cs-20100121 asia pacific handbook

8/8/2019 CS-20100121 Asia Pacific Handbook

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AESThe Standard in Algorithmic Trading

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Asia Pacific Market Commentary January 21, 2010

Portfo lio Strategy

ASIA PACIFIC EQUITY MARKETS HANDBOOK

2009 in Charts: From Bye-Bye to Buy, Buy!Regional Guide for Trading Rules

Murat Atamer

+852 2101 [email protected]

ClientTrading &Execution (CTE)AES Analysis
http://[email protected]/http://[email protected]/http://[email protected]/


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Key Points

Macro trends - Liquidity bounces: Trading activity, market capitalizations, volatility, gap risk correlations withthe US and spreads (bp) all seem to have normalized, Pages 1 and 2

Regional sector flow heat maps: Clients favored cyclical sectors over defensives. Buys intensified towards theend of the year for Australia; Non-Japan Asia (NJA) had strong inflows starting 2Q09, and Japan had positiveflows across all sectors for the first time in Dec 2009, suggesting potential outperformance in 2010, Page 2

The striking impact of algorithmic trading: Algorithmic trading launch in India resulted in sudden and drasticdeclines in trade sizes, coupled with substantial increases in the number of trades, Page 5 - Exhibit 19

2009 in Charts: Access regulatory update, liquidity fragmentation, and trading characteristics for all Asianmarkets in Asia Pacific (Pages 4 to 9)

Appendix includes market hours and trading rules for all Asia Pacific (Pages 10 to 24)

Macro Trends

Trading activity recovered strongly in 2009 with daily turnover reaching USD 90 bn. Volumes are dominated by

markets like Hong Kong and China due to the high number of large cap penny stocks in these markets. On a fullmarket capitalization basis, Asia Pacific again surpassed the US, (Exhibit 1).

Exhibit 1: Trading Activity and Market Capitalizations Bottomed and Substantially Improved

Source: Credit Suisse Portfolio Strategy; Bloomberg

Japan currently accounts for only 20% of cash value traded in Asia (down from 45% in Nov 2008); this maychange with the newly implemented high speed arrowhead trading system. China commands half the traded valuein Asia Pacific despite lacking index futures (expected to be launched in 1H10).

Developed Volatility Surged: Japan and Hong Kong were the most severely impacted markets, Exhibit 2.Japanese equities had lower volatility in USD terms as JPY is regarded as a safe heaven currency. Australiaand Asia ex Japan had similar volatility profiles; however, Australian equities were most severely affected inUSD terms during the crash. Volatility in China seems to have its own regime, and is on average much higherthan in other Asian markets, Exhibit 2

Spreads are at Pre-Crisis Levels: Bid-ask spreads (bp) also normalized across Asia Pacific and are muchlower than where they were in 1Q09, Exhibit 2

Exhibit 2: Volatility and Spreads are at Below Pre-Crisis Levels

Sources: Credit Suisse Portfolio Strategy; Reuters


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The US is still driving Asian opening prints:During the crisis, Asian Gap returns (e.g. todays openvs. yesterdays close) were heavily correlated with USdaily returns. Even though correlations seem to havecome off from their recent highs, they continue to belarge for most Asian markets, Exhibit 3.

Developed Asia Decoupling? Interestingly, currentlydeveloped market gap returns are less correlated withthe US than emerging market ones. Especially, thecorrelation between the Australian open and the S&P500 is as low as 20% with the strong recovery wehave been seeing in this market.

Credit Suisse Regional Sector Flow Heat Maps

Note: The flow information presented in this analysis does not include confidential or electronictrading, i.e. AES orders

Credit Suisse flows show that in general clients favored cyclical sectors more than defensive ones.

Exhibit 4:Australian cyclical sectors had large Exhibit 5: Flows were as good as they could getinflows in Nov and Dec 2009 in Asia ex Japan in 2H09

Source: Credit Suisse Portfolio Strategy Source: Credit Suisse Portfolio Strategy

Australia getting more inflows: In Nov and Dec 2009, we see that buying intensified especially for cyclicalstocks in Australia, suggesting increasing confidence and risk appetite, Exhibit 4.

Will the buying frenzy continue for Non-Japan Asia (NJA)? Flows were extremely supportive for NJA in2H09, and continue to be positive in the initial days of 2010. We continue to see sector rotation out of defensivesinto cyclicals, Exhibit 5.

Better days ahead for Japan? Despite the strongperformance we had in Asia Pacific ex Japan for 2009,even the defensive sectors experienced heavy sellingpressure in Japan.

December marked the first time we have seen across theboard buying in the Japanese equity market for 2009,Exhibit 6.

Source: Credit Suisse Portfolio Strategy

Exhibit 3: US is still driving the Asian Opening prints

Sources: Credit Suisse Portfolio Strategy; Bloomberg* Developed Markets include Korea and Taiwan

Exhibit 6: Japan hadinflows across all sectors inDecember 2009


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Trading Characteristics of Asian Equity Markets

AUSTRALIA

Stable trading characteristics: Volume curves are stable in the developed Australian market; yet, can largely differacross sectors. 7% of daily volume trades in the open whereas the closing auction accounts for nearly 10%, Exhibit 7

Execution costs are as tight as regulation allows: Since Australian tick structure is inflexible (75% of stocks areforced to trade at a tick size of AUD 0.01), execution costs tend to surge in down markets and vice versa. Currently,spreads in Australia are as tight as regulation allows (one-tick wide), which suggests that tick size declines couldresult in higher trading activity, Exhibit 8. In line with this, ASX recently announced plans to reduce index weightedtick sizes for ASX 200 by 30% to 90% via two proposals

Fragmentation: Chi-X is planning to launch in 2Q10

CHINA A Shares (Domestic Market)

Hard to predict Shanghai volume curves: Lacking index futures, volume curves are somewhat volatile inShanghai. The China Securities Regulatory Commission approved the launch of index futures for CSI 300. The open

is negligibly small ahead of the Hong Kong pre-open starting at 9:30 am, Exhibit 9 High volatility causes spikes in execution costs: Chinese tick sizes are also quite low compared to average

prices at (RMB 0.01); however they are strict (all names trade at RMB 0.01). As such, spreads tend to decrease infavorable markets and vice versa. As expected, we see spikes in execution costs when volatility is high, Exhibit 10

Shenzhen vs. Shanghai: Volume curves are in line with.However, volumes are more concentrated in the AMsession for Shenzhen. Note that Shenzhen has a closingcall auction (last 3 minute VWAP) whereas thereShanghai has no closing auction, Exhibit 11.

Spreads also tend to be around 10% higher at Shenzhen,

and are heavily correlated with spreads in Shanghai,Exhibit 10.

Exhibit 7: Stable volume curves Exhibit 8: Median spreads fell 40% in 2009

Sources: Credit Suisse Portfolio Strategy, Reuters Sources: Credit Suisse Portfolio Strategy, Reuters

Exhibit 11: Volume curves are in line with Shanghai

Sources: Credit Suisse Portfolio Strategy, Reuters

Exhibit 9: Somewhat volatile curves in Shanghai Exhibit 10: Shanghai offers very attractive spreads



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India allows algos

Impact of Smart Algorithms in Market MicrostructureThe Case of India: Lower Market Impact!

