Article 19. The procedure for carrying out the activities of the members of the Commodity Exchange of the Commodity Exchange Act

Home / RLA / Article 19. The procedure for carrying out the activities of the members of the Commodity Exchange of the Commodity Exchange Act

1. The activity of a broker, dealer, or market maker on a commodity exchange is carried out on the basis of accreditation with the commodity exchange.

Persons engaged in the sale of goods produced by them are accredited as dealers on the commodity exchange upon presentation of an industrial certificate without other additional requirements. - Excluded by the Law of the Republic of Kazakhstan.

If brokers and/or dealers are excluded from commodity exchange accreditation for negative reasons, they cannot be accredited to other commodity exchanges for two years.

1-1. The Commodity Exchange decides to revoke the accreditation on the commodity exchange in the following cases::

1-2. Members of the commodity exchange are prohibited from using automated accelerated data processing and submission technologies and external software and hardware systems, the speed of which is two or more requests per second to the electronic trading system of the commodity exchange, for placing orders and concluding transactions.

Transactions concluded using such technologies are considered void and are subject to cancellation by the commodity exchange.

Automated software and hardware tools for collecting, preparing applications for entry and sending them to the electronic trading system of the commodity exchange, as well as receiving and processing information from the trading system operating in a mode that ensures control by the members of the commodity exchange over all actions performed using it, are necessarily certified by the decision of the commodity exchange.

Transactions concluded by bidders using similar software and hardware that are not certified by the commodity exchange are considered void and are subject to cancellation by the commodity exchange.

Exchange-traded goods for transactions cancelled by the commodity exchange are re-tendered during the next and (or) additional trading session in compliance with the requirements of this Law.

1) failure to carry out brokerage and dealer activities within twelve consecutive calendar months from the date of accreditation on the commodity exchange;

2) making a decision on the voluntary termination of the activities of a broker, dealer, market maker in accordance with the legislation of the Republic of Kazakhstan on the commodity exchange;

2-1) suspension of the license, revocation (revocation) of the broker's license."

3) committing one of the actions provided for in paragraph 3 of Article 21 of this Law more than twice within six consecutive calendar months. - Excluded by the Law of the Republic of Kazakhstan.

2. The rocker, dealer and market maker are obliged to comply with the requirements established by this Law, other legislative acts of the Republic of Kazakhstan, regulatory legal acts of the authorized body, internal documents of the commodity exchange.

3. Relations between a broker and his clients arise on the basis of a contract for the provision of brokerage services, to which the norms of the civil legislation of the Republic of Kazakhstan apply.

4. An individual who directly or indirectly owns a minimum share in the authorized capital of a legal entity, as well as carries out sole management on the basis of his existing civil law relations, cannot be the head and (or) founder (co-founder) of two or more brokers and (or) dealers.

A market entity that holds a dominant or monopolistic position in the relevant commodity market participates in exchange trading as a dealer.

5. The interaction of the commodity exchange and the market maker is carried out on the basis of an agreement, as well as internal documents of the commodity exchange.

A market maker participates in stock trading and maintains prices, supply, demand, or trading volume.

A market maker must have at least three years of continuous trading experience as a dealer.

The market maker's activities are carried out only on the exchange trading of fixed-term contracts, the basic asset of which are exchange-traded commodities.

The conditions and restrictions of market makers' activities are established by the rules of exchange trading.

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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