Investigation on the theme "Development of trading
electronically. International experience"
Association of legal entities
"Exchange Association of Kazakhstan"
Investigation on the theme
"Development of trading electronically. International experience "
Table Of Contents
Component: "Development Of Trading Electronically. International Experience "
1. Development Of Trading Electronically
A. Stages Of Development Of Electronic Systems In The World
B. The Main Ways Of Access To Electronic Exchange System
C. Technological Solutions Organization Of Electronic Exchange Systems
D. Trading Technology In Electronic Exchange Systems Or Algorithmic Trading
E. Benefits Of E-Exchange Trading And Main Trends Of Further Development
2. Review Of International Experience In Terms Of The Exchange Infrastructure
3. Review Of Statistics On Global Stock Markets
4. International Experience As An Example Of Emerging Economies: Brazil, China, India, Malaysia And South
Africa
A. The Results Of The Analytical Review On Specific Country Examples
A. The Role Of The Commercial Sector In The Economy
B. Overview Of Reforms In Order To Develop An Organized Commodity Market
C. Overview Of Issues And Features Of The Product Market
B Key Findings On The Role And Functionality Of Commodity Exchanges
A. Market Structure
B. Stock Exchange Infrastructure
P. The Main Achievements Of Commodity Exchanges
D. Success Factors, Key Challenges And Problems
C. The Main Conclusions To Regulate Commodity Exchanges
Component: "Project Development And Implementation Of Models For The Development Of Exchange Trade In
The Republic Of Kazakhstan"
5. Analysis Of The Current Situation And Specification Of The Exchange Market Of Kazakhstan
A. Overview Exchange Commodity Market Infrastructure
B. Overview Exchange Stock Market Infrastructure
P. Summary Of Findings On Infrastructure
D. Review Of Statistics On The Trade Exchanges
E. Review Of Statistical Data On The Commodity Stock Market Of Kazakhstan
6. A Survey Of Market Participants
A. Review And Synthesis Of Results
B. Main Findings.
7. Comparative Analysis Of Legislation And Regulation Of The Exchange Infrastructure In Kazakhstan
A. Overview Of The Main Conditions For Regulation Of Commodity Exchange Market
B. Existing Legal Restrictions To Trade Exchanges.
P. The Legislative Procedure Of Clearing And Settlement By The Results Of Trading
D. Performing Calculations On Export-Import Exchange Transactions
E. Operating Conditions Of The Derivatives Market In An Organized Commodity Market.
F. State Support In Terms Of Legislative Initiatives
G. The Existing Tax On Exchange Transactions
H. Types And Amounts Of Liability For Violation Of The Law Of Commodity Exchange Market Participants
I. Analysis Of National Legislation, Regulations And Practices In The Use Of Electronic Document Management
And Digital Signature In Cross-Border Transactions
J. Overview Of The Features Of National Rules Of Currency Regulation
8. Study Of International Experience In Terms Of Legislation. Comparative Analysis Of Legislation Regulating The
Exchange Of Commodity Markets In Belarus, Kazakhstan, Moldova, Russia, Ukraine And Uzbekistan
A. Regulation Of Organized Commodity Markets
B. Restrictions On The Functioning Of Organized Commodity Market
P. The Procedure Of Calculation, Conditions And Procedures For Clearing The Results Of The Exchange Trades.
D. Conditions For The Functioning Of The Derivatives Market In An Organized Commodity Market.
E. The Existing Tax On Exchange Transactions
F. Application Of Electronic Document And Digital Signature
G. Types, Sizes Liability For Violation Of The Law
H. Trends In International Integration Of The National Organized Commodity Market
9. Analysis Of The Prospects For The Development Of Trading Electronically In The Republic Of Kazakhstan
A. Risks And Transaction Costs
B. Volatility Of Commodity Assets
With The Formation Of Market Prices: Representation, Recognition And Justification
D Risk Management: Price Risk, Counterparty Risk, The Risk Of Logistics, Payment And Settlement Risk
E. Investment Opportunities: Professional Market, Speculators
F. Promotion Of Trade In Goods: The Unification Of The Rules Of Trade, International Trade
G. Stimulation Of Direct Financing Of Commodity Markets: Cheaper Resources By Minimizing The Risks And The
Standard Rules Of Organized Commodity Market
H. Development Of The Market As A Whole
Apps
Used Terms And Definitions
Tables
Drawings
Graphs
Literature
Introduction
Organized commodity exchanges have a long history. Stock brokers, dealers and brokers who deal with cereals
(traders) in Japan began to experiment with this idea in 1730, and the Chicago Mercantile Exchange and the London
Metal Exchange have successfully started its operations in 1864, the i1877, respectively. For over chemstoletiya,
commodity exchanges remained largely isolated to the industrialized countries, but with the liberalization of the
market and they were all more accessible information technology, they quickly spread around the world since 1990.
As a result, at the moment, nastrany outside the Organisation for Economic Co-operation and Development (OECD)
prihoditsyabolee 50 percent of rural economic futures and options implemented in the world. Most commodity
exchanges in the world, now, is for predelamiSevernoy America and Europe (United Nations Conference on Trade
and razvitiyu2007).
The growing interest ktovarnym Exchange Commission by the government, investors, and private sektorav
developing countries reflects the tendency to reduce transaction costs and the need for new tools for risk
management in relation to the goods. Stable and positive growth and development vorganizatsiyah serving the
commodity markets, especially important dlyastran that are heavily dependent on export revenues. Due to the fact
that international markets are volatile, and domestic markets are not filled and fragmented, risk management is
crucial dlyarazvitiya agro-commodity sector. Due to the ever increasing problems of national marketing
produktsiiineudovletvoritelnoy rabotoymezhdunarodnyh commodity agreements (ICAS), Governments and their
partners razvitiyuvse increasingly seen commodity exchanges as a means of risk management in the context of
liberalization and market integration.
Due to the fact that commodity production and trade are the main livelihood for many countries in the world, the
development of agro-commodities sector is essential for poverty reduction and achievement of overall economic
development. Faced with the price instability and high marketing costs, many see the commodity exchanges as an
alternative means of risk management and efficiency in a liberalized market (Gilbert 1996; Morgan, 2001; Suro and
Kilman 2009). Despite the obvious appeal of commodity exchanges, for almost all the economic actors, the
emergence and development of exchange trade very often faces many challenges due to incorrect management
models and incentive industry, problems in logistics infrastructure and commodity markets, the low level of
awareness among consumers of exchange services, lobby large industrial structures and monopolies, and many other
factors.
Kazakhstan is no exception. Given the role of agriculture in the national economy, the development of organized
markets with a full range of exchange-traded instruments, is one of the key factors in long-term and sustainable
development of the industry at all levels. Based on international experience, described in detail in the study, it is
possible to make an unambiguous conclusion that the international community does not come up with another way
of effective development of the commodity market and commodity relations, the use of exchange institutions as
centers for the formation of fair market prices, risk management and the development of commodity infrastructure
whole.
The objectives of this study is to review the international experience, analysis of the current situation on the stock
market of Kazakhstan and to develop recommendations for the further successful development of trading goods.
In this regard, the first four sections of the study will be devoted to the review of the experience of the formation and
development of trading in foreign countries. These sections will be described in detail in what way have developed
commodity exchanges, what problems were encountered and how they were solved, the role played by the
government and market participants that have taken which contracts have been successful and which are not, how to
influence the action of physical infrastructure and logistics for the development of the commodity market exchange
trading.
Further, in the fifth and sixth section will provide an overview on the current situation in the stock market of
Kazakhstan. In particular, we describe the action of market infrastructure with an overview of the major stock turns.
Also here is the disclosure of information and the results on the results of the survey of market participants in this
study.
Seventh and eighth sections detail reveal the regulatory framework of trading. In the beginning, there is more
information on the legislation of Kazakhstan, then provided a comparative analysis of the current legal framework in
Kazakhstan and neighboring foreign countries: Russia, Ukraine, Belarus, Uzbekistan and Moldova. Disclosure of
legislation is key in providing information regarding the reforms that were carried out in these countries, which of
them have been successful and which are not, what rules stimulate exchange trading, and which restrict what model
of regulation prevails and what requirements are set exchange market participants.
Finally, in the ninth and the tenth section will provide information on the prospects of exchange trading in
Kazakhstan with a description of the specific recommendations for the successful implementation of the
development model of trading. Models and recommendations will be provided in the form of a specific set of
conditions that must be fulfilled so as to achieve positive results. This will be achieved through a detailed
understanding of the usefulness of commodity exchanges through a detailed analysis of the functionality that should
have Mercantile Exchange. Further, a clear understanding on the basis of the analysis, what should be the ideal
model of exchange trading, and these conditions are imposed on the model of the stock market of Kazakhstan and
provided specific conclusions and recommendations.
In the end, as the applications will be made available bibliography, tables and figures, as well as the list of
terms and abbreviations used.
Component: "Development of trading electronically. International experience "
1. Development of trading electronically
1.a Stages of development of electronic systems in the world
History of Electronic exchange trading and development of electronic systems of the
world has more than 40 years. This is one of the latest events in the development of
technology operations at international commodity exchanges. In fact, this is a
fundamentally new approach to the conduct of exchange trading. Computer
technologies have been used in stock trading long before the first electronic stock
exchange. But while they performed only auxiliary functions, ie contributed to the
functioning of commodity exchanges, providing quick access to information and a
specific procedure.
In 1971, the National Association of Securities Dealers US (NASD) has mastered
the system of electronic exchange trading (Nasdaq) - the broader American computer
network, access to which had dealers in the most remote corners of the country. In
1986 he appeared on the London exchange system similar to Nasdaq, called SEAQ
(StockExchangeAutomatedQuotations). The first Tokyo analogue - CORES - originated
in 1982, and then replaced by a better system - FORES - in 1990. The Toronto Stock
Exchange gained in the form of a computer image of CATS (ComputerAssistedTradingSystem) in 1977.
In 1985 he began operating the first electronic stock exchange - NZX (Eng.
NewZealandExchange) - Stock Exchange, located in Wellington, New Zealand.
Exchange enters AOSEF. The main index NZSE50 are 50 most liquid stocks. Trading
session lasts from 9:30 to 15:30 from Monday to Friday. Calculations are made through
an automatic mezhbrokerskuyu settlement system. Maximum delivery contract - five
working days from the date of the auction.
Since then, most global commodity and stock exchanges use a variety of e-trading.
Exchange became fully automated, ie trade on the exchanges carried out solely by
electronic means, including on major exchanges around the world. (Annex 1.1. Table
1.a.1-1 «Electronic Exchange of the world").
Currently, the automation process is very active in both the emerging markets, and
the existing ones. And those and others are interested in order to attract customers from
all over the world, to reduce operating costs and improve the quality of performance of
orders. Recent advances in computer technology have shifted the emphasis in the
discussion of this problem with the questions of technical feasibility questions principles
of structure and electronic trading.
In its development, commodity exchanges have gone through several stages of the
wholesale market, where transactions are made with cash shipments of goods to the
modern futures market.
Events and assumptions that led to the birth and development of the exchange of
electronic systems in Russia and the newly independent states in the aftermath of the
collapse of the USSR, studied and described in many documents and papers of the
period (for example, Manevitch, 1991).
Gaining strength disintegration processes in the political and economic fields.
Due to the collapse of a single economic space, the introduction of the newly formed
state of their own currencies and the borders of destroying the old cooperative ties. In
the economies of all these countries by early 1990, appeared and began to grow crisis
trends - economic growth has acquired a negative trend, industrial production declined,
the budget deficit grew, evolved inflation and the trade deficit.
In this situation the industrial enterprises of the CIS countries are in a qualitatively
new economic environment. Thing of the past system of centralized procurement, broke
the established cooperative relations with traditional partners. In this case, commercial
and industrial relations have moved to a system of free pricing. The transition to market
forms of management demanded the appearance of economic structures that would
facilitate the creation of new cooperative ties and price targets for the sphere of
production. In other words, for the industrial and agricultural sectors have become
relevant and necessary commodity markets. Needed them, and buyers who are in
conditions of total trade deficit and rising inflation was imperative to convert their money
into commodities and materials. Exchange encountered in the early 1990s, to the best
of its specific development helped to solve these issues.
By the development of trade and exchange of electronic exchange systems and the
presence of excess pushed and unused stocks that have been established by the time
the warehouses of enterprises, and that it was possible to sell at the market price
through the Exchange.
Consider the main stages in the development of electronic systems on the example
of Russia and Kazakhstan.
Russia
Table 1.a.1 «Milestones exchange trading electronic systems in Russia"
Stage
Basic characteristics
In 1990-1991 period of rapid growth in the number of
exchange structures and the number of brokerage
firms. (Fig. 1.A.1)
Exchange, as businesses are created for profit. Russian
stock exchanges of the initial period of its formation
were more fairground than stock trading. Exchange as a
center for the establishment of cooperative relations in
the broadest group of products and materials. Exchange
trade was based almost exclusively on transactions with
real cash commodity type. Hypertrophied exchange
market with a bloated staff mediation.
1992-1994, the period of reorganization Russian
commodity exchanges, and the decline in trading
activity. Purification of stock trading by "kvazibirzh" and
exchange structures. Intensified competition between
the exchange and OTC markets. Accelerate the process
of improving the forms of trading. Increased integration
and concentration of the exchange market. Outline a
process of specialization of domestic trading. Many
exchanges refuse to trade a wide range of goods and
resources. The first transaction for a period. Forward
transactions primarily affected these types of products,
such as oil and petroleum products, cereals and nonferrous metals.
Основные события
Industrial enterprises in this period experienced
an acute need for freely functioning wholesale
market for the purchase of raw materials for
production purposes as well as for the realization
of finished products at free prices. No less urgent
was the question of building new industrial
contacts with potential partners and new markets.
Unstable macroeconomic situation, the
uncertainty of economic relations and the
existence of the wholesale market price fixed by
the state determined the trend towards the
universalization of the exchanges.
In 1991 and 1992 were adopted federal laws and
regulations that brought the legal status of the
Russian stock exchanges to international
standards. Stock exchanges at this time reveal
more consistent with international practice than
commodity. This trend will continue in subsequent
periods. Beginning in 1992 - a landmark for the
stock market for Russian. Came into effect three
powerful factors:
• Enter free pricing;
• entered into force exchange legislation;
• increase the tax burden on brokering activities.
Advantages of free pricing are available to all
market participants. Exchange lost its exclusive
rights and monopoly position, profitability, stock
trading has decreased. Simultaneously with the
liberalization of prices and severe tightening of
the requirements for exchanges and increased tax
pressure on the exchange. As a result, there was
a sharp decrease in the volume of stock trading
and offset it on the OTC market; brokering has
1995-1996 years period of the electronic stock trading.
Commodity exchange is transformed from "fair grounds" become much less attractive. At the Moscow
Commodity Exchange (MTB) were first carried
where they sell real goods, in computerized derivatives
market. In place of the classic exchange trading comes forward transactions with the grain and cotton,
and Moscow Chamber of Commerce organized
virtual exchange, provide market participants with
maximum automation of purchase and sale transactions futures trading on the US dollar.
Over time, wholesale companies debugged trade
and settlements with remote terminals.
relations have gained the necessary information,
have established strong business contacts and
started to leave the marketplaces. Members of the
exchange began to work on the OTC market.
Survive in these conditions could those commodity
exchanges, which, being away from the real cash
flows, have managed to establish trade futures
contracts. In 1993, the number of commodity
exchanges declined by one-third, and by the end
of 1996, more than 60% compared with 1992. In
the late '90s, many of these survivors exchanges
were closed platform on which to act professionally
speculators and hedgers. By e-exchange trading
system gradually began to move, and Russian
stock exchanges - Moscow Commodity Exchange
and the Moscow Stock Exchange non-ferrous
metals and some other exchanges. At the same
time created and pure virtual web market - such as
"Grain-Line", Russia's metallurgical industry
(Rusmet.ru), Ural Metal Market and a number of
other electronic marketplaces. Hopes organizers
electronic commodity exchange markets in the late
1990s, a further increase in trading volume, as a
whole did not materialize. Russian translation of
trading in Internet trading coincided with similar
processes in the global economy, when the leading
exchange centers are also engaged in the
improvement of their trade, payment and customer
networks based remote access. With much greater
liquidity and trading volume, international
exchange centers are becoming more attractive for
Russian and foreign market participants. Local
value of domestic commodity exchanges and
increased competition has led to (1) reduce the
interest of foreign investors, buyers and sellers to
the Russian stock exchanges; (2) the reorientation
of the major players in Russian oil, agricultural and
metal markets in the world exchange centers.
Exchange form of trade to the 2000s has
undergone a qualitative change - it becomes e,
which determines its modern specificity. Exchange,
which failed to achieve a qualitative update of
exchange trade, went the way of the
reorganization. On the basis of exchanges began
to form holding companies, and the entire
corporate structure became concern. For example,
reorganized the Russian food market, which
formed a voucher investment fund privatization,
Russian food bank and financial-industrial group.
Another way of reorganization - consolidation. The
merger of the Moscow universal exchange of
secondary resources (MUBVR), Commodity
Exchange "Conversion" and Forest exchanges
emerged Moscow Chamber of Commerce. For MTB
joined RUIS- Exchange. Similarly, transformed a
number of exchange organizations.
Period 1996-2000, consolidation and integration of trade
exchange markets, the decline in stock trading Regular
trading in futures contracts.
2000-2011 years creation of a modern electronic stock
trading commodity futures based on Russian sites, the
use of exchange pricing of gas and electricity
In November 2006, in Moscow earned a gas
exchange in th early iyule2007 carry trades
Moscow Energy Exchange "Arena". By 2010, the
government clearly define the position to support
the exchange trade in grain. The impetus for this
was the severe drought and attempts speculative
sentiment intermediaries raise prices for grains
and cereals (see. 1.a.2,1.a.3,1.a.4 drawings).
Exchange in this situation is to become
institutions that protect the rights of consumers
due to price competition, which will make
unnecessary the whole clusters intermediaries.
Source: Based on saytahttp: //vadim-galkin.ru/, «The current stage of development of
commodity exchange market in Russia", 29 September 2011
Reforming economic relations and privatization of state property to the top of the 1990s formed
in the Russian industry large class of new owners, creating a large group of small and medium-sized
businesses. Formed tens of thousands of new joint stock companies, cooperatives, associations,
municipalities and private companies.
Actively growing manufacturing sector needed new markets and market institutions in the sphere
of circulation; newly emerging and existing businesses have felt the urgent need for freely functioning
wholesale market for the purchase of raw materials for production purposes as well as for the realization
of the finished product at market prices.
Basis for future exchanges currency auctions have become the State Bank and
Vnesheconombank and commercial centers of State Logistics Committee, held in late 80s auction sale of
products for industrial purposes. Creation in the first half of 1990 the Moscow Commodity Exchange and
the Russian Commodity Exchange resulted in stock market boom in Russia. Russia on their number came
out on top in the world. Very soon Moscow became the capital stock of the world in the number of stock
exchanges, which number in the whole of Russia was 40% of the global total. Since 1993, their numbers
began to decline (see. Figure 1.a.1).
Thus, the revival of the Russian exchange business has become one of the most important
moments of transformation of a command economy to a market system. In the first stage exchange took
over the functions of software during the collapse of commodity procurement policy framework. Around
exchange structures have been developed investment, insurance, brokerage firms, trading houses and
commercial banks. Exchange attracted capital, which was subsequently invested in a business
perspective, the development of information infrastructure. Notable achievements include the exchange
and its contribution to the framing of the first domestic business.
Further development determined by the reduced trade practices and institutional and legal
framework of Russian stock exchanges in line with world standards (Demchuk O., 2006).
Prospects for the development of exchange trade in the territory of the EEA
1992
1995
224
91
2000
45
2005
31
2006
2007
26
23
2008
28
2009
2010
26
23
2011
17
Picture 1.A.1 The number of exchanges and trade departments of
commodity stock exchanges Source: Federal State Statistics Service,
2012; FAS 2012
85.8
73
51.7
46.2
36
Entered into transactions with real goods (thous.)
22.6
A Bid (thous.)
9.8
4.9
2.6
1.8
1.8
2.8
1.7
2000
2005
2006
2007
2008
Figure 1.A.2 Main indicators of stock exchanges in Russia, 2000-2011 Source: Federal State Statistics
Service, 2012; FAS 2012
Основные этапы развития товарных бирж в России и Казахстане 10582
Picture 1.A.3 exchange turnover of
transactions with real goods
(excluding turnover of futures
transactions, $ million) Source:
Federal State Statistics Service,
2012; FAS 2012
3.4
3.3
172
258
203
2000
2005
2006
15.6
0.2
1910
2007
1.4
36.3
50.4
92.6
81.1
60.3
48.2
7.3
2000
2005
consumer goods
2007
2008
Products Production and Technolog
Other types of goods
Picture 1.а.4
Types of transactions in exchange turnover (in%) Source: Federal State Statistics Service, 2012; FAS
2012
The premises and the conditions for the emergence of commodity exchanges and the
development of the market of goods and raw materials are similar to Russian. It is noteworthy that in
the process of becoming commodity exchanges in the CIS to conduct auctions not only on their sites,
but also in cooperation with other exchanges in Central Asia and Kazakhstan (15 exchanges), a
consortium of "Siberian Ring" (16 exchanges Russia), the Exchange Union of North - West Russia and
the Baltic Sea (14 exchanges) via a modem and intercom in real time.
Kazakhstan
Table 1.A.2 "Major events in the history of stock trading, and electronic systems in Kazakhstan"
Этап
1991
March 1994
April 1995
1996
December 1997
May 2002
March 2004
2007
Autumn 2008
December 9, 2008
Основные характеристики
June 13, 1991 passed a special law of the Republic of Kazakhstan
on commodity exchanges. Start of commodity and stock
exchanges. Hours of experience in organizing and conducting
closed and open exchange trading in a wide range of goods and
services, real estate, securities.
Presidential Decree (from 20.03.94 №1604) «On Commodity
Exchanges", repealing the 1991 law. Clarified and extended the
definition of a commodity exchange, its objectives and main
functions.
Begins specialization exchanges and their division into commodity
and currency and stock.
The new Presidential Decree (№2170 from 04.07.95) "On
Commodity Exchanges", which has the force of law.
This decree amended, relating to the management of market
infrastructure.
In accordance with the Cabinet of Ministers of the Republic of
Kazakhstan (№1035 from 28.07.95) crops attributed to exchange
goods for the implementation of the Law "On Commodity
Exchanges» (№2170 from 04.07.95). In 1995-1997 in the country
with respect to actively functioning Grain Exchange. The list of
commodities are also included agricultural products, hides and
skins, animal production and technical purposes (including
petroleum products, wood, ferrous and nonferrous metals).
Permission for the licensing of commodity exchanges. Legally
defined regulator - State Commission on Commodity Exchanges of
Kazakhstan under the Cabinet of Ministers.
The decline in trading activity in connection with the release of
decisions, excluding products of industrial and technical purpose of
the exchange. Trading operations on other groups of commodities
through commodity exchanges have purchased non-binding,
especially for export.
Exchange activity resumed through public procurement of
commodities through a public auction on commodity exchanges in
accordance with the Law "On public procurement» (№321 from
16.05.02).
Ordinary Resolution to reduce the list of commodities as a result of
decreased activity, reducing the number of exchanges (see.
Picture 1.a.5).
Head of State Nursultan Nazarbayev instructed to create
conditions for the development of the exchange market and stock
exchange sector.
Exchange of grain in the country virtually ceased, and in 2008,
according to the Ministry of Agriculture of the Republic of
Kazakhstan, through existing commodity exchanges sold only 505
thousand. Tons of grain.
On behalf of the President of Kazakhstan Nursultan Nazarbayev
with the participation of JSC "RFCA" and OAO "RTS (Russian
Trading System)" with a 40% share of the state participation
created JSC "Commodity Exchange" Eurasian Trading System ".
The main purpose of the exchange is indicated by transparent
pricing on the most important group of products, reducing
intermediation costs in the purchase and sale of goods, as well as
fair prices for end buyers and sellers. Russian partner RTS, one of
the leaders in their country of electronic trading platforms, as a
Основные
события
March 2009
May 2009
November 2009
December 2009
April 2011
December 2012
contribution to the share capital of ETS introduced modern
software products, which operate on the basis of the futures
market and the spot market. Thus, at the disposal of the ETC were
modern tools to organize trading in line with international
standards.
On March 30, 2009 carried out mainly trading in agricultural
products. Exchange gained a wide range of participants,
represented by trained exchanges. Brokers' clients have become
consumers of Turkey, Tajikistan professional brokers, Iran,
Uzbekistan. To date, the exchange is a well-developed
infrastructure with clearing and settlement centers, conducting
trade in automatic mode with different groups of products.
May 4, 2009 to replace the previous Law "On Commodity
Exchanges" from 04/07/95, a new law (№155-IV from 04.05.09)
"On Commodity Exchanges", containing new approaches and
principles of trading. The law provides for the right of governments
to take a list of commodities, as well as to approve the minimum
quantities of goods that are traded on a mandatory basis should
only be performed on a commodity exchange. The law regulates
the activities of commodity exchanges, as well as eliminates the
discrepancy between the norms of legislation regulating the
activities of commodity exchanges that have accumulated in the
practice of regulation of exchange activity in the previous stages.
In the new law introduced concepts such as brokers, dealers,
clearing and settlement centers. The new law opens up the
possibility for the formation of modern technologies of trading,
such as trading in online mode, the introduction of security risks.
Resolution of the Government of the Republic of Kazakhstan
(№1942 from 26.11.09) approved the Rules for Licensing in the
field of commodity exchanges and qualification requirements for
the activities of commodity exchanges, stock brokers and stock
dealers.
Resolution of the Government of the Republic of Kazakhstan
(№2042 from 08.12.09) approved Model Regulations trading. At
the same time passed a law aimed at improving the existing
legislation on state regulation and support of the agricultural
sector, in particular, the laws "On grain" and "On state regulation
in the development of agriculture and rural areas." These additions
and changes to the existing legal acts are aimed both at
strengthening public financial support, and state regulation of the
food market and export of agricultural products.
Resolution of the Government of the Republic of Kazakhstan (№37
from 06.04.11) approved the list of commodities and the minimum
size of the parties that are implemented through commodity
exchanges. It includes potatoes, wheat, sugar, coal, cement and
other goods.
Resolution of the Government of the Republic of Kazakhstan
(№1653 from 21.12.12) approved qualification requirements for
the activities of commodity exchanges, stock brokers and stock
dealers.
In Kazakhstan exchange trading is also gaining momentum, focusing on the best practices of the
West and Russia. The domestic stock market in fact is still under development and improvement. But it is
the market exchange system is most appropriate for Kazakhstan as a state with considerable potential in
the agricultural and commodity sectors.
In this case, it is clear that in recent years the government has put a lot of effort for the
development of mechanisms of exchange trade, but the wide introduction of modern tools to talk is
premature. The reason lies in individual legislative shortcomings, and that in practice legally prescribed
norms do not always work properly.
In general we can say, with the adoption of the law on "Commodity Exchange" in 2009 in
Kazakhstan began a new stage in the development of stock trading (see. Figures 1.a.6,1.a.7).
15
12
11
10
9
2004
2005
2006
9
2007
2008
9
8
2009
2010
2011
21.340
Picture 1.а.6
0.904
2005
0.161
2006
2007
2008
0.964
2009
2010
508
461
222
100
113
371
2004
2005
2006
2007
2008
2009
Picture 1.a.7 traffic exchanges on the transaction ($ million) Source: http://www.stat.kz/ digital / torg /
Pages / default.aspx
Comparing the two exchange stories, Russia and Kazakhstan can be found kakskhodstva and
differences. Of similarities can be noted a slowdown in trading activity as a result of government
intervention. In Russia, it happened with the tightening of the requirements for exchanges and increase
the tax burden in 1992 against the background of the liberalization of prices. In Kazakhstan, throughout
the process of formation of exchange trading occurred chastoeizmenenie legislation, which did not allow
to settle the rules of the game.
A characteristic feature of the situation in both countries is the increased attention to the commodity
exchanges of the state in the absence of targeted support.
Another similarity is the lag in both countries the level of organization and relationships in the commodity
markets in comparison with the stock market. An important factor in the formation of the exchange
markets is to participate in the establishment of exchanges of state and government. So it was in Russia,
but in Kazakhstan the first commodity exchange with the state interest appeared in 2008.
While in the Russian stock exchange adapted to the changed economic conditions and accurately
updated through the transition to electronic trading in futures contracts, in Kazakhstan protsessdo
vremeninahoditsya present at the stage of trade real goods.
At the same time, Kazakhstan has chosen the way of incentive stock trading through the introduction of
legislation in the list of commodities that are traded on a mandatory basis should only be performed on a
commodity exchange.
However, efforts are being made to develop the market, competition, introduction of new tools and ecommerce. Kazakh market is growing, which gives hope for favorable prospects.
Information about the situation in other countries of CIS Statistical Committee abound although gaps
in existing information gives an idea of the amount of exchange commodity market in a number of CIS
countries:
Table 1.A.3 "Comparative data on Exchange Commission of Kazakhstan, Russia and Ukraine for 20092010."
The number of active exchanges at the end
of the year
2009
2010
The number of transactions at year-end
(thousands).
2009
2010
Kazakhstan
9
8
1.1
10.4
Russia
26
23
85.8
73
Ukraine
343
339
383
88
- Source: Database of the CIS Statistical Committee
In "Kommersant-Ukraine" for 14.02.12 with reference to the concept of the development of the
exchange commodity market of Ukraine presented interesting data that "the Ukrainian market, there are
about 500 commodity exchanges. At the same time, the annual turnover of the commodity market ranges
from 5 to 8 billion hryvnia, which is approximately equal to the volume of one trading session exchanges
such as the Chicago Mercantile Exchange, or NYSE.
3.5
9.5
36.2
Picture 1.а.8
The turnover by type of
operation (2010)
91.5
90.5
Source: Database of the
61.4
2.4
Kazakhstan
consumer goods
CIS Statistical
Committee, stock,
commodity and currency
exchanges
4.4
Russia
Ukraine
production and technical purpose other goods
2010 was a year of growth of exchange trading in Kazakhstan, in particular related to
the launch of the spot market for the grain trade. This is evidenced by the share of
consumer goods in exchange turnover (picture 1.a.8). For Russia and Ukraine, the
main share of products production and technical purposes.
The result of the use of electronic exchange trading:
• Reducing the impact of human factors on the procurement process;
• Increased transparency of procurement processes;
• Improved planning accuracy by providing reliable analysis needs of inventories;
• Improving the quality and efficiency of procurement;
• Lower purchase price and optimization of budget expenditures;
• Implement a system of competitive procurement (selection of alternative products
and suppliers);
• Provide accurate estimates of price conjuncture of the market;
• Cost-effectiveness analysis of procurement.
Questions of exchange commodity market are present in the reform agenda of almost
all countries of the CIS.
1.b main ways to access the electronic exchange systems
In today's world there are a variety of electronic stock trading, but these systems are built, in fact, one
and the same pattern: a central computer with an extensive network, providing work a certain
number of terminals. Any electronic exchange system includes three main components:
1. Workstation member of the exchange - the trader (trader) (TraderStation) - with the help of her
brokers involved in the trade, obtain market information and introducing a system of their orders to
buy or sell;
2. The communication line (CommunicationsLink) - a means for dialogue between the broker and the
central exchange;
3. The central exchange system (CentralExchangeSystem) - provides a reduction of the entire market
information and execute orders brokers.
Functionality in terms of compliance with the rules of transactions and the dissemination of information
provided by the application software. Currently, there are different conceptual approaches in which
different address issues about the kinds of orders and quotes on the duration of the orders on the
principles of the distribution of transactions between buyers and sellers, the level of complexity
(sophistication) of the technique of trade, ie, the use of spreads, arbitration and orders with
restrictive conditions. Develop applications for the central exchange system, which would provide the
basic functions of the system, is not too difficult. With greater difficulties faced by developers in
solving problems such as the difficulty level of the rules of transactions, reliability and efficiency. If
we consider that the number of types of goods and financial instruments which are traded on
commodity exchanges modern, very large, and trading activity on them is quite different; when you
consider that continues to grow as the number of participants of exchange trade, and the number of
commodities, it is necessary to recognize that developed to date the basic principles of e-commerce
is still far from perfect.
Information collected by the central system, is a very useful database (dynamics) containing information
about market activity and market trends. This creates a much better basis for economic analysis that
benefits both the broker and the exchange itself. Integrity and a kind of "honesty" electronic
exchange eliminates the growing fears of public services themselves exchanges and the public about
the unfair trade practices. Electronic exchange system provides a central clearing centers and
members of the media for a more thorough supervision and timely data for risk control.
Standard electronic exchange system architecture is based on three interrelated subsystems:
1. Central, in which data is entered;
2. The orientation system applications;
3. The real time operating system, which distributes the key information about the market online.
All requests from the participants of exchange trade coming into the automated system by brokerage
firms exchange members acting on behalf of clients or on their own. It should be noted the fact that
the application can be formulated in various forms: for example, to buy or sell securities at a
specified requested by the customer price, to buy or sell "the market", in the form of stop-loss, etc.
The computer must take into account all the wishes of buyers and sellers. Therefore, the application
automatically ranked (arranged by priority) depending on the price performance; in the group with
the same strike prices, preference is given to those clients whose order is entered into the system
before.
One of the most popular and advanced electronic systems used in stock trading - a system of "Globex"
("GlobalExchange", Globex). It is an international system of electronic trading in futures and options
contracts. She started to operate in the first half of 1992. This system was developed jointly by the
agency "Reuters" and the Chicago commercial exchange.
To the system "Globex" joined in 1992. Chicago Board of Trade. French Exchange "MATIF" also takes
part in the "Globex" on a full basis. A number of exchanges is going to join in the near future to this
system, among them: the American Stock Exchange "NAYMEKS" Futures Exchange in Sydney,
London Stock Exchange "Liffey", the Singapore International Monetary Exchange, the German
Mercantile Exchange and others. System "Globex" work after normal closing exchange sessions, for
example, in Chicago (from 17.45 to 6.00). The system uses for the selection of buyers and sellers
algorithm "price / time."
Each transaction in the system "Globex" goes through several successive stages:
1. Introduction of orders through the terminals "Globex".
2. Checking in a special control element of the creditworthiness of the trader (the parameters worked out
by members of the clearinghouse).
3. Selection of orders of buyers and sellers on the algorithm "price / time."
4. Immediately after the transaction information on the execution of the order is sent back to those
terminals from which the data originated orders. Meanwhile, still unfulfilled orders remain in the
system as long as they are not met or withdrawn.
5. Immediately after the transaction in the system all sellers involved in trade, to send information on the
latest at the moment the price at which the product was sold, and on the number of goods, as well
as the latest information at this point on the best bid prices and offers from an indication of the
amount of goods.
6. After the confirmation of the transaction will, a report on it is sent to the clearing center, where the
clearing.
7. In the clearing center in accordance with the results of the transaction changes are made to the
account of the seller and the buyer in respect of the number of open positions and margin.
Many American brokerage companies began to participate in e-commerce through the "Globex". They
have taken a number of measures to customers was as comfortable as possible using the electronic
system, that is, tried to make virtually invisible to their clients transition from trade in the regular
trading session to this new form of commerce.
Direct link for that day sends commands to London and Tokyo at the end of the day are disabled, but
instead is now beginning to work "Globex". During normal exchange trading session clients are
accustomed to hearing comments about what is happening in the market, and it gives them the
ability to quickly navigate and, if necessary, make a phone call, and to give the appropriate order.
Brokerage companies have tried to organize the same, and while the electronic exchange. In the
normal course outcry employees of brokerage firms, while in the "ring", trying to catch the processes
occurring in the environment brokers, quickly report the best at the moment the prices of buyers and
sellers and to assess the current volume of trade in the market. Night employees of companies are
trying to do the same thing: watching the numbers on the screen, indicating the best prices for the
purchase and sale and the number of contracts.
Of particular interest to users of the electronic exchange system caused the computer system Bloomberg
provided by Bloomberg, and allows professionals in finance and other industries to use the service
BloombergProfessional, through which users can real-time monitor and analyze the movement of the
financial market, as well as being a place of trading on electronic trading platform. The system also
provides access to news, quotes and messages through their own secure network. Most of the big
financial firms have subscriptions to services BloombergProfessional. Multiple exchanges charge extra
fees for access to price changes in real time. The same applies to the various news organizations. All
terminals are rented on a two-year cycle, depending on the number of connected monitors. The
subscription price, about $ 1,975 per month with a discount for two or more terminals ($ 1.6). Most
of the configuration terminal is between two and four displays. In May 2013 there were 315,000
subscribers Bloomberg terminals worldwide.
Terminal implements the architecture type of client-server to a server running on a multiprocessor
Unix platform. Client used by end users to interact with the system is an application
Windows.Konechnye users can also use a special service (BloombergAnywhere), giving access to the
web application via the Windows client Citrix.
QUIK software as one of the technological solutions in the organization of electronic exchange systems.
QUIK - a software package for accessing exchange and OTC trading systems in real time. Software
package consists of a server part and jobs (terminals) users, interacting with each other via the
Internet.
QUIK - an acronym Quickly Updatable Information Kit. Originally QUIK is an information system, a high
speed data delivery, which is reflected in the title of the program. Now QUIK is a comprehensive
front-office system, direct access to the tendering process for its own operations, as well as
brokerage services in the financial markets (online trading). QUIK today - is the most popular trading
platform with access to all the exchanges in Russia, Ukraine, as well as on foreign exchanges
through a single trading platform. QUIK is used by more than 250 financial institutions to serve tens
of thousands of customers.
QUIK software can be used for different purposes, provided the configuration used (description of all the
products mentioned below can be found in the "Products" and "Services").
• Conducting own operations and brokerage services is available in two versions. Option QUIK-Broker
involves the purchase of all broker software system (server and client workstations) and its
independent operation on its own technological base. Option outsourcing brokerage system allows
you to use software package QUIK, located in one of the Technical Centers ARQATechnologies.
• Conducting own operations of the bank or investment company without the need of customer service
provided by the system QUIK-Dealer. QUIK-Dealer - a cost-effective solution for exchange traders
who are interested in reducing the cost of technological access to the exchange trading system.
• Training trading system QUIK-Junior is designed to master the skills and techniques of stock trading
works in the QUIK. QUIK-Junior is actively used by higher education institutions, brokers for the
preparation of clients, as well as a test site for debugging their own programs.
On the Russian stock exchanges is also widely used system NetInvestor - Information and trading system
for securities trading via the Internet. The system allows brokerage firms and banks engage in
investment activities and to provide online trading services to clients. Consists of a server-side, POS
terminals and software interface.
NetInvestor system developed by the Russian company "MFD-InfoCenter." Online trading platform
NetInvestor implements client-server architecture and interacts with gateways exchanges and
workplace users. The application server is responsible for handling customer data and trade
transactions, conducting margin transactions, support for non-commercial operations and workflow.
To ensure the legal significance of trade transaction system is used for cryptographic protection of
information (CIPF). To choose a broker, it can be one of the crypto: Verba, Crypto-Pro, MessagePRO.
Trading terminal NetInvestor - application with which the investor is connected to the trading system of
your broker, receives data on the exchange trading, makes trade transactions over a secure channel.
Trading terminal supports versatile functionality required by investors to trade on the exchange. This
includes user interfaces for dealing with such objects:
• lists of tickers;
• the table of quotations;
• Order book (market depth);
• News of economics and finance;
• applications for purchase / sale of financial instruments;
• stop-loss and take-profit;
• portfolios and graphs of price changes;
• technical analysis indicators, and etc.
1.c Technological solutions organization of electronic exchange systems
The main specifications for the electronic system is reliable and efficient. When designing such a
system aims to - provide secure access and data transfer rate that would not actually inferior in their
effectiveness of human communication. The solution to these two problems are not so easy in technical
terms, but it is possible at the current level of technology.
Technological solutions organization of electronic exchange systems for example the Republic of
Kazakhstan, the Russian Federation, Belarus and Ukraine are presented in Table 1.s.4. (for example,
individual exchanges):
Table 1.s.4 "Technological solutions organization of electronic exchange systems"
Country
The Republic of
Kazakhstan
JSC "Commodity
Exchange" ETS "(ETC)
The Russian Federation
OJSC "Saint Petersburg
Stock Exchange" (JSC
"UPB")
Technical capabilities of the Exchange trading system
Trading systems provide participants ETC services on putting
quotations, orders, enter and confirm the reports on transactions, view market
information in the workplace, through the terminal or Internet trading system,
both spot goods and on derivative instruments (futures underlying assets and
options on futures).
Trading modes:
classic mode of trade (address mode).
Standard auctions.
Dual counter anonymous auction.
mode request for quotation (for options).
Guaranteed Trading System (100% deposit of the goods and money).
In trading system implemented:
- Dual counter auction;
- The auction for the price increase;
- The auction for a price reduction;
- Mode of OTC transactions registration;
For all types of auctions has a mechanism of trading in an
anonymous and address modes.
The possibility of trading without security, with partial coverage,
with full coverage.
Gateway to connect to third-party trading systems and backoffice systems.
Types of transactions:
- Standard transactions involving mutual rights and obligations in
terms of real goods;
- Long-term (after a delay) a contract to supply associated with
mutual rights and obligations in terms of real goods, non-derivative
The Russian Federation
JSC "Saint-Petersburg
International
Mercantile Exchange"
(SPIMEX)
The Republic of Belarus
"Belarusian Universal
Commodity Exchange"
Ukraine
State Agricultural
Exchange
financial instruments.
Trading modes:
a continuous counter anonymous auction;
-Address of the application;
-odnonapravlennye auctions.
System capacity with the clearing of 100 requests per second, without
clearing - 2000 requests per second.