Algorithmic trading took off in India: In addition to its well-established Direct Market Access (DMA) offering,once the regulatory framework was in place, Credit Suisse launched algorithmic trading services in June 2009

Why algorithmic trading matters in India? Smart algorithms use real time intraday trading data (e.g. orderbook sizes, bid-ask spreads, and stock volatility to name a few) to avoid market impact. Since India has thesmallest order book sizes in Asia Pacific, Exhibit 18, trading this market manually or via DMA could result in largeorders travelling through the order book and cause unnecessary market impact

Impact of algorithms: In line with small bid-offer sizes, we see a sudden and drastic decline in median tradesizes and substantial increases in the number of trades with the introduction of algorithms, Exhibit 19. Clearly,trading India manually has become extremely difficult over the last 6 months

Exhibit 18: India has the smallest touch sizes in Asia Exhibit 19: The impact of algorithmic trading

Sources: Credit Suisse Portfolio Strategy; Reuters Sources: Credit Suisse Portfolio Strategy; Reuters

INDONESIA

Volatile volume curves: Volume curves are quite volatile as the liquidity is very thin in Indonesia, Exhibit 20. CreditSuisse currently offers DMA as well as core AES tactics

Large executions costs: Indonesia has some of the highest spreads in Asia Pacific, Exhibit 21; as such, queuesizes can be massive in this market

Exhibit 20: Higher closing volumes in 4Q09 Exhibit 21: Some of the highest spreads in Asia



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JAPAN

Ahead of the curve: Volume curves are very stable, Exhibit 22.We see somewhat higher closing auction trading in 4Q09

Lower spreads and trade sizes with arrowhead: Executioncosts declined by 25% for Nikkei 225 constituents with the newtick sizes, Exhibit 23. After arrowhead, we also see a decline in

trade sizes, coupled with a spike in number of trades, Exhibit 24 What Latency? With arrowhead, latency also declined from

seconds to 4.5 milliseconds in Japan. Especially during auctionsessions, observed latency declined from 5 to 10 seconds toless than a second. Credit Suisse offers co-lo services in Japan.In fact, with AES Velocity, clients can achieve latencies of afew hundred microseconds

Smart Order Routing and Secondary Venues: Credit Suissewas the first broker accessing all relevant venues via its cuttingedge smart order router Pathfinder (SOR). Credit Suisseclients on average saved 2.5 bp in these venues and reducedmarket impact by trading away from the primary. Please followthe link for details: Untapped Liquidity in Japan

Fragmentation benefits go to investors with sophisticatedexecution tools: Turnover in secondary trading venues hasbeen rising considerably, Exhibit 25. We expect savings toincrease going forward due to higher competition betweenprimary and secondary trading venues. In fact, TSEs arrowheadlaunch already prompted secondary venues to respond with ticksize reductions. Chi-X is also planning to launch in 2Q10, whichshould intensify competition, and further benefit end-investors.

KOREA

Very stable volume curves: Korea has the least volatile volume curve in Asia Pacific, Exhibit 26; thanks to a wellestablished futures market that boasts some of the highest traded values in Asia Pacific

Spreads are larger than tick sizes: Korea also has a flexible tick structure that adjusts for price changes. As such,spreads (bp) were quite stable for Korea in 2009. However, spreads are 30% higher than tick sizes, which is largerthan those in similar markets like Developed Asia Pacific and Taiwan trading nearly at a single tick, Exhibit 27

Exhibit 22: Higher closing volumes in 4Q09 Exhibit 23: Spreads declined 25% with arrowhead


Impact of arrowhead onexecution costs (25%)

Exhibit 25: Fragmentation gains momentum


> 6x

Exhibit 26: Higher closing volumes in 4Q09 Exhibit 27: Spreads are extremely stable in Korea


Exhibit 24: A faster trading market

https://tradeview.csfb.com/public/bulletin/ServeFile.aspx?FileID=12147&m=-1200116597https://tradeview.csfb.com/public/bulletin/ServeFile.aspx?FileID=12147&m=-1200116597https://tradeview.csfb.com/public/bulletin/ServeFile.aspx?FileID=12147&m=-1200116597


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MALAYSIA

Long trading hours = lumpy volume curves: Due to long trading hours and shallow liquidity, volume curves tendto be volatile, Exhibit 28. On Oct 26, the pre-closing, auction, and trading at last sessions were removed from the AMsession of the newly implemented trading platform: Malaysias New Trading Platform

Tick reduction successfully reduced execution costs by 40%: Spreads declined nearly 40% after the tick sizereduction on Aug 3. Spreads are around 20% higher than tick sizes in Malaysia (in line with Hong Kong), Exhibit 29

SINGAPORE

Longest trading hours in Asia: Singapore has one of the longest trading hours in Asia. This not only increasesvolume curve volatility, but also may result in unnecessary market impact from large orders, Exhibit 30

Execution costs falling: The tick structure is strict (most stocks are forced to trade at a tick size of SGD 0.01); assuch, execution costs tend to surge in down markets and vice versa. Singapore proposed a much needed tick sizedecline of 20% on Sep 2009, which should also reduce execution cost volatility, Exhibit 31

Fragmentation: Chi East is to launch a dark pool to trade Australia, Japan, Hong Kong, and Singapore stocks

THAILAND

Closing auction volume share declines: In line with spread declines, we had more evenly distributed trading overa given day in Thailand; i.e. the proportion traded in the close declined, Exhibit 32 Spreads decline 25%: SET reduced tick sizes by 25% on Mar 31. Later in the year, due to the market rally,spreads declined further for the market, Exhibit 33

Impact of tick sizereduction (40%)

Exhibit 28: Volume curves are volatile Exhibit 29: Spreads fell 40% with tick size reduction


Exhibit 30: Volume curves are volatile Exhibit 31: Spreads fell 55% due to the market rally!


Exhibit 32: Lower closing volumes in 2H09 Exhibit 33: Spreads fell 25% due to the market rally!


Impact of tick sizereduction (25%)
https://tradeview.csfb.com/public/bulletin/ServeFile.aspx?FileID=11410&m=-1547286612https://tradeview.csfb.com/public/bulletin/ServeFile.aspx?FileID=11410&m=-1547286612https://tradeview.csfb.com/public/bulletin/ServeFile.aspx?FileID=11410&m=-1547286612


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TAIWAN

Shortest trading hours in Asia: Taiwan has the shortest trading hours in Asia. Since it also is among the deepestmarkets, volume curves are stable, Exhibit 34

Execution costs are among the lowest in Asia: Due to a flexible tick structure that adjusts for price movements,tick sizes and therefore spreads were stable during the market crash in Taiwan, Exhibit 35. However, spreads are astight as regulation allows, suggesting that a tick size reduction could help increase trading activity

Impact of volatility on the volume curve: Volatility causesopen volumes to surge in Taiwan; e.g. in the peak of the marketcrash on 4Q08, volume curve shifted heavily towards the open,Exhibit 36.

The culprit is daily price limits: The main reason for the shiftis the tight daily price limits set at 7% from previous close. Sincea name can easily hit limit prices on a given day and renderscheduled orders (e.g. VWAP or TWAP) incomplete, tradersrush to get executed in the early hours of trading.

Please see the Appendix for the trading hours and market rules in Asia Pacific, also available in Credit Suissesweb-based Market Intelligence Platform EDGE

Trading Rules for Global Markets, Analytics & Reports Online: EDGE website Our website Edge (http://www.credit-suisse.com/edge) contains many analytic tools for traders and PMs All Portfolio & Derivatives Strategy reports are available on Edge under Resources>Strategy Library You can also reach EDGE from the Research & Analytics site, under the Equities tab > Further Analysis >

EDGE (right-hand sidebar) Cannot Access? Please contact your CTE Specialist

Exhibit 34: Stable volume curves Exhibit 35: Admirably stable and attractive spreads


Exhibit 36: Counterintuitive volume curves?

http://www.credit-suisse.com/edgehttp://www.credit-suisse.com/edge


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APPENDIX

CLIENTTRADING &EXECUTION (CTE) | ASIA PACIFIC REFERENCE GUIDE

AustraliaThe Australian Stock Exchange (ASX), in Sydney, is the only stock market in Australia.Major Market ASX (http://www.asx.com.aubb AU / rt .AX)

Market Hours Monday - Friday:

Pre-Opening (7:00am to 10:00am / 10:09am): Staggered opening. Open time depends on stock name.

Orders may be entered, modified, and deleted to join the opening auction at 10:00am. No market orders are

allowed.

Normal Trading (10:00am to 4:00pm): The market trades continuously on a price/time priority basis. No

Market orders are allowed.

Closing Auction (4:00pm to 4:10pm / 4:12pm): Orders may be entered/modified/deleted to join the closing

auction at 4:10pm. Actual close is a random time up to 59 seconds after 4:10pm; late closings have been

abolished. No market orders are allowed. Closing auction ends at 4:12pm.

Overnight Trading (4:12pm to 6:50pm / 7:00pm): Orders may be cancelled or amended. New orderscannot be entered and ITS does no execute trades. Brokers can trade through the phone.

