Standardised Futures Contracts with Daily Cash Settlement and Delivery of the Underlying DR. The DR listed on the IOB on which the Future is based and which is shown in Turquoises IOB DR List as published on the Turquoise website. The relevant Underlying DR. Normally one hundred DRs of the Underlying DR except where shown on the IOB DR List. Recalculation of the number of DRs represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for IOB DR Contracts set out at Rule 4.1.20. As determined by the parties subject to a maximum of two years. All transactions to be reported to Turquoise and, where applicable, an Associated Clearing House. Reported trades can be registered with values including up to 4 decimal places. The Expiration Date.

Contract Base

Deliverable Instruments Contract Size

Lifetime Trade Reporting

Last day for Trade Reporting Designation of Cleared Only IOB DR Futures Contracts

Each Cleared Only IOB DR Futures Contract shall be designated by a maximum of twenty symbols, where a maximum of five symbols designates the Underlying DR, one symbol designates the Expiration Year, two symbols designate the day of the month and one symbol designates the Expiration Month. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Contract in question. The parties to a Cleared Only IOB DR Futures Contract may determine its Expiration Date, Month and Year provided that such day is an IOB Trading Day. In the event that there is a prolonged trading halt or suspension of trading in the Underlying DR, or a prolonged breakdown of the IOB Trading system on the Expiration Date for the series in question the Expiration Date may be postponed until the following IOB Trading Day, if, in the opinion of Turquoise, such action is in the interests of the market generally. Following certain re-calculation events, the Expiration Date may be moved forward in time. A Cleared Only IOB DR Futures Contract is settled on each IOB Bank Day as specified in Rule 4.1.15. The first IOB Bank Day following Registration. The closing price as determined by the LSE in accordance with its Guide to Trading Services on the Expiration Date rounded to 2 decimal places (with numbers from 0 to 4 being rounded down and numbers from 5 to 9 being rounded up. Payment of the Expiration Settlement Amount shall occur in accordance with the instructions of Turquoise pursuant to Rules 4.1.16 and 4.1.17. As specified in COR 2.1.6 of these rules.

Expiration Date

Daily Settlement

Initial Daily Settlement Expiration Delivery Settlement Price (EDSP)

Expiration Settlement

Trade Reporting Hours

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COR 3.1.2 Contract Specifications: Cleared Only Contracts-IOB DR Options
These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members. Type of Contract Style of Options Types Contract Base Non-Standardised Options Contracts with Delivery. European Style. Calls and Puts. The DR listed on the IOB on which the Option is based and which is shown in the Turquoise IOB DR List as published on the Turquoise website. The relevant Underlying DR. Normally one hundred DRs of the Underlying DR except where shown on the IOB DR List. Recalculation of the number of shares represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for IOB DR Contracts set out at Rule 4.1.20. As determined by the parties, subject to a maximum of two years. The amount agreed to by the parties as the premium payable for the Contract multiplied by the number of DRs represented by the Contract. The first IOB Bank Day following registration. The parties to a Cleared Only IOB DR Options Contract may select its Strike Price. All transactions to be reported to Turquoise and where applicable an Associated Clearing House. Reported trades can be registered with values including up to 4 decimal places. The Expiration Date.

