Clearing rules
UZBEK COMMODITY EXCHANGE
CLEARING CHAMBER REGULATIONS
1. GENERAL PROVISIONS
1. The present Regulations have been worked out according to the Law of the Republic of Uzbekistan "On exchanges and exchange activity" as well as other legislative acts, Decrees of the government and determine general requirements for the activity of UZEX Clearing Chamber, its purposes, tasks, rights, obligations and other provisions regulating its work
2. The following terms and concepts are used in the present Procedure:
Goods – are production, raw materials, materials, semi-finished products, equipment, real estate, transport facilities, other property, works, services (hereinafter referred to as goods) meant for sale.
Wholesale realization of goods (hereinafter referred to as wholesale trade) - are trade in uniform, divisible goods, volume or weight of which amount to more than 1 ton /cubic meter; 100 pieces/units, meters or decimeters in accordance with the system of measures.
Exchange transactions – are transactions made at the exchange trades.
Exchange transactions are divided into:
Spot transactions – are transactions for purchase and sale of real goods with short term of delivery, including the transactions with immediate transfer or delivery of goods (Т+5).
Forward transactions – are transactions for purchase and sale of real goods with delayed term of their delivery.
Futures transactions - are transactions for purchase and sale of standard contracts for goods with their obligatory fulfillment in future.
Option transactions – are transactions for purchase and sale of rights to future purchase or sale of goods or contracts for delivery of goods at a set price.
Transactions with granting funds of guarantee assurance – are the exchange transactions made with granting advance payment by the clients of the members of the Exchange to the trading session according to the percentage schedule list approved by the Exchange.
Transactions without granting funds of guarantee assurance – are the exchange transactions made without preliminary granting advance payment.
Clearing Chamber – is a department of the Exchange providing carrying out of clearing, calculations and mutual payments under exchange transactions of the members of the Exchange on a contractual basis.
Members of Clearing Chamber – are legal and physical persons who are members of the Exchange as well as participate in the exchange transactions, have made agreement with Clearing Chamber and paynecessary fees and dues in accordance with established procedure.
Clients of Clearing Chamber (hereinafter referred to as clients) – are the clients of the members of the Exchange who pay necessary fees and dues in accordance with established procedure.
Secondary current account of Clearing Chamber– is an account opened in the authorized bank of the Exchange and used for keeping funds of the clients of Clearing Chamber and their clients and making payments under the exchange transactions. Secondary current account is opened in the authorized bank serving the Exchange on the basis of the present Regulations and application for opening of secondary current account.
Individual number of user (hereinafter referred to as INU) – is a number assigned to the member of Clearing Chamber or his client and served for controlling and providing movement of funds on the secondarycurrent account.
Personal account at Clearing Chamber – is the cumulative recordings in the accounting registers of Clearing Chamber meant for accounting of funds of the members of Clearing Chamber or his clients.
Delivery against payment – the procedure of fulfillment of transactions, according to which delivery of goods is made only after verification and acknowledgement (confirmation) of availability the sufficient amount of funds, meant for performance of the made transactions, on the accounts of the participants of clearing operations.
The authorized bank – is a bank which serves a secondary current account of Clearing Chamber meant for carrying out economic activity of Clearing Chamber and (or) the secondary current account, meant for accounting and keeping funds of the members of Clearing Chamber or their clients.
3. Clearing Chamber is a structural department of the Exchange which does not have legal entity status and acts on behalf of the Exchange without right to fulfillment of any independent operations not stipulated by the present Regulations.
4. The activity of Clearing Chamber is carried out in accordance with legislation of the Republic ofUzbekistan, Charter of the Exchange, Rules of the exchange trade, Procedure of organizing clearing services and the present Regulations.
5. Clearing services and cooperation between Clearing Chamber and its members are made on a contractual basis.
6. Clearing Chamber carries out clearing services of the participants of forward, future, option and spot transactions.
7. Clearing Chamber is responsible for receipt of amounts of deposits, payment of accounts, written directions, collection and preservation of accumulated funds (guarantee fees) of the participants of Clearing Chamber and their clients.
8. Clearing Chamber can organize guarantee fund with a view to provide guarantees of fulfillment of obligations under the exchange contracts by the participants of the exchange transactions.
9. The Exchange has no right to assure its obligations and account for them with funds on the secondary current account of Clearing Chamber.
10. Seizures, freeze of funds, levying of taxes and duties of any instances of the state bodies on obligations of the Exchange can not be made regarding funds of the members of the Exchange and their clients accumulated at Clearing Chamber.