Daily Price Limits No circuit breakers or daily price movement limits.

Round Lot Size 1 share.

Market Price Minimum Bid

Up to 10c 0.1c

Over 10c up to $2.00 0.5c

Over $2.00 up to $998.99 1.0c

Spreads

Over $999 $1.0

Settlement & Transfer T+3, DVP, cleared/arranged by the Australian Stock Exchange Settlement and Transfer Corporation (ASTC).

Tax No tax for offshore accounts. 10% GST * (Commission) for onshore accounts only.

Major Indices The S&P ASX 200 Index (bb AS51/ rt .AXJO): A capitalization-weighted index of the top 200 companies

ranked by market size on ASX. Other Australian S&P indices include S&P/ASX 20, 50, 100, and 300.

Futures Based on the S&P/ASX200, S&P/ASX50, and the S&P/ASX 200 Property Trusts Indexes: Valued at

AUD 10 per index point. Quarterly futures expiry. Monthly options expiry.

Restrictions Short Sell: Short selling is permitted in certain designated securities that are not under an offer of takeover.

Short Sell Limit is 10% of the quantity of the security on issue. No uptick rule applies, but need to have borrow

in place. Margin covers are required; investors need to inform their brokers before short selling and also when

they have bought back the short-sold shares.

Foreign Ownership Restrictions: A foreign investor requires the approval of the Foreign Investment Review

Board (FIRB) when the overseas ownership exceeds 10% per shareholder or 40% overall foreign holdings.

Notably, there are other rules concerning the media, transportation and banking sectors.

Crossing: Either special or on-market. Special crossings (including large trades and portfolios) may take place

off-market at any time, including during Normal Trading. Depending upon the type, the minimum consideration

(total sale price) ranges between $1MM and $5MM.

Single Stock: any stock, unless under takeover, worth at least AUD 1MN (500K for warrants), can be put

through at any price. Under AUD 1MN, needs to be crossed on market, at or in between market prices.

Portfolio: minimum of 10 Stocks each worth AUD 200K with a total of AUD 5MN can be put through the

market at any price.

Offshore: If at least one side of an order is taken after market hours, a stock can be put through the

market the next morning before 9:45am at an agreed price, as long as the clients home exchange is open

at the time the deal is executed.

All crosses require a change of beneficial ownership.

Electronic Trading Fully Integrated Into IRESS (local Australian OMS).
http://www.asx.com.au/http://www.asx.com.au/http://www.asx.com.au/


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ChinaStock markets for foreign investors in China include the Shanghai Securities Exchange B (traded in USD) and Shenzhen Stock Exchange B

(traded in HKD). However, most foreign investors trade their Chinese stocks on the Hong Kong Stock Exchange (SEHK).

Major Market SHSE (http://www.sse.com.cn bb CG / rt .SS)SZSE (http://www.szse.cn bb CS / rt .SZ)


Opening Call Auction (9:15am to 9:25am). Orders cannot be cancelled between 9:20am and 9:25am.

Continuous Auction (9:30am to 11:30am and 1:00pm to 3:00pm): The market trades continuously on a

price/time priority basis.

The closing price for Shenzhen is the VWAP of the last 3 minutes (closing call auction from 14:57pm to

15:00pm) - there are no closing auctions at the Shanghai Stock Exchange.

Daily Price Limits 10% from the static reference price for normal stocks (and mutual funds), i.e. the last closing price. 5% forstocks under special treatment (ST shares). Price limit does not apply to IPOs, further issues, and other casesas determined by the exchange.

Round Lot Sizes 100 shares on the buy side and 1 share on the sell side.

SHSE B Shares Minimum Price Fluctuation(USD)

SZSE B Shares Minimum Price Fluctuation(HKD)

0.001 0.01

Spreads

A Shares: RMB 0.01

Settlement andTransfer

T+3 for B shares (T+1 for A shares), DVP, cleared/arranged by the China Securities Central Clearing &Registration Corporation in Shanghai and Shenzhen Securities Settlement Company in Shenzhen.

SHSE B (bps) SZSE B (bps)

Stamp Duty 10 bps * (Gross) on Sells 10 bps * (Gross) on Sells

Service Charge 8 bps * (Gross) 8.41 * (Gross) &(min HKD 50)

SHSE A (bps) SZSE A (bps)

Stamp Duty 10 bps * (Gross) on Sells 10 bps * (Gross) on Sells

Tax

Service Charge 6.5 bps * (Gross) 1.875 bps * (Gross)

Major Indices Shanghai Composite Index (bb SHCOMP/ rt .SSEC): A capitalization-weighted index of listed China A and

China B shares.

Shenzhen Constituent Stock Index (bb SICOM/ rt .SZSC1): A capitalization-weighted index of top 40

China A shares.

SHSE SZSE CSI 300 Index (bb CSI300/ rt .CSI300) A capitalization-weighted index of top 300 China A

shares listed in Shanghai or Shenzhen.

Futures Will be based on the CSI300 Index already approved expected to launch 1H2010

Restrictions Short Sell: Not permitted.Foreign Investors: Currently if foreign investors would like to invest in Chinese stock they have the followingchannels:

1. Trading directly in China B share markets including Shanghai and Shenzhen.2. Trading China A share markets via QFII scheme after getting approval by Chinese regulators.3. Trading H shares that issued by Chinese listed companies and listed in Hong Kong Market.4. Trading other securities listed in other stock exchanges in oversea. Like ADR etc

Crossing:

Shanghai A Shares: at least 500,000 shares or RMB 3MN (adjusted for market conditions) can betraded within day low and day high or last price (if no transactions on the day) and must be registered with

the exchange from 3:00 to 3:30pm of the same day. If the stock is suspended before 3:00pm, there is no

block trading.

Shanghai B Shares: must be at least 500,000 shares or USD 300K and placed by floor traders with

confirmation of floor supervisors between 9:45am and market close. Trading must be within day low and

day high or previous close and last price (if only one trade on the day) or closing price (if no trades on the

day).

Shenzhen B Shares: At least 500,000 shares or HKD 300K amount.

No amendments can be made to crossings.

Electronic Trading Electronic Trading is not yet available for foreign investors but is available for local investors.
http://www.sse.com.cn/http://www.szse.cn/http://www.szse.cn/http://www.sse.com.cn/


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Hong KongStock markets in Hong Kong include the Stock Exchange of Hong Kong (SEHK) and Hong Kong Growth Enterprise Market (GEM).

Major Market SEHK (http://www.hkex.com.hkbb HK / rt .HK)


Pre-Opening (9:30am to 9:50am): Orders may be entered/modified/deleted until 9:45am. From 9:45am to

9:50am, only market orders are allowed.

Continuous Trading (10:00am to 12:30pm & 2:30pm to 4:00pm): market trades continuously on a

price/time priority basis. Orders must be within 8 ticks up/down of the best bid/offer. Max 3,000 board lots /

order. During the break, orders cannot be amended until 2:30pm, but could be cancelled after 2:00pm.

Closing Price Setting (3:59pm to 4:00pm): Closing price is the median of 5 prices snapped every 15

seconds. It is hard to match.Daily Price Limits &Circuit Breakers

+/- 24 spreads from nominal price.

Round Lot Sizes No limit, decided by the issuerStock Price/Share (HKD) Minimum Price Fluctuation (tick)

0.250 0.001

0.25 0.50 0.0050.50 10.00 0.01010.00 20.00 0.02020.00 100.00 0.050100.00 200.00 0.100200.00 500.00 0.200500.00 1000.00 0.500

1000.00 2,000.00 1.0002,000.00 5,000.00 2.000

Spreads

5,000.00 10,000.00 5.000Settlement & Transfer T+2, DVP, cleared/arranged by the HK Securities Clearing Company (HKSCC).Tax Stamp: 10 bps * (Gross), rounded up to the nearest HKD.

Levy: 0.4 bps * (Gross), rounded mathematically to the nearest HK cent.

Fee: 0.5 bps * (Gross), rounded mathematically to the nearest HK cent.