Deliverable Instruments Contract Size

Lifetime Premium

Premium Settlement Day Strike Price Trade Reporting

Last day for Trade Reporting Designation of Cleared Only IOB DR Option Contracts

Each Cleared Only IOB DR Option Contract shall be designated by a maximum of twenty symbols, where a maximum of five symbols designates the Underlying DR, one symbol designates the Expiration Year, two symbols designates the day of the month, one symbol designates the Expiration Month and Option Type, a number of symbols designates the Strike Price to two decimal places and one symbol designates the Option Style. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Contract in question. The parties to a Cleared Only IOB DR Options Contract may determine its Expiration Date, Month and Year provided that such day is an IOB Trading Day. In the event that there is a prolonged trading halt or suspension of trading in the Underlying DR, or a prolonged breakdown of the IOB Trading system on the Expiration Date for the series in question the Expiration Date may be postponed until the following IOB Trading Day, if, in the opinion of Turquoise, such action is in the interests of the market generally. Following certain re-calculation events, the Expiration Date may be moved forward in time. A European Style Cleared Only IOB DR Options Contract may only be exercised on the Expiration Date for such Contract subject to Rules .1.18 and 4.1.19. A Cleared Only IOB DR Options Contract is settled by delivery of the Underlying DR in accordance with Rules 4.1.17. Payment of the Premium and of the Exercise Settlement Amount against delivery of the Underlying DR shall occur in accordance with the instructions of Turquoise.

Expiration Date

Exercise

Delivery

Exercise Settlement

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Exercise Settlement Day

The third IOB Bank Day following the day on which the Exercise Order is received by Turquoise or the day on which Standard Exercise of the Contract is effected in accordance with Rule 4.1.19. A Cleared Only DR Options Contract shall be subject to Standard Exercise in accordance with Rule 4.1.19. As specified in COR 2.1.6 of these rules.

Standard Exercise

Trade Reporting Hours

COR 3.1.3

Contract Specifications: Cleared Only Contracts-FTSE Russia IOB Index Futures

These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members.

Type of Contract

Non-Standardised Futures Contracts with Expiration Settlement and Daily Cash Settlement. The FTSE Russia IOB Index. USD 50 per Index Point. As determined by the parties subject to a maximum of two years. All transactions to be reported to Turquoise and, where applicable, an Associated Clearing House. The Expiration Date.

Contract Base Index Multiplier Lifetime Trade Reporting

Last day for Trade Reporting Designation of Cleared Only FTSE Russia IOB Index Futures Contracts

Each Cleared Only FTSE Russia IOB Index Futures Contract shall be designated by a maximum of twenty symbols, where a maximum of six symbols designates the Contract Index, one symbol designates the Expiration Year, two symbols designate the Expiration Date, two symbols designates the day of the month and one symbol designates the Expiration Month. The parties to a Cleared Only FTSE Russia IOB Index Futures Contract may determine its Expiration Date, Month and Year provided that such day is an IOB Trading Day. Daily Settlement on each IOB Bank Day as specified in Rule 4.2.14. The first IOB Bank Day following Registration. Payment of the Expiration Settlement Amount shall occur in accordance with the instructions of Turquoise pursuant to Rule 4.2.16. As specified in COR 2.1.6 of these rules.

Expiration Date

Daily Settlement Initial Daily Settlement Expiration Settlement

Trade Reporting Hours

COR 3.1.4

Contract Specifications: Cleared Only Contracts-FTSE Russia IOB Index Options

These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members.

Type of Contract

Non-Standardised Options Contracts with Cash Settlement.

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Style of Options Types Contract Base Index Multiplier Lifetime Premium

European Style. Calls and Puts. The FTSE Russia IOB Index. USD 50 per Index Point. As determined by the parties, subject to a maximum of two years. The amount agreed to by the parties as the premium payable for the Contract multiplied by the Index Multiplier. The first IOB Bank Day following registration. The parties to a Cleared Only FTSE Russia IOB Index Options Contract may select its Strike Price. All transactions to be reported to Turquoise and where applicable an Associated Clearing House. The Expiration Date.

Premium Settlement Day Strike Price

Trade Reporting

Last day for Trade Reporting Designation of Cleared Only FTSE Russia Index Option Contracts

Each Cleared Only FTSE Russia IOB Index Option Contract shall be designated by a maximum of twenty symbols, where a maximum of five symbols designates the Underlying DR, one symbol designates the Expiration Year, two symbols designates the day of the month, one symbol designates the Expiration Month and Option Type, a number of symbols designates the Strike Price to two decimal places and one symbol designates the Option Style. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Contract in question. The parties to a Cleared Only FTSE Russia IOB Options Contract may determine its Expiration Day, Month and Year provided that such day is an IOB Trading Day. A European Style Cleared Only FTSE Russia Index Options Contract may only be exercised on the Expiration Day for such Contract subject to Rules 4.2.17 and 4.2.18. Payment of the Exercise Settlement Amount shall occur on the Expiration Settlement Day in accordance with the instructions of the Designated Clearing House. The first IOB Bank Day following the Expiration Date.