Clearing and settlement on the basis of stock exchange transactions
carried out by specialized clearing organization CJSC "Settlement
Depository Company"
The system provides the technical ability to connect external broker
systems via a gateway.
Trading modes:
-auktsion to increase the price of the goods (English);
-auktsion the fall in price (Dutch);
-double continuous auction (combined).
The automated system of tendering (hereinafter - Asote) is a collection of
databases, technical, software, telecommunications and other means of
providing all the basic procedures of exchange technology (input, storage,
processing, trade information, the conclusion of exchange transactions, the
calculation of stock prices, etc.. ).
Asote allows operation of these schemes trades through the development
of a mechanism of parallel sets of the same type of exchange auctions, in
each of which the bidders to conduct trade and procurement operations
simultaneously. In order to ensure these approaches build Asote
performed on the principles of modularity and autonomous operation of all
subsystems.
Electronic trading system of the Agrarian Exchange operates on the basis
of WEB-interface that allows remote trade, including the possibilities of
Internet trading.
Trading modes provided in the system:
• market quotations,
• market applications
• auction.
Analysis of the technical capabilities of the trading systems has shown that currently use the
following implementation of the exchange trading platforms:
1. The system is implemented using the technology of web interfaces (State Agrarian Exchange
(Ukraine), "Belarusian Universal Commodity Exchange" (Republic of Belarus).
2. Systems DSS (JSC "Commodity Exchange" ETS "(Kazakhstan), OJSC" Saint Petersburg Stock
Exchange "and ZAO" St. Petersburg International Mercantile Exchange "(Russian Federation).
In trading systems implemented major trading modes used in trade in goods:
• Double (continuous) counter auction;
• Auction on the rise in the price;
• The auction for a price reduction;
• The registration of OTC transactions.
Transactions are carried out in an anonymous or non-anonymous mode.
In addition, the trading system of "Commodity Exchange" ETS "(Kazakhstan) and JSC" Belarusian
Universal Commodity Exchange "(Belarus) have the opportunity to trade in futures contracts on the
underlying assets.
All systems have the technical ability to connect Internet trading systems.
Clearing system in one form or another are implemented in each of the vehicle under
consideration in the analysis of the stock exchanges. At the same time on the stock exchanges of
"Commodity Exchange" ETS "(Kazakhstan), OJSC" Saint Petersburg Stock Exchange "and ZAO" St.
Petersburg International Mercantile Exchange "(Russian Federation) implemented a system of interaction
with clearing organizations to conduct calculations. In the state of the Agrarian Exchange (Ukraine) and
JSC "Belarusian Universal Commodity Exchange" (Belarus) implemented control function execution of
transactions and settlements.
All systems have the ability to scale and have the necessary capacity to meet the needs of the
commodity market. Trading is conducted in online mode using a remote connection to trading. Used to
connect the client terminals (workstations) allow bidders to make all the necessary steps for buying and
selling goods.
Brief description of trading systems:
JSC "Commodity Exchange" ETS "(Kazakhstan) are used for the organization of trade and trade
related systems developed by JSC" RTS Technical Center "(Possii):
• Spot Market Trading System ETS Plaza and futures trading FORTS;
• System ETS Clearing House.
• Electronic Document Management System.
• The system of electronic contracts.
Trading systems provide the participants of the Eurasian Trading System (ETS) services for the
issuance of quotations, orders, enter and confirm the reports on transactions, view market information in
the workplace, both in cash commodity, and on derivative instruments (futures contracts on the
underlying assets and options on futures).
Trading modes:
• classic trade regime (address mode).
• Standard auctions.
• Dual counter anonymous auction.
• The request for quotation (for options).
• Guaranteed Trading System (100% deposit of the goods and money).
Systems provide:
• operation under local and corporate computer networks,
• provide the user with all publicly available information and allowed to view sensitive information
in real time,
• preservation of information in the local user database
• storage of information in the master database,
• Protection of transmitted information from unauthorized access,
• authentication of users in the system,
• high efficiency (at least 300 transactions per second)
• continuity of service,
• system administration, logging of all system events
• Scalability (without additional servers and 100 clients on each system)
• Connect to Internet trading systems through the gateway API (an unlimited number of clients).
Trading system of "Saint Petersburg Stock Exchange" consists of the following modules:
• The core business logic
• The primary server applications
• The system of secondary servers
• Commercial and information terminal
• Workplace broker trades
• Reporting System broker trades
• Program management users
• Monitor application servers
• Gateway Trading System
• publishing system course of trading on the WEB server in real time.
• System Clearing Organization
• OTC transactions registration system
SPOT trading system JSC "Saint-Petersburg International Mercantile Exchange":
• the core of the trading system in real-time transmits information gateways and access servers
installed on the server side - on-site auction organizer;
• users, brokerage and information systems are informed by subscription from access servers and
gateways;
• neither users nor exchange, nor information systems of participants is not connected to the
core trading system directly.
Applications will be accepted from users and brokerage systems participants access servers and
gateways, respectively, and immediately forwarded to them for processing in the nucleus of the trading
system. Core - the only component that is responsible for processing applications.
Trading system Asote of "Belarusian Universal Commodity Exchange" is:
• Database Management System Asote BUCE providing storage of information about
organizations, products, messages and service information.
• Application Server, ensure implementation of the functional components of the complex, is
responsible for implementing internal business processes to support the content of the system, document
processing and other processes related to the information content of the system.
• WEB-server server is used, which provides the functions of information to the outside world.
• Server databases.
• Application Server provides Web services that implement business logic processes.
Adopted architectural solution allows for the user interface regardless of the business logic
processes.
If necessary, the possibility to implement several user interfaces (eg, desktop client for users of
the internal network), and dedicated application server separate from the web-server allows for greater
scalability of the system as a whole.
Potentially in the electronic system has great possibilities. Some of them have already
demonstrated. For example, the "APT" introduced on the stock exchange "Liffey", during the sharp rise in
the volume of trade on the stock exchange showed its high capabilities, providing trade intensity in the 2
thousand. Contracts per minute. However, in general, a huge opportunity of electronic systems still
remain unfulfilled.
Ordinary human error (reservations) cease to be in the process of e-commerce. If the broker in
exchange "ring" sees another broker is clearly wrong, he may regret it and "do not catch the word." Ecommerce - is another matter. For a typo when entering the order into the computer, you can pay
dearly.
The only thing that worries brokers - supporters of e-commerce - excessive, and the growing
variety of electronic systems. According to a recent review (TheReportofIanDomowitz
"ATaxonomyofAutomatedTradeExecutionSystems", 2005), e-exchange trading, now there are about 50
different types of electronic systems (in operation or under development). About half of them designed
exclusively for futures and options trading.
1.d Trading technology in electronic exchange systems or algorithmic trading
Algorithmic trading (or algotreyding) - formalized process of making deals in the financial markets
for a given algorithm using specialized software - trading robots.
The first exchange algorithms appeared in the late 1960s - early 1970s. These systems are based
on long-term strategies trendsledyaschih and a signal for them was a sharp rise or fall in the market. The
main buyers of the early robots have become major financial institutions that derive from
trendsledyaschim Strategies higher profits.
In recent years, algorithmic trading, ie the process of making deals on world markets with the
help of automated systems for applications received widespread. The meaning of the exchange trading
through electronic trading systems (trading robots) is a computer program that independently monitors
the situation on the markets and on the basis of a given strategy the investor commits the transaction.
The undeniable advantage of this trade is to minimize manual labor, which comes to replace the work of
the machine, respectively, there is an increase in performance.
It is worth noting that implementation of trading robots, accompanied by an increase in
profitability of operations, began relatively recently, at the beginning of the XXI century in the United
States. However, in the decade advanced technology trading managed to attract the attention of all
participants in financial markets. The result has been the widespread use of trading robots, whose share
in the volume of transactions in most developed markets exceeds 50%.
Currently on US exchanges 54% of trading volume accounted for transactions entered into by
means of trading robots. On European markets this figure is slightly lower - at 35%. Despite the fact that
in developed countries, the share of the market, which is occupied by high-frequency robots in recent
years is relatively stable, in developing countries there is an active introduction of trading robots work in
the stock exchanges. Belatedly, the country "third world" are beginning to realize the importance of using
the latest technology.
So, what is so attractive algorithmic trading? The most basic advantage - automation of labor.
When using an automated trading system investors do not need to watch the market all the time - for
him it makes the robot. The difference in the rate of market monitoring, decision-making and
implementation of trading strategy robot and man is a thousand times. In addition, reducing the time to
make a deal at a good price, with a high-performance computer, you can increase the "carrying capacity"
of applications. That is, using robots, the investor has the opportunity to make a greater number of
transactions in a certain period of time. Thus, due to the high rates of market participants are able to
earn a disproportionately greater than when using the scheme of "classical" trading.
However, the automation of the exchange process does not preclude the use of manual labor.
This is another "plus" algorithmic trading. A trader can continue to monitor the torque fluctuations of a
particular "capricious" tool, being sure that the other would be an asset in the portfolio without his
participation at the market moves in the "right" side.
With proper use of the advantages algotreydinga effectiveness of the work on the trading floors
is increased, as evidenced by the huge amount of profit American corporations using powerful computing
system. For example, in 2009 the profitability of trading robots and advisers, according to various
estimates, the average ranged from 25-40% to 200% per annum. Scalping algorithms for a short period
of time may show more than 1000% yield.
Robotostroiteley thought did not stand still, and a decade later began to appear a secondgeneration algorithms. For example, "Momentum" - a system that monitors oversold market for a variety
of indicators. Or "reversalnye" systems that detect deviation traded assets from its average value over a
period of time and calculate cases where the likelihood that the quotes will return to average above 50%.
The widespread use of second-generation robots on the stock exchanges in the end led to the fact that
the profitability of algorithmic traders has decreased significantly. Therefore, the third generation of
robots is not long in coming. The current trading algorithms identify what patterns are present in the
market, and provide signals are no longer on the market trend change, and the change of the pattern.
Algorithmic exchange trade is developing rapidly in the world: now about 40% of transactions in
the global stock markets are trading robots. Two years ago, their share in the turnover of the stock
exchange was only 11-13%. Judging by the foreign exchanges, there is still room to grow: the same
indicator on the New York Stock Exchange for more than 60%.
The basis of any stock exchange robot is a mathematical model of the behavior of the stock
market, which allows by comparison with the actual parameters to determine the point at which
transactions are conducted by the probability of a positive return over 50%. The main principle of the
robot - the repetition of similar transactions, which ultimately leads to a guaranteed profit.
In the US, the main type of players that provide services to algorithmic management, have the
status of the CTA (CommodityTradingAdvisors). Particular attention STA-American investors began to
attract funds after the crisis of 2008, when it became clear that income portfolios managed by trading
algorithms, significantly higher than the results of traditional managers and hedge funds. According to
many Western institutional investors, CTA-funds - one of the most effective tools for solving problems of
portfolio diversification and protection against inflation.
By the end of 2011, the volume of assets under management CTA-funds amounted to $ 314.7
billion - ten times more than in 2000. Along with this increase in the number of trading algorithms used.
Expansion capabilities touched valuation models, significantly reduced the time to conclude the deal and
increased the number of monitored markets.
In the United States algorithmic exchange trading has been widely used to exchange BATS
(BetterAlternativeTradingSystem - «Better alternative trading system"). BATS - third turnover of US
ground after the NYSE and NASDAQ; it was created in 2005, it was with an eye to algotreyderov, which
in other areas is often not satisfied with the size of the fee levied on them (because they usually have a
huge volume of transactions).
The main criterion for evaluating the effectiveness of a trading robot, of course, not the speed of
its response, and profitability. Today it is especially popular in the market become robots, algorithms
which are built at the junction of several sciences: mathematics, technical analysis, physics, statistical
analysis and finance. Many international universities even thinking about creating special departments for
training in algotreydinga.
Owners of high-robots, committing thousands of transactions a day, spend the lion's share of
their income to obtain high-quality and high-speed access to trading, but it does not guarantee them a
profit. In fact, this venture: you are wasting time, efforts are being made to create an algorithm, then
pay for implementation, and it will end - not always clear. And all because a key success factor in
algotreydinge - is the algorithm itself, and well-chosen way of organizing access to trading only
contributes to the effective implementation of this algorithm.
Development of the system of stock trading by robots and increase the burden on trading
systems makes the stock exchanges to limit such operations.
Reduce risks and helps traders Moscow stock exchange, which took the last two years a number
of disincentives. The last of them - the introduction of an additional fee for an application for an empty
currency and stock markets. On September 3, 2012 brokers can put up to 30 thousand. Free applications
in a session (or 100 thousand. Unexecuted orders per day). Each further default application will cost 10
cents trader.
1.e Benefits of e-exchange trading and main trends of further development
One of the main advantages of e-exchange trading is the possibility of trading at any time and
maximize market access. Do brokers an opportunity to trade in those hours when regular exchange is
closed, ie, a potential additional income for brokerage companies. An additional advantage of the
electronic stock exchange - is, as a rule, lower transaction costs.
As part of the program for the development of trade in the Republic of Kazakhstan for 2010 2014 years will continue to:
- Stimulate the increase in the number of areas of modern retail formats and their share in the
total retail trade turnover;
- The development of electronic commerce, the convergence of remote producers (especially in
rural areas) to the main channels of goods, increase transparency of trade and awareness of market
participants, as well as increasing the level of professionalism of its members.
Will continue to create the necessary conditions for the rapid development of commodity
exchanges, streamlining trade in goods of strategic importance, the introduction of new methods of stock
trading on the basis of the use of modern communication and information technologies accounting and
data processing to move from spot to futures exchange trade electronically; sustainable development of
commodity exchanges in Kazakhstan and the transition to a modern system of futures trading, electronic
form of exchange trading, taking into account the active implementation of public procurement through
commodity exchanges.
One of the main trends of further development of the electronic stock trading is a "highfrequency" trading. Aggregate profits of traders who used to trade high-performance computers at
multiple sites in the United States in 2008 amounted to 21 billion dollars, writes
gazetaTheNewYorkTimes, citing data from research firm TabbGroup. The use of powerful computing
systems for trading on the stock exchange in the United States have already began to designate a new
term - "high-frequency" trading (high-frequencytrading), because it allows you to perform millions of
transactions for the shortest possible period of time. "Classic" traders, not armed with computers and
trading robots, such rate is not available. Trading robot called computer program that can independently
monitor data across multiple indices on the stock exchanges and based on them to make purchases, or
sales.
It is believed that the increase in the use of trading robots with the most aggressive algorithm for
calculating the trading strategy has led to increased volatility in the stock markets in 2008. The number
of "high-frequency" traders on the exchanges recent years steadily increased, thereby causing and
increase trade volumes. According to the New York Stock Exchange since 2005, the volume of trading on
its markets grew by 164 percent. In this case, the number of "high-frequency" traders now exceeds 50
percent. Due to its velocity such market participants are able to earn more than the "classic" traders, and
have a noticeable impact on the market. TheNewYorkTimes edition gives the following example. July 14,
2009 US-based Intel reported a profit. Investors have concluded that the other large US computer
company Broadcom may also announce earnings, and July 15, 2009 started buying its stock, hoping to
later sell them more expensive. "Classic" traders began to place orders for the purchase of securities.
Data on applications received for the purchase of the first "high-frequency" traders. Exchange rules in the
United States indicate that the information on applications for purchase or sale of securities must come to
all market participants simultaneously.
It should be noted that most of the "high-frequency" traders began to use their computers
aggressive trading algorithms. Previously, the most popular algorithms in the US is VWAP. He used data
on the volume of trading and price over the last ten years or more and on the basis determined by
averaging the value of the market. It is believed that if the transaction is made at a cost lower than the
VWAP, then it is good, because in the future value of the asset will increase and it can be sold at a higher
price. More aggressive modern algorithms operate on the same principle, but the movement of the price
only in the last hours of trading. This is in most cases leads to the fact that trading robots are beginning
to buy or sell securities based on short-term price changes. This practice allows traders to earn
significantly more than the "classic" traders, however, can lead to a "rocking" of the market and a
significant, sometimes even slightly predictable, changes in the value exchange instruments.
Speaking about the main trends of further development of the electronic exchange trading should
be mentioned that recently gained momentum in the development of so-called "multi-active trade," or
"intermarket trade", which is a trade from one platform to different markets (currency, money, stock and
derivatives ) within a high speed strategy. The use of these platforms allows the investor to build flexible
strategies based on the free transition from one asset class to another.
Multiactive platform allows traders to trade on the correlation strategies. Recall correlation - a
correlation of price movements on various instruments. If there is a relationship between the assets in
case of change of the price of one tool to systematically change the price of the other tool, adjusted for
the correlation coefficient. For example, an increase in the cost of Brent crude oil price increases and
Lukoil. Presented below illustrates this picture 1.e.9:
Picture 1.e.9 correlation strategy for multi-active trade
There are many other known trading algorithms such as:
- Trendsledyaschie strategy, representing the trend detection by means of various technical
indicators;
- Basket trading strategies based on the relative price of two "Shopping Cart";
- Arbitrage strategies and others.
The list goes on for a long time - more than 10 years of international practice has developed
quite a large number of algorithms, each of which meets certain requirements of investors.
At the end of this chapter may be noted that at the present stage a powerful impetus to the
development of electronic stock trading in the Republic of Kazakhstan would enable the elimination of the
existing shortcomings of the electronic market, the most important of which is its low liquidity and serious
work on the unification of electronic stock trading with a view to developing a common principled
approach to electronic exchange and interoperability of various electronic systems.
Successful development of e-exchange trading may also contribute to the adoption of regulations
that are based on international experience, doctrine and basic principles of Kazakhstan's civil law can
establish methods of legal regulation of the electronic interaction between the participants of electronic
exchange trading and basic concepts that define the range of subjects and objects of e-commerce.
Development of electronic exchange trading will promote adoption of the draft Law of the
Republic of Kazakhstan "On Introduction of Amendments and Additions to Certain Legislative Acts of the
Republic of Kazakhstan on Taxation" who are at present under consideration of the Government of the
Republic of Kazakhstan, which contains a number of amendments relating to taxation and regulation of
derivatives tools (PFI). In Russia, for example, the market has evolved just after the adoption of the 2010
amendments to the legislation defining the TFIs and the procedure for conducting transactions with
them. A similar addition of legislation will allow Kazakh companies to use PFI market potential to
minimize both financial and direct exchange rate risks, which are now so prone to the market in any
country of the world.
2.
Review of international experience in terms of the exchange infrastructure
In world practice, accumulated a wealth of experience in the development of international stock
exchanges, went all the way from agricultural trade to trade futures and options. Currently there are
more than 200 exchanges, including 150 commodity exchanges where trading around 100 types of goods
(agricultural, industrial, energy, precious, non-ferrous metals, etc.). Through commodity exchanges held
from 5 to 20% of world trade.
The history of the world trade shows that the most important centers of international exchange
activities are concentrated in the United States and Britain, as well as in Asia (Japan, South Korea,
China). On the exchange of these countries account for a significant share of the international exchange
turnover.
In this regard, it is necessary to study international best practices and taking into account the
specifics of the domestic market to apply this knowledge to solve a number of specific tasks to further
improve the exchange trading in Kazakhstan, including to enhance electronic exchange trading. Of
course, sleduetmaksimalno efficient use of global opportunities that arise in the new economy (entering
the Republic of Kazakhstan to the WTO, the integration processes within the EEA).
Considering the long history of the stock market for the US and the UK, where investment and
foster a culture of business ethics (although many exchanges differ in the forms of organization, on line
services, strategic goals). In this section, we briefly review the regulatory framework for the exchange
markets as well as the ways in which this structure is to protect the interests of investors exchange
industry in countries such as: USA, UK, China, South Korea, Russia, Belarus, Ukraine and Uzbekistan.
USA
In most countries, exchange activity is subject to strict government regulation. It is known that in
many countries the legislation governing exchange activity, contains general rules and regulations.
regulator
The most successful system for regulating the exchange industry has developed in the US, there
are a two-tier system of regulation.
For example, if the first level is represented by a public authority in the person of the Securities
and Exchange Commission (SecuritiesExchangeCommission, SEC), then the second level - the selfregulatory organizations (Exchange and the National Association of Securities Dealers - NASD).
Commission for the Securities and Exchange Commission is the supreme and independent
oversight body with broad powers: the registration of issuers, professional market, the regulation of
brokers and dealers, oversight of investment funds, an investigation of fraud, fraud in the securities
market, the imposition of administrative sanctions.
In the US system of supervision over the activities of the exchange based on the principle of the
right of control of the stock exchange, but the casting vote remains with the Federal Commission for the
Securities and Exchange Commission.
Regulation of commodity exchanges authorized by the Commission Commodity Futures Trading
(CommodityFuturesTradingCommission, CFTC), established in 1974 as an independent government
agency. Note that the personal composition CFTC appointed by the President and approved by the US
Congress. This Commission regulates the futures and options markets, to protect market participants,
investors against manipulation, abuse and fraud, and provides the proper discharge of the clearing.
Under the supervision of CFTC fall exchanges, clearing organizations, brokers, dealers, consultants,
management companies.
To protect the rights of participants in the futures market in 1982 was founded the National
Futures Association (NationalFuturesAssociation, NFA) - Specialized industry self-regulatory organization
to protect the interests of investors, traders in the futures and forex markets.
For all participants in the futures market is a mandatory membership in the NFA and registration
in the CFTC. Consequently, all brokerage firms are required to comply with regulatory requirements and
the rules of the exchanges on which they trade (strict compliance with the laws of the United States
federal financial regulation in order of return orders, issuing reports with Internet trading, position limits
on the size, the definition of price limits traders standards trade practices and business conduct). Note
that a violation of the rules of the stock exchange shall be punished by fines, suspension or revocation of
the license NFA.
In October 2001, the NFA has become the first in the financial industry regulator, started drinking
arbitration applications over the Internet.
At present, the organization brings together 4,200 companies and 55,000 associate members.
Activities NFA is financed solely by membership dues and fees from participants in the futures market for
the assessment.
If the above we have shown the mechanism of direct regulation of exchange activities, then
further consider the indirect method of state regulation of the commodity market, through the price
system (primarily for strategic commodities: grain, oil, energy, securities and precious metals).
Historically, in the US the legal basis of price regulation laid down in the antitrust laws (Sherman
Act). In accordance with this law, as of price control (control of collusion on prices and the actions to
price discrimination) are the Antitrust Department of the Ministry of Justice and the Federal Trade
Commission (FederalTradeCommission, FTC).
So, if the Justice Department antitrust investigation and exercises prosecutorial functions, raises
civil and criminal cases, the FTC- independent agency of the US government (reports directly to the
President of the United States), protects the rights of consumers, ensure the application of antitrust laws.
The US government is regulated by 5-10% in prices in sectors with a natural monopoly (energy,
telecommunications), and the main, the share prices of goods and services is formed by the exchange
mechanism. On today's amepikanckix bipzhah traded more than 40 kinds of goods cpochnym
transactions.
Given that the organizers of trading is one of the key elements of the global financial industry, we
briefly consider the largest stock and commodity exchanges USA.
Chicago Mercantile Exchange (ChicagoMercantileExchange, CME) was founded in 1874 by brokers
serving the interests of producers of agricultural products. At present, the Chicago Mercantile Exchange one of the largest and most diversified commodity exchanges in the world (offering the largest range of
products). Chicago Mercantile Exchange, while maintaining the specificity trades futures contracts on
precious metals and a variety of securities traded in the United States.
Electronic trading platform CMEGlobex - remains one of the fastest global electronic systems for
trading futures and options. Currently, due to its versatility, reliability and global connectivity, CMEGlobex
is a leading stock exchange in the world market of derivative financial instruments.
In the history of the exchange activity one of the most significant events was the creation of the
new exchange - CME Group (CMEGroup) as a result of the merger with the Chicago Mercantile Exchange
(CME) Chicago Board of Trade (ChicagoBoardofTrade - CBOT)
New York Mercantile Exchange (NewYorkMercantileExchange, NYMEX) was established in 1882.
He currently holds a leading position in oil futures trading. In August 1994 merged with NYMEX Exchange
COMEX (CommodityExchange), has existed since 1933. Now 618 members of the exchange traded base
and precious metals (copper, silver, gold, zinc).
Currently trades are conducted in two divisions Exchange: NYMEX (oil, gas, platinum, palladium,
ethanol, coal, electricity, emission of carbon dioxide), and on the main market of metals COMEX (gold,
silver, copper and aluminum).
An important event for the American market in 2008 was the inclusion goduNYMEX Group
Chicago Mercantile Exchange (CMEGroup).
NYSE (NYSE), founded in 1792, represents the power of the financial industry in the United
States - WallStreet. On the stock exchange is determined by the world-renowned Dow Jones
(DowJonesesIndustrialAverage), which is calculated on quotes on shares of 30 companies "blue chips".
And today, on the NYSE securities of more than 3,500 major companies and multinational corporations.
American Stock Exchange (AMEX) is one of the largest regional stock exchanges (running since
1911). On the volume of trading in securities based on their value in dollar terms is considered the
second largest US stock exchanges. AMEX turns on about 10% of all shares in the world, mainly small
and medium-sized companies.
NASDAQ (NationalAssociationofSecuritiesDealersAutomatedQuotation) - is the largest electronic
stock exchange, not only in the US but also around the world. Despite the fact that there was only
established in 1971, the use of modern technology has allowed NASDAQ in such a short period of
existence enter the three largest US stock exchanges together with NYCE and AMEX.
Since its inception to the present day, the Exchange has been focused on high-tech companies. It
was on that exchange-traded shares of the world's leading IT - technologies such as
MicrosoftCorporation, IntelCorporation and GoogleInc.
In general, in the global exchange industry in the 2000s there have been qualitative changes: to
replace the classic exchange trading came to a virtual exchange, provide market participants with
maximum automation of commercial transactions and settlements with remote terminals. Consequently,
the form of stock trading is becoming electronic, which predetermines its modern specificity. This is
evidenced by the creation in the United States in June 2000, fully electronic exchange.
Intercontinental Exchange (Inter-ContinentalExchange, ICE) is a global operator of the futures
market. Here are trading futures, options and swaps for agricultural commodities (sugar, cotton, coffee,
cocoa); oil and petroleum products; natural gas, coal, emission of carbon dioxide; stock index and
currency swaps.
It is important to note that ICE uses an integrated electronic platform, both on the exchange and
OTC markets. Exchange also offers its customers a clearing and information services.
Great Britain
One of the most developed in the world by virtue of centuries of experience and leadership in the
global financial market is the English system of commodity and stock exchanges. The most famous are
the London Metal Exchange and the London Commodity Exchange, which specialize in specific types of
products, while constantly expanding the range of traded instruments.
The regulatory system of stock trading in the UK has undergone great changes. If In 1986, in
accordance with the Financial Services Act (FinancialServices Act) was created by the financial regulator the Council for Securities and Investment (SecuritiesandInvestmentBoard, SIB), designed to develop
uniform standards for exchange trading, and protect the interests of customers, at the present time,
these functions are separated and transferred to another individual regulators.
So, in the structure of the Bank of England established an independent Committee on Financial
Policies (FPC) in order to strengthen the stability of the UK financial system and establishing control over
banks and other financial institutions, to take unreasonable risks. A committee charged with the function
of identifying, monitoring and take effective measures to eliminate, reduce systemic risk.
The functions of prudential regulation and supervision of banks, credit unions, insurance and
major investment companies peredanyKomitetu primary regulation of the Bank of England
(PrudentialRegulationAuthority, PRA). Committee primary regulation establishes international standards,
controls and supervises, evaluates the risks of financial institutions (taking steps to reduce them). In
total, PRA handles about 23,000 financial institutions (depository institutions, insurance companies and
investment firms).
Thus, FPC consider the financial system as a whole, while the Committee of primary regulation
oversees the work of individual banks and companies.
In the UK, also operates other controller - Committee on financial behavior
(TheFinancialConductAuthority, FCA) - the purpose of which is to protect consumers, to ensure stability
and to promote healthy competition among providers of financial services. FCA reguliruetfinansovye
markets and their infrastructure institutions (including on-line retail trade).
Furthermore, FCA is responsible for the prudential regulation of other sectors of the financial
industry of Great Britain, which are not included in the jurisdiction of the PRA. The Committee is currently
controlled by the activity of 26,000 financial companies.
In order to regulate the activities of dealers and brokers in the sale of futures contracts on the
commodity and financial markets in 1986 was sozdanaAssotsiatsiya futures brokers and dealers
(AssociationofFuturesBrokersandDealers, AFBD), which in 1991 merged with the Association of securities,
creating the Office of the Securities and Futures. The objectives of the self-regulatory organization is to
protect the interests of investors and regulation of the main participants of stock trading through their
registration.
In the study of the role of the global exchange market in the economic development of states, a
closer look at the activities of the organizers of the auction, as important infrastructure components.
One of the oldest markets in the UK is the London Metal Exchange (TheLondonMetalExchange,
LME) - more than 135 years. LME - the world's leading commodity exchange that specializes in the sale
of base and precious metals. It is well known that it is here that the world price of tradable on the stock
exchange as representing the interests of the world's largest companies, trade-related aspects of
nonferrous metals (producers, consumers, resellers). More than 80% of the global turnover of nonferrous
metals account for this site. Accordingly, the results of trades reflect supply and demand, market
conditions at the moment.
Thus, the London Metal Exchange is the world center for the formation of prices for industrial
metals and price risk management. And today quotes LME act global benchmark for buyers of metals
(including copper, aluminum, nickel, zinc and tin).
It is the use of exchange mechanisms for insuring price risks through derivative transactions is a
common practice in the international market. The whole world organized commodity market operates on
the basis of technology futures market.
The next equally important subject of the exchange market of England is London International
Financial Futures and Options Exchange (LondonInternationalFinancialFuturesandOptionsExchange,
LIFFE), which was founded in 1982. London Stock Exchange is the most important market for futures and
options on stocks. Most members of the LIFFE trading products related to credit instruments and bonds,
and transactions with derivatives on stocks.
Picture exchange market infrastructure would not be complete without a description of clearing
organizations. Their activities are aimed at guaranteeing the execution of transactions concluded on the
stock market, as well as ensuring that bidders contractual obligations.
London kliringovyytsentr (LondonClearingHouse, LCH) is an independent organization, which
belongs to the biggest British commercial banks. Provides services for mutual compensation claims and
liabilities (netting), and the elimination of the conclusion of transactions, as well as acting as the opposite
side (counter - partner) in every transaction entered into by its members, assuming the risk of insolvency
of its members.
LCH serves the transaction of such major exchanges like London International Financial Futures
and Options Exchange (LondonInternationalFinancialFuturesandOptionsExchange), London Metal
Exchange (LondonMetallExchange), International Petroleum Exchange (internationalPetroleumExchange).
South Korea
In the dynamics of the global stock market turnover accounts for a significant share of the Asian
countries where the stock market is showing strong growth, advanced technology and the organization of
the auction. And it is important to consider their successful experience in the organization of exchange
activities.
In South Korea, the regulation of the exchange market by the Commission on Financial Services
(FinancialServicesCommission, FSC), which determines monetary policy and ensures the protection of
consumers of financial services. The purpose of the Financial Services Commission is to ensure the
integration of financial markets by strengthening the credit system and to ensure fair business practices.
As part of measures to improve the efficiency of state regulation in March 2008. The functions
and powers of the regulator were divided, and its structure established two independent organizations The Securities and Futures Commission (SecuritiesandFuturesCommission, SFC) and the Financial
Supervision Commission (FinancialSupervisoryService, FSS) .
Thus, the Commission on Securities and Futures (SFC) regulates the capital market, including the
stock market and futures, is empowered to issue sanctions against public companies and auditors.
The Financial Supervision Commission (FSS) provides oversight function of the financial market
and its institutions as a whole, the activities of auditors - in particular. So, FSS provides consolidated
supervision of compliance with accounting and auditing standards, protects consumers of financial
services.
Important functions of the CSRC performs national self-regulatory organization - Korea Financial
Investment Association (TheKoreaFinancialInvestmentAssociation, KOFIA), which was established
February 4, 2009 by combining the three SROs - Korean Association of Securities Dealers
(KoreaSecuritiesDealersAssociation, KSDA - founded in 1953), Korea futures Association
(KoreaFuturesAssociation,
KOFA)
and
the
Korean
Association
of
asset
Managers
(AssetManagementAssociationofKorea, AMAK - founded in 1996). On KOFIA assigned functions:
regulation of professional participants and to protect the interests of investors; settlement of disputes
between the professional participants and their clients; registration and supervision of investment
advisers and managers; disciplinary control and supervision of professional participants;
Korea Exchange (KoreaExchange, KRX) officially opened on 19 January 2005, the merger of three
exchanges: the Korea Stock Exchange, KOSDAQ system and the Korean Futures Exchange. Korea Stock
Exchange shareholders are brokerage companies.
Currently, South Korea is a single Bid - Korea Exchange, with separate divisions in Seoul (the
bond market and the market leaders, the market shares of young companies) and Pusan (futures
market).
Instruments traded on the Korea Stock Exchange: stocks, bonds, warrants, REIT, ETF, depositary
receipts, futures and options on financial instruments and commodities.
In accordance with the amendments made to the Securities Act and the Exchange Act, with the
beginning of 1997 transactions over the Internet have become legitimate. For example, Internet trading
has become the most common method of trade in South Korea.
The world's largest stock exchange in terms of derivative transactions, the Korean Stock
Exchange one of the twenty largest stock by market capitalization.
In 1974 he was created a central depository - Korean Securities Depository (KSD), which made it
possible to carry out transactions without the physical movement of securities certificates and without
renewal.
China
Model of regulation of the financial system in China has its own characteristics. For example, the
Commission on banking regulation in China (CBRC), established in 2003 license banks, asset
management companies, investment companies and trust and non-bank financial institutions.
Authorized agency for regulation of the securities market is the Regulatory Commission of China's
securities market (ChinaSecuritiesRegulatoryCommission, CSRC), established in 1998 in order to protect
the rights and interests of investors in the securities and futures. This state agency monitors and
supervises the financial market in general and the stock market, in particular by regulating the activity of
professional participants.
As a government agency - the regulator ensures the transparency of financial markets, protecting the
rights and interests of investors, creating an enabling environment for business development in the
capital market. This organization operates across China and is represented in 36 regional cities in China
(in the cities of Shanghai and Shenzhen).
The policy of "reform and opening", conducted by the regulator of the financial market of China since the
end - 1970s has been a key driver of growth and development of the stock market, adapting to the
changing international standards. So, in 1990, was officially created two exchanges: the Shanghai Stock
Exchange
(ShanghaiStockExchange,
SSE)
and
the
Shenzhen
Commodity
Exchange
(ShenzhenStockExchange, ZCE).
At present, China's financial markets are two stock exchanges and one commodity exchange options.
In addition, the exchange industry in China play an important role several self-regulatory organizations.
This - China Securities Investor Protection Fund and China Securities Depository and Clearing Corp (CD
&C).
CIS
With the globalization of financial markets an important part of the analysis of market conditions
and forecasting the prospects for national exchange market is to monitor more general trends,
developing markets of the region. In this regard, it is advisable to take into account the overall situation
in the CIS markets.
The degree of economic development of any country can be judged on the development of the
exchange market, including the establishment of tovarnogo.Istoriya kazahstanskogobirzhevogo market
has short history, but despite this, the improved response to changing economic conditions. It is
therefore important in the practice of exchange institutions and regulators to apply international
experience. Of course, in the development of stock trading is essential to study the positive experience of
commodity exchanges CIS, considering regional integration. In this part of the study is invited to consider
the stock structure of Russia, Belarus, Ukraine and Uzbekistan.
The Russian Federation
As you know, Russia is one of the leading places in the world production of strategic goods, in
particular, it is among the top ten world producers of oil, gas, gold, nickel, timber, sugar, sunflower,
grain.
In terms of exchange activity interesting is precisely the experience of Russia, as the Russian
legislation amends actively in new areas of organized commodity market. This increase in performance
guarantees of transactions, universalization regulation of trading in futures contracts, clearing and
settlement of them in the stock and commodity markets.
Note that legal changes were made and the model regulation. For example, in June 2013 was
abolished Federal Financial Markets Service, formerly exercise the functions of normative legal regulation,
control and supervision in the financial markets (with the exception of banking and auditing). Since
September 2013 the regulatory functions of the entire financial market in Russia gave the Central Bank of
the Russian Federation (Bank of Russia).
Thus, the authorized state body regulating the exchange activity, including in the commodity
market, stands Service for Financial Markets of the Russian Central Bank. In the legislation of the Russian
Federation defines the powers of the regulator exchanges of control and supervision over the activities of
commodity exchanges, exchange intermediaries (brokers, dealers) and their compliance with the rules of
trading. In addition, the regulator considers complaints participants to abuses and violations of laws and
take measures to eliminate them.
An important factor in the dynamic development of the exchange industry is the increase in the
number of bidders in the face of the state, financial institutions (banks, insurance and investment
companies, pension funds) and national foundations and quasi - public companies.
And also on the Russian market is expanding line of products and financial instruments traded on
exchanges. Basically exchange commodities are: corn, sugar, and oil, nickel, aluminum, cement, coal and
mineral fertilizers.
Processes taking place in the world on the use of new technologies in exchange transactions
reflected in the activities of Russian bidders. So, stock transactions are translated in online trading
trading, payment and customer networks based remote access.
In modern Russian exchange infrastructure occupy a special place Moscow Exchange Group,
which has successful experience in implementing large-scale projects to build national stock markets,
such as foreign exchange, stock markets, the market for government securities, as well as of government
intervention in the grain market.
As a result of the merger of two major stock groups - MICEX Group and RTS Group, in December
2011, was established JSC "Moscow Exchange" (Moscow Exchange). Moscow Exchange shareholders are
the Central Bank of Russia (22.5%), Sberbank of Russia (9.6%), Vnesheconombank (8.04%), the MICEX
Finance (6.6%), EBRD (5.8%), UniCredit Bank (5.7%), VTB Bank (5.4%) and Shengdong Investment
Corporation (5.4%).
On the major stock exchanges of Russia - Moscow Stock Exchange trades are conducted all the
major asset classes (stocks, bonds, derivatives, currencies and money market instruments). By the end of
2012 Moscow stock exchange one of the twenty largest exchanges in the world in terms of total
capitalization of tradable shares, as well as in the top 10 world leaders in terms of trading in bonds (in
monetary terms) and the number of futures contracts traded.
Moscow Exchange implements projects on organization and development of commodity markets
through exchange of "National Commodity Exchange" (NTBs), which bylauchrezhdena in July 2002.
Among the shareholders of NTBs include: Russian Grain Union, the Union of Russian Sugar, system
agribusiness companies, the Moscow Stock Exchange and others.
On NTB treated by contracts (wheat, rice, and rice cereal et al.). Note that the organization of
trading on NTBs used infrastructure Moscow Exchange.
In addition NTBs being authorized exchange of Agriculture of Russia, participates in state
commodity and purchase interventions on the grain market.
The Russian exchange industry an important role in the accounting system and accounting plays
created in June 1996, non-bank credit organization -ZAO "National Settlement Depository" (PDR). This
organization specializes in providing custody, settlement, banking and associated services to financial
market participants. NSD is the majority shareholder of the Moscow Stock Exchange (99.997%).
NSD, serving as a central depository on the Russian stock market, provides services to the
securities of both Russian and foreign; transit of electronic documents; provides services to the paying
agent.
As a party to the international accounting infrastructure, NSD provides calculations of the global
financial markets using direct accounts at Clearstream and Euroclear. In this case, calculations are made
on a DVP («delivery versus payment"), and depositors can be calculated for securities transactions, both
in rubles and foreign currency (US dollars or euros).
NSD also serves as the National Numbering Agency, authorized to assign the Russian securities of
international codes ISIN and CFI.
It is important to note that the NSD is one of four organizations in the world authorized to
perform the functions of the Substitute Numbering Agency.
National Settlement Depository carries a wide range of information services, using SIR
(Securitiesinformationreview) and database (with accompanying information) on securities.
Clearing on the futures and options market provides specialized clearing organization - the Bank
"National Clearing Centre" (NCC), established in 2005. NCC is the sole shareholder of the Moscow stock
exchange.
Here fully respect the principle of risk-sharing auction organizer and clearing center. For
example, in December 2007 the NCC clears the foreign exchange market since November 2011 - the
stock market, and in December 2012 - on the futures market.
Home and the main function of the NCC - ensure and maintain stability in the financial market
segments served through modern, meeting international standards of risk management.
In addition, NCC performs the functions of a central counterparty, speaking party in all
transactions conducted in these markets.
To guarantee the settlement of transactions in the futures market of Moscow Exchange
Guarantee Fund established by contributions from clearing participants. Collateral and Guarantee Fund
accounts are placed on the NCC in NSD.
In the regulation of exchange activity occupies a special place self-regulatory organizations. After
all - it is an effective tool for dialogue between business and government. For example, in 1994 the
Russian stock market was created the National Association of Securities Market Participants (NAUFOR),
bringing together companies with a license of professional securities market participant or management
company. NAUFOR branches operate in 12 Russian cities.
Goals and objectives of the association are to promote and improve the system of regulation of
the securities market, providing operating conditions NAUFOR members, the establishment of rules and
standards activities of members of NAUFOR and monitoring their compliance monitoring activities of its
members, taking action to resolve the conflict and the resolution of disputes between members.
The Association is an affiliate member of IOSCO (International Organization, which brings
together government bodies regulating securities markets).
With NAUFOR are transmitted electronic reporting of professional market participants, as well as
the intake of skilled exams, after which the certificates are issued by financial market specialists.
In Russia since 1994. Professional Association of Registrars, Transfer Agents and Depositories
(PARTAD). Professional Association of Registrars and Depositories unites, controlling and supporting
capital market participants engaged in the administration and accounting of securities. PARTAD inspects
and verifies its members, reveals violations of professional standards.