Major Indices The Hang Seng Index (bb HSI/ rt .HSI): A capitalization-weighted index of 33 names representing about

70% of the total market cap of SEHK. Other indices include China Enterprise (State owned Chinese

companies / H-shares) and China Affiliated (at least 35% owned by China / Red Chip) indices.Futures Based on HSI (bb HIU2 / rt 0#HSI:): Tick Value is HKD50 per point. Monthly futures and option expiry.Restrictions Short Sell: Must be a SEHK approved short sale stock and a lending agreement must already be in place.

Naked short selling is prohibited unless exempted. The broker needs to flag the order as a short sell and must

be placed at or above the current best ask price. With effect 24 Dec 09, the total number of short sell eligible

securities is 454

Crossing: No limit on quantity or value but price should be within the range of the lowest of twenty-four

spreads below the previous closing price, the lowest bid and the lowest ask price up to the time of the

transaction on the day and the highest of twenty-four spreads above the previous closing price, the highest bid

and the highest ask price up to the time of the transaction on the day. Cross trades need to be reported to the

exchange within 15 minutes of execution or within 15 minutes of open on the next trading day for crossesexecuted after market close.

Additional Information Buy In: Day after fail (T+3). Additional 50bps penalty.Trading in the OpeningAuction

Orders are not carried overnight. The pre-market opens at 9:30am. Can put market or limit orders in from 9:30

until 9:45am. From 9:45 to 9:50am orders may not be cancelled and only market orders allowed (no limit

orders). Orders are matched at 9:50am (market orders are NOT guaranteed of getting filled) with continuous

trading begin at 10:00am. Cannot put short sell orders into the open auction.Electronic Trading Full customization of AES tactics and Crossfinder available
http://www.hkex.com.hk/http://www.hkex.com.hk/


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IndiaStock markets in India include the Bombay (BSE) and National (NSE).

Major Market BSE (http://www.bseindia.com bb IN / rt .BO)

NSE (http://www.nseindia.com bb IN / rt .NS)Market Hours Monday to Friday:

Normal Session (9:00am to 3:30pm) and for NSE Closing Session from 3:50 pm to 4:00pm): Themarket trades continuously on a price/time priority basis. The first print is the opening price, and the closingprice is the VWAP of all trades in the last 30 minutes of the continuous trading session. However, if no tradeduring the last 30 minutes, the last traded price in the trading session is the closing price.

Daily Price Limits &Circuit Breakers

NSE Price Bands: http://www.nseindia.com/content/equities/eq_pricebands.htmNSE Circuit Breakers: 10% (one-hour market halt), 15% (two-hour market halt) and 20% (end of trading forthe day) up or down in the BSE Sensex or the NSE S&P CNX Nifty.BSE: http://www.bseindia.com/mktlive/circuit_filter/summary/cktsummary.asp

Round Lot Sizes It is generally 1 share but varies for each company depending upon the market lots determined by the company.

Settlement andTransfer

India market follows T+2 settlement cycle. There are two modes of settlement. Clearing house (to be settledbetween Client's local custodian and exchange clearing corporation directly) and DVP (to be settled by thebroker with exchange clearing corporation and client's local custodian).As per the local regulations, all trades done for Institutional clients should be settled via the clearing house

mode, meaning, client instruction should reach their local custodian by T+1 (Before 1 PM India time). If theinstructions get matched, then the trade would be settled via the clearing house mode. If the instructions do notreach by the cut-off time, then the trade would get settled via the DVP mode.

Tax Securities Transaction Tax: 12.5 bps * (Gross).Stamp Duty: 1 paise per 100 Rs.

Major Indices The BSE Sensex (bb SENSEX/ rt .BSESN): A capitalization-weighted index of 30 stocks on BSE.The S&P CNX Nifty (bb NIFTY/ rt .NSEI): A free float-weighted index of 50 stocks on NSE.

Futures Based on BSE Sensex (bb SHU2 / rt 0#BIF:): Tick Value is 0.05 index points. Monthly expiry.Based on Nifty (bb IHU2 / rt 0#NIF:): Tick Value is 0.05 per point. Monthly expiry.

Restrictions Short Sell: Not allowed. One cannot run a short position overnight; this breaches the exchange rules andcauses major problems for brokers. Caution is needed for sell volumes, very hard to buy back and net off. If aclient has both buy and sell positions on the same stock on the same day, it does not net off at the custodian'send - need to settle these trades separately. The onshore prohibition has now been extended to offshoretransactions (via P-note, Delta One Products, Swaps, etc.) which has the effect of a short sale or indirectlygives the client the benefit of a short sale. Further, there is a daily regulatory reporting obligation on all

registered Foreign Institutional Investors to report the opening and closing position in respect of the shortpositions.Foreign Ownership Restrictions: Foreign investors can automatically hold 24% of a listed co. The limit maybe raised to 49% upon request. Please see the link for details: http://www.rbi.org.in/scripts/BS_FiiUSer.aspxCrossing: Crossing is not allowed and we can only keep matching the buy / sell side orders at intervals; so thebuy & sell orders get almost the same prices. There is no guarantee that the buy & sell sides will be the same asthere could be another buyer/seller at / around that price in the market.

Electronic Trading Available with 9 tactics: VWAP, TWAP, Volume Inline, Price Inline, Guerrilla, Sniper, Reserve, Float, andPathfinder. Account: Foreign investors have to be SEBI registered FIIs or use access products like p-notesoffered by brokers.
http://www.bseindia.com/http://www.nseindia.com/http://www.nseindia.com/content/equities/eq_pricebands.htmhttp://www.nseindia.com/content/equities/eq_pricebands.htmhttp://www.bseindia.com/mktlive/circuit_filter/summary/cktsummary.asphttp://www.bseindia.com/mktlive/circuit_filter/summary/cktsummary.asphttp://www.rbi.org.in/scripts/BS_FiiUSer.aspxhttp://www.rbi.org.in/scripts/BS_FiiUSer.aspxhttp://www.rbi.org.in/scripts/BS_FiiUSer.aspxhttp://www.bseindia.com/mktlive/circuit_filter/summary/cktsummary.asphttp://www.nseindia.com/content/equities/eq_pricebands.htmhttp://www.nseindia.com/http://www.bseindia.com/


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IndonesiaThe Indonesia Stock Exchange (IDX) is the only stock market in Indonesia.

Major Market JSE (http://www.idx.co.id bb IJ / rt .JK)

Market Hours Monday Thursday:

Pre-Opening (9:10 am to 9:25 am).

Morning Session (9:30am to 12:00pm): The market trades continuously on a price/time priority basis. The

first print is the opening price.

Afternoon Session (1:30pm to 4:00pm): The market trades continuously on a price/time priority basis. The

last print is the closing price.Friday:

Pre-Opening (9:10 am to 9:25 am).

Morning Session (9:30am to 11:30pm): Market trades continuously on a price/time priority basis. The first

print is the opening price.

Afternoon Session (2:00pm to 4:00pm): Market trades continuously on a price/time priority basis. The last

print is the closing price.Daily Price Limits Stocks may not trade outside of the opening price/previous closing price by the percentage indicated in the

price ranges below:

Below 50 : auto reject

50 - 200 IDR: 35% change

200 to 5000 IDR: 25% change5000 and above: 20% change

Round Lot Sizes 500 shares. 500 rights. Trading odd lots can be very difficult in Indonesia; the odd lot market is very illiquidwithout any special board. Brokers have to find a willing counterparty.

Stock Price/Share (IDR) Minimum Price Fluctuation (IDR)

0 200 1200 500 5

500 2,000 102,000 5,000 25

Spreads

5,000+ 50

Settlement & Transfer T+3, DVP, cleared/arranged by the Indonesian Clearing & Guaranteed Corp. (PT KPEI).Tax

Levy: 4.3 bps * (Gross) on both buys and sells.VAT: 10%* (Commission) on buys and sells.Sales Tax: 10 * (Gross) on sells only.

Major Indices The Jakarta Composite Index (bb JCI/ rt .JKSE): A market capitalization weighted index comprising all

listed shares on IDX.

The LQ45 Index (bb LQ45/ rt .JKLQ45): A market capitalization index of the 45 most heavily traded stocks on

the JSE.Futures No futures based on any of the above indices.Restrictions Short Sell: It is NOT allowed for some brokers including CS Indonesia. Failure to deliver on settlement will

result in Alternate Cash Settlement which is 125% of the 3-days highest price of the traded stock.