Expiration Date

Exercise

Expiration Settlement

Exercise Settlement Date Standard Exercise

A Cleared Only FTSE Russia Index Options Contract shall be subject to Standard Exercise in accordance with Rule 4.2.18. As specified in COR 2.1.6 of these rules.

Trade Reporting Hours

COR 3.2
COR 3.2.1

Settlement and Delivery of Cleared Only IOB DR Contracts: General and Application of Rules in Part 4.1
The settlement of Cleared Only Futures and Cleared Only Options based on one of the IOB DR listed in the IOB DR List on exercise or expiration is performed by the delivery of the Underlying DR against the payment of the Exercise Settlement Amount in the case of a Cleared Only Options Contract and the Expiration Settlement Amount in the Case of a Cleared Only Futures Contract. The rights and obligations of a Member concerning the delivery of the Underlying DR following the exercise or expiration of any such Contract shall be performed by means of the Designated Settlement Venues system in accordance with instructions issued by Turquoise relative thereto. The Member shall make arrangements with a nominee holding an account at the Designated Settlement Venue to act on its behalf in relation to such deliveries where necessary. The provisions of the following Rules, namely: (i) Rule 4.1.1 IOB DR - Introductory;

COR 3.2.2

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(ii) (iii) (iv) (v) (v)

Rule 4.1.16 - Settlement and Delivery of IOB DR and UK Stock Options Contracts Rule 4.1.17- IOB DR Futures: Expiration Settlement Procedures; Rule 4.1.18 - Exercise of IOB DR Options; Rule 4.1.19 Standard Exercise of IOB DR Options Rule 4.1.20 - Recalculation of IOB DR Contracts

shall apply equally to the settlement and delivery of Cleared Only Contracts based on IOB DR.

COR 3.3
COR7.3.1

Settlement of Cleared Only FTSE Russia IOB Index Contracts: General and Application of Rules in Part 4.2
The settlement of Cleared Only Futures and Options based on the FTSE Russia IOB Index on Exercise or Expiration is performed by the payment of the Exercise Settlement Sum in the case of a Cleared Only Options Contract Cleared Only Futures based on the FTSE Russia IOB Index are subject to Daily Cash Settlement.

COR 3.3.2

The provisions of the following Rules, namely: (i) (ii) (iii) (iv) (v) (vi) (vii) Rule 4.2.12 Expiration Settlement Price; Rule 4.2.13 Expiration Settlement FTSE Russia IOB Index Futures Contracts; Rule 4.2.14 Daily Cash Settlement : FTSE Russia IOB Index Futures Contracts; Rule 4.2.15 Closing Transactions : FTSE Russia IOB Index Futures Contracts; Rule 4.2.16 FTSE Russia IOB Index Futures Contracts : Expiration Settlement; Rule 4.2.17 Options: Exercise; Rule 4.2.18 Options: Standard Exercise;

shall apply equally to the settlement and delivery of Cleared Only Futures and Options Contracts based on the FTSE Russia IOB Index.

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PART COR 4
PART COR 5

DELETED
DELETED

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PART COR 6 COR 6.1 COR 6.1.1

CLEARED ONLY CONTRACTS BASED ON NORWEGIAN STOCK AND THE OBX INDEX Contract Specifications Contract Specifications: Cleared Only Contracts - Norwegian Stock Futures
These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members.

Type of Contract

Non-Standardised Futures Contracts with Daily Cash Settlement and Delivery of the Underlying Stock. The share listed on Oslo Brs on which the Future is based and which is shown in the Turquoise Norwegian Stock List. The relevant Underlying Stock for the contract in question. One hundred shares of the Underlying Stock. Recalculation of the number of shares represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for Norwegian Stock Contracts set out at Rule 4.5.17. As determined by the parties subject to a maximum of three years. All transactions to be reported to Turquoise and, where applicable, an Associated Clearing House. The Expiration Date.