So, in effect PARTAD Disciplinary Committee, and in case of serious violations Association
recommends cancel the license of its members.
Belarus
In Belarus, the government has been actively involved in the establishment and operation of the
infrastructure of the exchange commodity market. The republic government regulation is carried out: the
President, the Council of Ministers, the Ministry of Commerce and other government agencies. Given the
lack of a single regulator, the interaction of state bodies with commodity exchanges provides
Coordinating sovetpo stock trading, as an inter-ministerial permanent body.
The authorized body on regulation and supervision of stock exchanges is the Ministry of Trade of
the Republic of Belarus. In accordance with the Law "On Commodity Exchanges" commodity exchange is
created in the form of a joint stock company. Adopted regulations govern and regulate many aspects of
exchange activities. Thus, the Council of Ministers approves the list of goods transactions (including
foreign trade) with which market participants are required to sign on the stock exchange, as well as
regulates the terms and conditions of such transactions.
The list includes 86 positions on key strategic goods (including hard coal, briquettes, ovoids and
similar solid fuels manufactured from coal, refined copper and copper alloys, unwrought).
The development of information technology and telecommunications are priority areas of the
economy. Thus, the dominant role of the state in the activity of exchange that shows a direct
government involvement in the creation of "Belarusian Universal Commodity Exchange" (BUCE).
Exchange was founded in May 2004 and it successfully developed logistics supply chain, including
warehousing, has representative offices abroad.
OJSC "Belarusian Currency and Stock Exchange" (BCSE) operates on the organization of
trading in the foreign exchange and derivatives markets; professional and exchange activities with
securities (depository activities, clearing operations and activities for trading) activities in the field of
communication, technical protection of information, including cryptographic techniques (use of digital
signature).
Controlling stake of outstanding shares BCSE owns the National Bank of Belarus.
It should be noted that the government of the country, forming the modern "information
economy", actively developing e-commerce as one of the most important ways of increasing the
competitiveness of Belarusian enterprises and the release of their new markets.
Central Securities Depository of Belarus is the state organization (under the Ministry of Finance).
Republican Central Depository operates a two-level depository system (which includes: Central
Depository and Depository 33, 17 of which are structural units of the Bank, 16 - non-bank depository).
Given that the main task of the depository system is to provide centralized storage of securities
(stocks, government bonds, bonds, mortgages uncertified) and the rights to these securities central
depository receives on centralized storage; maintaining correspondent accounts of "depot" depositories;
to ensure settlement of securities transactions between depositors different depositories.
Moreover, the Republican Central Depository since 2008, serves as the National Numbering
Agency of the Republic of Belarus, being a partner of the International Association of National Numbering
Agencies and carries ISIN securities of Belarusian issuers.
Ukraine
A feature of the exchange market of Ukraine is that the regulation of the commodity market is
not uniform, and is carried out by dividing by industries. Thus, the National Commission on Securities and
Stock Market operates in the derivatives market. A Ministry of Agrarian Policy and Food of Ukraine is
regulated grain market. Quoted same coal market regulated by the Ministry of Energy and Mines.
In Ukraine, the development of market infrastructure and regulatory framework, both at the state
level and at the level of individual stock exchange rules is a significant gap. Exchange market is perceived
legislation as the market of real goods. The notion of derivatives, as well as the concept of clearing
appeared in the legislation recently, but clearly interpreted only in connection with the stock market.
It should be noted that the regulation of commodity markets characterized by the fact that the
markets of individual commodities are significant differences in the regulation and under the jurisdiction
of different structures.
Agricultural Commodity Exchange - the only Ukrainian Commodity Exchange with the
participation of the state, founded in 2005, provides a level playing field for all participants of stock
trading and markets commodity derivatives whose underlying asset is agricultural products.
On Agrarian Mercantile Exchange electronic trading system was introduced.
PFTS Stock Exchange was established in March 1997. Currently it is - one of the largest stock
exchanges in Ukraine. On the exchange traded 1,200 shares of two hundred members - professional
participants of the securities market. Trades are electronically. PFTS Stock Exchange is a member of the
International Association of Exchanges of the CIS and the World Association of exchanges.
Young stock area of the country is the JSC "Ukrainian Exchange", bids are launched at the end of
March 2009, the main shareholder is the Moscow Stock Exchange. Shareholder Structure "Ukrainian
Exchange" is as follows: 43% of the shares owned by the Moscow Stock Exchange Exchange, 51% of the
shares - market participants, 6% of the shares - to individuals.
At the "Ukrainian Exchange" for the first time in Ukraine was applied technology trading
applications on the market, and also introduced a system of direct access to trading on the stock
exchange (DMA) and the calculation of the index in the online - mode.
In September 2009, on the "Ukrainian Exchange" has been introduced mechanism of securities
trading through a central counterparty.
In 2010, the first transaction carried out on the futures market "Ukrainian Stock Exchange". In
the treatment was introduced Index futures contract UX, and in April 2011 the list of derivatives market
instruments supplemented option contracts on the Index futures UX.
Central Securities Depository of Ukraine
In Ukraine, a uniform, universal model of clearing and settlement, with a single National
Depository (NDU) and a single settlement center (RC), which started to work with October 14, 2013.
The National Depository of Ukraine since October 1, 2013 received the status of the Central
Securities Depository. At the same time, 25% of the shares owned by the state, represented by the
National Commission on Securities and Stock Market, 25% owned by the National Bank of Ukraine, and
the remaining 50% of shares - more than 20 market participants.
In Ukraine, from October 12, 2013 in accordance with the law operates on three-level depository
system: the highest level - the Central Depository of Ukraine and the National Bank of Ukraine (on
government securities); middle - depository institutions; lower level - depositors.
Central Depository of Ukraine provides a full range of depository services of professional stock
market participants and issuers. As the National Agency carries out the codification of all types of
financial instruments issued in Ukraine.
Moreover, it acts as a settlement depository for organizers of trade, provides clearing and
settlement of securities transactions.
Uzbekistan
To date, infrastructure Uzbek stock market includes Republican Stock Exchange "Tashkent" (with
a regional branch network), electronic system for OTC trades "Elsis-savdo" and Interbank trading system.
Republican Universal Agro-Industrial Exchange (RUAPB) was established in 1991. Since 1992, the
Exchange is presented in the manual exchanges in the world, since 1998 a member of the Union of
commodity and food CIS Exchanges. On the stock exchange are international electronic trading with
countries SNG.Raschety for transactions conducted through the clearing center in the national currency
and in foreign currency. On the stock exchange deals with real goods, as well as futures, forwards and
option contracts.
JSC "Uzbek Republican Commodity Exchange" (URTSB) was established in April 1994, and is one
of the major shopping areas in Central Asia, as well as a dynamic commodity exchanges in countries
SNG.Uzbekskaya Republican Commodity Exchange is the operator of the national unified electronic
sistemy.Torguemye exchange trading tools: cotton and its derivatives; petroleum products; ferrous
metals; non-ferrous metals; LPG; fertilizers; cement.
Central Securities Depository of Uzbekistan
The main shareholder of the central depository was established in October 1999, is the state
represented by the State Property Committee.
Central Depository shall perform the following functions: storage, keeping the register of holders
of securities, registration of the rights of the state for cash and non-cash securities; maintaining
correspondent accounts of second level depositories; registration in the Republic of securities issued by
non-residents and foreign stock markets in securities issued by residents of the Republic of Uzbekistan.
Thus, the stock market serves a two-level depository system, including the Central Depository
and 30 second level depositories, clearing center "Elsis-Clearing".
The country has 30 information and analytical, consulting, rating, evaluation and audit firms, 303
investment institutions.
In Uzbekistan, in 1994 introduced a system to guarantee the execution of transactions. And
today, the percentage of non-performance or breach of the exchange transaction tends to zero, and the
percentage of collateral is only 1-3%.
3. Review of statistics on global stock markets
The global economy continues to evolve, showing growth in global GDP. So, despite the impact
of the financial and economic crisis, in 2011, world GDP increased by 3.8%, while in 2010 the increase
was 5.1%.
The US economy is the key to the world community. Since 2000, the price of oil as a financial
variable (similar to the exchange rate) affects the price of metals, gold, stocks, thus forming on
derivatives exchanges in New York, Chicago and London, in close connection with the US dollar (80 % of
financial turnover of the world). Financial players (who invest in commodity indexes) occupy almost 60%
of the positions of oil derivatives on exchanges. Data on the turnover of major world exchanges given in
Tablitsah3.1 and 3.2 show the leading position of the US stock exchanges.
Table 3.1 "Indicators exchange turnovers Top 10 largest exchanges in the world in 2011-2012".
Name of exchanges
Change in%
2011
2012
Number in thousands units
Change
in%
NYSE Euronext US
2011
2012
The trading volume in
billion US dollars
18 027
13443
-25,4
1 384 112
1 406 498
1,6
NASDAQ OMX US
12 724
9 784
-23,1
1 994 898
1 374 539
-31,1
Tokyo Stock
Exchange Group
Shanghai Stock
Exchange
3 972
3 463
-12,8
1 702 750
1 268 037
-25,5
3658
2599
-29,0
1 191 124
1 218 992
2,3
Shenzhen Stock
Exchange
2 838
2 369
-16,5
1 030 324
935 565
-9,2
London Stock
Exchange Group
NYSE Euronext
Europe
Korea Exchange
2 837
2 194
-22,7
1 273 277
925 550
-27,3
2 134
1 576
-26,1
393 223
355 586
-9,6
2 029
1 578
-22,2
340 644
349 546
2,6
TMX Group
1 542
1 357
-12,0
237 939
222 029
-6,7
Deutsche Börse
1 758
1 276
-27,4
222 777
215 029
-3,5
Source: website of the World Federation of Exchanges, WFE
Table 3.2, "stock market capitalization of the largest exchanges in the world"
Name of exchanges
2011
2012
In billions of US dollars
NYSE Euronext US
11 796
NASDAQ OMX US
3 845
Tokyo Stock Exchange Group
3 325
London Stock Exchange
Group
3 266
14
086
4
582
3
479
3
397
Change in%
19,4
19,2
4,6
4
NYSE Euronext Europe
2 447
2
15,8
2
25,4
2
8,1
2
7,7
1
25,5
1
15,7
832
Hong Kong Exchanges
2 258
832
Shanghai Stock Exchange
2 357
TMX Group
1 912
547
059
Deutsche Börse
1 185
Australian SE
1 198
486
387
Source: website of the World Federation of Exchanges, WFE
Picture 3.1 Dynamics of capitalization of the world stock exchanges, in different time zones (in trl.dollarov
USA) Source: website of the World Federation of Exchanges, WFE
As seen in Figure 3.1 speaker capitalization of stock exchanges located in three time zones, shows a
gradual increase over the decade (2000 to 2009). Over the last decade, the American Stock Exchange
hold the palm remaining leading in terms of capitalization (though much less than it was before). The
share of the Asia-Pacific time zone has increased significantly (from 16% to 31%), while the situation in
the EAME (in the region of Europe - Africa - Middle East) region has remained almost stable (Picture 3.2).
Picture 3.2Struktura global stock exchange capitalization
Source: Own calculations based on dannymsayta Vsemirnoyfederatsiya exchanges, WFE
Table 3.3 shows the performance of the CIS exchanges trading volume and number of transactions over
the last two years.
Table 3.3 "Total trading volume on the stock exchanges of the CIS in 2011-2012."
Name of
Commodity
Exchange
2011
The trading
volume in million
US dollars
1 414,8
BUCE
969,5
ETC
259,2
MB
n/a
MTB "Kazakhstan"
141,5
IFAC
9 315,0
SPIMEX
3 015,4
UZEX
1 967,6
UICE
Source: Stock Report IAE CIS, 2012
2012
Number of
transactions
Number of
transactions
164 241
The trading
volume in
million US
dollars
1 513,5
3 724
1 013,8
4 591
1 008
750,9
2 577
n/a
n/a
n/a
1 983
104,2
1 454
12 554
8 204,0
16 932
614 880
3 042,8
532 346
555
2 058,9
594
214 807
On the Russian securities market by the end of 2012 operated 1,259 organizations, professional securities
market participants, of whom about 40% - credit organizations. 1163 companies are brokers, dealers,
trust managers. Thus 66% of them are located in Moscow.
The capitalization of the domestic market share in 2012 amounted to - 817 billion. USD (2.3% increase
compared to 2011). Relative to GDP, the total capitalization of the Russian stock market in 2012 was only
40% (note the high was in 2007 - 98% of GDP). Of this amount, 24.3% are of Russian issuers, converted
into depositary receipts for trading in foreign markets.
On the domestic stock market was the number of issuers 275. Circle tool, which focused trade, remains
fairly narrow - the share of the ten most liquid issuers account for 84.5% share in the total volume of
trading. And the share of transactions in shares of OJSC "Sberbank of Russia" and OAO "Gazprom"
accounts for nearly half of this turnover.
Trading volume on the PFTS for the year 2012 reached 35.156 billion. US dollars. Capitalization of 17.6
billion. US dollars. Traded Instruments: 1276, including: shares - 681, 340 corporate bonds; municipal
bonds and T-bills -17 - 145.
At the "Ukrainian Exchange" trading volume in 2012 reached 2,95.mlrd all markets. US dollars, the
volume of trading in the stock market - 1.34; trading volume on the futures market of the Ukrainian
Exchange (index future Ukrainian shares - 1.6 billion. US dollars).
4. International experience as an example of emerging economies: Brazil, China, India, Malaysia and
South Africa
4.а The results of the analytical review on specific country examples
a.a The role of the commercial sector in the economy
In each of the countries, except India, agriculture is a small and steadily declining contribution to
the national GDP. The share of agriculture in South Africa is 3 percent. This value reflects the economic
transformation, driven by the rapid industrialization process. In such a scenario, the manufacturing sector
and, in certain circumstances, the mining sector, as well as mineral resources are complex catalysts for
growth. Agriculture, in contrast, is often limited by government policies to transfer a sufficient amount of
cheap food urbanized population within the powerful levers of control strategies and trade with import
substitution to stimulate the development of the country.
However, despite a small contribution to GDP, agriculture retains great importance in each of the
five states. In India and China, employment in the agricultural sector is 56% and 40%, respectively, it is
quite a large share of the total employed population, besides reflecting the fragmented structure of small
farmers in agriculture in each country. Important natural consequence of this separation is that small
farmers constitute a large electorate that political leaders should pay special attention. Thus, in both
countries, the promotion of development and growth in agriculture remains a key priority, especially as
the growth of agriculture falls far short of the overall level of economic growth.
In Brazil, Malaysia and South Africa, the proportion of the population engaged in agriculture is 10
and 20% of the total employed population and, therefore, it remains an important sector, moreover, that
in each case, agriculture also contributes to the national income from exports 10% or more. In this
sense, it should be emphasized Brazil with 28% share of the total agricultural exports. Indeed,
agriculture is growing faster than the economy of Latin America as a whole, that is a sign of the
increasing role of the continent in the supply of grain for the rest of the world, particularly in Asia, where
the ground and water resources of the country has been steadily declining.
a.b. Overview of reforms in order to develop an organized commodity market
The program of large-scale reforms played a key role in the development of agricultural markets
in four of the countries studied. However, there are various reforms for stimulating factors. In Brazil and
South Africa, agricultural reforms were a natural consequence of the transition period, previously, by its
nature, a political nature. There was a need to abandon the old practices and begin corrective actions
committed under the previous regime. For example, in South Africa, the mechanism of intervention
certainly associated with the structures of racial segregation, which has been steadily lean toward
commercial "white" farmers at the expense of the "black" sector of the small farmers. In these countries,
land reform and the growing influence of the past disadvantaged populations are critical urgent tasks of
the Government.
For comparison, the agricultural reforms in China and India were part of a wider transition, who
previously wore an economic nature and realize the existing political regime. In these countries, the key
focus was on improving productivity and modernization of infrastructure, and, at a later period, to
consolidate fragmented and commercialization of farm production structures.
Malaysia is no exception, economic development or agriculture in this country was not due to any
transitional period, no reforms. Instead, the government should be a relatively stable exchange rate of
the development since the country's independence in 1957. This fact is most often cited program of land
development and resettlement, on the one hand, and careful development of key export markets, on the
other hand.
The speed of implementation of reforms in different countries also differ. In China, reforms were
implemented gradually in two stages: the initial reforms were aimed at encouraging producers and
productivity, and subsequent focused on liberalizing markets. For comparison, while South Africa was at
an early stage of moderate reforms 80s, there have been significant changes in the package of proposals
to reform the "big shock" caused by the Law on the sale of agricultural products by 1996, among other
things, it marked the cancellation in 1997, fourteen marketing board, which tightly controlled markets of
key commodities.
There was also a difference in the sequence of reforms. Von Braun, Gulati and Feng (2005a)
conducted a comparison between China and India. In China, agricultural structural reform was carried
out to the general economic reform. However, in India began with the reform of macroeconomic and
non-agricultural reforms. According to the result of the Chinese approach was much greater poverty
reduction. We can assume that Brazil and South Africa have adopted a model similar to the Indian model,
where macroeconomic reforms 80s were conducted to land reform, the program which was launched in
mid-1990 s.
a.c. Overview of issues and features of the product market
Curve development inherent in each country, largely dependent on the individual situation in the
country. Political transition in Brazil and South Africa originate from their unique history.
Economic reforms in China and India were conducted under conditions that could rightly be
regarded as exceptional, given their scale and development experience since 1945
However, certain problems arising from the conditions of each country, are really similar. Similarity is
as follows:
• The transition to market economies (China, India, South Africa);
• The formation of market institutions to trade (China, India, Malaysia, South Africa);
• Special attention to the vast inconsistencies and established duality in agriculture (Brazil, Malaysia,
South Africa);
• Consolidation and commercialization of small-scale farming sector (Brazil, China, Malaysia, South
Africa);
• Stabilization of volatile or sensitive domestic markets (China, India, South Africa);
• Formation of competitive and dynamic external markets (Brazil, India, Malaysia, South Africa).
Before each of the countries in question are facing new challenges that have arisen as a result of
structural changes in the global economy. These tasks are, among other things, include: the
globalization of trade, capital flows and labor; liberalization of markets; the development of new
international specialization and trade requirements within countries and regions; as well as the
consolidation of the global supply chain, to concentrate in the downstream segments of the value
chain and to impose more stringent conditions on manufacturers and manufacturing enterprises.
As a result, the Government can no longer focus only on internal reforms, but should also focus on
the external, dynamic contributing factors involving new urgent tasks for each of the studied
markets:
• Brazil: becoming a "locomotive" of agricultural exports, which is one of the key suppliers of
products for major developing economies of the Asian region
• China: food security in the globalizing commodity markets, characterized by a more stringent
restrictions of supply and higher prices
• India: diversification of its agricultural base products to value-added products that can be
competitive in world export markets.
• Malaysia: identifying new areas of application and / or implementation of palm oil markets with
higher value added (eg, biofuels and oleochemicals), which will enable Malaysia to maintain its
share of world income and in the face of increasing competition of other exporters.
• South Africa: management of extremely high local price volatility as an active participant in open
and competitive world grain markets.
Advanced technology, the new terms of trade and production are constantly affect the commodity
markets, which in turn poses new challenges for the Government. The solution of such problems
is a key factor for the sustainable development of the commodity sector, especially for exportoriented countries such as Kazakhstan. Studying similar markets, such tasks can be divided into
several categories, depending on the specific areas:
• Structure of production: some markets are characterized mainly smallholder production (China,
India), meanwhile, as the other markets are characterized by commercial / smallholder
fragmentation (Brazil, Malaysia, South Africa). Before each type of market, there are
corresponding problems: in the first case - a consolidation of production, reduction of mediation
schemes, improving resilience to risk; in the second case - it is the commercialization of
smallholder farmers to increase productivity and competitiveness, the association of small
farmers in new or existing supply chain.
• The structure of trade: some tovaryproizvodyatsya mainly for the domestic market (corn and
soybeans in China, crops - in South Africa); Some goods are produced mainly for export markets
(coffee and live cattle from Brazil, cardamom and mint oil from India, palm oil from Malaysia). In
the case of production for the local market, there are problems of food security and price
inflation; for export production, there are problems of global supply chain integration, strict
adherence to quality requirements and to achieve international competitiveness.
• Openness: some markets are closed or restricted (China, India); other markets are open and
integrated into the international community (Brazil, Malaysia, South Africa). The government of
each country is trying to balance the problem of food security with the objectives of international
competitiveness, efficiency and growth. As soon as market conditions change (for example,
China's desire to become the ultimate importer of grain), changes the concept of agricultural
policy.
• Terms of infrastructure: Some of the commodities operate within a well-developed spot market
(Malaysian palm oil, South African grain); other products operate in the spot market, where
necessary infrastructure (Indian peppermint oil and cardamom, Chinese wheat and soybeans).
Markets of the first type are faced with the task of maximizing the benefits of a strong
infrastructure for many small-scale farmers in these countries; markets for the second type of
task is the integration of new investment in infrastructure as part of a coherent strategy for
equitable development sector.
4.b The main conclusions on the role and functionality of commodity exchanges
b.a Market structure
You can pay attention to a number of contrasting conditions during the occurrence of a commodity
exchange infrastructure of the studied countries. First of all, the three countries - Brazil, China and India historically inherited trading traditions dating back far into the past. At the very beginning of the twelfth
century (and in the case of India, in the late nineteenth century) as in China and India existed a thriving
trade exchange and futures trading. This was before the law forbade trading. Evidence of participants
Mercantile Exchange and the market suggests that such early experiences may have played an important
role in the rapid development of commodity exchanges and exchange trade in these countries after they
were again allowed. Perhaps this was due to the remaining memories, passed down from generation to
generation; possibly due to the fact that after the official ban continued to exist "gray market"; perhaps
because of other cultural factors. In Brazil, exchange trade became legal in the early twelfth century.
However, the constant interference of the state in agriculture over time led to a reduction of turns on a
commodity exchange. As in the case of Latin America, the desire to find a niche exchanges in commodity
markets, which are often depleted state intervention, contributed to the development of innovative
exchange instruments, with unique features inherent in each of the markets.
The second comparison can be made between countries where the government is the main driving force
to promote, support, and continuous development of trading (China, India), and countries, driven mainly
through private sector initiatives (Brazil, Malaysia, South Africa). In China, after the initial policy of noninterference in the development of commodity exchanges, the Government intervened twice with the aim
of focusing and concentrating stock trading, especially in derivatives transactions on the three stock
exchanges, each of which carries out transactions for a small number of contracts. This formed a key basis
and provide the necessary impetus for further growth and consolidation of trading. In India, the
government has developed a national strategic plan for the development of national commodity
exchanges, setting strict criteria and conditions: to change the legal form of organization, to become
versatile and offer only electronic trading. The result was an enormous quantitative growth of trading and
exchange infrastructure hit India in 10 leading commodity exchanges in the world. In the other three
countries, the government has played a crucial role in providing the legal framework, and in the case of
Brazil, the Government used the exchange mechanism for the implementation of its policies. Further, after
the above measures taken by the Government to create favorable conditions for the growth in trading
activity, it is the private sector has become a decisive force for sustainable, long-term and rapid
development and growth of trading.
Furthermore, in Brazil, Malaysia and South Africa, exchange activities are focused on a single exchange
infrastructure across the country. In Brazil, there are also currency exchanges engaged in transactions in
cash, some of them are integrated with the Brazilian Mercantile Exchange (BM & F). However, the main
activity in derivatives transactions for products focused on BM & F. Moreover, in each of the three
countries, combined with commodity exchange markets and financial futures markets ordinary shares,
including for the purpose of bargaining proposals on a wide range of assets. Thus, there is a situation
where the exchange activity does not share the principle underlying asset.
Both China and India have three exchanges on trade in goods and commodity futures, all of which focus
exclusively on commodity futures. The law prohibits such exchange offers trading in other instruments or
asset classes. The immediate reason for this comparison is that the structure of exchange in China and
India emerged from a state program focused on the development of the market after a long period of the
ban on the commodity futures market, as has been said above. The success of the data exchanges
associated with a variety of factors, the main ones are: the volume and the diversified nature of the
material and resource base of each country, as well as a large geographical area and population.
India is characterized by two features that are almost unique in its markets. Trade and further
registration of contracts for a wide range of commodities, including agricultural products, metals and
energy sector should be carried out on each Mercantile Exchange. This of course leads to liquidity
problems and a lack of clear indicators for commodity assets, but the fact remains, on the commodity
exchanges of India quoted the largest number of contracts for goods exchange in the world. The
Government of India explains this attempt to reduce systemic risk, given the size, scale and fragmentation
of the economy, as well as an attempt to stimulate competition in the market exchange instruments.
b.b exchange infrastructure
Below is the interesting information on how to exchange infrastructure built in various countries in the
context of services, trading systems, ownership structures, and characteristics of the clearing.
The number of proposed exchange contracts: Countries are different tools for their markets. For
example, India offers its members more than 50 kinds of exchange contracts and Malaysia only one futures on crude palm oil. Brazil, China and South Africa are somewhere in the middle. This partly reflects
the potential offered by diversified material and resource base in India. These conditions also indicate that
the majority of the population, whether manufacturers, customers, or other members of the supply chain
of a commodity is exposed to commodity markets. China has the same potential, but the government is
taking a more cautious regulatory approach, limiting each Chinese exchange futures deals a small amount
of a commodity and not allowing commodity exchanges compete with each other by offering contracts for
the same product in two or more exchanges.
Tools / Services: All five commodity exchanges offer trading in commodity futures. JSE / SAFEX
(JSELimited [former stock exchange in Johannesburg] / The South African Futures Exchange) is also
developing marketable options markets, and on the stock exchange BM & F trading with a small amount of
options. Chinese and Indian commodity exchanges are still limited regulatory constraints on the type of
instruments traded can be carried out.
Despite this, India, along with Brazil, is the most active in the development of initiatives and
services to meet the needs of market participants. It speaks of disparate legacy spot markets and
infrastructure needs to be updated in both countries. Commodity exchange plays an important role in
addressing these issues. Division of the Brazilian Mercantile Exchange BM & F - is the most promising
incarnation into reality with developed markets on a range of exchange-traded instruments, forward
contracts and financial security instruments specifically designed for agriculture. In South America, in spite
of the well-developed infrastructure, deregulation led to the need for the agricultural sector to create from
scratch a new experience and procedures under which could operate free market goods. In this situation,
commodity exchanges JSE / SAFEX turned into key institutions around which to focus effective pricing
mechanisms, risk management and delivery. This facilitated smooth transition to operations of the free
market and the integration of the financial sector to facilitate infusion of cash flow into the real economy.
Exchange Bursa Malaysia, on the other hand, was created in a situation with a well-developed OTC spot
market, and established practice of the interim system, integrated national market and excellent
infrastructure. Under such conditions, the role of the exchange is limited, except for the fact that the
Exchange carries out its core functions for the formation of the market price and risk management. For a
more visual comparison, the main elements and characteristics are summarized in:
Table 4.b.1: «Summary of the structural features of commodity exchanges"
Description
BM&F
DCE
MCX
Bursa
Malaysia
JSE/SAFEX
Trade system
Open outcry pit trading and ecommerce
Fully electronic commerce, but with
the exchange trading floor
Fully electronic commerce
Ownership Structure
Members of the exchange
- the main owners
Members of the exchange
- the main owners
In private ownership
Clearing house
Own
Fully electronic commerce
In public property, listing
on the stock exchange
In public property, listing
on the stock exchange
Own
Fully electronic commerce
Own
Own
Own
Summarizing the information contained in each of the countries studied, we can conclude that
the markets show greater flexibility to meet the unique features of their own markets. They are always at
the forefront, always aware of what is happening in the real sector, as commodity trading and what
features characterize this or that market. Perhaps this is the only sure way of development: to be flexible
and innovative in order to achieve the desired speed and the large number of participants.
Trading system: In recent years, dominated by a very clear trend in favor of electronic trading.
This is facilitated by technological advances and advantages in speed, cost, transparency and
functionality that such trade, as a rule, offers top of the established forms of open outcry pit trading,
traders that brings together on one trading platform.
Ecommerce usually includes a number of other potential advantages, namely, limiting the
information asymmetry between the commercial interests, the possibility of extending trading hours and
better access to markets, regardless of their geographic location. However, proponents of open trade
argue that the fact that this form provides greater liquidity during the official trading activity due to
brokers, conducting transactions on its own account and increase trading hours, while at electronic
auctions are sometimes moments when the markets can be illiquid. They also point to a longer historical
experience of an open trading system, as well as the convenience that such systems provide the
participants. All commodity exchanges described in this study are now offering e-commerce form. Only
one exchange BM & F to save the form of open trades. However, at this time, along with a form of
operating system and the electronic commerce, in which the exchange of more than 50 volume percent
and turnover. Chinese Mercantile Exchange (DCE) to keep the system open bidding, but all kinds of
trades carried out in electronic form, as well as two other Chinese futures exchanges in China.
Ownership Structure: Many commodity exchanges created as an organization serving the
interests of its members. Consequently, commodity exchanges are often formed as a joint organization,
usually owned by the participants, natural or legal persons, with serious commercial interests. However,
the transition from one organizational form to another (corporation) - the separation of management
from ownership and exchange trade interests - is one of the most enduring trends in the exchange of
goods around the world over the past five years. This was the concern mainly on good governance, selfgovernment, self-market users, as well as easy access to investment capital.
On the other hand, the model forms of joint ownership may have some advantages for young
exchanges. In particular, the Parties may agree coating material costs, which tend to occur in the early
stages of the development of the exchange. An alternative approach, when the owner of the stock
exchange is the state, may be more effective in creating the exchange, as it allows faster and cover
many issues at an early stage investment costs. At the same time, the government needs to give a clear
signal to the market and to prove in practice that it will not use the trade interests for political purposes
by private exchanges, and will manage the exchange in the interests of the market as a whole.
Three exchanges of five presented has changed its legal form, and BM & F is in transition (in
India, the transition to another legal form of organization was the condition of the state mnogosyrevogo
status and, therefore, MCX uses a different legal form since its inception ). And only DCE in the
foreseeable future will remain in the joint management. However, the ownership structure of the Chinese
exchange differs from the standard model of cooperative exchanges. Exchange is formally owned by its
members, however, the state has important rights in the appointment of the management and decisionmaking process.
Kliringovyytsentr: Kliringovyytsentr performs two important functions in the negotiation and
conclusion of contracts: management of systemic risk arising from exchange transactions, and protecting
the integrity of the market. Some of the world's leading commodity exchanges use independent clearing
centers. Other stock exchanges use internal clearing centers. There are also such exchanges which are
commonly used generic clearing centers shared by two or more exchanges. Such diversification structure
demonstrates the lack of consensus as to which model is preferred. Instead, apparently, the choice
depends on the specific stock situation. It is obvious that independent clearing centers provide increased
market integrity through a clear distinction between trading and clearing functions. This can be an
advantage for the exchange, which has not yet gained the full confidence of the investment community.
Another advantage - is to ensure that clearing and settlement are not placed under the authority of other
components of the exchange operations: for example, in the case where an independent clearing
company would have the independent authority to raise capital and the possibility of expanding the
market for their services. On the other hand, the internal clearing center, apparently offers the best
correlation trading and clearing functions in the case if, for example, introducing new contracts or new
trading tools. All five presented in this study exchanges have own clearinghouse. And only one small
difference for BM & F, offers trading in numerous asset classes, is that this market has a separate
kliringovyytsentr for securities and currencies.
It is further proposed to consider the role played by the commodity exchange infrastructure in
each of the countries in question. In particular will be described briefly, what are the main steps have
been taken, what development model prevailed in the origin and evolution of trading in these countries.
As will be apparent from the following information, each market has made its own unique contribution to
the development. Highlights are grouped in Table 4.b.2.
b.s Main achievements commodity exchanges
Brazilian market, the stock exchange BM & F: provides tools and services that support the
commercialization of agro economy Brazilii.Sredi other reasons, this is achieved by creating opportunities
for effective infusion of capital into the sector by providing ubiquitous and exchange tools; by insurance
against sharp fluctuations in the price of commodity assets through the use of derivatives market
instruments; improve the efficiency, transparency and sustainability of public policy by providing
mechanisms for transactions on public procurement and financial intervention; continuing government
support in the development of the logistics component; as well as by supporting the development of key
export markets soy through a variety of activities aimed at strengthening ties with China
MCX, India
Bursa Malaysia, Malaysia
JSE/SAFEX,
South Africa
BM&F,
Brazil
DCE.
China
Systematic approach to the development of the exchange infrastructure
Pricing of key export commodities
Replenishment of losses due to a sudden state deregulation of the grain market
Stimulation of commercialization with / x industries Brazil
Creating a high level of liquidity for the key to the / x goods

•
•
•
•
Creation of liquid markets for local products
Management of a broad portfolio of products
Efficient and effective implementation of technologies
Strong residual culture of trade in India
Emphasize training

•
•
•
Associated with the establishment / regulated market goods
Lack of alternatives to palm oil contracts on other sites
High growth in major markets spot products
The focus of the government to comply with the pricing mechanism

•
•
•
•
•
The high level of trust and cooperation between industries
The focus of the government to comply with the pricing mechanism
Infrastructure
Development of a sustainable mechanism for the supply of integrated financial solutions
Initial development of a liquid market for options
Emphasize training
 Universal approach to the development of the market, the introduction of futures, spot and financial
instruments
• Development of innovative use of exchange mechanisms
• Cooperation with the Government and the National Bank
• Emphasize training
 The accelerated increase in the recently launched in the current contract
• Optimization of the examination of commercial / institutional interests
• Creating favorable conditions for the participation of individual investors
 Creating space for hedgers
 Making the delivery mechanism for greater flexibility and stability
• Managing within the political and legal limitations and uncertainties
 Overcoming major default in 1985
• The development of liquidity in the options market

•
•
•
Overcoming ideological space of the previous system
Management of high volatility
Attracting and capacity building in developing Farmer's Market
Maintaining a favorable political environment
 Expanding markets of Brazil
• Increase the participants in the market
• The development of liquidity in the options market
 Providing benefits to smallholder farmers through price transparency and risk management
• Managing within the political and regulatory constraints

•
•
•
The participation of institutional and foreign investors
Development of options trading, indices and other intangible assets
Integration of futures contracts and spot market
Launch a national electronic commodity exchange
 Further growth of the spot market
-ozhidaemoe impact of biofuels
• Additional products - index futures and palm oil and crude oil in US dollars
• Licensing for palm oil futures and crude oil for the world's stock exchanges
• Involve the organized sector of small farms

•
•
•
Regional Integration in Southern Africa
Strengthening relationships with other emerging market regions
Development of a mini-contracts to attract small producers
Management Solutions climatic and currency risks
 Regional integration strategies in the commodity markets in Latin America
• Consolidation and deepening ties with China export
 Development of new financial opportunities
• Participation of institutional and foreign investors
• Trading in options and index
Key achievements
Success Factors
Complex tasks
Capabilities
Table 4.b.2 «Brief description of the key factors in the development of commodity exchanges"
China market, the exchange DCE: the formation of a high level of liquidity for key
agricultural products. Within a short period of time, DCE launched futures contracts, which resulted in
a significant amount of trade in goods, which are considered vital for the country's food security. This
allowed customers to better plan their business, and at the same time, to provide the optimal income
farmers, through greater transparency in the futures market. For example, this innovative solution as the
separation of the contract for soybean at two different contracts - one on domestic deliveries of non-GMO
soybeans, and the second for the importation of GMO-containing soy, has significantly strengthened
policy Chinaskogo government's GMO and allowed to meet needs of the sector in which the various
participants use a different type of soy products. Start-up and rapid development of grain contract on a
commodity exchange was the first important step in the liberalization of the grain market in China as the
country began to carry out the obligations imposed by WTO accession, and since it is on track to
becoming a net importer of grain.
Indian market, the stock exchange MCX: enhancing the development of the broader ecosystem
to produce goods. MCX futures not only introduced mechanisms to manage price risk for many
commodities, which it trades, the Exchange also dramatically improved the flow of information to all
participants in the commodity market, contributed to the development of physical infrastructure and
logistics in most shopping centers and established a reliable and acceptable quality standards that inspire
buyers and exporters additional confidence in the performance of obligations on exchange transactions.
India is actively developing a draft national electronic commodity exchange to further integrate and
improve the efficiency of product markets.
Market Malaysia Exchange Bursa Malaysia: the emphasis on the formation of exchange
mechanisms at market exchange tsenoobrazovaniyu.Tovarnaya Malaysia is unique in that it has
established a model exchange in the developing world, the stock exchange, which forms the reference
price for all sold worldwide product. To further understand the reference price - a market price
benchmark, which is formed by the open exchange trading, and which is recognized by all market
participants at the fair. For example, the reference prices for other strategic goods, usually formed
exchanges, located in developed countries, far from the market producers. In the case of Malaysia, a
country that is the largest producer of palm oil in the world, is also the placement exchanges, where a
reference price. This is important because thanks to this approach producing country has the ability to
shape the market prices, and as a party, to determine the price, not the party receiving the price for its
key product exported to the world market. In many ways, this is the result of a successful diversified
strategy of the state in relation to palm oil, which was first launched in the 60s. Moreover, with increasing
demand for palm oil, used in the production of biofuels, the futures market crude palm oil acts as a
barometer reflecting the shifts of the fundamental factors affecting prices, ensuring transparency and a
level playing field that facilitates the process of pricing.
South African market, the stock exchange JSE / SAFEX: Filling the void left after the sudden
liberalization of product markets. Exchange became a key institution in liberalized grain markets of South
Africa after the sudden cancellation of control by the state. Exchange, at this stage, not only provides a
mechanism for hedging, it also provides support for trade in the spot market, the transparency of the
conditions for the import / export, provides information on pricing, easier access to credit and promotes
the integration of the grain market in South Africa with the world's grain markets by providing an
effective mechanism for pricing.
As a result of this review, regarding the evaluation of the role and contribution of the various
exchanges in emerging markets and improved infrastructure of the commodity market, we can draw two
important conclusions. The first conclusion is that the Commodity Exchange is a universal institution that
plays a constructive, comprehensive role in different circumstances: in the economic (China, India), and
political transition (Brazil, South Africa); crushed to spot markets or markets with a deficit of
infrastructure (India, Brazil) and the development of export markets (Malaysia, South Africa); production
systems in small-scale farming (China, India) and in the production of major agricultural companies
(Brazil, Malaysia, South Africa).
The second important conclusion is that the exchanges are dynamic structures that not only solve
an urgent problem, but can also help in solving new problems that arise over time: for example, tasks
such as the development of new crops (India, Malaysia) and the expansion of export markets (Brazil,
India, Malaysia); implementation of WTO commitments on liberalization (China); to assist the industry in
the process of adaptation to changing conditions, when the country straddles the function of net exporter
and net importer (South Africa, and probably China); and adherence to a strict quality standards in
accordance with the requirements of the Government (for example, China's policy on GMOs for soybeans)
or exporters / buyers (for example, exporters cardamom and peppermint oil in India).
bd success factors, key challenges and problems
In addition to the previous sections, it is also clear that each market is exposed to a unique
combination of success factors and urgent tasks and faced with different possibilities for future
development. (See Table 4.b.2). Can be divided into six main areas that affect the successful and
dynamic development of commodity exchange markets, based on international experience:
Emphasis on training: training of market participants is an important element in the development
of exchange trading. Education - is the key not only to expand the range of participants, but also to
ensure the sustainability and proper involvement of all parties to the transaction through responsible
behavior, based on a comprehensive understanding of the principles of the market on mutually beneficial
terms for hedgers, speculators and participants arbitrage.
Infrastructure urgent tasks: There is a contrast between the markets that have evolved in an
environment where there was a good material and technical base (Malaysia, South Africa) and markets
that operated in adverse conditions (India in particular). In the latter case, as well as to some extent in
the case of the first stock exchange, stock market itself has become a catalyst for stimulating the
development of trade and infrastructure, in which markets operate.
Political environment: political and legal environment in which an exchange, has a great range of
influence. The state plays an important role in terms of implementation of tasks: through the legal
framework, enhanced legal and economic conditions, as well as physical infrastructure and logistics. The
State may further stimulate the market, clearly adhering to the principles of maintaining the integrity of
pricing mechanisms and directly using them to implement their own policy intervention in the agricultural
sector, as does the Government of Brazil with the Brazilian Mercantile Exchange BM & F. The government
may also impose a number of policy and regulatory restrictions that may deter potential volume impact of
the exchange. At that time, as it may sometimes be necessary and beneficial, sometimes it can also lead
to suboptimalnymili even undesirable consequences for the exchange.
Small-scale farming: in general, the five countries studied revealed two types: environment
dominated by small-scale farming (China, India) and conditions with some ambivalence between
commercial agricultural production and small-scale farming (Brazil, Malaysia, South Africa). In the first
case, and especially in India, there is an urgent need to market to the highest extent and directly meet
sales and marketing needs of small farmers. In the second case, the exchange assumes a more detached
role, usually due to the presence of state-supported structures that support small farmers. Although even
in this case, the activities of the Information, financial and marketing development of the stock exchange,
as well as the ability of the state to use the Exchange to implement its measures to support small-scale
farming, indirectly expedient. Moreover, since the Government of these countries a priority of its policy
think consolidation and commercialization of small farmers to the exchanges it is likely that in the future
they will become much more focused on a more organized, commercialized small-scale farming sector.