Crossing: No limit on quantity or value and no transaction price limit, however, price much differ from the

market may warrant regulatory inquiry. However, every cross transaction has to go through the Exchange.

Settlement can take place at any time with agreement of both counterparties.

Electronic Trading JSE is an electronic market. Credit Suisse provides DMA as well as core AES

tactics in this market
http://www.idx.co.id/http://www.idx.co.id/


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Portfo lio Strategy

JapanStock markets in Japan include Nagoya (NSE), Osaka (OSE), Tokyo (TSE) and JASDAQ for OTC.

Major Market TSE (H http://www.tse.or.jp/english/rules/equities/dstocks/index.htmlbb JT / rt .T)Market Hours Monday Friday:

Morning Session Pre-Opening (8:00am to 9:00am): Orders may be entered/modified/deleted to join the

opening auction at 9:00am.Morning Session (9:00am to 11:00am): The market trades continuously on a price/time priority basis. Anauction decides the closing price at 11:00am.Afternoon Session Pre-Opening (12:05pm to 12:30pm): Orders may be entered/modified/deleted to jointhe opening auction at 12:30pm.Afternoon Session (12:30pm to 3:00pm): The market trades continuously on a price/time priority basis. Anauction decides the closing price at 3:00pm.OSE closes at 3:10pm and NSE closes at 3:30pm

Daily Price Limits Daily price limits are based on stocks' previous closing prices. For details, please checkhttp://www.tse.or.jp/english/rules/equities/dstocks/index.html

Round Lot Sizes Lots range as follows: 1/10/50/100/500/1000/2000/3000Stock Price/Share (JPY) Minimum Price Fluctuation (JPY)

- 2,999 1

3,000 4,995 5

5,000 29,990 10

30,000 49,950 5050,000 299,900 100300,000 499,500 500

500,000 2,999,000 1,0003,000,000 4,995,000 5,0005,000,000 29,990,000 10,00030,000,000 49,950,000 50,000

Spreads

50,000,00+ 100,000Settlement & Transfer T+3, DVP, cleared/arranged by the Japan Securities Depository Center (JASDEC).

Tax Capital gains tax for individuals:For the period between 1-Jan-2003 and 31-Dec-2011: 10%, with 7% income tax, and 3% inhabitant tax.For the period of 1-Jan-2012 and after: 20% comprising of 15% income tax and 5% inhabitant tax.Capital gains tax for corporations:Taxable. Capital losses are deducted from taxable income.Dividends and interest income are also taxed.

Major Indices The Tokyo Price Index (bb TPX/ rt .TOPX): A capitalization-weighted index of all the companies listed on theTSE 1st Section. TOPIX is the most domestic investors benchmark.The Nikkei 225 Stock Average (bb NKY/ rt .N225): A price-weighted index of 225 top-rated Japanesecompanies listed in the TSE First Section.

Futures Based on TOPIX (bb TPU2/ rt 0#JTI:): Tick Value is JPY10,000 per point. Quarterly futures expiry. Monthlyoptions expiry.Based on Nikkei 225 (bb NKU2/ rt 0#JNI:): Tick Value is JPY1,000 per point. Quarterly futures expiry.Monthly options expiry.

Restrictions ort Selling: Traders are required to verify and mark whether or not the transactions in question are short selling.As an "uptick rule requirement," short selling are prohibited, in principle at prices no higher than the latest marketprice announced by the stock exchange concerned.Crossing: There are no special restrictions for offshore crossing in Japan.

Electronic Trading DMA and all AES tactics are available on TSE, OSE, Hercules and JASDAQ.Ability to trade Japan through swap.FLOAT tactic with an aggressive execution style is very good for handling short sell orders aggressively. AllAES tactics handle exchange short sale rules properly.Smart Order Routing available to all relevant venues: Japanese Proprietary Trading Systems like SBI,Kabu.comPTS, and CBXCo-lo services and AES Velocity, achieving latency of 400 microseconds available
http://www.tse.or.jp/english/rules/equities/dstocks/index.htmlhttp://www.tse.or.jp/english/rules/equities/dstocks/index.htmlhttp://www.tse.or.jp/english/rules/equities/dstocks/index.htmlhttp://www.tse.or.jp/english/rules/equities/dstocks/index.htmlhttp://www.tse.or.jp/english/rules/equities/dstocks/index.html


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Portfo lio Strategy

KoreaStock markets in Korea include Korea Stock Exchange (KSE) and KOSDAQ.

Major Market KSE (www.krx.co.kr bb KS / rt .KS)Market Hours Pre-Opening (8:00am to 9:00am for KSE and 7:50am to 9:00am for Kosdaq): Orders may be

entered/modified/deleted to join the auction at 9:00am. Pre-Open off-market crossings (7:30am to 8:30am).

Continuous Trading (9:00am to 2:50pm): The market trades continuously on a price/time priority basis.

Closing Auction (2:50pm to 3:00pm): Orders may be entered/modified/deleted to join the auction at 3:00pm.

Post Market Auction (3:00pm to 3:10pm): Orders, including odd lots, may be entered/modified/deleted to

trade at the closing price.

Trading-at-Last (3:10pm to 3:30pm): Shares can be traded at the closing prices.

After Market (3:30pm to 6:00pm): Shares can be traded via auction every 30 minutes (+/-5% from close).Daily Price Limits andCircuit Breakers

Stocks are restricted to 15% limit up / down from previous closing prices. Trading is suspended if there is a10% fall (and remains there for at least 1 minute) in the KOSPI from the previous close. Trading resumes aftera 20-minute halt and 10-minute auction. This can only take place once a day and is not applicable from 2:20pm.

Round Lot Sizes For KOSPI listed shares 1 share for stocks trading > KRW 50,000 based on previous close, anything belowthis threshold is 10 shares. 1 share for KOSDAQ listed shares.

Stock Price/Share (KRW) Minimum Price Fluctuation (KRW)

- 4,995 5

5,000 9,990 1010,000 49,950 50

50,000 99,900 100100,000 495,500 500

Spreads

500,000 + 1,000Settlement & Transfer T+2, DVP, cleared/arranged by KSE.Tax Agricultural Tax: 15bps * (Gross) for KSE sell trades, rounded up to the nearest KRW.

Trade Tax: 15bps * (Gross) for KSE sell trades, rounded up to the nearest KRW.Major Indices The Korea Stock Price Index (bb KOSPI/ rt .KS11): A capitalization-weighted index of all common shares

on KSE. Volumes on quote line are in 000's. The preferred shares are excluded in calculating KOPSI.

The Korea Stock Price Index 200 (bb KOSPI2/ rt .KS200): A capitalization-weighted index of 200 Korean

stocks which make up 93% of the total market value of KSE.Futures Based on KOSPI 200 (bb KM1/rt .0#KS:): Tick size is 0.05 index points, or KRW25,000.

Quarterly futures and monthly options expiry.Restrictions Short Sell: Short selling is permitted. Need to have borrow

Crossing:

500 trading lots / KRW 100MN for KOSPI and KRW 100MN for KOSDAQ.

Effective September 17, 2007, cross trades are available for foreign ownership limited stocks in the off

market if both the buyer and the seller are foreign investors. Under the current rules, one cannot buy or

cross shares for foreigners if the foreign ownership limit is filled.

Pre-Market (7:30am 8:30am): May trade either VWAP or +/- 15% of previous close within limit up/limit

down.

Normal Trading Hours: Only on the open market within day high / low.

After Market (3:10pm 6:00pm): Same as pre-market rules. Price limit is applied +/- 15 % from

previous day's closing price.Electronic Trading

Account: QFII number (local client account) is required to trade for foreign investors. Korea also has anomnibus facility. Investor IDs must be sent with the order unless all orders are traded via omnibus. Sell orders

in foreign ownership restricted stocks must be sent via ID (no omnibus).