Contract Base

Deliverable Instruments Contract Size

Lifetime Trade Reporting

Last day for Trade Reporting Designation of Cleared Only Stock Futures Contracts

Each Cleared Only Stock Futures Contract shall be designated by a maximum of twenty symbols, where a maximum of five symbols designates the Underlying Stock, one symbol designates the Expiration Year, two symbols designate the day of the month and one symbol designates the Expiration Month. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Contract in question. The parties to a Cleared Only Stock Futures Contract may determine its Expiration Date, Month and Year provided that such day is a Norwegian Bank Day. Where such day is declared by Oslo Brs in advance to be a half trading day the Expiration Date will be the preceding Norwegian Bank Day. A Cleared Only Norwegian Stock Futures Contract is settled on each Norwegian Bank Day as specified in Rule 4.5.12A. A Cleared Only Norwegian Stock Futures Contract is settled by delivery of the Underlying Stock in accordance with Rule 4.5.13 Payment of the Expiration Settlement Amount against delivery of the Underlying Stock shall occur in accordance with the instructions of Turquoise pursuant to Rule 4.5.14. As specified in COR 2.1.6 of these rules.

Expiration Date

Daily Cash Settlement

Delivery

Expiration Settlement

Trade Reporting Hours

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COR 6.1.2

Contract Specifications: Cleared Only Contracts-Norwegian Stock Options

These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members.

Type of Contract Style of Options Types Contract Base

Non-Standardised Options Contracts with Delivery. American or European Style as determined by the parties. Calls and Puts. The share listed on Oslo Brs on which the Option is based and which is shown in the Turquoise Norwegian Stock List. The relevant Underlying Stock. One hundred shares of the Underlying Stock. Recalculation of the number of shares represented by a Contract can occur in certain cases in accordance with the Recalculation Rules for Norwegian Stock Contracts set out at Rule 4.5.17. As determined by the parties, subject to a maximum of three years. The amount agreed to by the parties as the premium payable for the Contract multiplied by the number of shares represented by the Contract. The first Norwegian Bank Day following registration. The parties to a Cleared Only Stock Options Contract may select its Strike Price. All transactions to be reported to Turquoise and where applicable an Associated Clearing House. The Expiration Date.

Deliverable Instruments Contract Size

Lifetime Premium

Premium Settlement Day Strike Price Trade Reporting

Last day for Trade Reporting Designation of Cleared Only Stock Option Contracts

Each Cleared Only Stock Option Contract shall be designated by a maximum of twenty symbols, where a maximum of five symbols designates the Underlying Stock, one symbol designates the Expiration Year, two symbols designates the day of the month, one symbol designates the Expiration Month and Option Type, a number of symbols designates the Strike Price to two decimal places and one symbol designates the Option Style. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Contract in question. The parties to a Cleared Only Stock Options Contract may determine its Expiration Date, Month and Year provided that such day is a Norwegian Bank Day. Where such day is declared by Oslo Brs in advance to be a half trading day the Expiration Date will be the preceding Norwegian Bank Day. An American Style Cleared Only Norwegian Stock Options Contract may be exercised at any time during its Lifetime subject to Rules 4.5.15 and 4.5.16. A European Style Cleared Only Norwegian Stock Options Contract may only be exercised on the Expiration Date for such Contract subject to Rules 4.5.15 and 4.5.16. A Cleared Only Norwegian Stock Options Contract is settled by delivery of the Underlying Stock in accordance with Rules 4.5.13. Payment of the Premium and of the Exercise Settlement Amount against delivery of the Underlying Stock shall occur in accordance with the instructions of Turquoise. The fourth Norwegian Bank Day following the day on which the Exercise Order is received by Turquoise or the day on which Standard Exercise of the Contract is effected in accordance with Rule 4.5.16.