Options: Of the five exchanges, only Exchange South Africa JSE / SAFEX has succeeded in the
development of a liquid market for options. Small amounts of a commodity are also offered at auction in
Brazil BM & F. While government restrictions do not allow exchanges of China and India MCX DCE run
Options Exchange Malaysia Bursa Malaysia, and to a lesser extent BM & F, failed to form the necessary
liquidity on its options markets. However, the options can be an important tool to increase the usefulness
of the exchange for small farmers - there is a tendency to simplify their use and more accessible. They
also allow you to use a more complicated set of marketing opportunities and risk management for all
market participants.
Regional economic integration: at the time, as China and India have large domestic markets,
which are still partially closed, Brazil, Malaysia and South Africa have small markets that are open and
export-oriented. Brazil and South Africa have the leading economic powers in the region with the
development of commodity markets. Brazil and South Africa have great potential integration tools,
expanding the benefits of efficient commodity futures markets in less developed economies in the region
and improve the flow of commodities and capital between them. Opportunities in Malaysia are slightly
different, although the possibilities for integration in the Asian region can also be quite attractive.
Licensing of his contract on palm oil to markets in other countries can seriously strengthen its position as
a world reference exchange trading palm oil.
4.c The main conclusions to regulate commodity exchanges
The three main objectives of the exchange market regulator in the process of legal regulation are
sewn investors; guaranteeing the effectiveness, fairness and transparency of the markets; and reducing
systemic risk. Of the five markets examined, the stock market is high - though not necessarily strictly regulated environment. In each country there is a wide range of mechanisms and instruments to regulate
the market, used at the level of external regulated bodies, industry self-regulatory body and / or the
actual stock exchange as a self-regulatory body. That is, in all countries clearly observed trend in
achieving an optimal balance between regulation of the market and its development.
The state's role in this structure, as a rule, is twofold: the controlling role - punishes those who
are trying to influence the market conditions in order to extract their own benefit and to guarantee
compliance with the terms of contracts; and the role of sustainable and dynamic development - ie
providing the necessary legal and regulatory framework, and, under certain circumstances, elements of
material and technical base, without which the normal operation of market participants (eg, warehousing,
logistics, telecommunications and information networks).
An important factor is the balance between the benefits and costs of regulation within it
extremely important to adapt the regulatory framework and procedures to the requirements of local
conditions. On the one hand, with a very weak - or, in the case of China in the early 1990s, there are no
- regulatory framework - to create conditions for the emergence of chaotic and disordered markets in
which most of the parties will bear the loss. On the other hand, regulatory constraints may sometimes be
rendered ineffective by the development of market conditions. In China, as the country becomes more
confident in the operation of markets, it becomes less conservative in this regard. New contracts have
been resolved, and the new regulatory framework, introduced in early 2007, has kept some of the
prohibitions imposed earlier, at a time when the markets were disorganized and less regulated by the
state. Similarly, in India, the Government is facing the task of coordinating their high expectations on the
direct participation of farmers in the futures markets with a regulatory framework that facilitates rather
than hinders the task. The main obstacle to the participation of farmers is a ban on stock options.
Another obstacle is the ban on the participation of financial institutions in commodity futures markets:
banks can act as a trusted intermediary trade needs of small farmers, structure, funding costs for
participation in the market, as well as the organization that provides a range of integrated solutions in
the field of financial management and risk (as occurred, for example, in South Africa).
The main problem is the role of speculation. Two of the selected countries - India and South
Africa - have experienced an increase in prices of essential commodities, which led to the investigation of
the situation by the Government. In both cases, as a possible cause was listed speculation or market
manipulation. While in South Africa in 2001-2003, The government conducted an investigation before
deciding on possible ways of action - in this case, decided not to act at all, in India there is an inverse
procedure. Bidding for the four products have been suspended until after the investigation committee.
As can be seen from the information presented above, in the world there is no perfect model for
the development of stock markets, at least, we can safely say, based on the experience of Brazil, India,
China, South Africa and Malaysia. In each case, there are many unique factors that have different effects
on the decision-making process regarding the development of exchange trading. However, one factor
remains indisputable, and he has a direct impact on the fate of stock trading in a developing economy.
State participation in the process of formation, development and management is the most important
element in the success or stagnation transparent exchange trading. Further, the document will be
presented specific recommendations and conditions for the successful development of exchange trading
in Kazakhstan, based on international experience and taking into account the local conditions of the
commodity market.
Component: "Project development and implementation of models for the development
of exchange trade in the Republic of Kazakhstan"
5. Analysis of current situation and specification of the exchange market of Kazakhstan
5.aObzor exchange commodity market infrastructure
This section will consider the existing infrastructure of the exchange market in Kazakhstan.
Under the infrastructure of the exchange market, in this context, means the totality of the key
market participants such as regulators, auction organizers (exchanges), brokers and dealers,
clearing and settlement centers, registrars, depositories, news agencies. Item description is
divided into infrastructure stock and commodity markets, taking into account the present
specifics on each market.
Over the past few years in the Republic of Kazakhstan has taken steps to improve the scope of
regulation and steps for further development of the organized commodity market. The domestic
stock market is in a stage of development and improvement. After all, the market exchange
system is most appropriate for Kazakhstan, as the country has a great potential in the agricultural
and commodity sectors.
However, analysis of the situation on the stock market of Kazakhstan indicates that the domestic
commodity market is underdeveloped, does not have a broad line of spot instruments and
derivatives market instruments are not fully carries out its functions in a transparent market
pricing. The problem is compounded by inadequate penetration of electronic exchange trading,
especially at the level of end users, the lack of a full understanding of the benefits of
centralization of trading, liquidity and concentration of transactions, subsequent calculations
electronically.
In this section of the study is invited to review the activities of the major market participants,
what measures have been taken by the government, which, as a result of steps taken, the current
situation and what problems exist in the commodity exchange market.
Thus, the study of the current situation and existing problems would result in concrete, practical
recommendations for the further development of the electronic exchange trading in Kazakhstan.
The main elements of the infrastructure and the participants of commodity exchange market of
the Republic of Kazakhstan is a regulator of the industry - Trade Committee of the Ministry of
Economy and Budget Planning of the Republic of Kazakhstan; 20 commodity exchanges; 44
commodity brokers and dealers; settlement system (clearing organizations), the logistics
component for transportation, storage and examination of the quality of goods.
regulator
Authorized body regulating the activity in the commodity market, is the Committee of Trade of
the Ministry of Economy and Budget Planning of the Republic of Kazakhstan (CT MEBP).
From 1 January 2010, the Committee is responsible for licensing trade commodity exchanges
and exchange trade participants - brokers and dealers, in accordance with the rules of licensing in
the sphere of commodity exchanges (approved by the Government of Kazakhstan dated
November 26, 2009).
The license shall be issued no later than 30 regulator - working days, and for small businesses not later than 10 working days from the date of filing. Note that the current procedure for
obtaining licenses simplified.
Performing the oversight function, the controller monitors the observance of bidders regulations
on commodity exchanges.
In order to ensure sustainable development of the industry, the regulator constantly initiating
changes and additions to the existing legislation of the Republic of Kazakhstan on commodity
exchanges. In this work, together with exchange associations active market participants, NEPK
"Union" Atameken "regular workshops and meetings to discuss current problems and develop
solutions.
The organizers and participants of trades
In Kazakhstan, in the 90s there were dozens of commodity exchanges based on private
ownership, without the state's share capitalization.
With the new changes in the legislation governing the exchange activity in the commodity
market of the country - namely, to increase the requirements for the minimum share capital up to
50 000 monthly calculation indices, there were several capitalized major commodity exchanges.
At present, the license to conduct and organization of trading commodities regulator issued 20
commodity exchanges and 44 brokers and dealers. Information on the list of commodity
exchanges as of November 1, 2013 is presented in Table 5.A.1. (see. Appendix 5.1.)
logistics
Logistics component in the commodity exchange market is a key factor in the successful bid. If
the stock market at the end of the transaction, the settlement of money and assets are usually on
the same day (except for the derivatives market) as assets that are traded on stock exchanges tend
to de - materialized and write about the owners are stored in electronic format in the Central
Depository then in the commodity market traded assets has a material form. Consequently, the
time required for transportation, storage and handling of goods. It is therefore well-built supply
chain plays an important role in the exchange of trade and, accordingly, the methods and terms
of delivery, storage and handling directly affect the pricing of commodity asset.
Of particular note is about the importance of standardization and certification of products at
stock trading goods. In Kazakhstan, for certain types of goods subject to the existing standards
developed in the days of the Soviet Union. It should be noted that the standards codification and
certification of products differ significantly from those in world trade. Differing standards and
methods of certification of goods to international requirements have a negative impact on the
electronic stock trading. Note especially the many difficulties arise in export transactions.
Important role in the exchange trade in goods is the presence of direct access and the ability to
timely transportation as well as providing a guarantee for delivery times. In Kazakhstan,
periodically there are some difficulties with access to the cars, in most cases, because of the
complex scheme tariff deficit of rolling stock, permanent force majeure, which generally makes
it difficult to equal access to the carrier. A similar problem exists in the domestic market of
services and storage of goods. Often there is a serious shortage, especially during the high
demand for warehouse space, which in turn leads to an increase in the price of storage and
unequal opportunities storage and timely shipment of goods from the warehouse (storage, the
elevator).
Further, the study will be disclosed in detail the role of logistics in the development of electronic
exchange trading and emerging issues, and will make recommendations to improve the situation
in the country.
clearing house
The process of clearing provide clearing centers, which under Kazakh law, can be arranged in
the structure of the exchange itself, or as a separate, independent organization.
Clearing process not only provides payments between clearing participants, but also contains a
mechanism to ensure fulfillment of the obligations of the parties in the exchange market.
Consequently, the activities of clearing organizations improve the quality of the market increases
its liquidity and maintains integrity.
Clearing Center acts as a guarantor of fulfillment of obligations under the transactions.
Contractual obligations entered into with the clearing center, but not with each other. This
reduces costs for transactions and allows markets to work effectively.
When futures transactions with a fully standardized in terms of weight, quality, payment terms
and delivery of shipments of goods calculations are carried out as follows.
So, at the inception of the contract the buyer and seller make the Clearing Center security deposit
under the enforcement of obligations under the contract. The value of the guarantee deposit is
determined by the Clearing Center on their own, based on the factor of price volatility and time
(remaining until the delivery of the goods), and is usually 5 - 15% of the contract value. Under
unfavorable market conditions, and at the approach of the date of delivery, the Clearing Center
may require increasing the size of the deposit.
Between participants of futures trading (clearing) are made at the end of each trading day.
Conditions of transactions made on the stock exchange, are carried out through the clearing
center by transferring money to suppliers or their broker / dealer, pre-credited to the account of
the Clearing House Exchange, customers or broker / dealers.
Of course, the activities of clearing center aimed at organizing and conducting settlement and
financial transactions between participants of stock trading, organize, simplify and reduce the
cost calculations, ensuring the financial sustainability of the stock exchange operations,
regulation of the delivery procedures.
From the history of the development of the domestic stock exchange market shows that in recent
years the state has been considerable work on the revival of the organized commodity market of
Kazakhstan.
May 4, 2009 instead of the previously existing law of the Republic of Kazakhstan "On
Commodity Exchanges" on April 7, 1995 adopted a new Law of the Republic of Kazakhstan "On
Commodity Exchanges", containing new approaches and principles for the organization of
exchange trade.
In November 2009, the Government of Kazakhstan approved the rules for licensing activities in
the field of commodity exchanges and qualification requirements for the activities of commodity
exchanges, stock brokers and stock dealers. In December of the same year, the Government
approved the Model Regulations trading.
In April 2011, the Government of the Republic of Kazakhstan approved the list of commodities
and the minimum size of the parties that are implemented through commodity exchanges
(hereinafter - the List). According to the number of the List of goods included in this list are
subject to mandatory implementation through commodity exchanges, if the amount realized the
party was equal to or greater than the minimum lot size is determined in this list.
In addition, in July 2012, amendments were made to the Law of the Republic of Kazakhstan "On
Commodity Exchanges" in the part of the stock trading - was installed three modes: classical
trade, double counter auction and standard auction.
Changes and additions include: requirements for mandatory implementation in double counter
auction of at least 15% of its own stock market turnover of goods included in the List of the
exchange trade; mandatory publication commodity exchanges trading results on their own
Internet site; presentation of commodity exchanges daily electronic reporting.
In order to implement the above changes and additions to the Law "On Commodity Exchanges"
by the government of the republic should be taken the following regulations:
• New Model Rules of exchange trade;
• Terms of formation and use of the warranty and insurance funds and their size;
• Mandatory requirements for the electronic trading system of commodity exchanges;
• Additions and changes to the qualification requirements for commodity exchanges.
As is the current measures to improve the electronic exchange trading provides for the adoption
of measures to strengthen the requirements for the organizers of trading, voice cancellation of
trades, increasing requirements for technical parameters of commercial equipment and software.
However, despite the steps taken by the government to create a modern exchange industry, there
is a mismatch in the country established practice stock trading international experience, goals
and objectives of the organized commodity market. This is due, primarily, the imperfection of
the current legislation in Kazakhstan stock exchange, lack of proper requirements for its
members, as well as lack of control sufficient and appropriate powers of control and supervision
of the members of an organized commodity market.
Thus, in the study of the current situation in Kazakhstan commodity market, outlined the
following key issues organized exchange market, requiring the adoption of a comprehensive
public decisions and amending the Law of the Republic of Kazakhstan "On Commodity
Exchanges" and other legislative acts.
1) In most cases, the process of conducting transactions on commodity
exchanges is reduced to a formal registration stamp affixed on the exchange of prisoners outside
the exchange contracts and execution of such transactions "yesterday's date" in the form of
transactions concluded on the stock exchange voice. Thus, the list does not actually fulfills its
goal to stimulate the development of trading. Moreover as a result of a simple registration
transactions in goods List, consumers exchange services formed a misconception about the
usefulness and necessity of commodity exchanges in general, since they in such registration does
not get added value.
2) Prior to the recent amendments to the Law "On State
Procurement "government procurement through commodity exchanges in most cases carried out
by putting a registration stamp exchange on customer contracts, that is, the purchase took place
under the simplified procedure. As a result, government procurement on commodity exchanges
substantially limited list of goods from the List, reducing stock-market share to almost zero.
3) lack of proper qualification requirements for commodity exchanges and commodity brokers,
including requirements for capitalization requirements and trading systems and software. So to
engage in activities for the organization of exchange trade is actually enough to register as a joint
stock company with a minimum share capital (50 000 MCI). Broker same commodity exchange
can be created in the legal form of a limited liability company, without capital requirements.
4) Due to the lack of development of Kazakhstan's derivatives market there are no conditions for
the development of modern hedging instruments (insurance) price risk producers - standard
exchange contracts with deferred payment and delivery (futures and options).
5) There is no effective and sufficient control over the activities of commodity exchanges and
brokers by the authorized state body in mind the limited resources of the regulator. For the
purpose of transparency of commodity exchanges was amended in exchange legislation
providing for compulsory requirements of running your own Internet - sites and published daily
on the results of trading them. Was also provided daily electronic reporting of commodity
exchanges. Obviously, to gain control and supervisory functions over the activities of market
participants by the authorized state body to be much else to do.
6) In the market there is no economic interest in the development
trading. Virtually all the momentum on the stock exchanges are supported only by administrative
resources (for example, List). This demonstrates once again that the necessary economic
incentives in the form of tax breaks for the participants of trading, the granting of preferences in
terms of logistics (priority access to the cars, storage and handling of goods), the recognition of
quotations on exchange transactions as an official source of information when Transfer pricing.
7) The current rate for the at least 15% of the turnover on the products in List mode, anonymous
auction should, in essence, to stimulate transactions equal for all mode, which will provide a
transparent market pricing and equal access for all participants to trading. In practice, track the
actual implementation of this provision is very difficult because of the need to strengthen the
resources of the regulator under the control and supervision of compliance with the requirements
of the legislation on commodity exchanges.
8) The transfer pricing law approves the list
information sources that provide guidance for determining fair prices for export commodities on
the approved list. Unfortunately, Kazakhstan commodity exchanges and prices that were formed
as a result of trading, are not included in the list. And, accordingly, are not recognized as an
official source of information to determine a fair price. However, transactions concluded in the
mode of anonymous electronic auctions, are inherently more reliable source of fair market value.
9) Emissions Trading Greenhouse (carbon) emissions (warrants). Considering that Kazakhstan
has great potential in terms of reducing emissions through energy efficiency and development of
renewable energy sources..
Arguments in favor of competition and the potential benefits that it provides, in this case, are not
justified due to the limited capacity of the local securities market. Nevertheless, despite the lack of
competition, the stock market, compared with commodity exchange market shows a successful practice
in terms of the spread of electronic exchange trading, Internet access and electronic settlement of the
transactions on the exchange. Positive results were achieved KFB activities, including through the focused
participation of the state as a shareholder of the stock exchange.
As of 2013 01oktyabrya major shareholders exchange (of 56 shareholders) are: National Bank
(50.1%), LLP "Centras Invest" (4.7%), JSC "Bank CenterCredit" (3.5%) LLP "project Management
"(3.1%), individual investors (individuals), which belongs to the order of 3% of the shares.
JSC «Central Securities Depository»
JSC «Central Securities Depository» (Central Depository) is one of the key infrastructural
institutions of the stock market of Kazakhstan.
Central Depository established in 1997 and is the only depository of securities, including
performing the functions of an authorized depository servicing of securities issued by the Ministry of
Finance and the National Bank.
Today, the state represented by the National Bank is the largest shareholder of the Central
Depository, and representatives of the National Bank is a member of the Board of Directors.
As of April 15, 2013 the shareholders of the Central Depository are National Bank (54.98%),
Kazakhstan Stock Exchange (34.69%), second-tier banks (7.01%), and brokerage firms (3.32%) and
registrar (0.37%).
Reviewing the activities of the Central Depository, we note that since November 1, 2010 as a
national
numbering
agency
assigns
international
securities
identifiers
code
ISIN
(Internationalsecuritiesidentificationnumberingsystem) and CFI (ClassificationofFinancialInstruments).
Given that in the first place in the Central Depository appreciated the speed and reliability of
settlement of financial instruments, the activities of the Central Depository successfully used electronic
document management (EDM) to work with depositors, which significantly reduces the time required to
re-register the most liquid stocks.
So, to interact with their clients Central Depository uses own software - automated workplaces
Depositor.
There is also the possibility of introducing SWIFT-technologies that will enable interaction with
both depositors and correspondents, with the use of modern international EDI formats.
Taking into account that the Central Depository plays an important role in ensuring the full
functioning of the stock market infrastructure, ksilnym aspects of its activities include: stable processes
settlement with RTGS (gross settlement system in real time) and DVP (delivery versus payment); low
percentage of inaccuracies in mutual.
Thus, Central Depository is a single accounting organization, comprising a plurality of data on the
movement of securities on personal accounts holders, open the system as nominee custodians, brokers
and (or) dealers and in the register of holders of securities carried a single registrar . In general, all
processes are automated and integrated with the stock exchange.
JSC "United Registrar of Securities"
Another important subject of the infrastructure of the domestic stock market is a joint-stock
company "Single registrar of securities" (hereinafter - the Single registrar), established by the National
Bank of the Republic of Kazakhstan in December 2011.
The main activity of the Single registrar providing services since February 2012, is keeping the
register of holders of securities of issuers in Kazakhstan.
Table 5.b.1 «Information serving issuers, economic partnerships and securities"
2013
Month
Issuers
Mutual Funds
72
Business
partnerships
569
Number
securities
2 126 NIN
June
July
August
September
1 007
1 022
72
590
2 127 NIN
1 043
68
590
2 121 NIN
1 053
68
622
2 111 NIN
of
Source: website of the Single registrar http://www.tisr.kz
Thus, a single registrar registration process securities transactions, ensures the safety of the register of
holders of securities, as well as to protect the rights of holders of securities and information about their
assets.
It should be emphasized that the Uniform registrar provides your work and interaction with other market
participants, including through electronic means of information exchange. Registrar provides professional
participants of the securities market a modern, comfortable, first of all, reliable communication channel
based on a common technological space, unified electronic message formats that can support the registry
up to date.
This is the first in the Kazakh market successful experience in the beginning of practical work on the
basis of new technologies of interaction between the major accounting institutes and participants
exchange trading.
clearing organization
The system warranty settlement in the domestic securities market activities represented a clearing
organization. Accordingly, the work of clearing organization seeks to minimize risk on accounts with
financial instruments to reduce the time and material costs.
Clearing organization performs the function of accounting of mutual requirements and ensure the
implementation of obligations under the transactions in financial instruments, including, and the futures
market.
On July 23, 2012 KSE performs clearing activities for transactions with financial instruments in the
securities market of Kazakhstan on the basis of a license issued by the FSC NBK.
In this case, the stock exchange shall serve as the central counterparty for transactions in financial
instruments derivatives market.
In general, the activity in the stock market clearing organization aims to minimize the risk of nonpayment for transactions in securities, or to complete the calculations in good faith with all parties, in the
event of default by any of its obligations under the transaction.
Professional stock market participants
In the Kazakh capital markets operate all types of financial intermediaries whose services are required to
investors and issuers to enter the stock market.
The main investors in the domestic stock market are institutional and qualified investors represented by
second-tier banks, pension funds, insurance companies, national holdings.
Moreover since 2005, the country is developing a class of investors, as investment funds.
As part of the issuers whose securities are listed on the KSE, listed 121 joint stock companies and six
limited partnerships, which include commercial banks, insurance companies, mining and
energeticheskiekompanii.
In this note, in Kazakhstan the most active subjects of the stock market are the second-tier banks, which
act as issuers of treasury shares and other securities, as well as investors, acquiring financial instruments
and provides them with agency operations.
Pension funds, representing the largest group of previously domestic institutional investors, due to the
established rules of investing regulator, now reduced their activity in the domestic stock and bond
markets.
Although the major investors in the stock market are Kazakhstan institutional investors, however, the
share of non-resident investors and the country's population remained relatively low.
Professional securities market participants that provide services to customers on the conclusion of
transactions on the stock exchange, use of modern electronic technology Internet access to trading, view
and analyze transactions, reporting and post-trading services. All transactions are in remote access.
Information agency of financial markets "IRBIS"
In December 1998, the KSE was established news agency of financial markets "IRBIS" (ounce), created
and propagated on a commercial basis, information on the financial markets.
For example, news agencies in the securities market have information and consulting support
(maintenance issuers' corporate actions, providing information to investors about the financial
instruments, volumes and prices).
In July 2009, the company officially entered the world market distributors of financial information by
joining vFinancialInformationServiceDivision (FISD) - a division of financial and information services, who
belongs to the software industry and information (SoftwareandInformationIndustryAssociation, SIIA).
To date, Snow leopard - known in financial circles company cooperates with more than 100 partners (FSC
NBK accumulative pension funds, brokers, dealers, issuers and private investors).
From the above it follows that in the Kazakhstan stock exchange commodity market to pool the following
situation: not provided equal access providers; not complied with the transparency of stock exchange
transactions; transactions can not be guaranteed at the best price; there is not an efficient use of budget
funds.
While in theory the idea of transactions on commodity exchanges implies equal access, minimizing costs,
optimize time, guarantee the best market price, saving and efficient use of budgetary resources,
minimize the impact of human factors and full transparency.
5.With Summary Infrastructure
Thus, to a first approximation considered the main participants of the stock market, it must be concluded
that in general in Kazakhstan presented all the key players for the normal functioning of the stock
market.
In general, the information provided above, was the purpose of a common understanding - which players
are presented on the organized securities market. Next, you need to pay attention, in the context of this
study, the following main characteristics of organized stock market:
Full automation of the process of exchange transactions;
active participation of the state as regulator and shareholder;
high level of requirements to all the participants of the exchange market of securities;
automated access to centralized information about the auction.
5.dObzor statistics on trade exchanges
Kazakhstan
It is well known that the trade sector has an important economic and social importance of the role.
So, in the world in average contribution of trade to GDP is about 10%, and in the structure of total
employment reaches a level - up to 10-15%.
In Kazakhstan, the share of trade in GDP is 14.5%. In this area today employs more than 1 million. 200
thousand. People, or about 15% of the economically active population (second only to the agricultural
sector).
In reviewing the statistics revealed some difficulties related to the lack of timely and complete
information about the subjects of the market, the results of their activities. In the calculations, the same
indicators faced with the incompatibility of various departmental information systems (RK Statistics
Agency, Tax Services, Customs Committee, the competition authority).
We believe that the introduction of regulatory requirements of the exchange commodity market to the
organizers of trades on a daily basis to provide data on exchange transactions, will contribute to a
statistical database on exchange turnover. We believe that the acute problem of lack of timely
information with regular monitoring activities in the Kazakhstan commodity market will soon be removed.
The calculations for the exchange turnover, we also rely on data from the International Association of
Exchanges of CIS Countries (IAE CIS) and other international sources.
According to the Agency for Statistics in 2009 compared with 2005, the wholesale trade in the country
increased by 127.5% and amounted to 6 872.3 billion. Tenge. In 2009, the wholesale turnover share of
food products was 16.9%, non-food - 83%.
If we consider the performance of internal trade, namely in the regional context, the following trend can
be traced. So, for the last five years a significant share in the wholesale trade of the country takes Almaty
- 3 075.3 billion. Tenge or 45% of total wholesale trade. The second indicator in Astana in the amount of
1 002.5 billion. Tenge (or 15%), in third place, Karaganda region (495.1 billion. Tenge or 7%).
The highest percentage of annual growth in the wholesale trade in the last five years there has been in
Astana (64%), the lowest - in the North-Kazakhstan region (19%).
According to the Agency for Statistics Number of transactions on the stock exchanges in 2009 decreased
by more than 3.7 times compared to 2005. However, the volume of goods sold through commodity
exchanges, increased by 29%. Thus, if in 2005 the total volume of commodity transactions were carried
out on 84% of goods in 2009 - by 58%.
In 2010, the total trading volume amounted to 86.5 bln., Which is 57% more than in 2009 (55 bln.).
The volume offered for sale spot goods rose more than 9 times (884 billion. Tenge) compared with 2009
(94.5 billion. Tenge).
The number of transactions increased by more than 9 times (10,407 transactions) compared with 2009
(1,119 transactions).
In 2011, the turnover of all stock exchanges of the republic amounted to about 3 billion. US dollars, an
increase of almost 5 times as compared with 2010. Of course, this is further evidence of the increasing
role of commodity exchange market, as a mechanism for fair pricing. Since the transparency of fair
exchange price excludes corruption.
About the export potential of Kazakhstan grain according to data for the year 2012 in terms of trading in
the grain market. As can be seen from the table 5.d.1., Trading volumes of grain on the ETS only slightly
inferior performance of the Moscow Exchange. So, if in 2012 the Moscow Stock Exchange volume of grain
trade reached 751 million US dollars, the UTS - about 632 million US dollars.
Table 5.d.1 «Indicators of the grain market in 2012."
Name of Commodity
Exchange
BUCE
ETC
MB
The volume of
trading in 2012, in
millions of US
dollars
The trading
volume in 2012,
a 5 thousand
tons
Number of
transactions in 2012,
units .
9,0
35,5
23
631,7
2 659,9
436
750,9
3 622,1
2 577
MTB "Kazakhstan"
IFAC
SPIMEX
UZEX
UICE
n/a
n/a
n/a
2,7
109,1
124
0,0
0,0
0
307,0
939,3
45 621
n/a
n/a
n/a
Source: website of the IAE CIS
Table 5.d.2 «The total trading volume on the stock exchanges of the CIS in 2011-2012"
Name of
Commodity
Exchange
2011
The trading volume
in mln. US dollars
1 414,8
BUCE
969,5
ETC
259,2
MB
n/a
MTB "Kazakhstan"
141,5
IFAC
9 315,0
SPIMEX
3 015,4
UZEX
1 967,6
UICE
Source: Stock Report IAE CIS, 2012
2012
Number of
transactions
Number of
transactions
164 241
The trading
volume in
mln. US
dollars
1 513,5
3 724
1 013,8
4 591
1 008
750,9
2 577
n/a
n/a
n/a
1 983
104,2
1 454
12 554
8 204,0
16 932
614 880
3 042,8
532 346
555
2 058,9
594
214 807
5.е Overview of statistical data on the commodity stock market of Kazakhstan
Kazakhstan Stock Exchange serves:
1) stock market (the stock market), is carried out exclusively on kotoromKASE auction organizer
functions, and which can be divided into the following sectors:
• government securities sector (primary and secondary, the average daily trading volume in 2013 - the
equivalent of $ 24.2 million);
• non-state sector (corporate) securities (primary and secondary, the average daily trading volume in
2013 - the equivalent of $ 10.2 million);
• sector repo transactions (securities as collateral repo, the average daily trading volume in 2013 - the
equivalent of $ 256.4 million).
2) derivatives market (futures, episodic transactions), which performs the functions of the organizer KASE
trading, clearing and settlement organizations, as well as the central counterparty;
3) The foreign exchange market (three foreign currencies - US dollars, Russian ruble and the euro, the
average daily trading volume in 2013 - the equivalent of $ 396.6 million), which performs the functions of
the organizer KASE trading, clearing and settlement organizations.
KASE members are professional participants of the securities market and other legal entities, including
foreign ones. As of 01/07/13 KASE members are 62 legal entities, including: members of the stock
market - 54; the currency market - 34; derivatives market - 14.
6. A survey of market participants
6.а Review and synthesis of results
The purpose of the survey is to study and evaluate the exchange market in Kazakhstan,
identifying the key problems and trends and prospects of e-exchange market.
The study used quantitative data collection methods - interviews with potential clients; exchange
market participants; organizers of the auction; Poll regulator exchange market. Qualitative methods focus groups with entrepreneurs; in-depth interviews with representatives of the competent authorities,
business associations.
Target Audience survey: market regulator; organizers and participants of the auction; brokers
and dealers; traders.
The survey covered the following main groups of respondents: representatives of the organizers
of the auction - Commodity Exchanges (20); broker and dealer organizations, traders (17 people);
representatives of producers (7 people) and business - associations (6 people).
In developing the program survey, questionnaires have been complied with the requirements of
technology and standard procedures of the survey. Thus, the questionnaire included 15 questions (with a
choice of option (s) response, and of expression).
Subscribe conducted by e-mail at the addresses listed on the official websites of organizations,
research questions were kept in a specially attached file. Also, the survey was conducted by telephone
respondents from the cities of Astana, Karaganda, Semipalatinsk, Taraz, Shymkent, etc.
The cover letter was the information: who conducts research, research objectives, guarantees
the anonymity of responses, deadlines for submission of completed questionnaires, a preliminary for the
opportunity to participate in the survey respondent.
The study was taken delivery of more than 50 ti respondents by e-mail, conducted a telephone
survey (interview). Thus, the respondents answered the survey and returned to the organizers - a total of
24 questionnaires (about 48%). Note that from the point of view of sociology rate of more than 30% ti
return completed questionnaires - a good result of questioning.
With regard to the geographical scope of the study, the regional section of uchastnikovoprosa is
shown below in Figure 6.A.1. As can be seen from this diagram the greatest number of respondents 38.4% do business in the central part of Kazakhstan (Astana, Karaganda and Kokshetau); more than
34% of the respondents work in the south of the country (Almaty, Shymkent, Taraz); 15.2% of
respondents in the east and 12% of the western region (Aktau, Oral).
Picture 6.A.1 Geographic scope of the study
The majority of respondents (42%) to the question "How would you characterize the current
situation in the Kazakhstan stock market?" Confirmed that the domestic stock market, "the situation is
stable, but still have a lot to do." In this case, one of the respondents said that "the state is actively
involved in the development of the exchange market."
The data presented in the graph in Fig. 6.a.2., Suggests that "the decisive factor in the decision
to buy-sell through the exchange" is the market and transparent pricing (33%), reliability, and full
transparency of transactions (29%). In addition, 20% of respondents believe that the decision to buy-sell
through the exchange affects the possibility of equal access to trading and "guaranteeing the fulfillment
of obligations under the transaction." 13% of respondents believe that through trade on the stock
exchange the company substantial savings.
Picture 6.a.2 The main factors of decision-making
To the question "Do you think that the electronic exchange trade affect the competitiveness of
market participants?" The vast majority, and eto- 42% of respondents believe that the electronic
exchange trade will increase the competitiveness of market participants.
An affirmative answer was given by 25%, but with the caveat "due to the widespread
participation of stakeholders in the market of electronic exchange trading." Negatively answered only 1%
(ie two respondents answered "no, do not have a material impact").
Speaking about the expansion of markets, the question "Do you think e-exchange trading will
help to expand export markets?" The majority of respondents - more than 62% confirmed "yes, there is a
gradual and incremental growth in exports by rasshireniyasbyta."
One percent of respondents expressed that the electronic exchange trading will allow producers
to significantly expand the goods markets. And only one answer was negative - "No, will not contribute to
the expansion of markets."
When discussing the issue of raising capital for market participants and advantageous location
(investment) in the domestic market, opinions were divided.
For example, if six of the respondents believe that "the development of the electronic exchange
trading will attract capital for market participants and / or profitable use of (investment) funds in the
domestic market." That other 11 people gave a negative ("no, no impact"). However, they believe that
there are many other issues that need to be addressed for effective recruitment and placement of capital
in the domestic market.
To the question "Do you think that electronic trading will greatly affect the operational, financial
and time resources?" Almost many of the survey participants (16 people) answered in the affirmative:
"Yes, significantly reducing operational costs and time." Although, two respondents expressed a
diametrically opposite point of view "on the contrary transaction costs increase."
If we talk about the obstacles to the development of exchange trading in Kazakhstan (which
hinders development), the majority of respondents (see. Picture 6.a.3.) Sees the reason for the
unwillingness and inability of producers and consumers to work through the stock exchange; as well as
the lack of support from the state (46%); the imperfection of the legislative framework (29%). Individual
respondents (10%) reported along with the lack of funds, participants exchange trading, and even low
quality hardware and software exchange trading.
Picture 6.a.3 Barriers to the development of exchange trading in Kazakhstan
To the question "What prevents the effective development of electronic exchange trading in
Kazakhstan, in particular?" (Ris.6.a.4.) The majority of respondents (33%) believes that the state "no
substantial support in terms of process automation of the transaction" . And 25% said that there is no
reason affecting the efficient development of electronic exchange trading. 17% said "barriers at the
legislative level" and 0.9% - the lack of additional capital in the subjects of the market.
In addition, in response to this question, some respondents expressed a dissenting opinion. Thus,
the effective development of electronic exchange trading prevents "no desire and no understanding of
market participants" about the benefits of trading.
Picture 6.a.4 Barriers to the development of electronic exchange trading
As for taking the necessary measures for the effective development of e-exchange trading, the
absolute majority, and it is about 71% of the respondents are convinced of the need to improve the
legislation in terms of regulation, promotion and support of electronic exchange trading.
An effective measure of 46% of respondents believe a full-scale coverage of the latest technology
back office brokers and dealers. Also, 17% of respondents were in favor of improving the software and
trading activities of the organizers of ensuring full access to the internet regions / rural districts of the
country.
The survey was made a separate opinion that it is necessary to take measures to stimulate the
market subjects (financial); that the regulator should clearly define the requirements for performance and
technology of electronic trading systems.
The question: "What measures at the legislative level should be taken to ensure the effective
development of electronic exchange trading?" 45% responded that, as the legislative measures should
introduce a regime of tax benefits and preferences. The majority of respondents (58%) clearly say that
we should abandon the technology of voice exchange trading. 25% of those surveyed offer open access
to the domestic stock market to foreign participants.
In addition, respondents stressed the need for an efficient customs administration, namely the
simplification of customs procedures (16.6%), and the adoption of non-tariff regulation (0.8%).
Picture 6.a.5 Legislative measures
Talking about the characteristics of the electronic exchange trading, virtually all respondents
indicated advantages such as: transparency and openness of the procurement process (13), equal rights
for all providers of goods, works and services (13); accessibility for small and medium business (2); high
level of safety and protection of transactions. Stressing that important in electronic stock trading is fair
competition, which excludes non-price methods of struggle.
In the survey, we also found the respondents' opinions about the prospects for the development
of trading. The majority of respondents looking to the future with confidence (46.3%), respectively,
45.8% are "for" active support from the government electronic bidding (Internet sales, mobile Trading).
Dynamic development of the electronic exchange trading, according to 33% of survey participants, will
contribute to the active involvement and participation of the regions of the republic. It is noted that the
dynamism of the electronic exchange trading will give the expansion of the list of financial instruments to
hedge risks. Dissenting opinion poll was made among the participants that it is expanding the list of
commodities will enhance electronic exchange trading.
However, in the age of modern technology selected respondents (12%), supporting the
development of the electronic exchange trading, however, expressed the extreme polar views - "leave
voice method of trading on the customer's choice," arguing that "not all regions of Kazakhstan have
access to Internet resources, because of poor coverage. "
In the study, we asked respondents to express an expert opinion and submit their proposals and
vision regarding the dynamics of the development of electronic exchange trading in Kazakhstan.
Thus, we seek the views of respondents on the application of modern information technologies in
the stock transaction, its feasibility and to evaluate the effectiveness.
6.b Main findings.
It should be noted that, according to the survey, the group of respondents - representatives of the
organizers and bidders demonstrate a high level of economic literacy.
Moreover, the business is important to understand the feasibility of investments, do the calculations in
terms of the estimated investments and to determine what will be the returns under specific performance
of the company.
As a result of an opinion poll found the bidders regarding the level of development of the infrastructure
of the Kazakhstan exchange market. More than a quarter of respondents believe the market in which
they operate, really formed.
1. Results of the study demonstrate that the relevance of the gain at the legislative level requirements for
the exchange transactions in the commodity market exclusively electronically stands today is very acute.
Although electronic auctions are held on the grounds of the majority of Kazakhstan's commodity
exchanges, but, nevertheless, there are some difficulties with equipment, software.
2. Obviously, the organized commodity market should take the most active and comprehensive steps to
further implement and improve the technology of electronic transactions, maintaining a high
technological level software.
3. At the present time to talk about universal holding trading exclusively electronically on an organized
commodity market prematurely - Kazakhstan market of electronic exchange trade is in phase formation.
4. In the domestic exchange commodity market complexities of e-exchange trading is associated with
novelty and the high cost of the process.
5. The survey found that not only questions the effective implementation of electronic trading systems,
including software, acute today, the organizers and participants of trades (brokers and dealers).
Commodity exchanges are challenged with providing assurance of data, as well as opportunities for noncompliance of the electronic system requirements of the regulator.
6. How to find interviewed, activate electronic stock trading likely will contribute to the emergence of
practical experience in the use of the capabilities of modern electronic trading systems, as well as to
develop an adapted version for the Kazakh market.
7. With regard to standardization of trading electronically, then, according to respondents, as one of the
main reasons hindering the implementation of e-commerce in Kazakhstan companies, noted the need for
more detailed formalization and standardization of business processes (in the implementation and
operation of new electronic trading systems). There is a lack of standards for the formalization of
business processes. This situation is typical of an emerging market.
8. Given the large number of commodity exchanges, which do not fully automate the process of
interaction with customers, we have found out - what causes hinder the further development of the
electronic exchange trading in the country. For example, respondents to the main reasons attributed: the
lack of support from the state (8 people); high cost (2) and the complexity of implementation (2).
9. Moreover, as noted by survey participants - one of the main reasons that hinder widespread use of
electronic trading on the Kazakhstan stock exchange commodity market is imperfect legislation and
insufficient amounts of additional investment.
7. Comparative analysis of legislation and regulation of the exchange infrastructure in Kazakhstan
In Kazakhstan, the stock and commodity markets are divided in detail in the legislative regulation.
As follows from Article 1 of the Law on Securities Market "organized securities market - the sphere of
circulation of securities and other financial instruments, transactions that are carried out in accordance
with the internal documents of the auction organizer;
90) unorganized securities market - the sphere of circulation of securities in which securities transactions
are carried out without complying with the requirements established by the internal documents of the
auction organizer. "
That is, the stock market includes turnover of securities and other financial instruments in the organized
market and securities transactions in the unorganized securities market.
Derivative financial instruments whose underlying asset is a commodity (futures market) do not apply to
legal relationships regulated by the Law on Securities Market. They are regulated by the Law "On
Commodity Exchanges":
In accordance with Article 1 paragraph 89 and 90 of the Law "On Commodity Exchanges":
"3) stock market trading - business activities for the implementation of the exchange of goods, carried
out on a commodity exchange through a tendering process, including electronic, recording and
processing of transactions"
"5) The exchange trades - a process conducted under the rules of exchange trade, aimed at making
deals to exchange goods"
"6) the exchange trade participants - clients, brokers and dealers, interacting Mercantile Exchange under
the rules of exchange trade"
"7) the exchange goods - goods not withdrawn from circulation or limited in circulation, including fixedterm contract."
Under the trade market legislation of the Republic of Kazakhstan understands the turnover of goods or
substitute goods, determined on the basis of economic, territorial and technological possibility to buy
consumer goods (claims 14 Article 6 of the Competition Act). There is the concept of regulated markets
as commodity markets, which introduced state regulation of prices in accordance with the laws of the
Republic of Kazakhstan (Article 6 of claims 10 of the Competition Act).
Definition of organized commodity market in the current legislation does not. It is used by analogy with
the concept of "organized stock market", which was given in the Law on Securities Market (pp.89 Article
1 of the Law), is found in the theory and used in practice.
Article 156 of the Civil Code defines the concept of exchange transactions as transactions involving
property, admitted to trading on the stock exchange, and which are on the stock exchange participants
held it trades under the laws of the Republic of Kazakhstan on relevant markets (commodity, stock, etc.)
and the rules of exchange trade.
It corresponds to the definition and exchange transactions, in this article. 15 of the Law on commodity
exchanges. Article 16 of the Commodity Exchange Act stipulates that the commodity exchange are made:
1) deals with the mutual rights and obligations with respect to the spot - goods, including transactions
related to international business transactions; 2) futures transactions; 3) option transactions; 4) deals
with the mutual rights and obligations for storage of documents.
