Article 1. The basic concepts used in this Law Chapter 1. GENERAL PROVISIONS of the Law on Commodity Exchanges

Home / RLA / Article 1. The basic concepts used in this Law Chapter 1. GENERAL PROVISIONS of the Law on Commodity Exchanges

The following basic concepts are used in this Law:

1) excluded by the Law of the Republic of Kazakhstan dated 04/02/2019 No. 241-VI (effective ten calendar days after the date of its first official publication);

1-1) exchange trading is a process conducted within the framework of the rules of exchange trading, aimed at making transactions on exchange–traded goods based on electronic applications submitted to the electronic trading system of the commodity exchange, which provides automation of the process of concluding exchange transactions.;

1-2) stockbroker (hereinafter referred to as broker) is a legal entity operating on a commodity exchange and making transactions with exchange–traded goods on behalf, at the expense and in the interests of the client;

2) an exchange dealer (hereinafter referred to as a dealer) is a business entity operating on a commodity exchange and making transactions with exchange–traded goods in its own interests and at its own expense.;

2-1) exchange collateral – monetary collateral deposited on a refundable basis by participants of exchange trading in the clearing center of a commodity exchange to participate in exchange trading as security for the fulfillment of their obligations under concluded exchange transactions;

3) exchange trading is an entrepreneurial activity for the sale of exchange–traded goods carried out on a commodity exchange by conducting exchange trading in electronic form, registering and executing transactions in accordance with the legislation of the Republic of Kazakhstan on commodity exchanges; - Excluded by the Law of the Republic of Kazakhstan

4) Excluded by the Law of the Republic of Kazakhstan dated 12/30/2021 No. 96-VII (effective sixty calendar days after the date of its first official publication). - Excluded by the Law of the Republic of Kazakhstan

5) exchange trading is a process conducted within the framework of the rules of exchange trading, aimed at making transactions on exchange-traded goods based on electronic applications submitted to the electronic trading system of the commodity exchange, which provides automation of the process of concluding exchange transactions.; - Excluded by the Law of the Republic of Kazakhstan

6) participants in exchange trading – clients, brokers, dealers and market makers interacting on the commodity exchange according to the established rules of exchange trading;

7) an exchange–traded commodity is a standardized homogeneous commodity included in the list of exchange-traded commodities and (or) the list of socially significant exchange-traded commodities, the units of which are identical in all respects, have similar characteristics and consist of similar components, which allows them to perform the same functions, having the property of complete interchangeability of batches from different manufacturers.;

8) quotation of exchange-traded commodities - the price of demand and (or) supply announced for exchange-traded commodities at a certain point in time on the commodity exchange;

8-1) exchange trading – business activity for the sale (purchase) of exchange-traded goods and fixed-term contracts, carried out on a commodity exchange by conducting exchange trading in electronic form, registration and execution of transactions;

8-2) participants in exchange trading – clients, brokers, dealers and market makers interacting on the commodity exchange according to the established rules of exchange trading;

9) an order is a document submitted by the client to the broker indicating the implementation of a certain action on the commodity exchange in relation to specific exchange–traded goods.;

9-1) guarantee fund – a monetary fund formed by the clearing center of a commodity exchange at the expense of contributions from exchange members in order to ensure the execution of transactions concluded on the exchange;

9-2) excluded by the Law of the Republic of Kazakhstan dated 04/02/2019 No. 241-VI (effective ten calendar days after the date of its first official publication);

10) client – an individual, including one registered as an individual entrepreneur, or a legal entity using the services of a broker to make transactions with exchange-traded goods in accordance with the procedure established by this Law;

11) excluded by the Law of the Republic of Kazakhstan dated 27.10.2015 No. 364-V (effective ten calendar days after the date of its first official publication);

11-1) cross-trade is an exchange transaction in which a broker, acting on behalf of two different clients, acts both on the seller's side and on the buyer's side.;

11-2) the double counter auction mode is a trading mode in which exchange transactions are concluded anonymously as a result of competition between sellers and buyers, and the price of an exchange–traded commodity is set at the level of supply and demand equilibrium.;