Expiration Date

Exercise

Delivery

Exercise Settlement

Exercise Settlement Day

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Standard Exercise

A Cleared Only Stock Options Contract shall be subject to Standard Exercise in accordance with Rule 4.5.16. As specified in COR 2.1.6 of these rules.

Trade Reporting Hours

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COR 6.1.3

Contract Specifications: Cleared Only Contracts-OBX Index Futures

These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members.

Type of Contract Contract Base Index Multiplier Lifetime Trade Reporting

Non-Standardised Futures Contracts with Daily Cash Settlement. The OBX Index. NOK 100 per Index Point. As determined by the parties subject to a maximum of three years. All transactions to be reported to Turquoise and, where applicable, an Associated Clearing House. The Expiration Date.

Last day for Trade Reporting Designation of Cleared Only OBX Index Futures Contracts

Each Cleared Only OBX Futures Contract shall be designated by a maximum of twenty symbols, where a maximum of six symbols designates the Contract Index, one symbol designates the Expiration Year, two symbols designate the Expiration Date, two symbols designates the day of the month and one symbol designates the Expiration Month. The parties to a Cleared Only OBX Futures Contract may determine its Expiration Date, Month and Year provided that such day is a Norwegian Bank Day. Where such day is declared by Oslo Brs in advance to be a half trading day, the Expiration Date will be the preceding Norwegian Bank Day. Cash Settlement on each Norwegian Bank Day as specified in Rule 4.6.14 The first Norwegian Bank Day following Registration. Payment of the Expiration Settlement Amount shall occur in accordance with the instructions of Turquoise pursuant to Rule 4.6.16. As specified in COR 2.1.6 of these rules.

Expiration Date

Daily Settlement Initial Daily Settlement Expiration Settlement

Trade Reporting Hours

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COR 6.1.4

Contract Specifications: Cleared Only Contracts-OBX Index Options

These contracts are traded on a bilateral basis. Turquoise does not provide trading facilities for such contracts. Turquoise provides Trade Matching services for these contracts in conjunction with Associated Clearing Houses. The Designated Clearing House and, where applicable, an Associated Clearing House clear the contracts registered with them as central clearing counterparties to their respective members.

Type of Contract Style of Options Types Contract Base Index Multiplier Lifetime Premium

Non-Standardised Options Contracts with Cash Settlement. American or European Style as determined by the parties. Calls and Puts. The OBX Index. NOK 100 per Index Point. As determined by the parties, subject to a maximum of three years. The amount agreed to by the parties as the premium payable for the Contract multiplied by the Index Multiplier The first Norwegian Bank Day following registration. The parties to a Cleared Only OBX Options Contract may select its Strike Price. All transactions to be reported to Turquoise and where applicable an Associated Clearing House. The Expiration Date.

Premium Settlement Day Strike Price Trade Reporting

Last day for Trade Reporting Designation of Cleared Only OBX Index Option Contracts

Each Cleared OBX Option Contract shall be designated by a maximum of twenty symbols, where a maximum of five symbols designates the Underlying Stock, one symbol designates the Expiration Year, two symbols designates the day of the month, one symbol designates the Expiration Month and Option Type, a number of symbols designates the Strike Price to two decimal places and one symbol designates the Option Style. The use of the symbol X, Y or Z indicates that the Recalculation Rules have been applied to the Contract in question. The parties to an OBX Options Contract may determine its Expiration Date, Month and Year provided that such day is a Norwegian Bank Day. Where such day is declared by Oslo Brs in advance to be a half trading day the Expiration Date will be the preceding Norwegian Bank Day. An American Style Cleared Only OBX Options Contract may be exercised at any time during its Lifetime subject to Rules 4.6.17 and 4.6.18. A European Style Cleared Only OBX Options Contract may only be exercised on the Expiration Day for such Contract subject to Rules 4.6.17 and 4.6.18. Payment of the Premium and of the Exercise Settlement Amount shall occur in accordance with the instructions of Turquoise. The first Norwegian Bank Day following the day on which the Exercise Order is received by Turquoise or the day on which Standard Exercise of the Contract is effected in accordance with Rule 4.6.17. A Cleared Only OBX Index Options Contract shall be subject to Standard Exercise in accordance with Rule 4.6.18. As specified in COR 2.1.6 of these rules.