Accordingly, under the organized commodity market should understand the scope of activities to
implement the commodities carried out at the Mercantile Exchange by tendering, including electronic,
recording and registration of transactions in accordance with the legislation of the Republic of Kazakhstan
and the rules of trading.
The concept of "standard contract" is not currently used. The current law of the Commodity Exchange
Act establishes the concept of "futures contract" - a contract for unconditional or conditional sale and
purchase of the underlying asset with delayed execution, he is treated futures, options (claims 12 Article
1 of the Commodity Exchange Act).
The concept of a standard contract in the current legislation still occurs, but it is dated before the
Commodity Exchange Act, which is one of the main normative legal acts adopted in the Republic of
Kazakhstan in the systemic regulation of the organized commodity market and is intended to regulate
social relations arising in the process of commodity exchanges and exchange trade.
The law establishes the procedure of state control and regulation of commodity exchanges in order to
ensure open and effective their operation, protection of exchange trade and fair competition between
them. As noted by the Minister of Economic Development and Trade of the Republic of Kazakhstan
(opening address to the Handbook of exchange activity of Kazakhstan): "The main purpose of the
adoption of the Act was the creation of a legal framework for the effective development of commodity
exchanges, adequate to modern requirements for exchange trading and its participants. Adoption of the
law contributed to the development of competitive business in the field of stock trading and the transition
to new, more modern forms of trade. "
7.a Overview of the regulatory environment of commodity exchange market
State regulation of commodity exchanges in the territory of the Republic of Kazakhstan by the
Government of the Republic of Kazakhstan and the Authority.
The Commodity Exchange Act delineates in detail the competence of the Government of the Republic of
Kazakhstan in the field of commodity exchanges (Art. 3 of the Law on commodity exchanges) and the
competent authority (Art. 4 of the Law on commodity exchanges) (Table 7.a.1).
Table 7.a.1 "Differentiation of powers of the Government of the Republic of Kazakhstan and of the
authorized activities of commodity exchanges"
Competence of the Government of the Republic of
Kazakhstan:
Competence of the Authorized Body:
1. develops the main directions of state
policy in the sphere of commodity exchanges;
2. Approves the program of development
of commodity exchanges;
3. Approves the standard rules of
exchange trade;
4. Approves the qualification requirements
for the activities of commodity exchanges, stock
brokers and dealers;
5. On the proposal of the authorized body
utverzhdaetperechen
commodities
and
the
minimum size of the parties that are implemented
through commodity exchanges, makes changes
and (or) additions;
6. creates conditions for the development
of international exchange trades on a commodity
exchange;
7. Approves the daily electronic reporting
forms of commodity exchanges, the rules of their
presentation;
8. approve the rules of formation and use,
the size of the warranty and insurance funds;
9. Approves the mandatory requirements
for the electronic trading system of commodity
exchanges;
10. performs other functions assigned to
negoKonstitutsiey, laws of the Republic of
1. develops and implements policy
documents in the field of development of commodity
exchanges;
2. develop, approve normative legal acts in
the field of regulation of commodity exchanges;
3. develop proposals for the formation and approval
of the list of commodities and the minimum size of
the parties that are implemented through commodity
exchanges, as well as to amend it and (or) additions;
4. Develops and approves forms of mandatory
departmental reports, checklists, risk assessment
criteria, semi-annual audit plans in accordance with
the Law of the Republic of Kazakhstan "On state
control and supervision in the Republic of
Kazakhstan";
5. developing mandatory requirements for the
electronic trading system of commodity exchanges;
6. developing a daily electronic reporting forms of
commodity
exchanges,
the
rules
of
their
presentation;
7. develop rules of formation and use, the size of the
warranty and insurance funds;
8.razrabatyvaet qualification requirements for the
activities of commodity exchanges, stock brokers and
dealers;
9. submits proposals to create conditions for the
development of international exchange trades on a
Kazakhstan and the acts of the President of the
Republic of Kazakhstan.
commodity exchange;
10. analyzes and monitoring of commodity
exchanges;
11. publishes information on the activities of
commodity exchanges and exchange trade, with the
exception of information constituting commercial or
other legally protected secret of the Republic of
Kazakhstan;
12. carry out international cooperation in the field of
commodity exchanges;
13. formally delegate a representative to the
presence in the commodity exchange, including on
the stock exchange;
14. is responsible for licensing activities in the field of
commodity exchanges;
15. exercise other powers stipulated by the
Commodity Exchange Act, other laws of the Republic
of Kazakhstan, acts of the President of the Republic
of Kazakhstan and the Government of the Republic of
Kazakhstan.
The Commodity Exchange Act provides that the licensing of activities in the field of commodity exchanges
is carried out in accordance with the legislation of the Republic of Kazakhstan on licensing (Article 5 of
the Commodity Exchange Act). In accordance with the requirements st.37-1 Law of Kazakhstan "On
Licensing" dated January 11, 2007 № 214-III having a license is required to engage in the following
activities:
1) the activities of commodity exchanges;
2) the activities of stock brokers and stock dealers.
The order and timing of the license to practice the activities of commodity exchanges in the fixed
standards of public service "Issuance of license renewal, issuance of duplicate license to practice the
activities of commodity exchanges" approved postanovleniemPravitelstva Republic of Kazakhstan dated
June 28, 2012 № 865.
The procedure for issuing licenses to practice as broker, dealer activities in the area of commodity
exchanges are defined according to the standards of the public service "Issuance of license renewal,
issuance of duplicate license to practice brokerage activities in the field of commodity exchanges",
approved by the Government of the Republic of Kazakhstan dated June 28, 2012 number 865 and
Standards for public services "Issue of license renewal, issuance of duplicate license to practice dealer
activities in the area of commodity exchanges", approved by the Government of the Republic of
Kazakhstan dated June 28, 2012 № 865.
In accordance with the legislation of the Republic of Kazakhstan Mercantile Exchange is the organizer
of trading in the commodity market. Commodity exchange is a legal entity established in the legal form of
a joint stock company, provides organizational and technical support through their direct trading of the
trading system using commodity exchange (Article 6 § 1 of the Law on commodity exchanges). According
to claims 6) Article 1 of the Commodity Exchange Act, as participants of exchange trade identified clients,
brokers and dealers, interacting Mercantile Exchange according to the rules of trading. Customers are
individuals or entities who use a broker and (or) the dealer for transactions with a commodity (claims 10
Art. 1 of the Law on commodity exchanges).
In order to state regulation of commodity exchanges the current legislation of the Republic of Kazakhstan
secured qualification requirements for the activities of commodity exchanges, stock brokers and stock
dealers. However, poskolkukvalifikatsionnye requirements do not impose requirements for the minimum
authorized capital of commodity exchanges, then there is a general requirement for the amount of the
authorized capital of the Companies Act, Article 10 of which states that the minimum authorized capital of
the company is 50 000 times the monthly calculation index established by the Law of the Republic of
Kazakhstan on national budget for the relevant financial year. There are also no licensing requirements
and activities of clearing organizations on commodity exchanges.
For the same license to conduct clearing operations with financial instruments in the securities market,
the requirements for the minimum authorized capital of the company is 500,000 times the size of
monthly payments index in accordance with claim 1 claims 7 Resolution of the Board of the National Bank
of Kazakhstan dated 28.04.2012 year number 168 "On the minimum authorized capital of the applicant
(licensee)." As we can see, the difference in the requirements for the subjects of the securities market
and commodity exchanges is essential.
At the moment, it is an obstacle to attracting professional participants of the securities market for
organized commodity market as professional participants of the securities market, with a license
authorities may be parties to exchange trading in terms of transactions with derivative financial
instruments on a commodity exchange. However, for consistency with paragraph 2 of Article 33 of the
Law on Securities Market, the transaction of professional participants of the securities market, entered
into on its behalf and at its own expense in the absence of a central counterparty in the transaction are
limited (Clause 3 of Article 33 of the Law on Securities Market) . At the same time, as part of the Act, the
central counterparty may be the only clearing organization, Central Depository or stock exchange having
a license for activity in derivative financial instruments in the securities market.
Compulsory licensing requirements for clearing organizations on commodity exchanges are not available.
But the license requires that the bid began participating professional participants of the securities market,
to remove the above limitation.
However, compliance with the qualification requirements of the licensee to obtain a license to conduct
clearing operations with financial instruments in the securities market requires significant capital
investment, which, due to lack of development of the derivatives market on commodity exchanges at the
moment, can not be covered by income from the activity.
Although the involvement of professional participants of the securities market, on the other hand, could
contribute to the development of the derivatives market on commodity exchanges.
7. b The existing legal restrictions to trade exchanges.
For the purposes of state regulation of the organized commodity market in the Republic of Kazakhstan
are legislative strengthening certain limitations. Existing restrictions in this area can be divided into three
main groups:
1) the organizer of trading and its activities;
2) to the participants of exchange trade;
3) on the objects of trading.
Limitations to the organizer of trading and its activities include:
1) Commodity Exchange prohibited from trading and other activities not directly related to the
organization of exchange trade (in accordance with Section 3 of Article 13 of the Commodity Exchange
Act);
2) Do not install Mercantile Exchange remuneration charged by brokers and dealers for mediation in
exchange transactions (Clause 3 of Article 14 of the Commodity Exchange Act). A similar restriction is
also enshrined in p.137 Resolution of the Government of the Republic of Kazakhstan dated April 21, 2005
№ 371 "On approval of internal trade", which is supplemented by a ban on the establishment of the
levels and limits of commodity prices;
3) in accordance with Article 15 of the limitation of claim 4 of the Law on commodity exchanges,
exchange transactions can not be committed in the name and for the account of a commodity exchange;
4) The provisions of Article 11 of the Commodity Exchange Act provides that the number of members of
the Commodity Exchange shall not be less than seven. In addition, members of the Commodity Exchange
may not be affiliated with commodity exchange entities;
5) separate limit provided for workers Mercantile Exchange, which is prohibited to participate in exchange
transactions, and use business information in their own interests (paragraph 2 of Article 12 of the
Commodity Exchange Act);
6) in the regulation of public procurement on a commodity exchange provided that they are carried out in
double counter auction and carried out only by means of electronic exchange trading (item 2, item 4
st.13-1 the Commodity Exchange Act).
Among the limitations of exchange trade participants include:
1) restriction associated with admission to the Commodity Exchange of exchange trade, the relevant
qualification requirements. In accordance with claim 1, Article 19 of the Commodity Exchange Act broker
and dealer activity on the commodity exchange carried out under a license issued by the authority.
Thus, access to tender foreign brokers and dealers, the current legislation of the Republic of Kazakhstan
is not provided as to obtain a license, you must be a legal entity registered in the Republic of Kazakhstan.
Commodity Exchange has the right to impose additional eligibility requirements - for members of the
exchange - the size of the share capital, the terms of activity in the market and others.
2) limit for transactions professional securities market participants in the futures market commodity
exchanges on its own behalf and at its own expense in the absence of a central counterparty;
3) Article 2.4 of the Commodity Exchange Act stipulates that at least fifteen percent of the total selfexchange turnover of goods included in the list of commodities, of the exchange trade is carried out in
double counter auction.
Restrictions on stock trading sites are set on different grounds. Law of the Republic of Kazakhstan "On
regulation of commercial activities" on April 12, 2004 № 544-II provides that the Government of the
Republic of Kazakhstan can export bans and (or) import of certain goods or quantitative restrictions on
export and (or) the importation of certain goods (Art. 18 of the Act).
Government of the Republic of Kazakhstan on the basis of the need to
introduced the following prohibitions and quantitative restrictions on the import and (or) export of certain
goods (Table 7.b.2).
Table 7.b.2 «bans and quantitative restrictions on imports and (or) export of certain goods"
Export bans and (or) the importation of certain
goods:
Quantitative restrictions of export and (or)
the importation of certain goods:
1) observance of the rule of law;
2) protection of human life and health, the
environment;
3) preservation of the cultural heritage of the
people of the Republic of Kazakhstan;
4) protection of cultural property and of national
cultural heritage of the illegal export and (or)
import;
5) prevent the depletion of non-renewable
natural resources while limiting their domestic
production and consumption;
6) national security;
7) fulfillment of international obligations;
8) ensuring food security of the country.
1) national security;
2) fulfillment of international obligations;
3) protection of the internal market;
4) the introduction of the response to the
application of discriminatory restrictions other
States for domestic products.
Quantitative restrictions of export and (or) import of certain goods are entered in accordance with the
laws of the Republic of Kazakhstan and implemented through licensing. The foregoing prohibitions and
quantitative restrictions on the export of certain goods are introduced to prevent or reduce the critical
shortage in the domestic market of food or other goods that are particularly important for the domestic
market. For example, the Law of the Republic of Kazakhstan "On state regulation of production and
turnover of certain types of petroleum products" dated July 20, 2011 № 463-IV provides that various
restrictions may be imposed under state regulation of production and turnover of certain types of
petroleum products. Resolution of the Government of the Republic of Kazakhstan dated March 2, 2012 №
286 approved the list of petroleum products, which is established by state regulation of prices. In the
current list of such oil products included:
1) gasoline AI-80, retail sale;
2) gasoline AI-92, retail sale;
3) gasoline AI-93, retail sale;
4) diesel fuel (summer, off season), retail sale.
There is in this area as a temporary ban on the export of light distillates and products, kerosene, gas oil
and other petroleum products, which is incorporated in accordance with the decision of the Government
of the Republic of Kazakhstan dated June 29, 2012 № 886. This ban imposed for a period of six months
(Government introduced in with effect from 1 July 2012.) and apply to the export of light distillates,
kerosene, gas oil and other petroleum products, except for special gasoline and home heating oil.
One of the important aspects of the regulation of stock trading is the determination by the Government
of the Republic of Kazakhstan the list of commodities that are sold through commodity exchanges, in
excess of the minimum size to represent the party. At present, such a list is made up of nine kinds of
goods (a list approved by the Government of the Republic of Kazakhstan from 06.04.2011g. №375) and
includes:
Table 7.b.3 «The list of commodities that are sold through commodity exchanges, in excess of the
minimum size to represent the party"
№
1
1
Short name of the product
2
Potatoes, fresh or chilled: other
Код ТН ВЭД ТС
The minimum lot size
3
0701 90 900 0
4
60 tons
2.
3.
4.
5
6
7
8
9
Wheat and meslin: other spelled, soft wheat
and meslin other **
Barley: other**
Soybeans, whether or not broken: Other
White sugar
Portland cement, aluminous cement, slag
cement, supersulphate cement and similar
hydraulic cements, whether or not colored or
in the form of clinkers
Coal; briquettes, pellets and similar solid fuels
derived from coal *
Lignite or brown coal, whether or not
agglomerated, excluding jet *
Cotton, carded or combed
1001 91 900 0
1001 99 000 0
1003 90 000 0
1201 90 000 0
1701 99 100
2523
600 tons
2701
3 000 tons
2702
3 000 tons
5203 00 000 0
600 tons
600 tons
600 tons
60 tons
60 tons
7.с The legislative procedure of clearing and settlement by the results of trading
Organization and implementation of the settlement of exchange transactions is one of the functions of
the commodity exchange, directly enshrined in the Commodity Exchange Act (Article 13 of the Law).
In accordance with the Rules p.136 domestic trade, approved by the Government of the Republic of
Kazakhstan dated April 21, 2005 № 371 "independently establishes Exchange: Trading rules and other
rules."
Some detail about calculations, which are set by the exchange on their own, is contained in the Model
Regulations, stock trading, approved by the Government of the Republic of Kazakhstan dated December
8, 2009 № 2042, and is mandatory for all participants in trading.
These Model Regulations as part of the basic concepts that are used in them, contain the definition:
"9) settlement organization - the bank or organization engaged in certain types of banking operations,
which commodity exchange and (or) clearing center concluded agreements on the order of interaction in
the conduct of trading and settlement of transactions concluded on the stock exchange."
At the moment, neither exchange nor their clearing houses under the current legislation can not obtain a
license to engage in certain types of banking operations, and as a result, all cash transactions commodity
exchanges made through banks or institutions performing certain types of banking operations.
Calculations of exchange trade with the Commodity Exchange are made in accordance with the rules laid
down by commodity exchange and contracts for exchange services.
The possibility of using one or more methods of settlement of transactions concluded on the stock
exchange provides rules Mercantile Exchange. If the rules are several ways to settlement of transactions
concluded on the stock exchange in a certain mode of trade, the parties choose one of these methods in
the transaction by specifying the settlement code in applications.
Calculations based on the contracts concluded on the basis of stock exchange transactions with the
provision of security are made using accounts Mercantile Exchange and / or its clearing center in the
following cases:
1) if the enforcement of obligations on exchange transactions provided by the member exchange trading,
acting as a seller or representing the interests of the seller, and on the terms of the contract calculations
are made in the form of pre-payment;
2) if the enforcement of obligations on exchange transactions provided by the member exchange trading,
acting as buyer or representing the interests of the buyer and the terms of the contract delivery of goods
is carried out prior to its payment.
Means of ensuring fulfillment of obligations under the exchange transaction in the event of default
(inadequate performance) exchange trade participant obligations under the exchange transaction, the
performance of which was provided by means of the above, in the prescribed manner Mercantile
Exchange, the injured party lists for non-fulfillment (not properly) performed the exchange transaction.
Commodity Exchange in order to enforce committed to it futures and options transactions organizes
settlement services through the clearinghouse (Clause 1 of Article 17 of the Commodity Exchange Act).
The Commodity Exchange Act defines as clearing activities for the offset of mutual claims and obligations
between the parties to exchange trading on transactions Mercantile Exchange. Article 17 of the Law on
commodity exchanges "Guarantees in stock trading with futures and options transactions" establishes
certain requirements regarding the conduct of clearing (Table 7.c.4).
Clearing centers may be established as independent commodity exchange organization, as well as
specially organized as a structural unit - Clearing Centre as part of the commodity exchange.
Table 7.c.4 «Activities Clearing Centre"
Clearing centers in their activities:
1) establish the types, sizes, and the procedure for collecting contributions to ensure the execution of futures
and options transactions and compensation for damage resulting from non-performance or improper
performance of obligations under these transactions, as well as identify other financial obligations of these
transactions;
2) take measures to guarantee the futures and options transactions;
3) to set-off of mutual claims and obligations of the parties involved in the calculations carried out as a result
of transactions in goods;
4) define the requirements and (or) the obligations of the parties in futures and options transactions,
organize them calculations
Clearing centers can serve a central counterparty - be on exchange transactions the buyer to every
seller and the seller to every buyer. "In this case, clearing centers should be established as
separate from the commodity exchanges of legal persons, since there is a limit to claim 4 of
Article 15 of the Commodity Exchange Act - exchange transactions can not be committed in the
name and for the account of the commodity exchange.
In assessing the state of the current legislation concerning the order of settlement and clearing of
the results of the exchange trades can note the following:
On the one hand, the question of the organization of clearing and settlement is related to the level of
commodity exchanges and detailed regulation occurs on the basis of rules approved by the
exchange itself, on the other hand, exchanges are limited in possibilities to organize these
activities, because the existing licensing banking and clearing activities for transactions with
financial instruments in the securities market does not allow to obtain such a license commodity
Exchanges (their clearing Centre) - because they are neither financial institutions nor the
securities market entities that are entitled to obtain such a license.
In view of the legislative differentiation of the securities market and the organized commodity market
has overlapping regulatory clearing activities in these markets.
In particular, the clearing activities for transactions with financial instruments licensed under Article
45 of the Law on Securities Market - see "6-1 clearing activities for transactions in financial
instruments" and p. 16-1 of Article 32 of the Law on Licensing - "Licensing activities financial
sphere and activities related to the concentration of financial resources. "
While requirements on licensing of clearing center, performing clearing activities for transactions in
options and futures that are attributable to transactions in financial instruments and implemented
on commodity exchanges in accordance with the requirements of the Commodity Exchange Act,
is not established.
Today the market of futures contracts on commodity exchanges, underlying asset performs product
is underdeveloped.
Brokers and dealers organized commodity market still do not have sufficient means to provide for
growth of the trading volume in this market, and professional participants of the securities
market is limited by the legislation on securities market.
Thus, it is necessary to take additional efforts to legislate the elimination of the temporary differences
in the regulation to expand the circle of participants of exchange trading.
Second-tier banks in the Republic of Kazakhstan take part in the compulsory settlement of the
prisoners on the stock exchange transactions with the goods. The condition for such participation
are signed between the Bank (as a settlement organization), commodity exchanges and (or)
clearing center agreement on the procedure of interaction during exchange trading and
settlement of transactions concluded on the stock exchange (claim 9) 3 of the Model Regulations
exchange trading).
The participation of banks in the following cases:
1) payment of the exchange of goods by opening an account in the design organization with which
commodity exchange or clearing center, clears the results of the exchange trades entered into an
agreement providing for the participation in the implementation of the settlement organization,
the settlement of transactions concluded on the stock exchange is disclosed in the case of
submission of documents confirming delivery of exchange goods, provided the Exchange Rules,
which enclosed the relevant transaction;
2) payment of the exchange of goods through a clearing organization without opening an account on
the "delivery versus payment" subject to the deposit of a specialized organization, certain rules of
the exchange, which concluded the transaction in single or double warehouse receipt (warehouse
certificate separated from the pledge certificate) or other documents, certain rules of the
exchange, confirming the presence or shipment of the exchange of goods;
3) the delivery of the exchange of goods on a prepayment basis of the exchange of goods by the
buyer;
4) payment under the terms of the exchange commodities exchange commodity predpostavki seller.
7.d the settlement of export-import exchange transactions
In addressing the design of regulation of export-import exchange transactions arising problems cause
an individual approach to the determination of the conditions of commercial contracts. Questions
arising from the multiplicity of existing forms of payments, the opposite interests of participants
in the transaction, there are certain traditions.
Participants exchange transaction at the conclusion of the contract solve a number of issues related
to the choice of a mutually acceptable forms of payment, within the approved standard
commodity exchange market contract. Among these issues are:
• choice of currency prices and the currency of payment;
• Establishment of the conversion rate and mechanism of translation;
• payment terms (may be in cash, credit, etc.);
• form of payment;
• a means of payment used in the calculations;
• ways of insurance side of the currency risk and the risk of insolvency.
On the forms and conditions of the settlement of foreign trade contracts with foreign contractors,
their monetary conditions affect several factors, the main ones are:
• conditions of the relevant commodity market;
• The nature of the goods;
• trade practices;
• availability of intergovernmental agreements that contain monetary and financial conditions;
• the rules of national currency laws of the contracting parties, as well as international conventions;
• Fold in the banking practice uniform rules in connection with the use of foreign trade letter of credit
and collection forms of payments, bank guarantees.
As we discussed above, the Law on commodity exchanges, as well as regulations to it, reflected the
organization and the settlement of exchange transactions commodity exchanges of the Republic
of Kazakhstan.
Notwithstanding the provisions of Article 13 of the Commodity Exchange Act, that the Commodity
Exchange shall perform the function of the organization and the settlement of exchange
transactions, be aware that the commodity exchange can not act as a settlement organization,
which may be a bank or organization engaged in certain types of banking operations . Clearing
Center can only conclude relevant agreements on the order of interaction with them during
exchange trading and settlement of transactions concluded on the stock exchange.
Touching upon the settlement of export-import exchange transactions executed on commodity
exchanges, it should be noted that these transactions are also subject to the regulation of the
currency legislation of the Republic of Kazakhstan.
Thus, the participation of commodity exchange in the calculation of export-import exchange
transactions concluded in trading, is at the moment very truncated character - exactly within the
calculation of the transaction in accordance with the rules described in the internal rules of the
exchange on tendering and clearing. Accordingly, the effective settlement operations on exportimport exchange transactions conducted on commodity exchanges in the form of money transfer
or other form of exercise for the moment exclusively through authorized banks in compliance
with the currency legislation.
To date, the Republic of Kazakhstan is actively working on the approximation of the currency
legislation with other countries, the EEA and the formation of an integrated currency market. In
recent years, signed the following international agreements and treaties that affect the foreign
exchange payments of exchange trade:
1) Agreement on cooperation in the field of integrated currency market of the Eurasian Economic
Community (St. Petersburg, 25 January 2006) between the Republic of Belarus, Kazakhstan, the
Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan. Accepted
ResheniemMezhgosudarstvennogo Council of the Eurasian Economic Community on January 25,
2006 № 268. RatifitsirovanoZakonomRespubliki Kazakhstan dated December 13, 2006 № 206III;
2) Agreement on the agreed principles of monetary policy (Moscow, December 9, 2010) between the
Republic of Belarus, Kazakhstan and the Russian Federatsiey.Ratifitsirovano Law of Kazakhstan
dated May 24, 2011 № 439-IV (entered into force on 1 January 2012) ;
3) Agreement on coordinated monetary policy states - parties to the Agreement on the agreed
principles of monetary policy of 9 December 2010 (Almaty, December 12, 2011) concluded
between the National Bank of the Republic of Belarus, the National Bank of the Republic of
Kazakhstan and the Central Bank of the Russian Federation (came into force on 01.01.2012.);
4) Agreement on Fundamental Principles politikigosudarstv currency of the Eurasian Economic
Community to regulate and control operations related to the movement of capital (St. Petersburg
on December 11, 2009) between the Republic of Belarus, Kazakhstan, the Kyrgyz Republic, the
Russian Federation, the Republic of Tajikistan. Draft Law of the Republic of Kazakhstan on
ratification submitted to the Majilis of the Parliament of the Republic of Kazakhstan
postanovleniemPravitelstva RK from May 15, 2012 № 616;
5) An agreement on basic principles of policy in the field of currency regulation and currency control
in the CIS Member States (St. Petersburg, October 18, 2011) between the government and the
central (national) banks of the Republic of Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyz
Republic, Republic of Moldova, Russian Federation, Tajikistan, Turkmenistan, Uzbekistan and
Ukraine. At the time of the survey this Agreement the Republic of Kazakhstan has not yet
ratified.
In accordance with the above-mentioned agreements, the Republic of Kazakhstan systematically
taken steps to amend the currency legislation to liberalize the exchange rate regime, streamlining
procedures related to foreign trade operations.
Was no exception and signed by the President in early 2012 the Law "On Amendments and
Additions to Certain Legislative Acts of the Republic of Kazakhstan on Currency Regulation and
Currency Control", which entered into force on 28 January 2012 goda.V accordance with it
changes and additions made to the laws "on the National Bank of the Republic of Kazakhstan"
and "on Currency Regulation and currency Control", which provide for the replacement procedure
the transaction certificate on registration procedure of foreign trade contract, which, in turn,
affects the reduction of the number of documents required for customs clearance.
For the organization of work on the principle of one-stop shop needed to change the order of
registration of customs declarations, reducing the large number of documents, and to remove
barriers to the completion of this work. This was possible due to the development of egovernment, the creation of a single window for export-import operations. Made
izmeneniyapovlekli reduce the total number of documents submitted by importers and exporters
for customs clearance of goods, the cancellation of the transaction passport. Now, after the
enactment of the law the concept of "transaction passport" is replaced by "the account number
of the contract."
The transaction passport is issued in authorized bank, then was presented at the customs
clearance of goods and was used to correlate the cash flows with the movement of goods. Now,
the registration number of the contract, which has a structured format, excluding its
repeatability, is placed on the foreign trade contracts bank servicing payments under the
contract, then the same number used in the design of the declarations and conduct other
operations with currency. He indicated during the payments under the contract, as well as the
declaration of goods when moving goods across the customs border of the Customs Union. The
procedure for registration of the contract allows the bank to implement a mechanism of exportimport control using information system "Single Window for export and import operations." This
preserves the well-established scheme of automatic exchange of information between the
National Bank of the Republic of Kazakhstan, second-tier banks and the Customs Control
Committee of the Ministry of Finance of the Republic of Kazakhstan for the comparison of
commodity and cash flows of the contract. It should be noted that the accounting registration of
the contract corresponds to the practice of monitoring repatriation to countries - participants of
the Customs Union and allows you to apply a unified approach to completing customs
declarations residents of those states.
The main body of currency regulation in the Republic of Kazakhstan is the National Bank of
Kazakhstan, which provides:
1) the procedure for residents and non-exchange transactions, including currency regulation regimes:
registration, notification;
2) the procedure for monitoring foreign exchange transactions of non-residents carrying out activities
on the territory of the Republic of Kazakhstan (currency monitoring);
3) forms of accounting and reporting of currency transactions, mandatory for all residents and
nonresidents, in coordination with the state authorities in accordance with their competence.
Foreign exchange transactions in respect of which the Act does not set the order of their
implementation, are conducted without any restrictions.
Detailed review of the rules of the currency legislation of the Republic of Kazakhstan will be provided
below.
Terms 7.e functioning futures market in an organized commodity market.
In accordance with the Law on commodity exchanges exchange trading - process conducted under
the rules of exchange trade, aimed at making transactions on commodities. In turn, the
exchange goods - goods not withdrawn from circulation or limited in circulation, including fixedterm contract, admitted commodity exchange to exchange trade, except for real estate and
intellectual property.
Urgent trading on commodity exchanges are reduced to trade in futures contracts, certain contracts
as "unconditional or conditional on the sale of the underlying asset with delayed execution, he is
treated futures, option" (claims 12 Article 1 of the Law).
In accordance with Article 128-2 of the Civil Code - "Derivatives" is defined: "2. Derivative financial
instruments include options, futures, forwards, swaps and other derivative financial instruments
which fulfill these characteristics, including representing a combination of the above derivative
financial instruments.
Underlying assets of derivative financial instruments are commodities, standardized batch of goods,
securities, currencies, indexes, interest rates and other assets that have a market value, future
events or circumstances, derivative financial instruments ".
It follows from the above definitions, the futures market commodity exchange can include as objects
of fixed-term contracts with virtually any underlying assets stipulated in Article 128-2 of the Civil
Code. However, the development of such trade encounters no significant participants who would
have sufficient resources and qualified personnel, and an interest in professional participants of
the securities market regulator is limited due to the lack in the commodity market licensing and
qualification requirements, respectively, to the Commodity Exchanges and Clearing Centre,
similar as for the securities market.
Thus, the development of the derivatives market would get new opportunities to create a clearing
organization that would meet the qualification requirements for a license to work with derivative
financial instruments in the securities market and would help to reduce the risks for transactions
bidders.
Since the Commodity Exchange allows you to set a commodity fair market price, which is formed on
the basis of supply and demand during exchange trading and depend on market conditions, and
the transparency mechanism of trading makes it unlikely collusion and price gouging. In addition,
the stock exchange on an equal footing attended by several brokers from both sellers and buyers
from, respectively, it is possible to buy or sell at the best price based on free competition.
Resolution of the Government of the Republic of Kazakhstan dated May 7, 2012 № 586 "On
approval of the allocation of quotas for greenhouse gas emissions" provided that the sale of quotas for
greenhouse gas emissions can be made on the terms of the option, the quota may be a commodity in the
organized commodity market (in accordance with the Claim 13 of the Regulation provides that for
consistency with paragraph 4 of Article 94-5 of the Environmental Code of the Republic under the terms
of the option Kazahstanprodazha carried out in the case of quota allocation from the reserve quotas
national plan).
Currently, according to the Commissioner authority of 05.04.2013g. in the Republic of
Kazakhstan has 20 commodity exchanges and commodity brokers 482 and commodity dealers. The total
exchange turnover for the year 2012 amounted to 1 447 234 400 000 tenge.
(http://comtorg.gov.kz/torgovaya-politika/vn1/bj1/cont3/67549435.html).
December 9, 2008 was created the country's first electronic stock exchange with the
participation of the state - JSC "Commodity Exchange" Eurasian Trading System ".
State support is carried out by the President of the Republic of Kazakhstan and the authorized
bodies of state power. The main impetus to the development of organized commodity market in the
country is given by the President of the Republic of Kazakhstan. For example, in the Decree of the
President of the Republic of Kazakhstan "On State program for accelerated industrial and innovative
development of Kazakhstan for 2010-2014 and the Repeal of certain decrees of the President of the
Republic of Kazakhstan" from 19.03.2010g. Number 958 it is determined that in order to create a
transparent pricing system based on international practices will be a modern stock exchange trading
infrastructure.
Market regulator acts Trade Committee, which is a department of the Ministry of Economy and
Budget Planning. In order to support the organized commodity market that body interacts with the
Government of the Republic of Kazakhstan, the Ministry of Economic Development and Trade, the
National Bank of the Republic of Kazakhstan, the Committee on Regulation and Supervision of Financial
Market and Financial Organizations of the National Bank of Kazakhstan and other state agencies.
One of the unresolved issues of organized commodity market regulation and interaction of the
Authorized body with securities regulators (National Bank of Kazakhstan) is a matter for regulation of
activity of clearing cents through which the settlement services for committed Mercantile Exchange
futures and options transactions. "The stumbling block," as we see it, is the lack of licensing of clearing
centers on an organized commodity market on the one hand, and the existing requirements for the
licensing of clearing organizations in the securities market on the other. The way out of this situation may
be making changes and amendments to the Law on Securities Market, the Commodity Exchange Act,
licensing and the authorized body of relevant legal act regulating the qualification requirements as to the
actual clearing centers and their activities in the organized product market.
7.g existing tax on exchange transactions
First of all, it should be noted that the exchange transaction recognized as transaction involving
property, admitted to trading on the stock exchange, and which is held by participants on the stock
exchange it trades under the laws of the Republic of Kazakhstan on commodity exchanges and exchange
trade rules (1 Article . 15 the Commodity Exchange Act). Because through exchange transactions there is
a realization of commodities, by the end of the implementation of exchange transactions arises obligation
to pay value added tax (hereinafter - VAT) on the terms and conditions set forth by the current legislation
of the Republic of Kazakhstan and international treaties ratified by the Republic of Kazakhstan.
For VAT should be allocated 2 groups of persons (article 228 of the Tax Code). The first group
of taxpayers are the persons who respect of which the statement on the registration account for the
value added tax in the Republic of Kazakhstan (such persons in the Republic of Kazakhstan are individual
entrepreneurs, resident legal entities, except for public institutions; non-residents operating in the
Republic of Kazakhstan through a branch or representative office, trustees, traffic for the sale of goods,
works and services for the trust management agreements with the trustor or to beneficiaries in other
cases of trust management). The second group of taxpayers should include persons importing goods into
the territory of the Republic of Kazakhstan in accordance with the customs legislation of the Customs
Union and (or) the customs legislation of the Republic of Kazakhstan (the exhaustive list of such persons
is set out in claims 2) Art. 276-2 of the Tax Code).
Subject to taxation in accordance with the provisions of Article 229 of the Tax Code are taxable
turnover and taxable import. In this case, the taxable turnover is turnover, performed by a VAT payer:
1) the sale of goods, works and services in the Republic of Kazakhstan, with the exception of
non-taxable turnover referred to in Article 232Nalogovogo Code. In claim 1 st.231 Tax Code is detailed
definition of the turnover in sales of goods, which includes including the sale of goods; donation of
goods; exports of goods; shipment of the goods on the terms of payment by installments; shipment of
the goods under the contract of commission; Returns in the customs procedure of re-import previously
taken in the customs procedure of export, etc .;
2) for the acquisition of works and services from non-resident who is not a payer of value
added tax in the Republic of Kazakhstan and not carrying on business through a branch office.
Taxable turnover is determined in the manner provided st.238 Tax Code. At the same time
there is a reservation in p.p.2,3 Article 10 of the Law of the Republic of Kazakhstan "On Transfer Pricing"
from 05.07.2008g. №67-IV that to exchange goods, the list of which is approved by the Government of
the Republic of Kazakhstan, the adjustment of taxation objects and (or) objects, related to taxation will
be subject to the price range and the differential referred to in the sources of information, except as
otherwise provided above Article. On transactions with agricultural adjustment of taxable items and (or)
objects, related to taxation, performed at the transaction price deviates from the market price by more
than ten percent.
A second object of taxation is the taxable import. In accordance with the provisions of the Tax
Code st.246 taxable imports are goods imported onto the territory of the Customs Union (except for
goods that are exempt from value added tax in accordance sostatey 255Nalogovogo Code) to be declared
in accordance with the customs laws and customs union (or) the customs legislation of the Republic of
Kazakhstan. In the amount of taxable imports includes the customs value of imported goods, determined
in accordance stamozhennym legislation of the customs union and (or) the customs legislation of the
Republic of Kazakhstan, as well as the amount of taxes and customs duties payable to the budget of the
importation of goods into the Republic of Kazakhstan, with the exception of VAT the cost to import (Art.
247 of the Tax Code).
The sale of goods (including exchange), a VAT payer is obliged to write an invoice recipient (p.2
st.263 Tax Code), the payer of value added tax indicated on the invoice: by turnover taxable added value
- the amount of value added tax; on the turnover exempt from value added tax - mark "No VAT" (p.3 art.
263 of the Tax Code). The general order (of which there are a few exceptions, does not apply to
exchange transactions) provides that an invoice is issued not earlier than the date of turnover and not
later than five days after the date of the sales turnover (first paragraph 7 of Article. 263 of the Tax Code)
.
The current VAT rate is 12 percent and is applied to the taxable turnover and taxable imports
(p.1 st.268 Tax Code).
Turnover on the sale of goods for export is taxed at zero rate. The export of goods is the export
of goods from the customs territory of the Customs Union, carried out in accordance with the customs
legislation of the Customs Union and (or) the customs legislation of the Republic of Kazakhstan. In
addition, the zero rate subject to: the implementation of the special economic zone of goods, completely
consumed priosuschestvlenii activities that meet tselyamsozdaniya special economic zones, on
perechnyutovarov determined by the Government of the Republic of Kazakhstan; sales turnover of
taxpayers, engaged in gold mining and production, the National Bank of the Republic of Kazakhstan
refined gold from raw materials of its own production to replenish foreign exchange assets; sales
turnover of goods produced taxpayers engaged in the territory of the Republic of Kazakhstan activities
within the subsoil use contract, in accordance with the terms of which are exempt from value added tax
of imported goods; sales turnover of unstable condensate produced and sold by the subsurface user
engaged in activities within the framework of the subsoil use contract referred to in paragraph 1 of Article
308-1Nalogovogo Code, from the territory of the Republic of Kazakhstan to the territory of other Member
States of the Customs Union; sales turnover of a taxpayer engaged in the activities of the
intergovernmental agreement on cooperation in the gas sector, in the territory of another Member State
of the Customs Union of refined products from raw materials, these previously exported by the taxpayer
from the Republic of Kazakhstan and processed in the territory of that other Member State of the
Customs Union .
The taxpayer is obliged to pay value added tax that may be a contribution to the budget at the
location for each tax period (tax period in this case is a calendar quarter) no later than the 25th day of
the second month following the reporting tax period. Value-added tax on imported goods shall be paid on
the day determined by the customs legislation of the Republic of Kazakhstan for the payment of customs
duties (p.p.1,2 Art. 271 of the Tax Code).
In accordance with Article 236 of the Tax Code, "the place of supply of goods is the place:
1) the transport of the goods if the goods are transported (sent) by the supplier, recipient or a
third party;
2) in other cases - the place of delivery of goods to the recipient.
Please note that if the place of sale turnover in sales of goods is not the Republic of
Kazakhstan, is a recognized non-taxable turnover (claim 2) Art. 232 of the Tax Code).
Participants exchange transactions also need to consider the possibility of inclusion in the
existing settlement of VAT. Since the current version of Clause 1, Article. 256 of the Tax Code contains
requirements and conditions for the realization of the right to a set-off. Recipient of the goods has the
right to offset the amounts of value added tax payable for the goods received, including fixed assets,
intangible and biological assets, investments in real estate, if they are used or will be used for purposes
of taxable turnover, as well as, if the following conditions are met:
1) the recipient of the goods is a payer of value added tax in accordance with subparagraph 1)
of paragraph 1 of Article 228Nalogovogo Code (ie, should refer to the first group of taxpayers);
2) the supplier, who is the payer of value added tax on the date of the invoice, issued invoice or
other document submitted in accordance with paragraph 2 of this article on goods sold in the territory of
the Republic of Kazakhstan;
3) In the case of import of goods value added tax paid to the budget and is not refundable
under the terms of customs procedures;
4) In the cases provided for in Article 241 of the Tax Code (the case of acquisition of works,
services from a non-resident who is not a payer of value added tax in the Republic of Kazakhstan and not
carrying on business through a branch or representative office), fulfilled the tax obligation to pay value
added tax;
5) when setting the persons referred to in subparagraph 1) of paragraph 1 of Article 228
(persons of the first group of taxpayers) of the Tax Code, on the register at the value-added tax data
shall have the right to set-off of amounts of value added tax on goods balances (including fixed assets ,
intangible and biological assets, investments in real estate) on the date of registration for value added
tax.
The tax legislation of the Republic of Kazakhstan fixed features of the regulation of VAT on
exports and imports of goods in the customs union (Chapter 37-1 of the Tax Code). It should also be
noted that the Administrative Code was amended to provide for administrative liability for failure to
perform duties of taxpayers, the tax legislation of the Customs Union. Thus, the amended Articles 206,
207, 209 of the Administrative Code, in particular a new article 218-1, which provides administrative
liability of taxpayers in export and import of goods, works and services in the Customs Union.
In addition, on 1 July 2010, entered into force international treaties concluded between Member
States of the Customs Union, which is regulated in the taxation of the VAT on exports and imports of
goods, performance of works and services, as well as its tax administration in mutual trade States
members of the customs union:
• Agreement on the principles of indirect taxes on exports and imports of goods, works and
services in the Customs Union on January 25, 2008;
• Protocol amending the Agreement on principles of indirect taxes on exports and imports of
goods, works and services in the Customs Union on January 25, 2008 (11 December 2009);
• Protocol on the order of indirect taxes and the mechanism of control of their payment for
exports and imports of goods in the customs union of 11 December 2009;
• Protocol on the order of indirect taxes in the performance of work, provision of services in the
Customs Union of 11 December 2009;
• The protocol for the exchange of electronic information between the tax authorities of the
Member States of the customs union of the amounts paid indirect taxes of 11 December 2009.