11-3) market maker is a legal entity that forms and maintains the liquidity of the stock market by offering quotations and accepting obligations to buy and sell fixed-term contracts.;

12) fixed-term contract - a contract for the unconditional or conditional purchase and sale of an underlying asset with deferred execution, it includes futures, option;

12-1) impeccable business reputation – the presence of facts confirming professionalism and good faith, including the absence of facts of a person committing illegal actions (inaction) that led to insolvency, which led to the forced liquidation of a financial institution, or to classifying the bank as an insolvent bank, the absence of an outstanding or outstanding criminal record, including the absence of an effective judicial act on the application of criminal penalties in in the form of deprivation of the right to hold the position of a senior employee of a financial institution, a banking and (or) insurance holding company and be a major participant (major shareholder) of a financial organization for life, as well as the absence of relations with third parties (control and influence of third parties), whose actions contributed to the legalization (laundering) of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, based on information from the authorized body Financial Monitoring Authority;

13) excluded by the Law of the Republic of Kazakhstan dated 07/10/2012 No. 36-V (effective after ten calendar days after its first official publication);

14) option transaction - an exchange transaction, the object of which is an option;

14-1) self–regulating organization - a non-profit organization in the form of an association (union) based on the voluntary participation of commodity exchanges, brokers or dealers and included in the register of self-regulating organizations in the field of commodity exchanges;

14-2) reserve fund – a monetary fund formed by a commodity exchange at its own expense in order to ensure the execution of transactions concluded on the exchange;

14-3) trading lot – the quantity of an exchange-traded commodity, a multiple of which should be the quantity of an exchange-traded commodity specified in the application for the sale (purchase) of an exchange-traded commodity;

15) the authorized body in the field of regulation of trade activities (hereinafter referred to as the authorized body) is the central executive body responsible for state regulation and intersectoral coordination in the field of trade activities.;

16) spot product - a product that is in stock, with immediate delivery or with its delivery in the future;

 16-1) standardized product is a homogeneous product included in the unified Commodity nomenclature of foreign economic activity of the Eurasian Economic Union, and (or) a product whose units are identical in all respects, have similar characteristics and consist of similar components, which allows them to perform the same functions, having the property of complete interchangeability of batches from different manufacturers, including including carbon units; - Excluded by the Law of the Republic of Kazakhstan

16-2) non–standardized goods - goods that have not been withdrawn from circulation or are not limited in circulation, with the exception of standardized goods, carbon units, real estate and intellectual property objects; - Excluded by the Law of the Republic of Kazakhstan

16-3) standard auction mode is a trading mode in which exchange transactions are concluded during an auction for a decrease or increase at the best price for the buyer (seller)– the initiator of the auction; - Excluded by the Law of the Republic of Kazakhstan

17) commodity exchange members are brokers, dealers and market makers accredited by the commodity exchange in accordance with the procedure established by this Law.;

18) Excluded by the Law of the Republic of Kazakhstan dated 12/30/2021 No. 96-VII (effective sixty calendar days after the date of its first official publication).

19) internal documents of a commodity exchange - documents that regulate the conditions and procedure for the activities of participants in exchange trading on a commodity exchange, the work of the commodity exchange, its bodies, structural divisions, the provision of services, the procedure and amount of their payment;

19-1) electronic trading system of a commodity exchange - a complex of computing facilities, software, databases, telecommunications facilities and other equipment of a commodity exchange necessary for conducting exchange trades and providing automation of the process of concluding exchange transactions, as well as collecting, storing, processing and disclosing information;

20) futures transaction – an exchange transaction, the object of which is futures.

21) excluded by the Law of the Republic of Kazakhstan dated 27.10.2015 No. 364-V (effective from 01.01.2017).

The Law of the Republic of Kazakhstan dated May 4, 2009 No. 155-IV.

This Law regulates public relations arising in the course of commodity exchanges and exchange trading, establishes the procedure for regulating and state control over the activities of commodity exchanges in order to ensure their open and effective functioning, protect the rights of participants in exchange trading and fair competition between them.

President

Republic of Kazakhstan

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