2. MAIN TASKS OF CLEARING CHAMBER
11. The main tasks of Clearing Chamber are:
- organization of the system of guaranteed fulfillment of the exchange transactions;
- making on-line calculations under the exchange transactions;
- organization of settlement and clearing service of members and clients of Clearing Chamber.
3. MAIN FUNCTUONS OF CLEARING CHAMBER
12. The main functions of Clearing Chamber are:
- determination, accurate definition, offset of the mutual obligations under made exchange transactions;
- drawing up and sending documents being the basis for transferring funds and delivery of the goods according to the results of the transaction for execution;
- control of timely execution of the obligations under the exchange contracts, assurance of observance of delivery against payment term under the concluded transactions;
- receipt of funds received under the exchange transactions, including for deposition as an advance payment;
- opening of the accounts and registration of the members of Clearing Chamber and their clients, with assignment of INU to them;
- presenting information on funds on the accounts of the participants of trades;
- assurance of guaranteed execution of the exchange contracts made by the results of the exchange trades at the cost of means of guarantee fund granted on a contractual basis;
- making payments at the written directions of the members of Clearing Chamber;
- accounting and control of movement of funds of the members of Clearing Chamber and their clients;
- carrying out of the control and accounting of funds received as dues and commission fees from the members of Clearing Chamber or their clients;
- preparation of quarterly, semiannual and annual report about its activity for the Exchange (this report is an integral part of the report of the Exchange);
- preparation of information on receipt of sums of advance payments under the exchange transactions for Chief Broker’s Office of the Exchange before the beginning of the trading session.
- working out and making proposals for improvement of work of Clearing Chamber;
- registration of the exchange import, export and internal (interrepublican) contracts and agreements of concession of rights;
- drawing out of passport of import transaction under the exchange import contracts;
-repayment of the cargo customs declarations concerning use of legitimate means under the internal contracts according to which goods, works, services are not imported beyond the bounds of the Republic of Uzbekistan.
4. OBLIGATIONS AND RIGHTS OF CLEARING CHAMBER
13. Clearing Chamber is obliged:
13.1 to inform the member of Clearing Chamber about alterations and additions to Procedure of organizing clearing services of Exchange’s Clearing Chamber, Regulations of Exchange’s Clearing Chamber, Tariffs, other normative documents of UZEX on clearing services not later than 10 days before coming alterations and additions into force in accordance with the established procedure.
The stated information is brought to the notice of the member of Clearing Chamber by placing on information stand and UZEX website.
13.2. to carry out clearing services on a contractual basis, including:
- receipt of the amounts of advance payment granted before participation in the exchange transaction as funds of guarantee assurance of execution of the exchange transactions according to the tariff percentage scale approved by UZEX Board and Procedure of organizing clearing services at UZEX Clearing Chamber;
- receipt of advance payments for rendering of clearing services;
- making mutual payments under the exchange and exhibition contracts, including export, import and internal contracts, as well as on the basis of other documents (contracts, agreements) related to making payments to authorized fund, purchase of shares, objects of real estate, goods, works, services from funds formed on the client’s account at UZEX Clearing Chamber;
-rendering assistance in purchase of foreign currency in the off-exchange money market through the authorized agent, which is the authorized bank of the exchange. The purchase of foreign currency is made in accordance with established procedure and established Regulations;
- assurance of fulfillment of the obligations of the parties under the made exchange transactions;
- drawing up of passport of import transaction;
- rendering of other services of Clearing Chamber established by the normative documents of UZEX.
13.3. to keep records of the obligations of each member of Clearing Chamber and the client by means of conducting the registers of the analytical accounting.
13.4 to keep an account of the member of the Exchange or his client separate from other accounts with the indication of the date and basis of carrying out of each operation on transfer of funds from their accounts.
13.5. to control fulfillment of the obligations of the members of Clearing Chamber by the results of transactions according to delivery against payment term on the basis of the orders, reports and (or) other documents presented by the members of Clearing Chamber.
13.6. to provide confidentiality of information about transactions which are a subject of clearing operations and keeping of this information within not less than three years after making transactions as well as to not present anyone information about accounts of the member of Clearing Chamber and his client without their consent, except for cases determined by the existing legislation.
13.7. to carry out formation and transfer of orders and (or) other documents for making operations by the results of transactions to the authorized bank.
13.8. to form the chronological electronic protocol of all made clearing operations.