According to the Agreement on the principles of indirect taxes on exports and imports of goods,
works and services in the Customs Union on January 25, 2008 the collection of indirect taxes (VAT and
excise duties) in mutual trade of Member States of the Customs Union is made on the principle of
"country of destination" according to which the export of goods subject to VAT at the zero rate, imports at the rate applicable in the country of import.
In cooperation with Ukraine has a separate agreement between the Government of the
Republic of Kazakhstan and the Government of Ukraine on the principles of indirect taxes on exports and
imports of goods (works, services) (Kiev, June 13, 1997), which was ratified by the Republic of
Kazakhstan in accordance with the Law Republic Kazahstanot May 11, 1999 № 380-1.
Adopted by States - members of the Customs Union internal regulations and international
treaties signed regulate issues of administration of indirect taxes in the Customs Union and implemented
to avoid incomplete facts receipts of indirect taxes on goods imported into the territory of the Republic of
Kazakhstan to the Republic of Belarus and the Russian Federation.
7.h types and amount of liability for violation of the law of commodity exchange market
participants
In the Republic of Kazakhstan in detail fixed responsibility for a number of violations of the
legislation in the field of exchange transactions on the commodity market. Responsibility in this case has
the following features:
• compensation consisting in the recovery of losses incurred to the victim;.
Payment of the penalty also provides for the illegal use of other people's money as a result of
non-fulfillment of a monetary obligation or delay in their payment, or their unjust receipt or saving the
expense of another person. The size of the penalty is calculated on the basis of the official refinancing
rate of the National Bank of the Republic of Kazakhstan on the day of money obligation or part thereof.
Legislative acts, or the contract may establish a different amount of penalties (p.1 st.353 Civil Code). For
example, the official refinancing rate of the National Bank of the Republic of Kazakhstan to the August 6,
2012 was set at 5.5 per cent per annum (in accordance with the Resolution of the Board of the National
Bank of Kazakhstan dated July 27, 2012 № 232 "On the official refinancing rate of the National Bank of
the Republic of Kazakhstan" ). Penalty for using other people's money will be charged on the day of
payment of the money to the creditor, unless the law or the contract established a procedure for
calculating the amount of the penalty (p.2 st.353 Civil Code).
In order to further protect the interests of the buyer of goods the existing legislation of the
Republic of Kazakhstan establishes the liability of the seller in case of withdrawal of goods from the
buyer. So, when removing goods from the buyer by third parties on the grounds that arose before the
execution of the contract, the seller is obliged to compensate the losses borne by the buyer, unless he
proves that the buyer knew or should have known about the presence of these bases. The parties'
agreement to relieve the seller from liability or limitation of liability in the case of reclamation of goods
purchased from third parties the buyer invalid (st.414 Civil Code).
Administrative responsibility depending on the offense can be both a direct violation of the law
on commodity exchanges and for infringement related legislation related to the legislation on commodity
exchanges, the exercise of stock exchange transactions, etc. it is important to take into account that the
administrative responsibility for the offense occurs when these offenses by their nature do not involve
themselves in accordance with the law of criminal responsibility (Clause 3 Article 28 of the Administrative
Code).
In accordance with the provisions of the Administrative Code provides st.204-1 basis of liability
for violation of the legislation of the Republic of Kazakhstan on commodity exchanges. Thus, the
participation of employees commodity exchange in exchange transactions - subject to a fine in the
amount of one hundred and thirty to one hundred and fifty monthly calculation indices.
Implementation of the commodity exchange trading and other activities not directly related to
the organization of exchange trading - entails a fine of four hundred to five hundred eighty MCI.
Sales of goods included in the list of commodities, commodity exchanges is - subject to a fine
for:
• Individuals in the amount of from fifty to seventy
• on officials, individual entrepreneurs - in the amount of eighty to one hundred;
• to legal entities of small or medium
• business or non-profit organizations - in the amount of one hundred twenty to one hundred
and forty;
• to legal entities of a large enterprise - in the amount of three hundred to four hundred eighty
MCI.
Failure to comply with stockbrokers and (or) exchange dealers requirements for record keeping
committed exchange transactions separately for each client and store information about these deals
within five years from the date of the transaction - subject to a fine in the amount of sixty to eighty MCI.
Grounds for administrative liability for violation of related legislation provides for the following:
1) violation of the right to export or shipment of raw materials, foodstuffs and manufactured
goods from the Republic of Kazakhstan (st.140 CAO).
Such a violation subject to a fine for:
• individuals of up to five;
• on officials, individual entrepreneurs - in the amount of up to ten;
• to legal entities of small or medium-sized business - in the amount of up to thirty;
• to legal entities of a large enterprise - in the amount of up to fifty MCI.
The above actions committed repeatedly within a year after the imposition of an administrative
penalty - entails fine for:
• individuals of up to ten;
• on officials, individual entrepreneurs - in the amount of fifteen;
• to legal entities of small or medium-sized business - in the amount of forty;
• to legal entities of a large enterprise;
• up to sixty monthly calculation indices with the confiscation of raw materials or goods or not;
2) illegal transportation, purchase, sale, storage of oil and oil products, and oil refining.
In accordance with the provisions of the Administrative Code st.141-1 transportation, purchase,
sale, storage of oil and oil products, as well as oil refining without the documents confirming the legality
of its origin, does not contain evidence of a criminal offense, -vlekut fine on individuals in the amount of
one hundred, on officials, individual entrepreneurs - in the amount of one hundred and fifty, for legal
entities of small or medium-sized business - in the amount of three hundred, for legal entities of a large
enterprise - in the amount of five hundred monthly calculation indices. The above acts committed
repeatedly within a year after the imposition of an administrative penalty - entail a fine on individuals in
the amount of one hundred and fifty, on officials, individual entrepreneurs - in the amount of two
hundred, on legal entities of small or medium-sized business - in the amount four hundred, for legal
entities of a large enterprise - in the amount of eight hundred monthly calculation indices;
3) illegal business (Art. 143 of the Administrative Code). Entrepreneurial activity without
registration or special permit (license) in cases where such permission (license) is required, or in violation
of the licensing conditions, as well as activity prohibited types of business activities, if these acts have
caused major damage grazhdaNINu, organization or state or conjugate by profit on a large scale, or the
production, storage, transportation or sale of excisable goods to a considerable extent, if these actions do
not contain evidence of a criminal offense - entail a fine on individuals, officials, entrepreneurs, legal
entities of small or medium-sized enterprises, in the amount of thirty, for legal entities of a large
enterprise - in the amount of fifty percent of the amount of damage caused, of the amount of profit and
that the value of excisable goods resulting from the illegal business. To distinguish administrative and
criminal liability in the notes to Article 143 of the Administrative Code states that major damage
recognizes damage grazhdaNINu to an amount not exceeding one thousand monthly calculation indices,
or damage to the organization or to the state in an amount not exceeding ten thousand monthly
calculation indices. Income is recognized on a large scale income, the amount of which does not exceed
ten thousand MCI. In this paper, a considerable extent of such quantity of goods whose value does not
exceed one thousand monthly calculation indices;
4) The concealment of taxable items (Art. 207 of the Administrative Code). Hiding objects of
taxation by the taxpayer - entails a fine on officials in the amount of twenty monthly calculation indices,
for individuals, individual entrepreneurs and legal entities - in the amount of one hundred and fifty
percent of the amount of taxes and other obligatory payments payable to conceal the object of taxation.
Under the concealment of taxable items is understood as the failure by the taxpayer on account of goods
imported into the territory of the Republic of Kazakhstan from the states - members of the customs
union.
The above actions (inaction) committed repeatedly within a year after the imposition of an
administrative penalty - entail a fine on officials in the amount of fifty monthly calculation indices, for
individuals, individual entrepreneurs and legal entities - in the amount of two hundred percent of the
amount of taxes and other mandatory payments payable to conceal the object of taxation;
5) failure to perform the duties established by the tax legislation of the Republic of Kazakhstan,
taxpayers in export and import of goods, works and services in the Customs Union, as well as failure to
persons of requirements established by the legislation of the Republic of Kazakhstan (st.218-1 CAO).
Non-payment of indirect taxes within thirty calendar days after the payment deadline set by the
tax legislation of the Republic of Kazakhstan - entails a fine on individuals, officials, entrepreneurs,
private notaries, lawyers - in the amount of ten, for legal entities of small or medium-sized businesses or
non-profit organizations - in the amount of twenty, for legal entities of a large enterprise - in the amount
of two hundred and fifty MCI.
Non-payment of indirect taxes within thirty calendar days after the payment deadline set by the
tax legislation of the Republic of Kazakhstan subject to a fine for individuals, officials, entrepreneurs, private notaries, lawyers - in the
amount of twenty, for legal entities of small or medium-sized business or non-profit organizations - in the
amount of thirty, for legal entities of a large enterprise - in the amount of fifty percent of the nonfulfillment of tax liability, but not less than two hundred and fifty MCI.
Failure to submit the taxpayer to the tax authority obligation to import (export) of processed
products, as well as the obligation to subsequently exported from the territory of the Republic of
Kazakhstan temporarily imported goods, vehicles and their failure under the tax laws of the Republic of
Kazakhstan, -vlekut penalty on individuals and officials - in the amount of fifty, for individual
entrepreneurs and legal entities of small or medium-sized business or non-profit organizations - in the
amount of one hundred and fifty, for legal entities of a large enterprise - in the amount of two hundred
and fifty MCI.
Violation of the tax laws of the Republic of Kazakhstan for tolling, exported from the territory of
the Republic of Kazakhstan on the territory of the State - a member of the customs union, as well as
imported into the territory of the Republic of Kazakhstan to the territory of the State - a member of the
customs union subject to a fine for individual entrepreneurs and legal entities of small or medium-sized
business - in the amount of thirty, for legal entities of a large enterprise - in the amount of fifty percent
of the amount of taxes.
Failure to file the tax authorities at the location (residence) of the date of receipt of excisable
goods imported from the territory of the State - a member of the customs union, persons must, in
accordance with the laws of the Republic of Kazakhstan to provide such notification, subject to a fine for individuals, officials of one hundred, individual entrepreneurs and legal
entities of small or medium-sized business - in the amount of three hundred, for legal entities of a large
enterprise - in the amount of five hundred monthly calculation indices.
Differentiation of administrative responsibility for st.207 and 218-1 of the Administrative Code is
updated in a note to the Administrative Code st.218-1. In other words, if a person is subject to
administrative responsibility for the failure on account of the goods imported into the territory of the
Republic of Kazakhstan from the states - members of the customs union, under Article 207 of this Code,
a person shall not be subject to administrative liability provided for by the first and second st.218-1 the
Administrative Code;
6) engage in business or other activities, and the implementation of actions (operations)
without registration or license, special permit, qualification certificate (certificate), other authorization
notice (st.357-1 CAO). Engage in business or other activities, and the implementation of actions
(operations) without registration or without a license, a special permit, qualification certificate
(certificate), another permit, notification in cases where the permit, license, qualification certificate
(certificate), the notice required if these acts do not contain evidence of criminal offense - punishable by
a fine for individuals of up to twenty, for officials, entrepreneurs, legal entities of small or medium-sized
business - in the amount of thirty to forty, for legal entities subjects of large enterprise - in the amount of
one hundred to two hundred monthly calculation indices with confiscation of objects and (or) implements
an administrative offense or without it, and engage in business or other activity without a license in
addition results in confiscation of income (dividends), money, securities, obtained as a result of an
administrative offense.
The above actions committed repeatedly within a year after the imposition of an administrative
penalty - entail a fine on individuals in the amount of fifty, for officials, entrepreneurs, legal entities of
small or medium-sized business - in the amount of fifty to one hundred, on legal entities of a large
enterprise - in the amount of three hundred to seven hundred monthly calculation indices with
confiscation of objects and (or) implements an administrative offense, and engage in business or other
activity without a license in addition results in confiscation of income (dividends), money, securities
obtained as a result of an administrative offense;
7) violation of licensing (st.357-2 CAO). Violation of the laws of the Republic of Kazakhstan
licensing standards, including a mismatch qualification requirements for licensed activities - entails a fine
on individuals in the amount of from ten to twenty, individual entrepreneurs, legal entities of small or
medium-sized business or non-profit organizations - in the amount of fifty to one hundred, for legal
entities of a large enterprise - in the amount of one hundred to two hundred monthly calculation indices
with the suspension of the license for a certain type of activity or without it.
The licensee knowingly false information to obtain a license, as well as actions (inaction),
provided by the first part of this article committed repeatedly within a year after the imposition of an
administrative penalty, and not the elimination of violations of the licensing entailed bringing to
administrative responsibility, after the expiration of the period of suspension license - entails a fine on
individuals in the amount of twenty to forty, individual entrepreneurs, legal entities of small or mediumsized business or non-profit organizations - in the amount of one hundred to one hundred and fifty, for
legal entities of a large enterprise, - at the rate of two hundred to three hundred monthly calculation
indices with the deprivation of a license for a certain type of activity.
In turn, the application of criminal liability to participants and organizers of trading are available
on the following grounds:
1) embezzlement or misappropriation of entrusted property (Article 176 of the Criminal Code).
1. Assignment or waste, that is theft of another's property entrusted to the offender punishable by a fine of two hundred to five hundred monthly assessment indices, or
engagement in public works for a period of one hundred twenty to one hundred eighty hours, or
correctional labor for up to two years, or restraint of liberty for a term up to three years, or imprisonment
for the same time.
2. The same acts committed:
a) a group of persons by prior agreement;
b) repeatedly;
c) using the service position punishable by a fine of five hundred to one thousand monthly calculation indices, or restraint of
liberty for a term up to four years, or imprisonment for a term of two to five years with confiscation of
property or without deprivation of the right to occupy certain positions or engage in certain activities for a
term up to three years.
3. Acts stipulated by the first or second paragraph of this Article, if committed:
a) excluded;
b) on a large scale;
c) is excluded;
d) a person authorized to perform public functions or an equivalent person, if they involve the
use of his official position, punishable by imprisonment for a term of five to ten years with confiscation of property and
disqualification to hold certain positions or engage in certain activities for a term up to three years, and in
the cases provided for in paragraph g) - up to seven years.
4. Acts stipulated by the first, second or third paragraph of this Article, if committed:
a) by an organized group;
b) on a large scale -
shall be punished by imprisonment for a term of seven to twelve years with confiscation of
property and disqualification to hold certain positions or engage in certain activities for up to five years;
2) fraud (Art. 177 of the Criminal Code).
1. Fraud, ie theft of another's property or buying another's property by fraud or breach of trust
punishable by a fine of two hundred to seven hundred monthly assessment indices, or
engagement in public works for a period of one hundred eighty to two hundred forty hours, or
correctional labor for up to two years, or restraint of liberty for a term up to three years, or imprisonment
for the same time.
2. Fraud committed:
a) a group of persons by prior agreement;
b) repeatedly;
c) using the service position punishable by a fine of seven hundred to one thousand monthly calculation indices, or restraint
of liberty for a term up to four years, or imprisonment for up to five years with confiscation of property or
without it.
3. Fraud committed:
a) excluded;
b) on a large scale;
c) is excluded;
d) a person authorized to perform public functions or an equivalent person, if it involves the use
of an official position shall be punished by imprisonment for a term of three to seven years with confiscation of
property.
4. Acts stipulated by the first, second or third paragraph of this Article, if committed:
a) by an organized group;
b) on a large scale shall be punished by imprisonment for a term of five to ten years with confiscation of property;
3) causing damage to property by fraud or breach of trust (st.182 Criminal Code).
1. Causing property damage to the owner or other owner of the property by fraud or breach of
trust in the absence of signs of theft, committed:
a) a group of persons by prior agreement;
b) repeatedly;
c) using the service position shall be punished by a fine of four hundred to eight hundred monthly assessment indices or
restraint of liberty for a term up to three years, or imprisonment for the same term with a fine of up to
one hundred monthly calculation indices or without it.
2. The same action:
a) committed by an organized group;
b) caused large damage, punishable by imprisonment for up to five years with confiscation of property or without it;
4) transportation, purchase, sale, storage of oil and oil products, as well as oil refining without
the documents confirming the legality of their origin (Art. 183-1 of the Criminal Code).
1. Transportation, acquisition, sale, storage of oil and oil products, as well as oil refining without
the documents confirming the legality of their origin, on a large scale shall be punished by imprisonment for a term of two to three years with confiscation of
property, which is a tool or means of committing a crime.
2. The same acts committed:
a) repeatedly;
b) an organized group shall be punished by imprisonment for a term of five to eight years with confiscation of property
of the convicted or without it, as well as property, which is a tool or means of committing a crime;
5) illegal business (st.190 Criminal Code).
1. Implementation of business activity without registration or special permit (license) in cases
where such permission (license) is required, or in violation of the licensing conditions, as well as activity
prohibited types of business activities, if these acts have caused major damage grazhdaNINu,
organization or State or are associated with the generation of income on a large scale, or the production,
storage, transportation or sale of excisable goods in large amounts -
punishable by a fine of five hundred to one thousand monthly calculation indices, or
engagement in public works for a period of one hundred eighty to two hundred forty hours, or
imprisonment for up to two years with a fine of up to fifty monthly calculation indices or without it.
2. The same acts:
a) committed by an organized group;
b) associated with the generation of income on a large scale;
c) committed repeatedly shall be punished by a fine of one thousand to fifteen hundred monthly assessment indices, or
imprisonment for up to five years with confiscation of property or without it.
It is necessary to take into account the explanations of st.190 Criminal Code with respect to
size, which is a qualifying characteristic. Income is recognized on a large scale income, the amount of
which exceeds ten thousand monthly calculation indices, income on a large scale - the income, the
amount of which exceeds twenty thousand MCI. The significant amount recognized is the amount of
goods whose value exceeds one thousand monthly calculation indices. Major damage recognizes damage
grazhdaNINu amounting to a thousand times the monthly calculation index, or damage to the
organization or to the state in the amount of ten thousand times the monthly calculation index
established by the legislation of the Republic of Kazakhstan at the time of the crime;
6) abuse of authority (article 228 of the Criminal Code).
The use of the person performing managerial functions in a commercial or other organization,
its powers contrary to the legitimate interests of the organization in order to reap the benefits and
advantages for themselves or other persons or entities, or harm to other persons or organizations, if it
caused significant damage to the rights and legitimate interests of citizens or organizations or legally
protected interests of society or the state punishable by a fine of five hundred to eight hundred monthly assessment indices, or
engagement in public works for a period of one hundred eighty to two hundred forty hours, or
correctional labor for a term of one year to two years, or restraint of liberty for up to four years, or by
deprivation freedom for the same period.
For accurate interpretation of article in the notes indicated that performing managerial functions
in a commercial or other organization is the person who permanently, temporarily or on special authority
exercising organizational-administrative or administrative responsibilities in the organization, not a
government body, a local government body or organization, share of the state in which more than fifty
percent.
As other types of liability can be designated the responsibility of exchange trade, for violation of
the current legislation of the Republic of Kazakhstan and the rules of trading. Types of measures of
responsibility are regulated exchange trading rules and other internal documents Mercantile Exchange
and are applied to the organizer of the auction participants trading. These measures may include:
• prescription;
• prescription with public notice;
• fine;
• suspension for a specified period of access to trading in a certain mode (modes) / sections;
• termination of access to trading in a certain mode (modes) / sections;
• termination of access to tender, etc.
7.i Analysis of national legislation, regulations and practices in the use of electronic document
management and digital signature in cross-border transactions
To date, the legislation of the Republic of Kazakhstan, regulating the use of electronic
documents and electronic signatures based on the Law of the Republic of Kazakhstan "On Electronic
Document and Digital Signature" on January 7, 2003 № 370-II (hereinafter referred to this point of the
investigation - the Law). Under the Act, adopted legal acts detailing the use of electronic document
management, electronic signatures. These acts include: Resolution of the Government of the Republic of
Kazakhstan "On approval of electronic document" dated April 17, 2004 № 430 Resolution of the
Government of the Republic of Kazakhstan "On Approval of the Rules of Accreditation of Certification
Authorities" of November 19, 2010 № 122 Resolution of the Board of the National Bank of the Republic
of Kazakhstan "on approval of rules for electronic document exchange in payments and money transfers
in the Republic of Kazakhstan" dated April 21, 2000 № 146, Order of the President of the Republic of
Kazakhstan Agency for Informatization and Communication "On approval of the issuance, registration,
storage, revocation of registration certificates including hard copy of the register and registration
certificates "dated December 8, 2005 № 457-p, Order of the President of the Republic of Kazakhstan
Agency for Informatization and Communication" On Approval of Standard Regulations certifying center
"of 8 December 2005 № 458-p and al.
In accordance with claim 10) Article 1 of the Law of electronic document - a document in which
the information is presented in digital form and certified by the electronic digital signature.
The Act also defines the concept of digital signature, which is a set of digital symbols created by
means of electronic digital signature and confirming authenticity of an electronic document, its belonging
and permanence of contents (pp. 13) Article 1 of the Law).
According to information posted on the website of the Competence Center e-government
(section "News" for 12.04.2012g.) In Kazakhstan has issued a million digital signatures, of which about
100,000 received in 2012.
As part of the verification of digital signatures, it is important to take into account the status of
the registration certificate, which is a document on paper or electronic document issued by a certification
authority to verify compliance with digital signature requirements established by this Act (claim 7) Article
1 of the Law).
The current legislation of the Republic of Kazakhstan of the basic principles of using a foreign
registration certificate and exchange of electronic documents with the participation of foreign individuals
and legal entities. Thus, in accordance with the provisions of Clause 1, Article. 3 of the regulation of legal
relations arising between the certification authority and the owner of a foreign certificate of registration,
the law of the State in which it was issued a certificate of registration, unless otherwise provided by
agreement of the parties. Ratified by the Republic of Kazakhstan with the countries of the EEA
Agreement concerning the procedure for recognition of foreign registration certificates to date available.
In this connection, we consider it expedient to adopt such agreements in order to integrate the laws of
the EEA of electronic document management and use of digital signatures.
The exchange of electronic documents with the participation of foreign individuals and entities
subject to the legislation of the Republic of Kazakhstan, unless otherwise provided by agreement of the
parties (paragraph 2 of Art. 3 of the Act). Between the countries of the Customs Union Agreement on the
application of information technology in the exchange of electronic documents in foreign and mutual
trade in the single customs territory of the Customs Union (Moscow, 21 September 2010), which reflects
the conditions for the recognition of electronic documents countries - members of the Customs Union,
which ratified Republic of Belarus and the Russian Federation (now the Republic of Kazakhstan by the
internal procedures necessary to make the document to parliament for ratification). Thus, in particular
Article 10 of the Agreement in order to protect the interests of the member countries of the Customs
Union and the development of electronic document with cross-border transactions provides that: "... the
trusted third party:
• carries out legalization (authentication) of electronic documents;
• provides a guarantee of confidence in the international (transboundary) exchange of
electronic documents;
• ensures the legitimacy of the use of digital signatures on outgoing and (or) the incoming
electronic documents and communications in accordance with the rules and requirements of the law of
the State where the trusted third party.
Trusted third parties reacted to establish trust in the organization of cross-border electronic
document electronic interaction between the subjects of the Parties that use different mechanisms to
protect electronic documents.
The Parties shall ensure the rights of subjects of information exchange services of trusted third
parties, functions which perform public authorities of the Parties or their accredited organization. "
In addition, under the provisions of the Agreement on the establishment, operation and
development of an integrated information system of foreign and mutual trade of the Customs Union
(Moscow, 21 September 2010) and for collaboration together geographically distributed state information
resources and information systems of state bodies regulating foreign and trade between Member States
of the Customs Union, information systems and information resources of the Commission of the Customs
Union, combined with national integration segment of the Member States of the Customs Union and the
integration segment of the Customs Union Commission, representatives of the member countries of the
Customs Union is developing integrated information system of foreign and mutual trade customs Union.
Completion of work on the development of this system is planned by the end of 2013.
The use of electronic document circulation plays a significant role in the customs administration
when making cross-border transactions in commodities. To date, representatives of states - members of
the Customs Union draft Guidelines for the improvement of customs administration in the Customs Union
in 2012-2015. The key areas affecting the electronic document, the following information:
1) the introduction of the principle of the primacy of electronic documents and information in
electronic form in the construction of customs technologies and preparation of normative legal acts
(priority "electronics" in front of the paper). Technology of customs operations should be focused on the
use of legally relevant electronic documents;
2) providing conditions for easy and "qualitative" customs declaration in electronic form using
the customs declaration for at least 90-95% of consignments. Saving the written form of the customs
declaration for the individual ("specific") product categories;
Implementation of a comprehensive (point) estimates the supply chain (sender, recipient,
carrier, contract carrier, warehouse, broker, etc.).
The current legislation of the Republic of Kazakhstan determines the conditions for the
recognition of foreign digital signature;
3) National Certification Authority of the Republic of Kazakhstan, the service members 'egovernment', government and non-government information systems;
4) The certifying center of state bodies of the Republic of Kazakhstan, serving members of the
same electronic document management system of state bodies of the Republic of Kazakhstan.
Key government certifying centers in the Republic of Kazakhstan are:
• Root Certification Authority of the Republic of Kazakhstan (ATC)
provides interoperability state using a public key infrastructure;
• National Certification Authority of the Republic of Kazakhstan (NCA) for the National
Identification System and e-Government of the Republic of Kazakhstan;
• Certification Center Unified electronic document management system of state bodies of the
Republic of Kazakhstan (eWSS);
• KISC Certification Authority of the National Bank of the Republic of Kazakhstan, with the
participation of Kazakh banks and non-bank financial institutions;
• Certification Center of the Tax Committee of the Ministry of Finance of the Republic of
Kazakhstan;
• Certifying center of electronic document of the National Bank of the Republic of Kazakhstan.
In the preparation of international agreements for the EEA for the settlement of the recognition
of foreign digital signature as a basis we can take the principle laid down in Art. 20 of the Model Law "On
electronic digital signature" (adopted at the sixteenth plenary session of the Interparliamentary Assembly
of States - CIS member states December 9, 2000) Recognition of foreign electronic signature, if it can be
verified by the public key that has a foreign certificate issued by one of the countries of the
Commonwealth independent States or the State with which there is an agreement on the recognition of
such certificates or other agreement that provides equivalent security of electronic communications.
For violation of the current legislation on electronic document and digital signature of the
Administrative Code provides for liability for the participants of the electronic document (st.497-2 CAO).
Thus, failure to comply with the certification center responsibilities under legislation of the Republic of
Kazakhstan concerning electronic document ielektronnoy digital signature - entails a fine ranging from
twenty to two hundred monthly calculation indices. Failure registration certificate holder responsibilities
under legislation of the Republic of Kazakhstan on electronic document and digital signature - entails a
fine ranging from five to fifty MCI.
Unlawfully obtained the private key and (or) the use of electronic digital signature of another
person - entail a warning or a fine for individuals in the amount of from five to ten, for officials,
entrepreneurs, legal entities of small or medium-sized business or non-profit organizations - in the
amount of twenty to one hundred, for legal entities of a large enterprise - in the amount of fifty to
dvuhsotmesyachnyh calculation indices.
In addition, the non-performance of electronic document management system responsibilities
under legislation of the Republic of Kazakhstan on electronic document and digital signature - entails a
fine on individuals in the amount of from five to ten, for officials, entrepreneurs, legal entities of small or
medium-sized business or non-profit organizations - in the amount of twenty to forty, for legal entities of
a large enterprise - in the amount of fifty to two hundred monthly calculation indices.
7.j Review features national standards of foreign exchange regulation
In accordance with the currency legislation of the Republic of Kazakhstan international
transactions with the basic exchange commodity assets include operations with the movement of capital,
which are based on export (import) goods.
Calculations on international transactions between residents and non-residents, which can be
made both in the national and (or) foreign currency by agreement of the parties in accordance with the
currency legislation of the Republic of Kazakhstan (p.1 Art. 14 of the Law on Foreign Exchange
Regulation). It is necessary to take into account the period of exports (imports) of goods and
requirement to obtain the account number of the contract. Based on these criteria, the payments for
export-import currency transactions can be divided into three groups:
Group 1: payments between residents and non-commercial loans (sotsrochkoy payment or
prepayment (advance payment) for the export or import-related exports (imports) of goods), for a period
exceeding 180 days. Such payments shall be made in the recording mode. Registration mode also applies
to commercial loans related to export (import) of goods and the provision of a period not exceeding 180
days, if the actual period of return of resources or other performance of obligations resident or nonresident has exceeded 180 days (3 of article 20 of the Law on currency regulation). Registration
payments of this group is made by the National Bank of the Republic of Kazakhstan. Registration mode
includes the registration of a currency agreement and subsequent submission of information on the
registered resident foreign exchange contract (p.1, p.2. Art. 8 of the Law on Foreign Exchange
Regulation). Because these foreign exchange contracts was originally distributed logging mode, the
resident party currency transaction must apply to the National Bank of Kazakhstan for registration prior to
the fulfillment of the obligations of the parties. In accordance with the requirements of para. 39 of the
Rules of currency transactions, the National Bank shall register the foreign exchange operations under
the following conditions:
1) The amount of the currency transaction requiring receipt of property (assets) to the Republic
of Kazakhstan and (or) in liabilities from the resident to return the property (assets) a non-resident
exceeds five hundred thousand US dollars equivalent;
2) the amount of the currency transaction, which provides funds transfer (transfer of property)
of the Republic of Kazakhstan and (or) the emergence of the resident requirements to return the
property (assets), non-resident, over one hundred thousand US dollars equivalent.
The above registration is carried out within ten working days from the date the resident
submits the complete package of documents confirming registration of a currency agreement shall be
issued to the applicant a certificate of registration (p.5 Article 8 of the Law on Foreign Exchange
Regulation).
Group 2: payments between residents and non-residents for settlements for exports (imports)
works and services. Such payments are made under the notification regime, which is made by an
authorized bank serving such payments (p. 3-1 Art. 20 of the Law on Foreign Exchange Regulation). The
grounds for the application of the exchange rate regime notice (in accordance with the provisions of
para. 53 of the Rules of currency transactions) are the following conditions:
1) The amount of the currency transaction requiring receipt of property (assets) to the Republic
of Kazakhstan and (or) in liabilities from the resident to return the property (assets) a non-resident
exceeds five hundred thousand US dollars equivalent;
2) the amount of the currency transaction, which provides funds transfer (transfer of property)
of the Republic of Kazakhstan and (or) the emergence of the resident requirements to return the
property (assets), non-resident, over one hundred thousand US dollars equivalent;
3) The amount of the payment and (or) money transfer residents to non and (or) non-resident
to a resident on operations with derivative financial instruments (excluding payment for the underlying
asset), as well as estimates related to export (import) of works and services exceeds one hundred
thousands of US dollars equivalent.
Notification mode includes the provision in the prescribed form to the National Bank of the
Republic of Kazakhstan on information exchange agreement, the subsequent provision of information
about the transactions and changes in the foreign exchange contract. If you have a notification of all
necessary information National Bank issues a certificate of notification.
Group 3: commercial loans related to export (import), which is required to obtain the account
number of the contract. Please note that these commercial loans regimes of currency regulation shall not
apply. The contract is subject to registration with the authorized bank serving the bank account of the
exporter or importer (claim 1) to claim 21 exchange control regulations). Getting the account number of
the contract is carried out by the exporter or importer to make payments and (or) transfers of money
under the contract and (or) to move the contract goods across the border of the Republic of Kazakhstan
for export or import.
In accordance with claim 23 of the Rules of exchange control reference number of the contract
is assigned to each contract, under which the cost of the delivered goods at the date of its conclusion
exceeds fifty thousand dollars equivalent in the following cases:
1) the movement of goods across the border of the Republic of Kazakhstan for export or
import, including in the contract for execution of works, services or contract of lease for a term exceeding
one year;
2) changes in the customs procedure of the customs procedure for export or release for
domestic consumption in respect of goods previously placed under another customs procedure, in
connection with the transfer of ownership of the goods from a resident to a non-resident or non-resident
to a resident of;
3) the transition to contract service to the authorized bank, not the bank account registration of
the contract, including in the case of suspension or withdrawal of the license of the bank registration
contract for banking and other operations, and there are no grounds for removal contract with the
registration;
4) set out in paragraph 38Pravil exchange control (as such cases are recognized when the
assignment of the exporter or importer to a resident of the right to claim under the contract to a nonresident).
For these groups there is a requirement for payment of such payment method. In accordance
with paragraph 2 of Article 16 of the Law on Currency Regulation, payments on the territory of the
Republic of Kazakhstan on foreign exchange transactions in respect of which there is a requirement of
registration, notification or account number of the contract shall be carried out non-cash. In carrying out
the payment and (or) to transfer money to foreign currency transaction through an authorized bank
resident (non-resident), is the sender or recipient of the money (in accordance with claim 7 of the Rules
of currency transactions) is the authorized bank the following documents:
1) identity document (for individuals);
2) a document confirming the right of permanent residence in the Republic of Kazakhstan (for
individuals - foreigners and stateless persons), if any;
3) Certificate of state (account) registration in the Republic of Kazakhstan (for legal entities,
residents and non-residents, subject to state registration in accordance with the laws of the Republic of
Kazakhstan), if the document has not previously presented or changed;
4) currency agreement (original or copy). If the currency agreement associated with the export
or import and requires the account number of the contract, it is the original currency of the contract or a
copy with a note on getting the account number of the contract;
5) registration certificate, certificate of notification in cases provided for in this Regulation;
6) documents or copies thereof, confirming the execution or on the basis of which must fulfill
the obligations of transactions related to the export or import.
In order to clarify the circumstances of the transaction, the classification of the operation and
its members is a legal entity at the request of an authorized bank incorporation.
For international payments also need to take into account the existing requirements of the
repatriation, which is understood credited to bank accounts in authorized banks in revenue in local and
foreign currency from exports of goods (works, services); national and foreign currency transferred by a
resident to a non-resident for payments for imports of goods (works, services), in the case of nonfulfillment or incomplete fulfillment of obligations by non-residents (the first paragraph of Article 12 of
claim 1 of the Law on Foreign Exchange Regulation). Authorized banks and branches of the National
Bank monitors the execution of repatriation requirements for contracts in excess of fifty thousand US
dollars equivalent. In this case, if the contract is denominated in a currency other than the US dollar, and
the contract is not an indication of the exchange rate against the US dollar, to determine the equivalent
of the amount of the contract in US Dollars conversion is performed using the market exchange rate on
the date of conclusion of the contract (n .3 exchange control regulations).
Separately, note that in the case of threat to the economic security of the Republic of
Kazakhstan and the stability of its financial system, if the situation can not be solved by other measures
of economic policy, introduced special currency regime. In accordance with para. 1, Art. 32 of the Law on
Foreign Exchange Regulation, the special currency regime is a special regime of currency transactions,
providing a set of measures of currency regulation, aimed at creating conditions for the removal of
threats to economic security and stability of its financial system and allowing the introduction of certain
foreign exchange restrictions on the operations of residents and nonresidents associated with the use of
currency values. Special currency regime is a temporary measure, used exclusively for the purpose of
elimination of the circumstances that gave rise to its introduction. Limitations that may be imposed under
the special currency regime include:
1) the requirement of accommodation without paying a deposit fee in the amount determined
as a percentage of the amount of the currency transaction, for a fixed period with an authorized bank or
the National Bank of the Republic of Kazakhstan;
2) the requirement to obtain a special permit from the National Bank of Kazakhstan to conduct
foreign exchange operations;
3) the requirement of mandatory sale of foreign currency received by residents;
4) restrictions on the use of foreign bank accounts, establishing the maturity of foreign
exchange earnings and limits on the amount, the amount and currency of settlement of foreign currency
transactions.
President of the Republic of Kazakhstan may be introduced other temporary currency
restrictions.
8.
Study of international experience in terms of legislation. Comparative
analysis of legislation regulating the exchange of commodity markets in
Belarus, Kazakhstan, Moldova, Russia, Ukraine and Uzbekistan
The following are the results of a comparative analysis of the specific laws of the EEA + Regulatory
Organization of the commodity market, on registration of export-import of basic commodities, on
settlement of the transaction, the use of digital signatures in cross-border transactions, the terms and the
procedure for clearing the results of the exchange trading under the terms of the functioning of the
futures market in an organized commodity market. In addition, existing rules are represented in
international commodity market integration organized EEA +.
a. Regulation of organized commodity markets
Development of markets in the EEA + began in the 1990s, with the beginning of the formation of
national systems of market regulation. We now have studied the diversity of national approaches,
methods and rules of state regulation of commodity exchange activities.
Table 8.A.1 "The organization of state regulation of commodity exchanges"
Country
Republic
Kazakhstan
of
The
Russian
Federation
The organization of state regulation of commodity exchanges
State regulation of commodity exchanges in the territory of the Republic of Kazakhstan by
the Government of the Republic of Kazakhstan;
Entity in charge: Trade Committee of the Ministry of Economy and Budget Planning of the
Republic of Kazakhstan.
Basic laws: the Civil Code of the Republic of Kazakhstan, the Commodity Exchange Act
number 155 SAM-IV from 04.05.2009, Model Regulations, stock trading, approved by
Decree of the Government of the Republic of Kazakhstan № 2042 from 08.12.2009, the
decision of the Government of the Republic of Kazakhstan № 1552 from 06.12.2012 "On
approval of the mandatory requirements for the electronic trading system of commodity
exchanges"; Resolution of the Government of the Republic of Kazakhstan № 1707 from
28.12.2012 "On approval of the daily electronic reporting of commodity exchanges, the
rules for their submission"; Resolution of the Government of the Republic of Kazakhstan №
1644 from 20.12.2012 "On Approval of Regulations for the formation and use of, the size of
the warranty and insurance funds"; Resolution of the Government of the Republic of
Kazakhstan № 1653 from 21.12.2012, "On some issues of licensing commodity exchanges,
stock brokers and stock dealers";
certain norms of other laws, 50 Government decrees and regulations.
Authorized agency for regulation of organized commodity market in the Russian Federation by the
Federal Service for Financial Markets, exercise the functions of normative legal regulation, control
and supervision in the financial markets (with the exception of banking and auditing). Federal
Financial Markets Service was established in accordance with the Decree of the President of the
Russian Federation of 09.03.2004, № 314 "On the system and structure of federal bodies of executive
power." Acts on the basis of the Regulations of the Federal Service for Financial Markets, approved
by the Government of the Russian Federation of 29.08.2011 № 717 and Decree of the Government of
the Russian Federation of 26.04.2011 № 326 "On some issues of federal executive bodies in the
financial markets." Leaders of the Federal Service for Financial Markets in the Government of the
Russian Federation.
Basic legislation:
Civil Code (adopted on the basis of the Model Civil Code for States - CIS member states), the Law of
the Russian Federation from 20.02.92, N 2383-I "On Commodity Exchanges and Exchange Trade"
Federal laws:
- "On the organized trading" № 325-FZ of 21.11.2011;
- "On clearing and clearing activity" № 7-FZ of 07.02.2011;
- "On licensing of certain activities» № 99-FZ of 04.05.2011;
- "On electronic signature" № 63-FZ of 06.04.2011
The Republic of
Belarus
Ukraine
The Republic of
Uzbekistan
The Republic of
Moldova
State regulation of commodity exchanges carried out by: The President of the
Republic of Belarus, the Council of Ministers, the Ministry of Trade of the Republic of
Belarus, other state bodies within their competence as defined by law; Coordinating
Council for stock trading is a permanent interagency body that ensures the
interaction of state bodies with commodity exchanges on the organization of trading.
Basic laws: the Civil Code (adopted on the basis of the Model Civil Code for States CIS member states)
Laws: "On Commodity Exchanges" from 05.01.2009, № 10-W, "On Trade» № 231-W
from 28.07.2003, the "On Electronic Document and Digital Signature" from
28.12.2009 № 113 -s.
The main by-normative legal act is the Council of Ministers of the Republic of Belarus
of 06.08.2009 № 1039 "On some measures for the implementation of the Law" On
Commodity Exchanges ", which approved:
- Model Rules of exchange trade on commodity exchanges; The position on the
formation of a guarantee fund of commodity exchange and the use of its funds; The
position of the Coordinating Council on stock trading; The Coordinating Council for
stock trading. Other regulations.
In Ukraine, there is no single body regulating the organized commodity market. The
National Commission on Securities and Stock Market operates in accordance with the
Presidential Decree of 23.11.2011 № 1063/2011 «On the National Commission on
Securities and Stock Market", which approved the provision of the above
commission. Subject to the provisions of the said provision, the National Commission
on Securities and Stock Market regulates the derivatives market.
Organized grain market regulated by the Ministry of Agrarian Policy and Food of
Ukraine, in accordance with the authority granted by the Ministry in accordance with
the Decree of the President of Ukraine "On the Ministry of Agrarian Policy and Food"
from 23.04.2011 of №500 / 2011.
Development program for coal exchange market must implement the Ministry of
Energy and Mines, authorized to carry out the activity in accordance with the Decree
of the President of Ukraine "On the Regulation of the Ministry of Energy and Coal
Industry" from 06.04.2011g. № 382/2011.
Basic laws: the Civil Code (not based on the Model of the Civil Code).
Laws: "On Commodity Exchanges» № 1956-XII of 10.12.1991g., "On electronic
digital signature» № 852-IV of 22.05.2003, Resolution of the Cabinet of Ministers of
Ukraine "On the revitalization of the stock market for agricultural products and
needed to it needs logistical resources »№ 1928 from 19.10.99 The adoption of
bylaws.