Expiration Date

Exercise

Exercise Settlement

Exercise Settlement Day

Standard Exercise

Trade Reporting Hours

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COR 6.2
COR 6.2.1

Settlement and Delivery of Cleared Only Norwegian Stock Contracts: General and Application of Rules in Part 4.5
The settlement of Cleared Only Futures and Cleared Only Options based on one of the Norwegian Stocks listed in the Norwegian Stock List on exercise or expiration is performed by the delivery of the Underlying Stock against the payment of the Exercise Settlement Sum in the case of a Cleared Only Options Contract and the Expiration Settlement Amount in the Case of a Cleared Only Futures Contract. The rights and obligations of a Member concerning the delivery of the Underlying Stock following the exercise or expiration of any such Contract shall be performed by means of the VPS's VP system in accordance with instructions issued by Turquoise relative thereto. The Member shall make arrangements with a nominee holding an account at the VPS to act on its behalf in relation to such deliveries where necessary. The provisions of the following Rules, namely: (i) (ii) (ii) (iii) (iv) (v) Rule 4.5.1. Norwegian Stock - Introductory; Rule 4.5.12A - Norwegian Stock Contracts: Daily Cash Settlement Rule 4.5.13 - Settlement and Delivery of Norwegian Stock Contracts; Rule 4.5.14 - Norwegian Stock Futures: Settlement Procedures; Rule 4.5.15 - Exercise of Norwegian Stock Options; Rule 4.5.17 - Recalculation Rules

COR 6.2.2

shall apply equally to the settlement and delivery of Cleared Only Contracts based on Norwegian Stock. COR 6.2.3 The provisions of Rule 4.5.15 shall apply to the Exercise of Cleared Only Options Contracts based on a Norwegian Stock which are American Style which are exercised on any day prior to the Expiration Date. The provisions of Rule 4.5.16 shall apply to the Exercise of Cleared Only Options Contracts based on a Norwegian Stock where the Option in question is European Style or, where the Option is American Style, it is exercised on the Expiration Date.

COR 6.2.4

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COR 6.3
COR 6.3.1

Settlement of Cleared Only OBX Index Contracts: General and Application of Rules in Part 4.6
The settlement of Cleared Only Futures and Options based on the OBX Index on exercise or expiration is performed by the payment of the Exercise Settlement Amount in the case of a Cleared Only Options Contract and the Expiration Settlement Amount in the case of a Cleared Only Futures Contract. Cleared Only Futures based on the OBX Index are subject to Daily Cash Settlement.

COR 6.3.2

The provisions of the following Rules, namely: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) 4.6.14 Daily Cash Settlement; 4.6.15 Closing Transactions; 4.6.16 OBX Futures Contracts: Expiration Settlement; 4.6.16.7 Expiration Settlement Value; 4.6.17 Options: Exercise; 4.6.18 Options: Standard Exercise 4.6.19 OBX Composition and Related Matters Addendum to Rule 4.6.19

shall apply equally to the settlement and delivery of Cleared Only Futures and Options Contracts based on the OBX Index. COR 6.3.3 The provisions of Rule 4.6.17 shall apply to the Exercise of Cleared Only Options Contracts based on the OBX Index which are American Style which are exercised on any day prior to the Expiration Date. The provisions of Rule 4.6.18 shall apply to the Exercise of Cleared Only Options Contracts based on the OBX Index where the Option in question is European Style or where the Option is American Style it is exercised on the Expiration Date.

COR 6.3.4

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APPENDIX A

FEE SCHEDULE
Deleted
All applicable fees can be found in the Turquoise Derivatives Tarif Schedule and/or the Market Making Document for Market Making activity only, available at www.tradeturquoise.com .

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