DMA Regulations: A specific Korean agreement needs to be signed for DMA. This is in addition to any other

DMA agreement. In addition, local regulations require that pure DMA the orders must be sent directly to the

Seoul office. This can create problems with clients who connect to Credit Suisse locally (e.g., in New York or

London) and may only be able to trade one touch. Credit Suisse has worked with some vendors and

network providers (e.g., Bloomberg) to provide direct access to Seoul.

Electronic Trading via Swap: Clients who regularly trade and short the same stocks in Korea should

consider using a swap facility. Amongst other advantages it can provide a way to make short selling easier.
http://www.krx.co.kr/http://www.krx.co.kr/


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Portfo lio Strategy

MalaysiaThe Kuala Lumpur Stock Exchange (KLSE) is the only stock market in Malaysia. It consists of three lists: the Main, Second and MESDAQ.

Major Market KLSE (http://www.klse.com.my bb MK / rt .KL)

Market Hours Monday Friday:

Morning Session (8.30am to 12.30pm):

Pre-Opening Phase (8:30am to 9:00am): Orders can be entered, modified and deleted. Supports market

and limit orders. Allows order amendments or cancellations - no matching takes place at this phase. Dynamic

Theoretical Opening Price (TOP) is calculated.

Opening Phase (9:00am): Last TOP is calculated before matching. Opening price/quantity is broadcast.

Orders are matched based on price/time priority. At the end of the phase system moves to Continuous Trading.

Continuous Trading Phase (9:00am to 12:30 pm): Orders can be entered/modified/deleted. Orders are

checked for possible execution, unexecuted portion is added to the order book. Matching on price/time priority.Pre-Opening Phase (2:00pm to 2:30pm): Similar to morning sessionOpening Phase (9:00am and 2:30pm): Similar to morning sessionContinuous Trading Phase (2:30 to 4:45pm): Similar to morning sessionPre-Closing Phase (4:45pm to 4:50pm): Similar to morning sessionClosing Phase (4:50pm): Similar to morning sessionTrading at Last Phase (4:50pm to 5:00pm): Similar to morning session

Circuit Breakers 10%, 15% and 20 declines in the Kuala Lumpur Composite Index (KLCI). For details, please checkhttp://www.klse.com.my/website/bm/bursa_basics/faqs/circuit_breaker.htmlRound Lot Sizes Mostly 100 shares. Odd lots sell at odd lot market at discount.

Stock Price/Share (RM) Minimum Price Fluctuation (RM)

- 0.995 0.0051.00 9.99 0.010

10.00 - 99.92 0.020

Spreads

100.00 + 0.100

Settlement & Transfer Sales/Purchase via ISS match by 5pm on T+2. Sales via FDSS match by 4pm on T+2. Purchase viaFDSS match by 4pm on T+3

Tax Stamp: 10 bps * (Gross rounded up to nearest RM 1) on both buys and sells. Max. RM 200.

Clearing Fee: 3 bp * (Gross). Max RM 500

Levy: 4 bps * (Gross) on both buys and sells. Max. RM 1,000

Major Indices FTSE Bursa Malaysia KLCI - based on 30 stocks on KLSE (bb FBMKLCI/ rt .KLSE): A broad-based

capitalization-weighted index of top 30 stocks on KLSE.The Kuala Lumpur Stock Exchange Main Board All Share Index (bb KLEMAS/ rt .KLEM): A

capitalization-weighted index of all companies listed on the KLSE Main Board.Futures Based on FTSE Bursa Malaysia KLCI (bb IKF0/rt .0#KLI:): Tick Value is 0.5 index point valued at RM 50.Restrictions Short Sell: Permitted for designated securities - closely regulated. Must be done in the Regulated Short Sell

(RSS) account. Can only be done uptick. The order needs to be defined as a short sale. Cannot short sell more

than the borrowed amount.

Foreign Ownership: A foreign investor requires the approval of the Foreign Investment Committee (FIC) when

the overseas ownership exceeds 15% per shareholder or 30% overall foreign holdings. Some other rules

concerning financial institutions exist.

Crossing: No limit on quantity or value. Every cross transaction has to go through the Exchange.

Within 10% of previous day's VWAP: No prior approvals needed.

Within 10%-15% of previous day's VWAP: Need to provide details of beneficial owners, crossingdetails, and the reson for the transaction.

Outside of 15% of previous day's VWAP: Need to declare to the Exchange in writing by 12.30 p.m. on thenext market day following the market day on which the Direct Business Transaction was reported to the Exchange

Additional Info Account: MCD number (local client account) is required to trade.Electronic Trading AES and DMA available
http://www.klse.com.my/http://www.klse.com.my/website/bm/bursa_basics/faqs/circuit_breaker.htmlhttp://www.klse.com.my/website/bm/bursa_basics/faqs/circuit_breaker.htmlhttp://www.klse.com.my/website/bm/bursa_basics/faqs/circuit_breaker.htmlhttp://www.klse.com.my/


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Portfo lio Strategy

New ZealandThe New Zealand Stock Exchange (NZSE) is the only stock market in New Zealand.

Major Market NZSE (http://www.nzx.combb NZ / rt .NZ)


Pre-Opening (9:00am to 10am): Orders may be entered/modified/deleted to join with the opening auction at

a randomised time +/- 30 seconds of 10:00am.

Normal Session (10:00am to 4:45pm): The market trades continuously on a price/time priority basis.

Pre Closing Section (4:45pm to 5:00pm): Orders may be entered/modified/deleted to join with the closing

auction

Closing Auction: a randomised time +/- 30 seconds of 5:00pm

Adjust (5:00pm to 5:30pm): Need to call the broker(s) on the bid/offer on the screen to trade.Circuit Breakers No circuit breakers or daily price movement limits.Round Lot Sizes 1 share.

Stock Price/Share (NZD) Minimum Price Fluctuation (NZD)

-0.200 0.001Spreads

0.200+ 0.010Settlement & Transfer T+3 for over NZD 100K, DVP, cleared/arranged by the NZSE (T+0 to +3 for trades under NZD 100K).Major Indices The NZX 50 Free Float Total Return Index (bb NZSE50FG / rt .NZ50): A free float adjusted market

capitalization weighted index of 50 of the largest stocks in New Zealand.Futures No futures based on the above index.Restrictions Short Sell: Short selling is permitted in designated securities. Not more than 10% of the issued stocks in the

security are short sold. A short sell order may not be placed below the last traded price. However, short sells

can be negotiated at any price off market after 5:00pm but the net short sold positions must be reported to

NZSE after each trading day.

Foreign Ownership Restrictions: A foreign investor requires the approval from the Overseas Investment

Office when the overseas ownership exceeds 25% per shareholder.

Single Stock: any stock, unless under takeover, worth at least NZD 1MN can be put through at any

price. Under NZD 1MN, needs to be crossed on market, at or in between market prices.

Portfolio: minimum of 5 stocks each worth NZD 150K with a total of NZD 2.5MN can be put through the

market at any price.

International: If at least one side of an order is taken after market hours, a stock can be put through themarket the next morning before 9:45am (15 minutes prior to the start of normal) at an agreed price, as long

as the clients home exchange is open at the time the deal is executed.Electronic Trading NZSE supports electronic trading. Credit Suisse offers DMA
http://www.nzx.com/http://www.nzx.com/http://www.nzx.com/


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Portfo lio Strategy

PakistanStock markets in Pakistan include the Lahore, Islamabad and Karachi Stock Exchange (KSE).

Major Market KSE (http://www.kse.com.pkbb PK / rt .KA)

Market Hours Monday - Thursday:

Pre-Opening (9:15am to 9:30am): Orders may be entered/modified/deleted to join the auction at 9:45am.

Continuous Trading (9:30am to 3:30pm): The market trades continuously on a price/time priority basis.Friday:

First Session Pre-Opening (9:15am to 9:30am): Orders may be entered/modified/deleted to join the

auction at 9:30am.

First Session (9:30am to 12:30pm): The market trades continuously on a price/time priority basis.

Second Session Pre-Opening (2:15pm to 2:30pm): Orders may be entered/modified/deleted to join the

opening auction at 2:30pm.

