In relation to securities of a foreign exchange-traded investment fund:
22.3.7.1. If the market makers of such fund fail to comply with the period of time allotted in Clause 2.17 Annex 2 to these Rules for the performance of their duties in relation to Level One and Level Two, respectively, and also if the number of trading days in a month during which the market-maker's obligations in relation to the securities of a foreign exchange-traded fund are not performed, exceeds three working days, as provided for in Clause 2.17 Annex 2 to these Rules in relation to Level One and Level Two, respectively, the Exchange shall, with due regard to the materiality and systemic nature of such violation, make one of the following decisions:
1) to retain the securities on Level One or Level Two;
2) to exclude the securities from Level One or Level Two.
22.3.7.2. If market makers of such fund have breached obligations in relation to the volume of transactions with investment units of such fund, specified in Clause 2.17, Annex 2 to the Rules, for Level 1 or Level 2, respectively, the Exchange shall take a decision to remove the securities from Level 1 or Level 2 according to the procedure and terms set forth in 22.3.7.3 of this clause.
22.3.7.3. The Exchange shall make the respective decision indicated in items 22.3.7.1 and 22.3.7.2 hereof within 5 trading days from the moment when it becomes aware that grounds for exclusion exist, as the result of control procedures undertaken in relation to the quarter in which grounds for exclusion occurred.
The securities shall be excluded from Level One or Level Two within 7 trading days from that when the respective decision is made by the Exchange.
Based on the Experts opinion of the Listing Department and recommendations the Expert Council on Listing (if asked for such recommendations), the Exchange may decide on exclusion of securities from Level One or Level Two (a listing downgrade) without giving any reasons.
The specific rules and the procedure for their application referred to in Article 25 hereof shall apply as the Exchange reviews the issue of excluding the securities from Level One or Level Two.
If the issuer defaults on any listed bond issue, the Exchange shall exclude all bonds of such issuer from Level One or Level Two within 2 trading days from that of the issuer's default.
The Exchange may decide to downgrade listing from Level One or Level Two to Level Two or Level Three on the following grounds:
the Exchange receives recommendations from the Expert Council on Listing to exclude securities from Level One or Level Two (downgrading of listing) (when making decisions according to item 22.4 of this Article);
securities/the Entity comply with requirements for listing securities in the Increased Investment Risk Companies Sector;
the Entity fails to perform any financial obligations owed to the Exchange under the listing service agreement(s);
a procedure applicable in a bankruptcy case (other than the receivership proceedings (konkursnoe proizvodstvo) is initiated in relation to the Prescribed Legal Entity. Listing downgrading from Level One or Level Two to Level Three shall be effected not later than on the trading day following that when the respective decision was made by the Exchange;
occurrence of an issuer's technical default. The decision to downgrade the listing level of a bond issue in relation to which a technical default occurred, from Level One or Level Two to Level Three shall be made by the Exchange with due regard to the materiality and systemic nature of the violation, and subject to the provisions of Clause 4.7 Article 4 of these Rules;
the Bank of Russia revokes (cancels) the banking license of the issuer which is a lending organisation.
If a procedure applicable in a bankruptcy case (other than the receivership proceedings (konkursnoe proizvodstvo) is initiated in relation to Entity, the listing level downgrading from Level One or Level Two to Level Three shall be effected not later than on the trading day following that when the respective decision was made by the Exchange.
If grounds for the exclusion of securities from Level One or Level Two come into existence, the Exchange may make the decision to downgrade the listing level in the manner referred to in Article 16 of these Rules, without first receiving an appropriate application from the Entity (except as otherwise provided for in these Rules).
Such a decision shall be made provided that the security and the Entity meet the requirements applicable in connection with the inclusion in Level Two or Level Three, or else provided that such securities are to be delisted.
The Exchange shall, with the exception of the circumstances referred to in Sub-Clauses 22.2.1 and 22.2.4, and 22.3 – 22.6, 22.7.1 -22.7.4 of this Article, make the decision regarding the exclusion of a security from Level One or Level Two within 5 trading days from that when it became or should have become aware of the occurrence of the respective grounds for the exclusion of securities.
The securities shall be excluded from Level One or Level Two within 7 trading days from that when the respective decision is made by the Exchange, with the exception of the circumstances referred to in Clauses 22.3 – 22.8 of this Article.
The Exchange shall disclose information on the retention of securities on Level One or Level Two via the website of the Exchange not later than on the trading day following that when the respective decision was made.