13.9. to control performance of operations on the obligations of the participants of trades by the authorized bank regularly.
13.10. not to make other operations concerning funds of the member of Clearing Chamber and his client, except for actions related to fulfillment of the obligations of the client under exchange transactions.
13.11 to present the member of Clearing Chamber a report of operations made on his personal account with granting invoice for payment of services of Clearing Chamber by request of the member not less than once a month.
14. Clearing Chamber has the right:
14.1. to make alterations to Procedure of organizing clearing services by UZEX Clearing Chamber, Regulations of UZEX Clearing Chamber, Tariffs and other normative documents regulating clearing activity of Uzbek Commodity Exchange with the obligatory notification of the member of Clearing Chamber and his client about this fact not later than 10 (ten) days before coming these alterations into force.
14.2. to open and serve accounts of the members of Clearing Chamber or their clients.
14.3. to receipt funds of the members of Clearing Chamber and their clients for deposition as well as to receipt funds upon making mutual payments under the exchange contract through UZEX Clearing Chamber.
14.4. to make revise of the registered transactions made between the members of Clearing Chamber or their clients with the view of adjustment and acknowledgement.
14.5. to execute all operations not forbidden by the current legislation and stipulated by Rules of the exchange trade at UZEX, Procedure of organizing clearing services by UZEX Clearing Chamber, Regulations of UZEX Clearing Chamber.
14.6. in case of non-fulfillment or improper fulfillment of the transaction to make deduction from funds of the guilty party on its personal account in UZEX Clearing Chamber for penalties, fines and default interests without notice for further payment of the established kinds of penalties and fees to the participants of the transaction from these means in accordance with the established procedure.
14.7. to receive remunerations and commission fees under made operations, the amount of which is determined by UZEX Board;
14.8. to conclude the contracts with the participants of the exchange trades and banks for making clearing operations;
14.9. to receive information necessary for making clearing operations from the participants of the exchange trades;
14.10. to suspend rendering of services to the member of Clearing Chamber in case he or his client have indebtedness to Clearing Chamber;
14.11. to accept orders and (or) other documents for making operations by the results of trades from the members of Clearing Chamber and the authorized bank;
14.12. to use various types of systems of revise and clearing at its own discretion.
5. PROCEDURE OF CLEARING SERVICES
15. Procedure of clearing service (hereinafter referred to as Procedure) regulating carrying out of clearing operations is worked out by the Exchange and approved by UZEX Board as agreed with General meeting of the Exchange.
16. The procedure is to include:
- General provisions,
- Procedure of clearing service of the participants of the exchange, auction and exhibition trades;
- Procedure of making clearing operations under the contracts with and without granting funds of guarantee assurance of transactions;
- Procedure and amounts of deposition of funds, including advance payment;
- Procedure of receipt and processing of information on entering funds in the accounts of the members of Clearing Chamber or their clients;
- Procedure of work with the secondary deposit account to be called for;
- Procedure of drawing up of passport of import transaction under the exchange import contracts;
- Procedure of establishment of commission fees.
6. MANAGEMENT OF CLEARING CHAMBER
17. The chief of Clearing Chamber is appointed by the Chairman of UZEX Board.
18. The chief of Clearing Chamber acts on behalf of Uzbek Commodity Exchange within the limits of the rights given to him and personally accounts for performance of tasks and functions entrusted to Clearing Chamber.
19. The chief of Clearing Chamber:
- provides performance by Clearing Chamber of tasks entrusted to him according to the present Regulations;
- provides timeliness of fulfillment of operations and quality of service of the members of Clearing Chamber, observance of the established regimen of a working day;
- is responsible for safety of funds on the account of Clearing Chamber.
7. DISPUTE SETTLEMENT
20. All disputes between Clearing Chamber and its members and the clients of the members of Clearing Chamber should be settled by the Exchange’s Board of Arbitration within 5 (five) calendar days after presenting an application.
21. The decision of the Board of Arbitration is subject to obligatory performance.
22. The decision of the Board of Arbitration as well as the unsettled disputes can be appealed in theEconomic Court.
8. TERMINATION OF CLEARING CHAMBER ACTIVITY
23. Activity of Clearing Chamber can be ceased by the order of the Board of the Exchange with the preliminary notification of the members of Clearing Chamber (not later than two months before to termination of activity).
24. The appropriate announcement should be placed in mass media not later than one month before termination of activity of Clearing Chamber as well as each member of Clearing Chamber should be informed personally.
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