Second Session (2:30pm to 4:30pm): The market trades continuously on a price/time priority basis.Daily Price Limits +/-5% from previous close (for stocks below PKR 20, +/- 5% or PKR 1 whichever is higher).Round Lot Sizes 1 share for all book entry listed securities

For pre open session order sizes are as followsScript previous day closing price


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Portfo lio Strategy

PhilippinesThe Philippines Stock Exchange (PSE) is the only stock market in Philippines.

Major Market PSE ( http://www.pse.org.phbb PM / rt .PS)


Pre-Opening (9:00am to 9:30am): Orders may be entered to join the opening auction at 9:30am. Postings

cannot be cancelled if it is fully or partially matched (met the price on bid/offer). If unmatched, postings can be

cancelled without penalty before 9:15am and with penalty after 9:15am.

Continuous Trading (9:30am to 12:00pm): The market trades continuously on a price/time priority basis.

Last Print is at 12:00pm.

Trading-at-Last (12:00pm to 12:10pm): Shares can be traded at closing prices.

Circuit Breakers 50% up or 40% down from the last closing price.Round Lot Sizes 10 -1,000,000, depending on the stock price. There is a separate odd lot market.Spreads Depending on the price of the stock, the minimum price fluctuation varies from 0.0002 to 5.00. For details,

please check http://www.pse.org.ph/html/InvestingInPSE/investing_pse.html.Settlement & Transfer T+3, DVP, cleared/arranged by the Securities Clearing Corporation of the Philippines (SCCP).

BUY SELL

VAT 12 % * (Commission) 12 % * (Commission)

Stock Transaction Tax None 50 bps * (Gross)

Tax

SCCP Fees 1 bps * (Gross) 1 bps * (Gross)Major Indices The Philippine Stock Exchange Composite Index (bb PCOMP/ rt .PSI): A capitalization-weighted index

composed of stocks representative of the Commercial-Industrial, Property, Mining and Oil Sectors of the PSE.Futures No futures based on the above index.Restrictions Short Sell: Approved by regulatory agency but has not yet been implemented by the Philippine Stock

Exchange. Limited to a list of qualified securities to be announced.

Foreign Ownership Restrictions: Foreign investment is limited to 40% for public utilities, banking and

corporations in the natural resource sector. Foreigners cannot purchase retail or mass media companies.

Crossing: Should be approved by the Floor Trading and Arbitration Committee. The transaction value must not

be less than P20 million. A transaction is defined as one entry to the system. However, a block sale involving

one listed issue to be done at two different prices shall be counted as two transactions. Each of the

transactions must be more than the minimum amount to qualify.Electronic Trading Electronic trading is in place via closed Philippines Stock Exchange network.
http://www.pse.org.ph/http://www.pse.org.ph/http://www.pse.org.ph/html/InvestingInPSE/investing_pse.htmlhttp://www.pse.org.ph/html/InvestingInPSE/investing_pse.htmlhttp://www.pse.org.ph/


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Portfo lio Strategy

SingaporeStock markets in Singapore include the Singapore Exchange Mainboard (SGX), SESDAQ and CLOB International.

Major Market SGX (http://www.ses.com.sg bb SP / rt .SI)


Pre-Opening (8:30am to 9:00am): Orders may be entered/modified/deleted to join the opening auction at

9:00am. No market orders.

Continuous Trading (9:00am to 12:30pm and 2:00pm to 5:00pm): The market trades continuously on a

price/time priority basis.

Closing Auction (5:00pm to 5:06pm): Orders may be entered/modified/deleted to join the closing auction at

5:05pm. No market orders.Circuit Breakers No set designation. SGX intervenes when deems necessary. Also, each listed company may appeal to SGX to

halt trading for some desired duration.Round Lot Sizes 1,000 shares. Odd lots trade at a discount on a separate Unit Share Market, which is quite liquid.

Stock Price/Share (SGD/USD) Min. Price Fluctuation (SGD/USD)

- 0.995 0.0051.00 9.99 0.010

Spreads

10.00 + 0.020Settlement and

Transfer

T+3 - cut off at 12:00pm, DVP, cleared/arranged by the Securities Clearing & Computer Services (SCCS).

Tax Clearing Fee: 4 bps * (Gross), max SGD600 for SGD trades, rounded to the nearest cent.

GST: 7% * (Commission and Clearing Fees) for onshore accounts only.

SGX Access: 0.75 bps * (Gross). This fee is sometimes absorbed by the broker.Major Indices The Straits Times Index (bb STI/ rt .STI): A modified market capitalization-weighted index, comprised the

most heavily weighted and active stocks traded on SGX.

MSCI Singapore index (bb SGY/ rt .MSSG): The most liquid futures contract is based on this index.Futures Based on MSCI Singapore (bb QZ / rt SSG): Tick value is SGD200 per point. Monthly expiration.

Based on STI (bb SD/ rt SST): Tick Value is SGD10 per point. Hardly ever trades.Restrictions Short Sell: Short selling is permitted as long as there is borrow in place for delivery on the same day. There

are no uptick rules. Collateral of 105% of the borrowed securities must be deposited and must be maintained

at least 105% of the market value each day.

Naked short selling which results in failed delivery to CDP are closed-out by buying-in from the market.

Buying-in takes place from 3:00pm to 5:00pm every day. Failed delivery of stock to CDP is subject to penalty

charges of 5% or SGD 1000 whichever is higher.

Crossing: Crosses on the SGX must be at least 50,000 units of securities or SGD150K and price must be

with in a reasonable range from the last traded price. Counterparties can cross off exchange by entering

instructions into Central Depository (Offshore crosses are frowned upon by SGX). Crossing transactions

executed during trading hours must be reported within 10 minutes of execution and transactions executed after

trading hours must be reported in the first half hour of trading on the following market day.

Electronic Trading Singapore is very well suited to DMA due to the long order queue, low volatility nature of the market. This alsomakes the performance of some of the AES tactics slightly worse than that of in other markets.Crossfinder available

Tips for TradingAES/DMA

DMA Market Orders get converted to far touch.

Do not have to send orders tagged as short sell if you have the borrow in place. Therefore, short sell flag is not

supported.

Odd lot DMA orders get rejected.
http://www.ses.com.sg/http://www.ses.com.sg/


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Portfo lio Strategy

TaiwanStock markets in Taiwan include the Taiwan Stock Exchange (TWSE) and GreTai Securities market for OTC.

Major Market TSE (http://www.twse.com.tw bb TT / rt .TW)


Pre-Opening (8:30am to 9:00am): Orders may be entered, modified, or deleted to join the opening auction

at 9:00am. No market orders.

Continuous Trading (9:00am to 1:25pm): The market trades via auction every 25 seconds (can vary by one

or two seconds). No market orders.

Closing Auction (1:25pm to 1:30pm): Orders may be entered / modified / deleted to join the closing auction

at 1:30pm. No market orders.

Off-hour Trading (2:00pm to 2:30pm): Shares can be traded at the closing prices.

Odd-lot Trading (1:40pm to 2:30pm): Transactions may be done at a price range of +/-7% of the stocks

opening price in the regular exchange.

Block Trading (9:00-5:00pm): Paired trade method added. For paired block there is an additional session

from 8:00am to 8:30am. Omnibus block is now allowed.Daily Price Limits andCircuit Breakers

Daily price limits are set at 7% from the previous closing price. Intraday volatility interruptions kick in once asecurity moves +/-3.5% from previous price. Trades resume in 2 to 3 minutes. The volatility interruptions are notapplicable during the opening and between 1:20pm and 1:30pm. They also do not apply to stocks openingbelow NTD 1 or whose matching is restricted to every 5/10 minutes.

Round Lot Sizes 1,000 shares. Odd lots orders can be entered from 1:40pm to 2:30pm with the price determined by a closingmatch at 2:30pm (prices are subject to the same 7% fluctuation restriction as normal trading). Orders areconsidered as happening in the current trading day rather than on T+1 and there are no trading restrictions forex div., day before New Year or day before Chinese New Year dates.

Stock Price/Share (NTD) Minimum Price Fluctuation (NTD)

- 9.99 0.0110.00 49.95 0.0550.00 99.90 0.10

100.0 0 499.50 0.50500.00 999.00 1.00

Spreads

1,000 + 5.00

Note that the above spreads are for stocks; spreads differ for ETFs, warrants, and CBs

Settlement and

Transfer

Settlement deadline on T+2 (10:00 am Taipei time), shares/cash valued on T+2, DVP, cleared/arranged by

Taiwan Stock Exchange (TSE), GreTai Securities Market (GTSM) and Taiwan Depository & ClearingCorporation (TDCC).