State Committee of the Republic of Uzbekistan for State Property Management in
accordance with the Resolution of the Cabinet of Ministers of the Republic of
Uzbekistan "On licensing of exchange activity» № 66 from 04.02.2003g. was defined
by the authorized state body for regulation of exchange activities (except for
activities currency exchanges).
According to the Decree of the President of the Republic of Uzbekistan № UP-4483
from 13.11.2012, the State Committee of the Republic of Uzbekistan for State
Property Management has been abolished, the legal successor is the State
Committee of the Republic of Uzbekistan on privatization, de-monopolization and
development of competition,
Basic laws: the Civil Code (adopted on the basis of the Model Civil Code for States CIS member states).
Law "On exchanges and exchange activity» № 625-XII from 07.02.92
g.Postanovlenie Cabinet of Ministers "On Licensing exchange activity» № 66 from
04.02.2003g., Decree of the State Committee for State Property Management "On
Approval of the Regulation on the general requirements for electronic exchange
trading systems »№01 / 20-f-cat 13.07.2006g. Other regulations.
В соответствии с Постановлением правиtelьства Республики Молдова «О
стимулировании биржевой торговли» № 899 от 09.07.2002г., установлено, что
контроль деяtelьности товарных бирж осуществляет Министерство экономики
Республики Молдова. Базовые законодаtelьные акты: Гражданский кодекс
Республики Молдова от 6.06.2002 года №1107-XV(не на базе Модельного
Гражданского кодекса), Закон «О товарных биржах» №1117 от 26.02.97г,
Постановление
Правиtelьства
№899
"О
стимулировании
биржевой
торговли"от 9.07.2002 г.
Таким образом, анализ состояния законодаtelьства исследованных стран показал, что:
1) В Республике Беларусь, Республике Узбекистан, Республике Молдова state приняло
непосредственное участие в создании товарных бирж. В Республике Беларусь и Республике
Узбекистан принятые подзаконные акты детально регулируют и регламентируют многие аспекты
биржевой деяtelьности, существует развитая биржевая инфраструктура, как организационнотехнологическая составляющая во взаимном товарообороте стран СНГ. На Белорусской
универсальной товарной бирже наиболее успешно развивается логистика поставок и биржевая
инфраструктура, включая складское хозяйство, и представиtelьства за рубежом. Узбекская
Республиканская товарно-сырьевая биржа располагает широкой национальной инфраструктурой и
логистикой поставок.
2) Законодаtelьство Российской Федерации активно изменяется, охватывая все новые
направления развития организованного товарного рынка в том числе - повышение гарантий
исполнения сделок, универсализация регулирования торгов срочными контрактами, клиринга и
расчетов по ним на фондовом и товарном рынках.
3) Законодаtelьство в области регулирования организованного товарного рынка в
Республике Казахстан также претерпело существенные качественные изменения в 2009-2012 гг.
Однако раздельное регулирование срочных рынков, действующих на фондовой и товарной биржах,
с очевидностью выявило определенные недостатки такого подхода в части сделок с фьючерсами и
опционами на товарных биржах. Практика требует применения единых подходов в регулировании
сделок с финансовыми инструментами на обоих рынках.
4) Несколько иначе развивалась ситуация с регулированием в Украине: развитие
рыночной инфраструктуры и нормативной базы, как на государственном уровне, так и на уровне
отдельных биржевых правил, имеют существенный разрыв в детальности проработки вопросов
регулирования по сравнению с законодаtelьствами вышеназванных государств.
Закон Украины «О товарной бирже» от 10.12.91 г. № 1956-XII отражает уровень
регулирования, имевший место в начале 90-х годов. Биржевой рынок воспринимается
законодаtelем, прежде всего как рынок реальных товаров, понятие деривативов только недавно
появилось в законодаtelьстве, как и понятие клиринга, и более или менее разработано только в
связи с фондовым рынком. Регулирование товарных рынков отличается тем, что рынки отдельных
биржевых товаров имеют существенные различия в регулировании, и подведомственны разным
структурам (в России эта особенность тоже имела и все еще имеет место, но особенно в последнее
время наметилась устойчивая тенденция к универсализации регулирования).
Сегодня регулирование организованного товарного рынка и в России, и в Украине
практически не предусматривает совершение международных или транснациональных биржевых
сделок. В России в Федеральном законе «Об организованных торгах» от 21 ноября 2011 г. № 325ФЗ наметилось изменение такого положения, но для его полноценной реализации необходимо
создание дополниtelьных механизмов.
Хотя формально закон Украины «О товарной бирже» от 10.12.91 г. № 1956-XII допускает в
качестве членов иностранных физических и юридических лиц, российский закон «О товарных
биржах и биржевой торговле» от 20 февраля 1992 г. № 2383-I по смыслу ст. 14 и 19 также допускает в
члены биржи иностранных лиц – но при этом иностранный элемент в биржевых сделках
существенно ограничен. По совокупности других требований иностранные лица должны
осуществлять деяtelьность, клиринговое и расчетное обслуживание на территории государства, в
котором проходят организованные торги.
По законодаtelьству стран ЕЭП+ регулирование организованного товарного рынка отнесено
к компетенции различных государственных органов, что подчеркивает различие в подходах по
регулированию этого рынка со стороны государства.
Table 8.а.2 «Регулирование организованного товарного рынка стран ЕЭП+»
State
Republic
Kazakhstan
Comments
of
Уполномоченным органом по регулированию организованного товарного
рынка на территории Республики Казахстан выступает - государственное
учреждение «Комитет торговли Министерства экономики и бюджетного
планирования Республики Казахстан». Уполномоченный орган является
ведомством, осуществляющим в пределах компетенции Министерства
экономики и бюджетного планирования Республики Казахстан и в
The
Russian
Federation
The Republic of
Belarus
Ukraine
The Republic of
Uzbekistan
The Republic of
Moldova
соответствии с законодаtelьством Республики Казахстан регулятивные,
контрольные и реализационные функции в области развития торговой
деяtelьности.
Уполномоченным органом по регулированию организованного товарного
рынка на территории Российской Федерации выступает Федеральная служба
по финансовым рынкам, которая является федеральным органом
исполниtelьной власти, осуществляющим функции по нормативно-правовому
регулированию, контролю и надзору в сфере финансовых рынков (за
исключением банковской и аудиторской деяtelьности), в том числе по
контролю и надзору в сфере страховой деяtelьности, кредитной кооперации и
микро-финансовой деяtelьности, деяtelьности товарных бирж, биржевых
посредников и биржевых брокеров, обеспечению государственного контроля
за соблюдением требований законодаtelьства Российской Федерации о
противодействии неправомерному использованию инсайдерской информации и
манипулированию рынком.
Государственное регулирование деяtelьности товарных бирж осуществляют
Президент Республики Беларусь, Совет Министров Республики Беларусь,
Министерство торговли Республики Беларусь, иные государственные органы в
пределах их компетенции, определенной законодаtelьством.
Министерство торговли Республики Беларусь в области государственного
регулирования деяtelьности товарных бирж в пределах своей компетенции:
-осуществляет государственный контроль соблюдения законодаtelьства о
товарных биржах;
-разрабатывает и представляет в Совет Министров Республики Беларусь
предложения по совершенствованию законодаtelьства о товарных биржах;
-осуществляет иные полномочия в соответствии с законодаtelьством.
Координационный совет по биржевой торговле является межведомственным
постоянно
действующим
органом,
обеспечивающим
взаимодействие
государственных органов с товарными биржами по вопросам организации
биржевой торговли.
В Украине не существует единого органа, осуществляющего регулирование
организованного товарного рынка.
Национальная комиссия по ценным бумагам и фондовому рынку является
государственным коллегиальным органом, подчиненным Президенту Украины,
подотчетным Верховной Раде Украины, и осуществляет государственное
регулирование рынка ценных бумаг. Она же согласно положению регулирует
рынок деривативов, но по существу основной сферой регулирования остается
фондовый рынок. Развитие рынка деривативов включено в проект программы
развития фондового рынка.
Организованный рынок зерна регулируется Министерством аграрной политики
и продовольствия Украины.
Программу развития биржевого рынка угля должно реализовывать
Министерство энергетики и угольной промышленности.
Государственный
комитет
Республики
Узбекистан
по
управлению
государственным имуществом определен уполномоченным государственным
органом по регулированию биржевой деяtelьности (за исключением
деяtelьности валютных бирж). 13.11.2012г. Государственный комитет
Республики Узбекистан по управлению государственным имуществом был
упразднен, правопреемником является Государственный комитет Республики
Узбекистан по приватизации, демонополизации и развитию конкуренции,
согласно Указу Президента Республики Узбекистан №УП-4483 от 13.11.2012г.
In accordance with the Government of the Republic of Moldova N 899 from
09.07.2002g. "On stimulation of stock trading," found that the control of commodity
exchanges by the Ministry of Economy of the Republic of Moldova.
b. Restrictions on the functioning of organized commodity market
For the purposes of state regulation of the organized commodity market in each of the EEA + are
legislative consolidation of certain limitations that make up the three main groups:
- The organizer of trading and its activities;
- To the participants of exchange trade;
- For the projects of trading.
Restrictions on the organizer of trading and its activities:
Table 8.b.3 «Restrictions on the organizer of trading and its activities"
Country
Republic
Kazakhstan
Restrictions
of
The
Russian
Federation
The Republic of
Belarus
The activities of commodity exchanges, stock brokers / dealers licensed in
accordance with the Law "On licensing" from 11.01.2007g. Number 214-III;
Mercantile Exchange prohibited from trading and other activities not directly related
to the organization of exchange trade;
Mercantile Exchange, do not install the remuneration charged by brokers and dealers
for mediation in exchange transactions;
Exchange transactions can not be committed in the name and for the account of a
commodity exchange;
The number of members of the commodity exchange should not be less than seven.
In addition, members of the Commodity Exchange may not be affiliated with
commodity exchange entities;
Employees Mercantile Exchange is prohibited to participate in exchange transactions,
and use business information in their own interests;
Government purchases are made in double counter auction and held only by the
electronic exchange trading.
Person without a license or a license exchange trading system, may not carry out
organized trading;
The organizer of trading shall not engage in the production, trade and insurance
activities of credit institutions, maintaining a register of holders of securities,
management activities stock investment funds, mutual funds and private pension
funds, specialized depository of investment funds, mutual funds and non-state
pension funds of joint-stock investment funds, non-state pension funds for pension
and pension insurance;
The organizer of trade is not entitled to be a central counterparty;
Trade organizer, combining activities for trading with other activities required to
create activities for the organized trade in one or more separate structural units;
Trade organizer, combining activities for the organized trading with other activities, is
obliged to take measures to prevent and resolve conflicts of interest arising from the
organizer of trade in connection with such registration.
Exchange can only be a legal entity in the form of a joint stock company;
Exchange may not combine their work with a broker, dealer and depositary activities,
as well as with the activities of the management of securities.
Commodity Exchange shall be entitled to only the activities related to the
organization and regulation of the exchange trade, unless otherwise stipulated by
legislative acts;
Commodity exchange can not be a party to exchange trading and client stockbroker;
Founders (participants) Mercantile Exchange, which by virtue of its majority interest
in the statutory fund, or in accordance with the agreement concluded between them,
or otherwise have an opportunity to determine the decisions taken Mercantile
Exchange, prohibited from participating in the exchange transaction on this
Mercantile Exchange, use own interests, as well as to disclose non-public information
about the participants of stock trading, customer stockbrokers and their activities;
Employees Mercantile Exchange is prohibited to participate in exchange transactions,
to perform work on the basis of labor and (or) a civil contract with the exchange
trade participant to use in their own interests, as well as to disclose non-public
information about the participants of stock trading, customer stockbrokers and their
activities.
Ukraine
Mercantile Exchange are prohibited:
- Any concerted action of exchange trade with a view to, or likely to lead to a change
or fix the current stock prices;
- Spreading false information that could lead to an artificial change in the
environment;
- Sale of Goods (contracts) by one person, either directly or through nominees to
influence the dynamics of prices.
The Republic of Exchange can not directly engage in manufacturing, trading, trading and brokering
Uzbekistan
activities, as well as being the founder (shareholder) other entities, except as
provided by law;
Founder (shareholder) of the exchange can not be organs of state power and
administration, except as provided by law;
Exchange employees may not purchase brokerage place, and use proprietary
information for purposes not related to the performance of official duties.
On the stock exchange are not allowed:
- Sale at the auction of goods, not included in the exchange list;
- What else concerted actions of the participants of trading, which can result in a
change or fix the current stock prices;
- Spreading false information that could cause artificial changes in market conditions;
- Registration of exchange transactions between its members without an exchange
trading.
The Republic of Actions Mercantile Exchange, the purpose or entailing the removal or restriction of
Moldova
competition in stock trading, declared illegal, and concluded with the agreement invalid;
Exchange trading is organized as a vowel public auction held for the purpose of
providing services to buyers and sellers in the sale (exchange) commodities;
Exchange transactions can not be committed in the name and for the account of the
exchange;
The founders of the exchange can not be:
- Central and local public administration;
- Banks and credit institutions;
- Insurance and investment companies and funds, trust companies;
- Social, religious, political and charitable organizations (associations) and
foundations;
- Individuals who by law is not entitled to engage in business activities;
Exchange employees are prohibited from participating in the exchange transactions
and create their own brokerage firms, as well as using inside information for personal
gain;
Exchange can not act as a party to the exchange trade;
Do not install Mercantile Exchange:
- Levels and limits of commodity prices in the stock trading;
- Remuneration exchange intermediary for mediation in exchange transactions.
There are limitations to the participants of exchange trade in the EEA + countries are:
Table 8.b.4 «Limitations to the participants of exchange trade in countries EEA +"
State
Republic
Kazakhstan
Restrictions
of
In accordance with the legislation of the Republic of Kazakhstan brokerage and dealer
activity on the commodity exchange carried out under a license issued by the authority.
Admission to tender foreign brokers and dealers, the current legislation of the Republic
of Kazakhstan is not provided as to obtain a license, you must be a legal entity
registered in the Republic of Kazakhstan.
Commodity Exchange may establish additional qualification requirements for members
of the exchange - the size of the share capital, the terms of activity in the market, and
others;
Professional participants of the securities market is not entitled to make transactions in
the futures market commodity exchanges on its own behalf and at its own expense in
the absence of a central counterparty in the transaction (Article 33 of the Law on
Securities Market);
Participants exchange trading are obliged to at least fifteen percent of the total selfexchange turnover of goods included in the list of commodities, in double counter
auction (st.4-2 Law of the Republic of Kazakhstan "On Commodity Exchanges").
The
Russian To participate in the organized trading goods may be admitted individual entrepreneurs
Federation
and legal entities established under the laws of the Russian Federation, ie residents
(restriction on the admission of foreign legal entities);
There is a rule that participation in organized trading may be admitted foreign legal
persons carrying out functions similar to a central counterparty, and included in the list
approved by the federal executive authority in the field of financial markets, subject to
the inclusion of such a foreign legal entity in the list of federal authority executive in
charge of financial markets, while there may be limits to be admitted to organized
trading (ie, foreign legal entities may participate in organized trading only as a central
counterparty).
The Republic of Stockbroker can only be legal entities of the Republic of Belarus and individual
Belarus
entrepreneurs of the Republic of Belarus. Participation of non-residents of the Republic
of Belarus as stockbrokers unacceptable.
Thus, the organization of interaction with foreign exchanges, cross-accreditation of
non-resident stockbrokers and their admission to a stock exchange trading on the
Belarusian Mercantile Exchange, can not be implemented;
Manufacturers and producers of certain products, including skimmed milk powder and
casein for industrial purposes, in accordance with the decision of the Council of
Ministers of Belarus from 05.12.2008 № 1882 choose their scheme sale of these goods
for export (on the stock exchange or outside the stock exchange).
Ukraine
The founders and members of the Commodity Exchange may not be the organs of
state power and administration, as well as public institutions (organizations), consisting
on the state budget;
Participation of foreign legal entities in the Law "On Commodity Exchanges" from
12.10.91, № 1956-XII is not prohibited, but the foreign element in the exchange
transactions is considerably limited.
The Republic of Exchange members are legal entities who purchased or received in the prescribed
Uzbekistan
manner exchange brokerage place on that exchange;
Members of the exchange can not be organs of state power and administration, their
officials and employees of the Exchange;
Individuals are not eligible to be brokers, brokerage acquire space on exchanges and
exchange members.
The Republic of Members of the commodity exchange can not be:
Moldova
- Employees of this or any other commodity exchange;
- The company if their heads (deputy heads or their leaders of their branches and other
separate units) are employees of the Exchange;
- Banks and credit institutions, insurance and investment companies and funds, trust
companies;
- Central and local public administration;
- Social, religious, political and charitable organizations (associations) and foundations;
- Individuals who, in accordance with the law may not engage in entrepreneurial
activities.
Restrictions on stock trading sites are established in the EEA + countries on various grounds
presented in the following table:
State
Republic of
Kazakhstan
Table 8.b.5 «Restrictions on objects stock trading in countries EEA +"
Restrictions
There is currently a temporary ban (introduced for a period of six months from
01.07.2012g.) On the export of light distillates and products (HS code 2710 TC 12),
The
Russian
Federation
The Republic
Belarus
of
Ukraine
The Republic
Uzbekistan
of
kerosene (FT GC CU Code 2710 19 210 0 - 2710 19 250 0), gas oil (FT GC CU Code 2710
19 420 0 - 2710 19 480 0 2710 20 110 0 - 2710 20 190 0) and other petroleum products
(FT GC CU Code 2710 20 900 0), except for special gasoline (FT GC CU Code 2710 12 210
0 - 2710 12 250 0) and domestic heating oil;
Can not be a commodity withdrawn from circulation or limited in circulation, real estate and
intellectual property.
As a measure of support exchange trading the Government of Kazakhstan fixed the list of
commodities that must be realized only through the commodity exchanges, with an
increase in minimum size to represent the party (currently consists of 9 types of goods).
There can be no exchange goods withdrawn from circulation;
Can be set mandatory requirements for the family and the quality of goods, respectively,
does not meet the requirements of the goods to trading is not permitted;
Exchange goods can not be real estate and intellectual property;
Government approved the list of commodities for which OTC transactions, including longterm supply contracts are subject to mandatory registration Mercantile Exchange. These
include:
- Petroleum products, provided the technical regulations laid down by the legislation
implemented by the manufacturer of the goods included in the register of economic entities
(except for financial institutions), having a market share of certain goods in the amount of
more than 35 percent, or a dominant position on the market of certain goods, if in respect
of such market by federal law for their application established cases recognizing dominant
position of economic entities;
- Crude oil, realized by the manufacturer of the goods included in the records referred to in
paragraph 1 above the List;
- Coal, implemented an economic entity, subject to the implementation of this economic
entity and (or) a group of persons to which it belongs, in the previous year in excess of 1
milliont tons
Established in accordance with the legislation of minimum prices for certain types of
exported goods. For example, skimmed milk powder (FT GC CU Code 0402 10 190 0). The
minimum export price per tons 2,500 euros. Casein dlyapromyshlennyh purposes (FT GC
CU Code 3501 10 500 0). The minimum export price per tons 6,000 euros;
Establishing exchange level of maximum and minimum prices for commodities (price
range). For example, the price range for exchange trading skimmed milk powder, butter,
cheese and casein set by the exchange together with the working group for the daily
monitoring of the implementation of dairy products on the domestic and foreign markets,
established in accordance with the decree of the Prime Minister of the Republic of Belarus.
The working group recommends that exporters minimum export prices for dairy products.
Can not be the subject of stock trading things, certain individual characteristics, if they are
not sold as a party, as well as any applicable goods, including vehicles and capital assets;
Grain Market in Ukraine:
- On a regular basis are introduced restrictions in the form of compulsory registration of
export contracts on the Agrarian Exchange), in the form of quotas or customs of
emergency measures.
- Exchange of grain can only be accredited on the exchanges. Accredited by the Ministry of
Agriculture and Agrarian Exchange itself. Obviously, only the Agrarian Exchange may
conduct trades in grain.
In accordance with the Cabinet of Ministers dated February 5, 2004 № 57 "On further introduction
of market mechanisms for the implementation of highly liquid products and raw materials", establish
a temporary regulation on the procedure of realization of diesel fuel on the stock exchange, the
Provisional Regulations on the procedure for the implementation of gasoline on the stock exchange.
These provisions apply to enterprises and organizations - residents of the Republic of Uzbekistan,
regardless of ownership, producing, supplying and using diesel or gasoline. The provisions stipulate
that the diesel / gasoline purchased on the stock exchange, is not subject to resale;
Excess of the allowable limit price in the bidding process is set at 10% of the starting price. When
exceeding the rates above 10% bids expire and the volume of unsold goods are transferred to the
next auction.
Exchange goods can not be land, its minerals, water, and other natural resources, cultural heritage
and intellectual property, as well as property withdrawn from civil circulation in accordance with the
law.
The Republic of
Moldova
Are not a commodity real estate, intellectual property and proprietary rights.
с. The procedure of calculation, conditions and procedures for clearing the
results of the exchange trades.
The procedure of calculation, conditions and procedures for clearing on the results of trading in each of
the EEA + has its differences in view of the powers of commodity exchanges to carry out the calculations
in the currency of export-import transactions, or lack thereof, of various regulatory procedure of currency
operations and legislative consolidation procedure for conducting clearing operations.
All countries EEA +, except for Russia, it is truncated character:
Table 8.s.6 "Features of the clearing and settlement"
State
Republic
Kazakhstan
Features of clearing and settlement
of
The
Russian
Federation
The Republic of
Belarus
Organization and implementation of the settlement of exchange transactions under
the laws of the Republic of Kazakhstan is one of the functions of the commodity
exchange, however, at present no exchange, nor any of their clearing houses under
the current legislation of the Republic of Kazakhstan can not get a license to engage
in certain types of banking operations, and as a result which all cash payments
commodity exchanges made through banks or institutions performing certain types of
banking operations; does not require a license and clearing activities on a commodity
exchange.
By definition in the law "clearing - offsetting mutual claims and obligations between
the parties exchange trading on transactions on a commodity exchange";
Condition for the participation of the bank in the calculation is made between the
bank (as a settlement organization), commodity exchanges and (or) clearing center
agreement on the procedure of interaction during exchange trading and settlement of
transactions concluded on the stock exchange;
Commodity Exchange in order to enforce committed to it futures and options
transactions organizes settlement services through the clearinghouse;
Clearing centers can serve a central counterparty - be on exchange transactions the
buyer to every seller and the seller to every buyer. In this case, clearing centers
should be established as separate from the commodity exchanges of legal entities, as
a limitation of the current legislation that exchange transactions can not be committed
in the name and for the account of the commodity exchange.
Clearing - the definition of enforceable obligations arising from treaties, including as a
result of netting of obligations, and preparation of documents (information), which are
the basis of termination and (or) the performance of such obligations. Clearing
services to clearing member is a necessary condition for its admission to transactions
organizer of trade;
In the exercise of clearing services of clearing participants clearing organization
performs centralized clearing with partial collateral;
Clearing organization clears on the basis of documents from the Organizer trade
(without confirmation from the clearing participants) committed in the course of
trading transactions;
Clearing organization performs clearing of derivatives transactions and transactions
Pre-delivery period separately for each trading account clearing member.
Clearing the results of the conclusion of stock exchange transactions carried
Mercantile Exchange or other organization on the basis of the prisoner with the
commodity exchange agreement, and the results of calculations carried out clearing
clearing bank;
On the stock market of real goods cleared in full is not made. In this segment of the
market held only individual clearing operations, such as the definition of the
requirements for the sum of exchange deposit, the account of his free-burdened and
parts, the processing of documents confirming the execution of transactions, the
interaction with the bank and others. These operations are implemented by the
Exchange in the manner prescribed by local regulatory legal acts;
Conducting monetary settlements between participants of stock trading on exchange
transaction is carried out by one of the schemes:
- In the first scheme provides for the right of exchange trade participants to perform
calculations using their accounts in different banks;
- In the second - using the Exchange accounts;
BUCE exempt from mandatory sale of foreign currency coming into her account of
exchange trade participants and their clients as collateral for exchange transactions.
To carry out these activities in the commodity segment of the exchange derivatives
market in the Republic of Belarus for a license is not required.
Ukraine
Clearing on organized commodity markets is not regulated by legislation, regulations
on clearing appeared in the legislation of Ukraine in 2012 relate primarily to the stock
market;
Payments under the exchange contracts, as well as of the Agrarian Fund commodity
or financial interventions, and / or forward purchases, in order to ensure their
implementation can be carried out through a separate bank account Agrarian
Exchange, opened in one of the state banks in Ukraine;
The procedure of calculation in each case is determined by the exchange contract;
Transfer of funds of the Agrarian Fund contract, credited to a separate account of the
Agrarian Exchange, implemented by the Exchange within one business day of receipt
of the written order of the Director General of the Agrarian Fund.
The Republic of In accordance with applicable law settlement and clearing services activities
Uzbekistan
recognized exchange or other organizations:
- By definition, refinement and offset obligations exchange members and their clients,
the implementation of settlement between them;
- To provide financial guarantees execution of transactions;
- Obligations for accounting exchange members and their clients, conducting
settlement and payment of the transaction, including commissions parties involved in
the transaction.
The Republic of In order to enforce committed Mercantile Exchange transactions Exchange is obliged
Moldova
to organize payment services through the creation of clearing centers or by contract
with a bank or credit institution on the organization of clearing services;
Clearing centers may be established as independent from the Exchange organization
exchange intermediaries. A member of the clearinghouse may be a natural or legal
person having the minimum capital and having a bank account.
Clearing Center:
- Sets the type, amount and procedure for collecting contributions from members of
the center to ensure the execution of transactions or compensation for damage
caused as a result of full or partial default on transactions and determines other
financial obligations of the contracting parties;
- Carries out in the prescribed manner lending and insurance contracting parties to
the extent necessary to ensure the execution of these transactions or compensation in
the event of non-performance.
Clearing Center is for money and routine accounting of transactions.
Cash clearing center consist of fees for transactions, the amounts of fines and
penalties for clerical, arithmetical errors and untimely reporting of transaction, as well
as from contributions of members of the center.
Settlements on export-import exchange transactions carried out in accordance with the general
rules of national law of each country governing the conduct of foreign trade operations:
Table 8.s.7 "features the participation of commodity exchanges in the calculations of exchange
transactions"
State
Republic
Kazakhstan
Features participation of commodity exchanges in the calculations of exchange
transactions
of
Notwithstanding the provisions of Article 13 of the Law "On Commodity Exchanges" from
04.05.2009g. №155-IV, that the Commodity Exchange shall perform the function of the
organization and the settlement of exchange transactions, be aware that the commodity
exchange can not act as a settlement organization, which may be a bank or organization
engaged in certain types of banking operations. Clearing Center can only conclude relevant
The
Russian
Federation
The Republic of
Belarus
Ukraine
agreements on the order of interaction with them during exchange trading and settlement of
transactions concluded on the stock exchange.
Participation Mercantile Exchange in the calculation of export-import exchange transactions
concluded in trading, is at the moment very truncated character - exactly within the conclusion
and settlement of transactions in accordance with the rules described in the internal rules of
the exchange on tendering and clearing. Accordingly, the effective settlement operations on
export-import exchange transactions conducted on commodity exchanges in the form of
money transfer or other form of exercise for the moment exclusively through authorized banks
in compliance with the currency legislation of the Republic of Kazakhstan, although for
consistency with international agreements, Republic of Kazakhstan systematically take
measures to amend the currency legislation to liberalize the exchange rate regime,
optimization procedures related to foreign trade operations and accelerate the time required to
process transactions.
In accordance with Russian legislation the regulation of foreign trade and currency regulation
remain out of touch with the legislation on organized commodity markets
Settlements on export-import exchange transactions carried out in accordance with
the general rules of the Belarusian legislation regulating the conduct of foreign trade
operations;
The main document in this sphere is the Decree of the President of the Republic of
Belarus of 27.03.2008. Number 178 "On the Procedure for and control of foreign
trade operations" (hereinafter - Decree number 178). Pursuant to subparagraph 1.4 of
paragraph 1 of the Decree №178 residents are obliged to ensure the completion of
each of the foreign trade operations in full on the following dates: when exporting no later than 90 calendar days (under commission - not later than 120 calendar days)
from the date of shipment of goods (transfer of protected information, exclusive rights
to intellectual activity results), works and services; when importing - no later than 60
calendar days from the date of payment. Residents are required to provide a specified
time for goods imported their entry into the Republic of Belarus.
Subparagraph 1.6 of paragraph 1 of resolution of the Board of the National Bank of
the Republic of Belarus of 09.07.2009g. Number 101 "On foreign trade transactions"
provided that the export of cash in foreign trade contracts concluded by the results of
trading organized by OJSC "Belarusian Universal Commodity Exchange" can be
credited to the account of the company, opened in Bank of the Republic of Belarus.
The date of completion of foreign trade operations for exports in this case is the date
of receipt of funds from exports at the expense of the exchange, opened in Bank of
the Republic of Belarus.
Foreign currency transactions are carried out in accordance with the laws of the
Republic of Belarus on currency regulation.
Fundamentals of currency regulation and control established in the Law of the
Republic of Belarus of 22.07.2003 Number 226-W "On Currency Regulation and
Currency Control".
Paragraph 2 of the Decree of the President of the Republic of Belarus of 14.09.2006g.
Number 577 Belarusian Universal Commodity Exchange is exempt from the mandatory
30% sale of foreign currency coming into her account of exchange trade participants
and their clients as collateral for exchange transactions.
Payments under the exchange contracts, as well as of the Agrarian Fund commodity
or financial interventions, and / or forward purchases, in order to ensure their
implementation can be carried out through a separate bank account Agrarian
Exchange, opened in one of the state banks in Ukraine. The procedure of calculation
in each case is determined by the exchange contract.
Transfer of funds of the Agrarian Fund contract, credited to a separate account of the
Agrarian Exchange, implemented by the Exchange within one business day of receipt
of the written order of the Director General of the Agrarian Fund.
At the same time the Cabinet of Ministers of Ukraine, it was found that the export of
grain is carried out only on the basis of transactions registered on Agrarian Exchange.
When making foreign economic contract party (parties) is non-resident (nonresidents) of Ukraine, the price of the transaction stated in foreign currencies.
Transfer of money from the buyer to the seller made, bypassing the exchange, the
exchange rate of the National Bank of Ukraine on the day of the auction.
Together with the contract on the letterhead of the prescribed form of Agrarian
The Republic of
Uzbekistan
The Republic of
Moldova
exchange registration certificate is issued. On the last page of the registration
certificate stamped prescribed form, specify the registration number, date, authorized
signature and seal of the Agrarian Exchange.
Registration is done separately for the two types of contracts - spot and forward.
Accounting for the foreign trade contracts carried out in logs of foreign trade
contracts
Agent of Settlement between the subjects of exchange transactions is the exchange
clearinghouse, tasked with monitoring the unconditional fulfillment of the undertaken
transaction participants contractual obligations, as well as, if necessary, the imposition
of penalties in favor of the injured party. Penalties levied by removing (without
acceptance) established statutory amount of funds from special accounts of
wrongdoing while their transfer to a special account of the injured party.
Prerequisite exchange transactions for each of the parties is to open them in
exchange kliringovomtsentre special accounts with the deposit for their money in the
amount of not less than 2% of the proposed transaction of purchase / sale.
Transfers within commodity exchanges are carried out on the basis of 100 percent
prepayment. Exchange mechanism guarantees that the buyers and sellers of
contractual obligations assumed by the result of transactions on the Uzbek
Commodity Exchange, provides a clear and unconditional provision of the parties
100% payment and timely delivery.
In accordance with the Regulations on the procedure for registration of export-import
contracts (agreements) concluded by economic entities in the Republic of Uzbekistan
Ministry of Foreign Economic Relations of the Republic of Uzbekistan (registered with
the Ministry of Justice of the Republic of Uzbekistan from 02.12.2000g. № 988) for
registration of the contract must:
- Compliance with contract terms generally accepted rules of international trade, the
current laws and regulations of the Republic of Uzbekistan and the Republic of
Uzbekistan adopted obligations to other states and international organizations;
- Compliance with the prices specified in the contract, the world average and the
current state of the market;
- Presentation of the necessary documents referred to in Section II of the Procedure.
He also provided the parameters that must include export and import contracts.
Registration contract for an amount equal to 50 thousand US dollars inclusive - made
for a maximum of 5 working days and the contract for an amount equivalent to more
than 50 thousand US dollars - within 10 working days from the date of receipt of the
application in the Republic of IBEC Uzbekistan.
Regulations on the procedure of formation of prices for the implementation of highly
liquid products through currency area UZEX, approved by the Ministry of Economy,
Ministry of Finance of the Republic of Uzbekistan from 15.11.2010g. №№ 103,97.
Exchange is only liable for registration on the Exchange of export contracts. For
proper execution and registration of export contracts are responsible brokers and their
clients. And when exporting goods export certificate of compliance is sought solely for
goods subject to mandatory certification.
In accordance with the Administrative Board of the National Bank of 27.02.2002 N 46 "On
some aspects of the settlement of transactions on export / import concluded at the Universal
Commodity Exchange of Moldova" - in the case of transactions for the sale / purchase of
goods in the Universal Commodity Exchange of Moldova (hereinafter - the Exchange), where
one of the parties (seller / buyer) is not a resident, temporarily authorize payments in foreign
currency between buyers and sellers under contract on export / import to transfer funds in
foreign currency through special accounts in foreign currency Exchange, open in one of the
banks in the Republic of Moldova. The obligation to repatriate money / material resources for
export / import transactions rests with the resident (seller / buyer).
As a result of the conclusion of the contract on the Exchange on export exporter Resident is
your bank export contracts concluded on the Exchange, and a declaration of repatriation on
the basis of which will be monitored repatriation of funds. In paragraph 6 of the Declaration on
the repatriation of the exporter must "export contracts concluded at the Universal Commodity
Exchange of Moldova." For transfer from the special account of the Exchange in favor of the
exporter-resident funds received from non-resident of the said account, the Exchange is your
bank payment document, as well as copies (certified by the Exchange) and the contract for
the export customs declaration relating to the relevant transaction.
As follows from the data shown in the above table:
1. In the Russian Federation, the Republic of Kazakhstan, the Republic of Uzbekistan the
regulation of foreign trade and currency regulation remain out of touch with the legislation on organized
commodity markets. Currency legislation of the Republic of Kazakhstan does not consider the specifics of
the conclusion of such transactions on the commodity exchanges, and therefore, there is a problem of
participation exchanges and clearing centers in the calculations between clients to guarantee the carrying
out of such calculations - because they can not avoid converting received from non-resident currency
when translating it residents - such transfer without conversion is not permitted by applicable currency
regulations.
2. In the Republic of Belarus, Ukraine, Moldova possible to use special accounts commodity
exchanges to participate in these calculations - in this currency regulation contains clauses that take into
account the specifics of such calculations. However, the legal regulation of these issues in each country
has its own specifics, and the conclusion of export contracts on a commodity exchange is not exempt
from the normal procedures and requirements for such contracts. Paperwork on behalf of clients are
engaged in their brokers.
Given the above, a review of the current legislative regulation leads to the following conclusions:
• All countries EEA +, except for the Russian Federation: clearing activity in transactions, including
futures, commodity exchanges is not licensed and therefore do not have any requirements for clearing
organizations - not the size of the share capital, or to the professional qualities of the worker, nor to
information technology (software) - clearing centers are not separated from the commodity exchanges;
• At the same time in each of the Commodity Exchange Act limits the rights of commodity exchanges on
their participation in the exchange trade, to enter into transactions on behalf of and at the expense of
exchange on the implementation of trade and trade-brokering. This means that none of the organizers of
trading in these countries is unable to arrange complete trades in futures contracts without the
involvement of outside organizations established by the exchange with her or without her participation
(the contract), - because they do not have the right to act as a central counterparty such transactions.
However, in the absence of legal requirements for a third party - most likely it will not be able to provide
an acceptable level of risk for the bidders.
• In the Russian Federation there is already a legal ban on the performance of the organizer of trading as
a central counterparty.
• The concept of a central counterparty is available at the moment only in the legislation of the Russian
Federation and Kazakhstan, although without this mandatory bidders futures market simply can not
develop.
d. Conditions for the functioning of the derivatives market in an organized commodity market.
In these countries EEA + functioning futures market is in various stages of development. Recovery in
commodity exchange markets segment began in 2008. For example, in Russia jobbers, brokers, large
producers and consumers of goods combine to create a civilized exchange commodity market. There
were trade platform, introducing new commodity instruments. However, many stock exchanges have
gone the way of the development of the derivatives market, without reference to the contract price of
the underlying asset on the stock exchange. As a result - the lack of real market participants, the process
of formation of the derivatives market has stalled.
Commodity market participants to talk about the benefits of hedging price risks at an early stage, when
the term "futures" was unfamiliar to many, is quite difficult. Of course, this was a new activity for
enterprises that required specialized knowledge bases of the derivatives market and the functioning of
the exchange. Currently, the futures market "stalled." Meanwhile, the use of derivatives allows you to:
• to hedge price risks (price of goods can be insured by concluding a reverse transaction in the futures
market);
• generate predictable cash flows;
• Net financial result on the spot and futures markets.
However, gradually, thanks to the consistent work of a professional community of brokers, exchanges,
banks, a positive experience in the formation of the derivatives market, which is gaining popularity
among the participants. In the Russian market are becoming interested and financial players, increasing
turnover and creating liquidity.
Attempts are made to the development of the derivatives market in the Republic of Kazakhstan on the
stock exchange with state participation in the capital - JSC "Commodity Exchange" Eurasian Trading
System ", developed an interest in other exchanges.
First trades commodity futures began in the Republic of Belarus at the end of 2012, at the Belarusian
Universal Commodity Exchange (BUCE) - on the Stock Exchange will start its life commodity futures
market. The development of the derivatives market is estimated to BUCE crucial moment for the Republic
of Belarus and allow to work more actively with partners from the CIS. At the same time, the main
problem faced by the organization of exchange derivatives market, was the lack of knowledge of
business entities about the direction of trade.
Derivatives Market Section on the "Ukrainian Stock Exchange" was launched May 27, 2010 with trading
futures index UX, which is just a few months became the most liquid instrument of the Ukrainian stock
market. A little less than a year later, April 26, 2011, was admitted to trading on another tool - Options
on Futures Index UX. In the commodity market trading in futures contracts is not performed. In other
EEA countries + derivatives market is at an early stage of formation.
Below is a table on the analytical facilities of the derivatives market in the EEA + countries:
Table 8.d.8 «Objects derivatives market in the EEA countries +"
State
Comment
Republic
Kazakhstan
of Urgent trading on commodity exchanges in Kazakhstan reduced to trade in futures
contracts, defined as contracts for unconditional or conditional sale and purchase of the
underlying asset with delayed execution, he is treated futures, options.
Option transactions - exchange transaction, which is subject to an option.
Futures - exchange transaction with the payment of collateral calculations which are
conducted through the clearinghouse, performed with a fixed-term contract on a
commodity exchange, with the adoption of the bidders obligations to deliver (to take) a
certain amount of exchange of goods in a certain period in the future at a price fixed in
time of the transaction.
In accordance with Article 128-2 of the Civil kodeksaoptsiony, futures, forwards, swaps
and other derivative financial instruments, which are a combination of the above in this
article, derivative financial instruments are defined as contracts whose value depends on
the value (including fluctuations in the value) of the underlying asset of the contract,
providing for the settlement of them in the future. In this case, the underlying assets of
derivative financial instruments are commodities, standardized batch of goods,
securities, currencies, indexes, interest rates and other assets that have a market value,
future events or circumstances, derivative financial instruments.
The
Russian In the course of trading may enter into contracts, derivative financial instruments whose
Federation
underlying asset is a commodity. These financial instruments include: forwards, futures,
options.
The Republic of Formation of the exchange segment of the derivatives market in accordance with the
Belarus
concept of creating futures commodity market in the Republic of Belarus, developed by
the Exchange on the basis of a draft prepared by the GNU "Center of System Analysis
and Strategic Research of the National Academy of Sciences of Belarus." The concept is
compatible with the National Bank, the Ministry of Economy, Ministry of Finance, Ministry
of Commerce, Ministry of Taxes and Duties and approved First Deputy Prime Minister of
the Republic of Belarus.
Futures - the transaction being the basis of the rights and obligations relating to the
conclusion of standard contracts.
In accordance with the Law "On Commodity Exchanges": stock exchange transactions is
Ukraine
recognized agreement that meets all of the following conditions:
a) if it is the buying and selling, delivery and exchange of goods admitted to trading on a
commodity exchange;
b) if its members are members of the Exchange;
c) if it is presented for registration and listed on the Stock Exchange not later than the date of the
implementation of the agreement.
Definitions futures in the Law "On Commodity Exchanges" no. Futures market legislation of
Ukraine considers and regulates mainly through the stock market. The Civil Code of Ukraine
(Bulletin of the Verkhovna Rada of Ukraine, in 2003, №№ 40-44, Art. 356), in Article 194 states
that:
"1. A security is a document prescribed form with the relevant details, confirming cash or other
property right, defines the relationship of the issuer of the security (the person issuing securities)
and the person entitled to the security, and provides for the implementation of the obligations
under such security as well as the possibility of transferring rights to the security and rights of a
security to others."
The Republic of
Uzbekistan
The Republic of
Moldova
Forward transactions - transactions of purchase and sale of real goods delayed for a
period of its delivery;
Futures transactions - the purchase and sale of standard contracts for goods with a
commitment to performance in the future - the nature of the transaction is not defined;
Option transactions - transactions of purchase and sale of rights to future purchase or
sale at a fixed price of goods or contracts for the supply of goods.
