Professional activity on securities market.

The following types of professional activities can be carried out in the securities market:

o Brokerage activity; Dealer activities; Underwriting; Investment management;

o Registry maintenance; Depository activity; Clearing activity

Brokerage Activity. A brokerage is a firm that acts as an intermediary between a purchaser and a seller. To broker a deal is to communicate with both the buyer and seller as to acceptable price on anything sold or purchased. A broker, a single person, or the firm completes any necessary legal paperwork, obtains the appropriate signatures, and collects money from the purchaser to give to the seller. Brokerage firms are most commonly thought of in relationship to the sale and purchase of stock shares. Their fees are variable, depending on the degree to which the firm is involved in decisions about purchase. Some stockowners give their brokers power of attorney to make decisions about when to buy or sell stock and depend upon them for researching new stock for purchase. This type usually assesses a fairly large fee, and regardless of whether the owner loses or earns money, the firm is paid.

Dealer Activity. Dealer - An individual or firm willing to buy or sell securities for their own account. Announcing the price, the dealer is committed to announce other essential conditions of the buy-sell contract of securities: minimum and maximum number of securities subject to purchase and/or sale, as well as the term of announced prices validity.

Underwriting Activity. A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors via the underwriter's distribution network.

Investment Management. A person or organization that makes investments in portfolios of securities on behalf of clients, in accordance with the investment objectives and parameters defined by these clients. An investment manager may be responsible for all activities associated with the management of client portfolios, from buying and selling securities on a day-to-day basis to portfolio monitoring, settlement of transactions, performance measurement, and regulatory and client reporting.

Registry Maintenance Registry maintenance shall be performed by a registry keeper who can either be an issuer or an independent registrar who carries out registry maintenance on the basis of an agreement on registry maintenance entered into with the issuer.

A registry keeper shall:

o comply with the established registry maintenance procedures;

o open a personal account in the registry maintenance system for each registered person on the basis of the transfer instruction;

o enter all necessary changes and additions into the registry maintenance system;

The registry keeper is not entitled to impose other requirements upon making changes in the system of registry maintenance of security owners besides those set in conformity with this Law. Independent registrar is prohibited from carrying out transactions with the securities of issuers with which it signed the registry maintenance agreement. The registry keeper shall be held responsible for the information contained in the registry extracts issued thereby.

Depository Activity. On the simplest level, depository is used to refer to any place where something is deposited for storage or security purposes. More specifically, it can refer to a company, bank or an institution that holds and facilitates the exchange of securities. Or a depository can refer to a depository institution that is allowed to accept monetary deposits from customers.

Clearing Activity. The procedure by which an organization acts as an intermediary and assumes the role of a buyer and seller for transactions in order to reconcile orders between transacting parties. Clearing is necessary for the matching of all buy and sell orders in the market. It provides smoother and more efficient markets, as parties can make transfers to the clearing corporation, rather than to each individual party with whom they have transacted.