Tax 30 bps * (Gross) from seller transactions truncated to nearest NTD.Major Indices The TWSE (bb TWSE/ rt .TWII): A capitalization-weighted index of all listed common shares traded on TSE.Futures Based on TWSE (bb FTU2 / rt 0#TX:): Tick value is NT$ 200 per index point. Monthly expiration.Restrictions Short Sell: Short selling is allowed. Need to have SBL accounts and borrow shares via Taiwans SBL system.

Up tick rule applies with exemptions price level not to be lower than previous days closing price:

http://www.twse.com.tw/en/trading/SBL/TWTACU/TWTACU.php

Foreign Ownership Restrictions: Rules depend upon sector; e.g., telecoms.

Block Trading (9:00-5:00pm): Paired trade method added. For paired block there is an additional session

from 8:00am to 8:30am. Omnibus block is now allowed.Additional Info Account: FINI number (local client account) is required to trade. Omnibus accounts are available.

Electronic TradingAES

and DMA available.Odd lot DMA orders get rejected. Stock check available for Sells. We can put l imits in for Buys, please discuss

with the AES/ DMA Coverage team. Maximum exchange order size of 499 board lots. DMA orders over this

size will be rejected. AES will not be rejected as it slices into several separate orders. We need investor ID's in

advance before trading and for the investor ID to be in the order (cannot allocate later). All accounts need to be

set up in advance.
http://www.twse.com.tw/http://www.twse.com.tw/en/trading/SBL/TWTACU/TWTACU.phphttp://www.twse.com.tw/en/trading/SBL/TWTACU/TWTACU.phphttp://www.twse.com.tw/en/trading/SBL/TWTACU/TWTACU.phphttp://www.twse.com.tw/


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Portfo lio Strategy

ThailandThe Stock Exchange of Thailand (SET) is the main stock market in Thailand.

Major Market SET (http://www.set.or.th/ bb TB / rt .BK)


Morning Session Pre-Opening (9:30am to 9:55am): Orders may be entered/modified/deleted to join the

opening auction occurring randomly from 9:55am to 10:00am.

Morning Session (10:00am to 12:30pm): The market trades continuously on a price/time priority basis.

Afternoon Session Pre-Opening (2:00pm to 2:25pm): Orders may be entered/modified/deleted to join the

opening auction occurring randomly from 2:25pm to 2:30am.

Afternoon Session (2:30pm to 4:30pm): The market trades continuously on a price/time priority basis.

Closing Auction (4:30pm to 4:40pm): Orders may be entered/modified/deleted to join the closing auction,

which closes randomly between 4:35pm and 4:40pm.

Block Trading (4:40pm to 5:00pm): There is no evening trading. Block crosses are allowed after random

close and until 5:00pm.Daily Price Limits andCircuit Breakers

10% and 20% falls of the SET index from the previous close will halt all trading in listed securities for 30minutes and one hour respectively. If trading time left in a session is less than 30 minutes, or one hour after thecircuit breaker comes into effect, trading will be halted until the closing time of that session, and will thenresume in the next session. 30% daily limit up or down for local board traded shares. The price limit on foreignboard is 60% of closing price of the main board.

Round Lot Sizes 100 shares for most stocks. 50 shares for stocks priced THB 500 or more for 6 consecutive months. The localshares odd lots can be traded on a separate board, and foreign shares lose premium.

Stock Price/Share (THB) Minimum Price Fluctuation (THB)

- 2.00 0.012.00 5.00 0.025.00 10.00 0.0510.0 0 25.00 0.1025.00 100.00 0.25100.00 200.00 0.50200.00 400.00 1.00

Spreads

400.00 + 2.00Settlement & Transfer T+3, DVP, cleared/arranged by the Thailand Securities Depository Co. (TSD).

Stamp Duty 10 bps * (Gross)Tax

VAT 7% * (Commission)Major Indices The Bangkok SET Index (bb SET/ rt .SETI): A market capitalization weighted index comprising all l isted

shares on SET.

The Thailand SET50 Index (bb SET50/ rt .SET50): A market capitalization weighted index of the top 50

stocks listed on SET.Futures Based on SET50 (bb BCU7): Tick value is THB 1,000 per index point. Minimum tick size is 0.10 index points.

Quarterly expiry.

Restrictions Short Sell: The borrow has to be onshore and one must abide by the zero-plus tick rule.

Foreign Ownership Restrictions: Foreign shareholding is generally limited to a maximum of 49%. There are

other rules concerning the finance sector, investment promotion licenses, concession permits etc. (e.g. 25% for

financial institutions). When the foreign percentage is full, foreign investors can purchase local shares

(sometimes at a premium) on the foreign board of the SET. Foreign investors are allowed to purchase local

shares; however, they are not legally entitled to rights and privileges of local shareholders (i.e. dividends,

corporate action, voting rights).

Crossing: All crosses must be done within the SET. No limit on quantity or value. If the crossing price is

lower/higher than 15% of previous day closing price, a report shall be submitted to the SET by 5.30 pm. of

such trading day.Local shares < THB 3MN may be crossed after market close at closing price or exchange

VWAP. Crosses < THB 3MN will be included in VWAP price. Crosses above THB 3MN or more than 1MN

shares can be traded in the Big-Lot Board via put-through trading. Such trades can be crossed with other

brokers as well as internally and will not impact VWAP price.Electronic Trading AES and DMA available


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Portfo lio Strategy

More Analysis & Reports Online: EDGE website

Our website Edge (http://www.credit-suisse.com/edge) contains many analytic tools for traders and PMs All Portfolio & Derivatives Strategy reports are available on Edge under Resources>Strategy Library You can also reach EDGE from the Research & Analytics site, under the Equities tab > Further Analysis > EDGE (right-

hand sidebar)

Please follow the attached hyperlink to an important disclosure:http://www.credit-suisse.com/legal_terms/market_commentary_disclaimer.shtml.Structured securities, derivatives and optionsare complex instruments that are not suitable for every investor, may involve a high degree of risk, and may be appropriateinvestments only for sophisticated investors who are capable of understanding and assuming the risks involved. Supportingdocumentation for any claims, comparisons, recommendations, statistics or other technical data will be supplied upon request.Any trade information is preliminary and not intended as an official transaction confirmation. Use the following links to read theOptions Clearing Corporation's disclosure document: http://www.cboe.com/LearnCenter/pdf/characteristicsandrisks.pdf.Because of the importance of tax considerations to many option transactions, the investor considering options should consultwith his/her tax advisor as to how taxes affect the outcome of contemplated options transactions.This material has been prepared by individual traders or sales personnel of Credit Suisse (HK) Limited and not by the Credit

Suisse research department. It is provided for informational purposes, is intended for your use only and does not constitute aninvitation or offer to subscribe for or purchase any of the products or services mentioned. The information provided is notintended to provide a sufficient basis on which to make an investment decision. It is intended only to provide observations andviews of individual traders or sales personnel, which may be different from, or inconsistent with, the observations and views ofCredit Suisse research department analysts, other Credit Suisse traders or sales personnel, or the proprietary positions ofCredit Suisse. Observations and views expressed herein may be changed by the trader or sales personnel at any time withoutnotice. Past performance should not be taken as an indication or guarantee of future performance, and no representation orwarranty, expressed or implied is made regarding future performance. The information set forth above has been obtained fromor based upon sources believed by the trader or sales personnel to be reliable, but each of the trader or sales personnel andCredit Suisse does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arisingout of errors, omissions or changes in market factors. This material does not purport to contain all of the information that aninterested party may desire and, in fact, provides only a limited view of a particular market. Credit Suisse may, from time totime, participate or invest in transactions with issuers of securities that participate in the markets referred to herein, performservices for or solicit business from such issuers, and/or have a position or effect transactions in the securities or derivativesthereof. The most recent Credit Suisse research on any company mentioned is at https://s.research-and-analytics.credit-suisse.com/login.asp.
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