Forward transactions - transactions related to the mutual rights and obligations with
respect to real goods delayed for a period of its delivery.
Futures - related transaction c mutual rights and obligations in respect of standard
contracts for the supply of commodities.
Option transactions - transactions with related conditions, including in the exchange
transaction for a period during which one of the parties the right to choose between the
terms of a transaction or a change in its initial conditions.
Conclusions concerning the legal regulation of the derivatives market on commodity exchanges
comparator countries:
1) Even the legal nature of futures trading on commodity exchanges in legislation EEA + resolved at this
point in different ways:
• In the Russian Federation, they are treated as transactions in financial instruments - in the process of
transition to a single regulation as transactions concluded on organized trading in the commodity and (or)
the financial markets, with the establishment of uniform requirements for the organizers and participants
of the auction, provides the basis for state regulation of this up and monitoring its implementation;
• in the Republic of Kazakhstan are attributed to derivative financial instruments, however, are divided in
legal regulation between the two legislative areas - legislation on the securities market regulating such
transactions on the organized securities market, and the legislation on commodity exchanges - the
organized commodity market. Currently, between them there is a significant difference, which causes a
number of problems of development of the derivatives market on commodity exchanges in Kazakhstan;
• in the Republic of Belarus futures traded on a commodity exchange, do not apply to securities;
• in the Republic of Moldova and Uzbekistan futures in accordance with the Commodity Exchange Act are
considered as types of exchange transactions;
• Ukraine concepts as futures transactions entered into on a commodity exchange, is not provided, this
concept can be attributed under the concept of security, are available in the Civil Code of Ukraine. In
connection with this, all legislative regulation on derivatives market refers to the stock market.
2) Accordingly, for the development of the derivatives market in organized commodity markets in these
countries required to make significant changes in their legislation.
Analysis of features of national regulatory systems in the organized commodity market: clearing activities
for transactions with basic exchange commodity assets:
Adopt a federal law on February 7, 2011 N 7-FZ "On clearing and clearing activity" defined the legal basis
of clearing, the requirements for legal entities engaged in clearing activities and (or) as a central
counterparty, as well as the legal basis for state regulation of clearing activities and state control of its
implementation. This Act laid the foundations of clearing activities in the Russian Federation on the
securities market as well as the organized commodity market:
• Define clearing activities, the clearing organization, a clearing participant, clearing rules, a central
counterparty, organized trades, netting, operator of commodity supply and a number of others;
• establish requirements for clearing organization and the person acting as a central counterparty, to
governments and workers clearing organization, the founders (participants) of the clearing organization
to equity clearing organization and other mandatory standards (minimum equity clearing organization
shall be at least 100 million rubles) for the requirements for persons who may be members of the
clearing, clearing rules are established;
• The law provides for the possibility of opening and order of operations for trading and clearing
accounts. Clearing bank accounts can be opened in rubles and foreign currency. Clearing the trade
account is opened by the operator of commodity supply, if records of this property on the basis of the
contract of storage provided for in Article 17 of this Federal Law. Operation on the specified account
equal to the transmission (receipt) of the property;
• practically the Act includes experience gained not only in term of trading on an organized commodity
market, but also in the stock market because they are united by this law in a single regulation.
Somewhat differently at this time addressing the issues of clearing activities in the Republic of
Kazakhstan:
• Clearing operations with financial instruments in the securities market beginning licensed as a
professional activity in the securities market after the changes from 10.07.2012, the Law "On the
Securities Market" and "On Licensing".
• set qualification requirements for clearing organization (minimum equity clearing organization shall be
not less than 500,000 times the statutory rate.
At the same time clearing activity in financial instruments on an organized commodity market is regulated
by the Law "On Commodity Exchanges", which is no requirement for this activity does not.
Therefore, the securities market regulator has restricted access professional participants of the securities
market (brokers, dealers) on the futures market of commodity exchanges - which significantly affects the
development of the derivatives market on commodity exchanges, as difficult to attract the experience of
brokers, dealers, securities market and their accumulated funds for urgent market commodity exchanges.
In Belarus, clearing is limited - only held separate clearing operations, such as: defining the requirements
for the sum of exchange deposit, the account of his free-burdened and parts, the processing of
documents confirming the execution of transactions, the interaction with the bank et al., And the
calculations are made based on the results of clearing clearing bank.
In the Republic of Uzbekistan and the Republic of Moldova clearing - is part of clearing and settlement
activity. Analysis of features of national regulatory systems in the organized commodity market
calculations, rules of currency regulation on cross-border transactions with basic exchange commodity
assets in organized commodity markets EEA +:
Currently, no legislation of the Russian Federation or the legislation of Ukraine can not talk about the
features of national standards or settlement of foreign exchange regulation in the calculations for
international transactions underlying exchange-traded commodity assets in organized commodity markets
in the Russian Federation and Ukraine, as well as regulates transactions in commodity markets as
national, under national law, the settlement of such transactions and, as a rule, are carried out in the
national currency. It should be noted that the legislation of Ukraine, providing a very wide range of
situations in which extradition is requested individual currency license, significantly limits the participation
of Ukrainian entities in international exchange transactions.
The situation is similar in the legislation of the Republic of Belarus. When you export and import of cash
in foreign trade contracts concluded by the results of trading organized by OJSC "Belarusian Universal
Commodity Exchange" can be credited to the account of the company, opened in Bank of Belarus.Pravo
the opening of special accounts of "Belarusian Universal Commodity Exchange "provided in subparagraph
1.3 of paragraph 1 of the Decree of the President of the Republic of Belarus 14.09.06g. Number 577 "On
some issues of Open Joint Stock Company" Belarusian Universal Commodity Exchange. "Belarusian
Universal Commodity Exchange is exempt from the mandatory sale of foreign currency coming into her
account of exchange trade participants and their clients as collateral for exchange transactions.
In Uzbekistan, a system to guarantee the execution of transactions - delivery after 100% payment for the
goods on the invoice clearing center. In these countries calculations are made with the participation of
banks. In addition to these other special rules for the settlement of exchange transactions is not
provided.
In Kazakhstan, no features for the settlement of exchange transactions that take into account their
specificity, the law is not established.
e. The existing tax on exchange transactions (VAT, etc.. taxes, rates, benefits, etc.)
Following the results of the implementation of exchange transactions in the bidders having tax liability on
such terms and conditions as set forth by the current legislation and international treaties ratified by each
of these countries.
Certain difficulties for the development of international exchange transactions arising from different sizes
of rates of value added tax: in the Russian Federation (18%); Belarus, Uzbekistan, Moldova (20%),
Kazakhstan (12%) and the presence of excise taxes on gasoline and diesel fuel in certain countries (The
Russian Federation, The Republic of Uzbekistan).
Table 8.e.9 "Taxation on exchange transactions"
State
Republic
Kazakhstan
Comments
of
The
Russian
Federation
The Republic of
Belarus
Ukraine
The objects of taxation on exchange transactions are taxable turnover and taxable
import. In this case, the taxable turnover is turnover, performed by a VAT payer;
The current VAT rate is 12% and is applied to the taxable turnover and taxable
imports;
Turnover on the sale of goods for export is taxed at zero rate.
The operations are not taxable (exempt from taxation) VAT charged, in particular, the
implementation of the financial instruments of term transactions, except for the
implementation of the underlying asset financial instruments of term transactions,
taxable value added tax;
In implementing the underlying asset financial instruments of futures contracts are
traded on an organized market and involving delivery of the underlying asset (except
for the implementation of the underlying asset of option agreements (contracts), the
tax base is defined as the amount at which the implementation should be carried out
and that the underlying asset is determined in accordance with subject to approval by
the exchange of a financial instrument specifications futures deal. determination of the
tax base in the implementation of the underlying asset on the date corresponding to
the time of determining the tax base established by Article 167 of the Tax Code,
subject to excise taxes (for excisable goods) and without the inclusion of the tax;
Taxation is made on a tax rate of 0 percent for realizatsiitovarov exported in the
customs procedure of export;
Taxation is made on a tax rate of 10 percent in the implementation of food products,
including milk and dairy products, grains;
In other cases (not separately specified in the tax legislation of the Russian
Federation) tax is made on a tax rate of 18 percent;
In addition, in accordance with the tax laws to excisable goods, including relates
gasoline and diesel fuel. Tax rates for excise taxes on these products are as follows:
- For gasoline (not the appropriate class 3,4,5) with 01.07.2012g. - 8 225rub. for tons
with 01.01.13g. - 10 100 rubles. for tons with 01.01.2014g. on 31.12.2014g. - 11 110
rubles. for tons. Gasoline 3,4,5-class tax rates for excise taxes correspondingly lower;
- For diesel fuel (not corresponding to the class 3,4,5) with 01.07.2012g. 4300 rubles.
for tons with 01.01.2013g. - 5860 rubles. for tons with 01.01.2014g. on 31.12.2014g.
- 6446 rubles for tons. Diesel 4.5 class for a specified period for excise tax rates,
respectively, below.
Taxation on exchange transactions is formed in the first place, due to the value added
tax and differs depending on the type of exchange of goods and the type of
transaction (export, import, domestic market);
In case of the exchange transaction, providing export goods set rate of value added
tax at the rate of 0%;
When importing into the territory of the Republic of Belarus and (or) sale of food
products and goods for children on the list approved by the President of the Republic
of Belarus (which also includes milk and dairy products, including milk powder), the
tax rate is 10%;
The sale of goods, other than the above cases, as well as the importation into the
territory of the Republic of Belarus of goods, other than those of the above-mentioned
list, set rate of 20%.
Income from operations subject to corporate income tax. In accordance with the tax
legislation of Ukraine the basic rate of tax is 16%.
VAT rate in Ukraine is 20% (from 01.01.2014g. - 17%).
In Ukraine, charged: Excise (floating) for gasoline - € 198 / t, and DT - € 46-98 / ton
(as of early December 2012)
The Republic of Turnover of goods (excluding precious metals) on the export of foreign currency is
Uzbekistan
subject to value added tax at zero rate;
VAT rate for 2012. 20%;
Set the rates of excise duty on excisable goods produced in the Republic of
Uzbekistan, including the following commodities:
- Gasoline AI -92 - 40%, but not less than 353,430 sum. / Tonsu
- Gasoline AI -95 - 40%, but not less than 408,890 sum. / Tonsu
- Diesel fuel - 34%, but not less than 273,400 sum. / Tonsu
- ECO diesel fuel - 34%, but not less than 284 250 sum. / Tonsu.
The Republic of
Set the following rates of VAT:
Moldova
- The standard rate - 20% of the taxable value of imported goods and services and
deliveries made on the territory of the Republic of Moldova;
- Reduced rate:
8% - for bread and bakery products, milk and dairy products sold on the territory of
the Republic of Moldova, except for child food products not subject to VAT under the
tax laws of the Republic of Moldova;
5% - for natural and liquefied gas as imported and supplied in the territory of the
Republic of Moldova;
at a zero rate of VAT levied on the supply of goods for export
In addition, on 1 July 2010, entered into force international treaties concluded between Member
States of the Customs Union, which is regulated in the taxation of the VAT on exports and imports of
goods, performance of works and services, as well as its tax administration in mutual trade States
members of the customs union:
• Agreement on the principles of indirect taxes on exports and imports of goods, works and services
in the Customs Union on January 25, 2008;
• Protocol amending the Agreement on principles of indirect taxes on exports and imports of goods,
works and services in the Customs Union on January 25, 2008 (11 December 2009);
• Protocol on the order of indirect taxes and the mechanism of control of their payment for exports
and imports of goods in the customs union of 11 December 2009;
• Protocol on the order of indirect taxes in the performance of work, provision of services in the
Customs Union of 11 December 2009;
• The protocol for the exchange of electronic information between the tax authorities of the Member
States of the customs union of the amounts paid indirect taxes of 11 December 2009.
In accordance with the terms of the principles of indirect taxes on exports and imports of goods,
works and services in the Customs Union on January 25, 2008 the collection of indirect taxes (VAT and
excise duties) in mutual trade of Member States of the Customs Union made "by the country purposes ",
according to which the export of goods subject to VAT at the zero rate, imports - at the rate applicable in
the country of import.
Adopted by States - members of the Customs Union internal regulations and international treaties
signed regulate issues of administration of indirect taxes in the Customs Union and implemented to avoid
incomplete facts receipts of indirect taxes on goods imported into the territory of the Republic of
Kazakhstan to the Republic of Belarus and the Russian Federation.
f. Application of electronic document and digital signature
Domestic legislation of each of the EEA + contains special legal acts governing legislative recognition of
electronic document and digital signature, the conditions and principles of their use, etc.
Basic normative legal acts in this area are:
• Law of the Republic of Kazakhstan "On Electronic Document and Digital Signature" 07.01.2003g.
Number 370-II;
• Law of the Republic of Belarus "On Electronic Document and Digital Signature" from 28.12.2009 №
113-W;
• Federal Law "On electronic signature" from 06.04.2011 № 63-FZ;
• Law of Ukraine "On electronic digital signature" from 22.05.2003g. №852-IV, the Law of Ukraine "On
electronic documents and electronic document" from 22.05.2003g .;
• Law of the Republic of Uzbekistan "On electronic document" from 29.04.2004g. №611-II, Law of the
Republic of Uzbekistan "On electronic digital signature" from 11.12.2003g. №562-II;
• Law of the Republic of Moldova "On Electronic Document and Digital Signature" 15.07.2004g. №264XV.
One of the main issues of cooperation in the application of electronic document and digital signature in
cross-border transactions is the ability to use a foreign registration certificate (or other document
confirming compliance with digital signature requirements of domestic law) and the conditions for
recognition of digital signatures in other EEA +.
Table 8.f.10 «Conditions for recognition of digital signatures'
State
Republic
Kazakhstan
Comments
of
The current legislation of the Republic of Kazakhstan of the basic principles of using
a foreign registration certificate and exchange of electronic documents with the
participation of foreign individuals and legal entities. In the regulation of relations
arising between the certification center and the owner of a foreign certificate of
registration, the law of the State in which it was issued a certificate of registration,
unless otherwise provided by agreement of the parties. Ratified by the Republic of
Kazakhstan agreements with countriesi EEA + with respect to the order of
recognition of foreign registration certificates to date available.
For the recognition of foreign digital signature digital signature on the territory of
the Republic of Kazakhstan shall be ratified by the Republic of Kazakhstan an
international treaty or foreign registration certificate shall be entered in the register
of registration certificates. Maintaining such a register is carried out by the
certification center.
The
Russian Electronic signatures created in accordance with the law of a foreign state and
Federation
international standards, in the Russian Federation recognized electronic signatures
of the type attributes to which they correspond to the Federal Law. Electronic
signature and electronic document signed by it can not be considered null and void
on the sole ground that the certificate key electronic signature verification is issued
in accordance with the rules of the foreign law.
The Republic of Foreign public key certificate corresponding to the requirements of the law of a
Belarus
foreign country in which the certificate is issued, it is recognized in the territory of
the Republic of Belarus in cases and order determined by an international treaty of
the Republic of Belarus, provides for the mutual recognition of public-key
certificates or other way to give effect to foreign electronic documents.
Public key certificate issued by the service provider of foreign countries accredited
in the State management system public key is recognized in the territory of the
Republic of Belarus.
Ukraine
Foreign key certificates, certified in accordance with the laws of those states where
they are issued, are recognized in Ukraine operating in the manner prescribed by
law. However, the order of this law is not installed.
The Republic of Using the key certificates of electronic digital signatures of foreign countries is
Uzbekistan
carried out in the manner prescribed by law.
The Republic of
Public key certificate issued by a certification authority public key of another state in
Moldova
accordance with the law of that State, is recognized equivalent public key certificate
issued by a CA public keys of Moldova, on the basis of bilateral or multilateral
agreements between the Republic of Moldova and other states or international
organizations on a reciprocal basis.
Between the countries of the Customs Union Agreement on the application of information
technology in the exchange of electronic documents in foreign and mutual trade in the single customs
territory of the Customs Union (Moscow, 21 September 2010), which reflects the conditions for the
recognition of electronic documents countries - members of the Customs Union.
In Article 10 of the Agreement in order to protect the interests of the member states of the Customs
Union and the development of the electronic document with cross-border transactions provides that: "...
the trusted third party:
• carries out legalization (authentication) of electronic documents;
• provides a guarantee of confidence in the international (transboundary) exchange of electronic
documents;
• ensures the legitimacy of the use of digital signatures on outgoing and (or) the incoming electronic
documents and communications in accordance with the rules and requirements of the law of the State
where the trusted third party.
Trusted third parties reacted to establish trust in the organization of cross-border electronic document
electronic interaction between the subjects of the Parties that use different mechanisms to protect
electronic documents.
The Parties shall ensure the rights of subjects of information exchange services of trusted third parties,
functions which perform public authorities of the Parties or their accredited organization. "
In addition, under the provisions of the Agreement on the establishment, operation and development of
an integrated information system of foreign and mutual trade of the Customs Union (Moscow, 21
September 2010) and for collaboration together geographically distributed state information resources
and information systems of state regulators foreign and trade between Member States of the Customs
Union, information systems and information resources of the Customs Union Commission, combined with
national integration segment of the Member States of the Customs Union and the integration segment of
the Customs Union Commission, representatives of the member countries of the Customs Union is
developing an Integrated Information System external and mutual trade of the Customs Union.
Completion of work on the development of this system is planned by the end of 2013.
The use of electronic document management plays an essential role in the customs administration when
making cross-border transactions in commodities. To date, representatives of states - members of the
Customs Union draft Guidelines for the improvement of customs administration in the Customs Union in
2012-2015. The key areas affecting the electronic document, the following information:
• introduction of the principle of the primacy of electronic documents and information in electronic form
in the construction of customs technologies and preparation of normative legal acts (priority "electronics"
before the paper). Technology of customs operations should be focused on the use of legally relevant
electronic documents;
• providing conditions for easy and "qualitative" customs declaration in electronic form using the customs
declaration for at least 90-95% of consignments. Saving the written form of the customs declaration for
the individual ("specific") product categories;
• implementation of a comprehensive (point) estimates the supply chain (sender, recipient, carrier, holder
of the contract, warehouse, broker, etc.).
In the preparation of international agreements for the EEA + to resolve the issues of recognition of
foreign digital signature as a basis we can take the principle laid down in Art. 20 of the Model Law "On
electronic digital signature" (adopted at the sixteenth plenary session of the Interparliamentary Assembly
of States - CIS member states December 9, 2000) Recognition of foreign electronic signature, if it can be
verified by the public key that has a foreign certificate issued by one of the countries of the CIS or
statem, with whom there is an agreement on recognition of such certificates or other agreement that
provides equivalent security of electronic communications.
g. Types, sizes liability for violation of the law
The legislation EEA + fixed the responsibility of participants of stock trading for a number of violations of
the legislation in the field of exchange transactions on the commodity market. Liability has the following
features:
• compensation consisting in the recovery of losses incurred to the victim;
• warning, which consists in warning the debtor and others from committing offenses;
• stimulating, which involves motivation debtor to eliminate the violation and the real performance of the
obligation;
• information, which consists in the analysis of data about the kinds of violations committed, their
dynamics, levied for violations of the amount of losses and penalties and the use of these data for the
development of measures to address the causes of violations and prevent losses.
Legislating the following set of measures of responsibility is a kind of guarantee of proper behavior of
participants and organizers of trading.
For violation of the laws of the EEA + to participants and organizers of trading can be applied the
following responsibilities:
• civil law;
• administrative;
• criminal;
• other types of liability.
Civil liability is provided by the civil legislation of each of the EEA + and can be applied for breach of
obligations.
Administrative responsibility depending on the offense can be both a direct violation of the law on
commodity exchanges (there are some articles in the Administrative Code of the Russian Federation and
the Republic of Kazakhstan) and for infringement related legislation related to the legislation on
commodity exchanges, the exercise of stock exchange transactions, etc. etc.
Table 8.g.11 «Foundations of administrative responsibility"
State
Republic
Kazakhstan
The grounds of administrative responsibility
of
The
Russian
Federation
The Republic of
Belarus
Violation of the legislation of the Republic of Kazakhstan on commodity exchanges;
violation of the rules of exportation or shipment of raw materials, foodstuffs and
manufactured goods from the Republic of Kazakhstan;
illegal transportation, purchase, sale, storage of oil and oil products, as well as oil
refining;
illegal business;
violation of the order of reporting, information and documents on currency
transactions required in accordance with the currency legislation of the Republic of
Kazakhstan;
failure to comply with the requirements of the repatriation of national and foreign
currency;
concealment of objects of taxation;
dereliction of duty by the tax legislation of the Republic of Kazakhstan, taxpayers in
export and import of goods, works and services in the Customs Union, as well as
failure to persons of requirements established by the legislation of the Republic of
Kazakhstan;
engage in business or other activities, and the implementation of actions (operations)
without registration or license, special permit, qualification certificate (certificate),
another permit, notification;
violation of licensing;
violation of the legislation of the Republic of Kazakhstan on electronic document and
digital signature.
Violation of legislation on commodity exchanges and exchange trade. There is a
special sanction of suspension of the license of the Commodity Exchange for up to
three months (in accordance with the Law "On Commodity Exchanges and Exchange
Trade" from 20.02.1992g. № 2383-I);
causing damage to property by fraud or breach of trust;
violation of currency legislation of the Russian Federation and acts of currency
regulation.
Employee participation in the exchange-traded commodity exchange transactions or
the creation of their own brokerage firms;
Ukraine
The Republic of
Uzbekistan
The Republic of
Moldova
intentional disclosure of commercial or other secrets protected by law without the
consent of its owner the person to whom such business or other secret is known in
connection with his professional or official duties;
violation of accounting, collection, storage, transport, use, procurement (purchasing)
or the realization of metal, ferrous and non-ferrous metals, their scrap and waste;
violation of the established procedure of foreign exchange operations;
delayed the mandatory sale of foreign currency and unreasonably low amount of
foreign currency, subject to compulsory sale;
failure to return from abroad, the individual entrepreneur or the official currency of
the legal entity to be in accordance with the legislation of the Republic of Belarus,
transfer to accounts in an authorized bank of the Republic of Belarus;
violation of the order of use of budget funds, state budget funds or the organization
of public procurement of goods (works, services).
Illegal vacation or purchase of gasoline or other fuels and lubricants;
violation of the rules on foreign currency transactions;
violation of the order of classes and economic activities;
violation of the law on the implementation of the procurement of goods, works and
services for public funds.
Exercise of an activity without a license;
violation of the procedure of currency and export-import operations;
violation of rules for admission, registration, storage, dispensing, acquisition of fuels
and lubricants;
implementation of fuel and lubricants that do not meet the standards or technical
specifications;
implementation of fuel and lubricants that do not meet the standards or technical
specifications;
violation of contractual discipline.
There is a special sanction of suspension of the license of the Commodity Exchange
for up to three months (in accordance with the Law of the Republic of Moldova "On
Commodity Exchanges» №1117 from 26.02.1997g.);
illegal acquisition, storage, transportation for the implementation and realization of
inventory;
trade or transport of goods, the implementation of which is prohibited or restricted;
violation of the rules on foreign currency transactions.
The application of criminal liability to participants and organizers of trading in the EEA + countries
possible for the following reasons:
Table 8.g.12 «grounds of criminal responsibility"
Country
Republic
Kazakhstan
The grounds of criminal responsibility
of
The
Russian
Federation
Embezzlement or misappropriation of entrusted property;
fraud;
causing damage to property by fraud or breach of trust;
transportation, purchase, sale, storage of oil and oil products, as well as oil refining
without the documents confirming the legality of their origin;
illegal business;
failure to return from abroad of funds in national and foreign currencies;
evasion of customs duties and fees;
abuse of power.
fraud;
embezzlement;
causing damage to property by fraud or breach of trust;
market manipulation;
failure to return from abroad in foreign currency;
abuse of power.
The Republic of
Belarus
Intentional disclosure of commercial or other secrets protected by law without the
consent of its owner the person to whom such business or other secret is known in
connection with his professional or official duties.
Fraud;
misappropriation, embezzlement of property or seizure of them by malpractice;
causing damage to property by fraud or breach of trust;
failure to return the proceeds in foreign currency;
illegal use of insider information.
Fraud;
causing damage to property by fraud or breach of trust;
exercise of an activity without a license;
illegal collection, disclosure or use of information;
concealment of foreign exchange.
Fraud;
causing damage to property by deception or abuse of trust.
Ukraine
The Republic of
Uzbekistan
The Republic of
Moldova
Other types of liability of exchange trade - for violation of the applicable laws and rules of trading. Types
of measures of responsibility are regulated exchange trading rules and other internal documents
Mercantile Exchange and are applied to the organizer of the auction participants trading. These measures
can be attributed steps:
Table 8.g.13 «Penalties applied to the organizers of the auction participants to exchange trade"
Country
Republic
Kazakhstan
Penalties
of
The
Russian
Federation
The Republic of
Belarus
Ukraine
The Republic of
Uzbekistan
The Republic of
Moldova
prescription;
prescription with public notice;
fine;
suspension for a specified period of access to trading in a certain mode (modes) /
sections;
termination of access to trading in a certain mode (modes) / sections;
termination of access to tender.
The fines;
termination tolerance bidders to tender in the section;
termination of membership of the Exchange member, a member of the section and
the termination of participation in the exchange trades constant visitor and a single
visitor in accordance with the Rules of admission
warning;
fine;
deprivation of the exchange trade rights to participate in the stock exchange within a
certain period (suspension of accreditation);
suspension or termination of membership at the Mercantile Exchange;
termination of accreditation of the exchange trade.
Deprivation for a certain period of time or on a regular basis right to conduct
exchange operations Mercantile Exchange;
fine;
deprivation brokerage space.
Fines levied in favor of the Exchange and / or the affected party;
limitation on the rights set time, or the termination of accreditation on the Stock
Exchange of any member of trading.
Fines
h. Trends in international integration of the national organized commodity market
Integration processes of the CIS and the Single Economic Space gaining momentum: the process of
creating a single economic, financial and banking fields are supranational bodies in various fields. All this
is a necessary condition for the further expansion of trade turnover between countriesi member, and
plays an important role for the formation of an organized commodity market - an important attribute
structure-modern trade.
For international commodity market integration organized EEA + creates more preconditions. In
recent years, with the participation of the EEA + signed international agreements on cooperation in
various fields, contributing to the formation of transnational organized commodity market data countries.
One of these is the Agreement on Free Trade Zone
(St. Petersburg, October 18, 2011). Treaty is designed to provide the necessary conditions for the full
and effective functioning of a free trade zone in the CIS and to create favorable conditions for the further
deepening of integration based on the rules of the World Trade Organization. Said contract shall include
provisions on the simplification of the legal framework of trade and economic relations between the
signatory countriesi, regulates the regime of free trade in the CIS.
An important condition for the integration of international organized commodity market EEA + is
to take measures to remove the various barriers and restrictions in national legislation - at least, this
process is very active in Russia, Kazakhstan and Belarus.
Extensive experience of creating the exchange infrastructure, supply logistics and other constituents in
the Republic of Belarus and the Republic of Uzbekistan. The Russian Federation is gaining momentum
derivatives market - acquired the necessary experience for its functioning.
National legal systems are similar to the principles of regulation:
• legislation in sufficient detail regulate the behavior of participants on various aspects of their activities,
their requirements - if the format regulated relations is specified, it is usually reflected in the legislative
regulation in the regulations at various levels;
• For this reason, difficult to introduce into legislation a new set of relationships absent in the current
legislation. Requires a comprehensive review of existing laws and regulations;
• development of legislation on commodity exchanges and their activities in time is lagging behind
compared to the development of banking laws, currency regulation, legislation on securities markets in
each of the EEA + that have been thoroughly designed and without regard to the specific relations
existing and necessary for the normal functioning and development of organized commodity markets;
• Without a clear strategy at the national level in each country, aimed at organizing transnational
organized commodity market and participate in it, without the elaboration and adoption of international
agreements on the principles of co-operation and make the appropriate changes to the existing national
legislation of the EEA + this feature will not be realized.
9. Analysis of the prospects for the development of trading electronically in the Republic of Kazakhstan
In order to understand what kind of development model should be applied in the development of the
exchange trading in Kazakhstan and what practical use could potentially bring the commodity exchanges,
should be clearly aware of what functionality should and can provide exchange infrastructure, taking into
account the growing economy. In general, there are six major functions of commodity exchanges. The
first three can be identified as the main functions: the formation of prices, price risk management
("hedging"), providing opportunities for investment ("speculation"). The second three can be identified in
a broader context: trade facilitation physical (or "cash / spot") of goods that facilitate the financing of the
agricultural sector and contribute to the development of the commodity market as a whole.
You can often hear phrases that claim to exchange trade is good, will definitely be a positive effect, all
will benefit from this. However, it is very difficult to prove empirically any direct effect or result to be
expected from properly structured exchange infrastructure. This effect will be positive for the economy
as a whole, or negative? Is it worth paying exchange fees or not? Does Exchange additional benefits for
participants or is another mediator? In this context, further to study proposes a closer look at the
functions described above, what results can be expected and what occurs practical benefit if this feature
is fully implemented exchanges and is represented in the market. Each function is described below,
entails a number of consequences and certain results, they also detail the rationale.
But before we proceed to the description of recommendations concerning that which functions should
provide exchange infrastructure in Kazakhstan, it is proposed to make a very brief excursion to the
practical necessity of commodity exchanges. That is invited to see and understand the fundamental logic
or reason for the commodity exchanges as a full-fledged institution in trade relations.
The main rationale for the utility and the absolute necessity of a commodity exchange infrastructure in
any economy - is to minimize costs and effective control of the set of risks arising from market
participants, especially from small producers.
The second very important study - is the stabilization of prices for goods that are traded on commodity
exchanges. The presence of liquid exchange instruments allows with minimal costs to provide marketbased pricing and price stabilization.
9.A risks and transaction costs
The concept of risk, can be interpreted in different ways, depending on the particular situation. In the
context of this study, the most successful and suitable definition provided by the working group on
management riskamiv hozyaystvePravitelstva rural India (PI). Thus, agricultural risks can be defined as
follows: "Selskohozyaystvennyeriski - these are the risks associated with the negative consequences that
arise from sovershennonepredskazuemyhbiologicheskih, climatic conditions and peremennyhtsen.Eti
variable data include natural disasters (eg, pests and diseases), and climatic factors beyond from
fermerov.Oni takzhevklyuchayut sebyanegativnye changes in the prices of factors of production and
export prices "(PI, 2007b: 6) .These riskiusugublyayutsyanedostatkami vinfrastrukture iformirovaniya
market information asymmetry and lack of funds for capital investment in business development.
Analyzing further, it is possible to share the risks in the industry into the following categories:
• Production risks associated with uncertainty about the quantity and quality of products:
• Tsenovoyrisk associated with the volatility of commodity price ratio that sozdaetneopredelennost in
otnosheniiurovnyadohodnosti kapitalai invested assets
• Market risk associated sneopredelennostyuotnositelno addition, there lipokupateli products for farmers
• Counterparty risk associated sneopredelennostyuotnositelno of whether vypolnyatsyausloviya
drugimistoronami contract deal
• Credit risk related to sneopredelennostyu zaschitesredstv for pokrytiyaoborotnogo capital,
techeniesezona iinvestitsii dlyaurozhayasleduyuschego year
•
Institutsionalnyeriski
related
sneopredelennostyu
of
changes
vgosudarstvennom
regulirovaniirezhimoviligosudarstvennoy support, which could adversely affect naproizvoditelya.
Thus, it becomes clear chtotsenovoy riskyavlyaetsya only one izriskov with kotorymistalkivayutsya
farmers and futures kontraktyyavlyayutsya only one of the mechanisms to solve problems with
riskami.Tem, however, in this study it will be shown chtotovarnye easy obespechivayutuslugi exchange
hedging, which pozvolyayutproizvoditelyam manage price risk. In addition, trade birzhiyavlyayutsya
universal idinamichnymi institutions that enable organizations vselskom sector, especially small-scale
farmers to decide klyuchevyezadachi facing the market. Hereinafter recommended funkionala will be
shown that a wide onipredlagayut spektrinstrumentovdlya not control tolkotsenovymi risk, but also
manufacturing, market, ikreditnymi risks.
Table 9.a.1 Transaction costs in the commodity economy
Measurement / information costs to the transaction:
• How to find a buyer or seller with whom to do business
• Assessment of the reliability of the counterparty
• Identifying and fixing a fair price
• Establish quality
• Provide funding for the transaction
• Identification of delivery and payment, and other terms of the contract
Enforcing / compliance costs after the transaction:
•
•
•
•
•
•
Management of credit and cash flow
Monitoring of delivery
Classification of product quality
Arbitration Dispute
Compulsory insurance or compensation in the event of default
The use of sanctions and exclusion of non-payers.
The producers imeyutryad mehanizmovdlya struggle with these risks (Table 9.a.2).
Table 9.a.2 risk management strategy in agriculture
Prospective
strategies
Description
Informal mechanisms
Formal mechanisms
Based on
market
farm
Risk sharing
with other
parties
Implemented
strategies
Overcoming
shocks
• diversification of production
• diversification in cultivated
areas
• mixed production
• diversification of income
sources
• buffer stock accumulation
with / agricultural products or
liquid assets
• adoption of advanced
methods of crop (fertilization,
irrigation, resistant varieties)
• Joint production
• Sharing of agricultural
equipment, irrigation sources,
etc.
• Informal transfer of risk
• The sharp decline in
demand
• Constraining / reduced key
social functions, and family
• Reduction / depreciation of
assets
• Migration
• Reallocation of labor
• Mutual
Provided by state
• direct government
support for agriculture,
grants, subsidies,
import duties, etc.
• preferential supply of
quality seeds,
investments, etc.
• development of pest
control
• infrastructure (roads,
dams, irrigation
systems)
• Marketing
contracts
• Futures
• Insurance
• Credit
• Social assistance
(disaster relief, "foodfor-work", etc.)
• Deferral of loans
• Agricultural insurance
• The decline in grain
supply
• Transfer of cash
Source: Government of India, "On risk management in agriculture, 2007"
Transaction costs are also an important issue when taken into account the role and necessity Mercantile
Exchange.
There are the following opinion of the United Nations:
"The utility of a commodity exchange is its institutional capacity to eliminate or reduce the high
transaction costs faced by people on the supply chain in developing countries
(UNCTAD, 2007):
4). It has been shown that a significant number of additional, non-production costs
will be accepted by the Parties related to commodity transactions (Table 9.a.2).
Taken together, these costs are likely to be a serious costs that consume considerable resources, time
and affect the reputation. In addition, transaction costs are generally much higher in developing
countries than in developed countries, which is a consequence of imperfect market formation, weak or
lack of infrastructure, and the lack of an effective institution to support the sector / industry. In the next
section, this study will show that commodity exchanges can foster trade, due to the significant reduction
of many operating costs described above.
As commodity exchanges fit into this picture? And is there any real practical benefits from the institution
of commodity exchanges? Whether effective exchange infrastructure in the realities of the economy and
economic relations in Kazakhstan? The answer is unequivocally yes, because commodity exchanges in all
conditions and at any stage of development of the commodity market can provide a qualitatively new
level of relations with lower risks and costs. As previously mentioned, transaction costs are the basis of
an understanding of why commodity exchanges are useful. Small farmers are usually faced with the high
costs of the transaction, and bear the brunt of the highest risk in the manufacture of its products. It is
caused and compounded by factors such as limited access to transport and storage, lack of access to
information and knowledge, as well as limited access to finance, due to the lack of liquid and reliable
collateral. It is this predicament often leads to a situation such manufacturers as they each year trying to
close the chaotic risks cover costs incurred for one purpose, as it does not go away in the negative for
the year. Tasks for further development, introduction of new technologies and the expansion of
production and the more tasks to participate on the stock exchange does not imply, and is not discussed.
There is a closed circular situation, out of which it is very difficult. This is where the government should
play an active role in implementing and developing exchange technologies.
Especially thanks to the innovative use of new information and communication technologies (ICT),
commodity exchanges can catalyze the integration of small-scale producers in the supply chain. For
example, in India, it was literally a technological breakthrough when, through the Internet provides
access to market information also applies to the satellite connection Commodity Exchanges and other
service providers and technologies. This in turn will encourage partnerships between the owners of rural
distribution networks and banks, including through post offices that was just some of the structural
changes of ICT. That's the way of innovation and technology have been overcome long-standing barriers
infrastructure for participation of small producers in the commodity exchanges.
It is believed that small farmers do not participate directly in the commodity exchanges, at least not
before they receive the necessary knowledge, resources and potential. Instead, the spread of market
prices and other market information to the masses, in conjunction with the training of small farmers in
how to use them - is one way to increase the capacity and sustainability of farming. For example, in
China, in 2004. The government has begun an educational program "1000 villages, 10,000 farmers." By
the beginning of 2007, more than 40,000 farmers were aware of how to use the stock price, make the
best decisions for their production and marketing. In addition, intermediary organizations such as
cooperatives, suppliers, buyers and financiers (including micro-financial institutions) could utilize the
functionality of hedging contracts under which they offered to farmers. Thus, small farmers could benefit
from price risk management, without having to devote this much time and resources that would be
required to participate directly in the commodity exchanges.
9.bVolatilnost prices for commodity assets
Historically, that adverse changes in world commodity prices hinder the activities in developing countries.
Identified two distinct trends. First, commodity prices often have sharp fluctuations in the short term,
with significant year-to-year variability. Secondly, there is a long-term decline in commodity prices, both
in absolute terms and relative to the price of production and services.
The implications of these trends were felt in developing countries, both macro and micro-level. At the
macro-level, developing countries have found that price shocks on key imported goods - especially food
and fuel - could weaken growth, spur inflation, and in some cases, to provoke political instability.
Governments that want to maintain low and stable domestic prices for these products, may face
increasing pressure on their budgets, resources, where might have distracted from other important areas
of expenditure, an increase in the overall level of debt.
Developing countries that export commodities, believe that the decline in export prices - can cause shortterm shocks and long-term decline - undermine financial stability, exacerbate rural poverty, which may
affect the government's ability to develop and maintain long-term investment program, in particular, to
meet the basic needs and infrastructure development. The more the country depends on exports of a few
products, the more serious the situation becomes. In addition, for most countries, price volatility can
seriously affect the achievement of sustainability indicators (the ratio of debt to gross domestic product
(GDP), the ratio of debt to exports), which, in turn, have an impact on the burden of debt service.
Taken together, the decline in prices for key export commodities, combined with a critical increase in the
cost of imports, it may also be a burden, affecting the balance of payments of the country related to the
impact on the exchange rate. In conjunction with the long-term declining terms of trade faced by
commodity-dependent developing countries, this scenario creates serious problems of development and
undermines efforts to achieve sustainable and stable growth of the economy as a whole.
At the micro level, adverse short-term price shocks on key import or export goods may undermine the
well-being of people in developing countries, where economic activity is usually dependent on a small
margin of profitability and leaves minimal room for error in the management of working capital. In
particular, it was shown that the impact of price volatility, pushing farmers to undue risk minimization.
The consequence of this is that investment in the production is limited and growing crops with higher
income, but with a higher risk, remain impossible (International Task Force on Risk Management
products (ITF-CRM), 2003). These problems are typical for small and medium-sized producers, but very
often krupnyetehnologichnye private sector can also carry large losses due to sharp fluctuations in fuel
prices or other raw materials used in their business, or significant year-on-year fall in prices of
manufactured their goods.
Governments around the world have been made a lot of different methods and models to attempt to
control price fluctuations, or at least reduce their devastating effect on the economy, the main ones are
listed in Table 9.b.3. As a rule, the emphasis in these attempts was on point solutions with a particular
item in a particular period, without the emphasis on correcting the fundamental causes of sudden and
uncontrolled fluctuations in commodity prices. The end result, external price shocks were largely
absorbed by the state budget (Claessens and Qian, 1991).
Also, Governments in developing countries - often at the urging of international organizations or investors
- took market-based solutions for long-standing development problems. As a result, abrupt liberalization
and deregulation have led to the removal of the protective functions of the Government for the
commodity sectors, and the government's refusal to many of his previous support functions. The abrupt
transition from subsidies and support, are accustomed to the subjects of the commodity market, the
complete detachment of the Government of the problems the industry is not the best solution and the
model for implementation. In this context, the need for integrated and phased in market instruments and
principles, as ultimately, only they will be able to most effectively neutralize the problems associated with
price volatility and risk producers.
Thus, the volatility of commodity prices, currently, more and more noticeable at the level of the farmer the weakest and least flexible participant in the supply chain. It is in this context, new approaches to risk
management based on the use of market instruments and institutions to ensure their implementation,
such as commodity exchanges, which play an increasingly important especially in developing countries.
As can be seen from the information presented above, there are many different methods and models for
solving problems with non-productive costs, risks and price volatility, but the most effective method is to
exchange trade. It is less costly than government programs, it is more effective, transparent and
essentially eradicates all the problems associated with manual processes of pricing and production of
goods. This is the advantage of an open and competitive market, which provides Exchange, only
developing in this direction we can talk about the prospects of long-term and sustainable development of
the economy of Kazakhstan.
Further, knowing what problems can solve exchange infrastructure are invited to consider what practical
functions necessary to implement the commodity exchanges in order to achieve the maximum positive
effect.
Table 9.b.3 Common methods of dealing with excess influential (instability) of prices for goods.



Diversification strategies: reducing dependence on limited and unstable income streams through diversification wit
Supply Chain Management: control over the amount of goods produced in accordance with the current demand in o
National revenue management: Interventions due to budgetary funds, funds and reserves, attempts to influence the
Compensatory fiscal policy: Concessional loans, subsidized interest rates, fees and various mechanisms to support
Market risk management tools: Using a variety of financial instruments in an attempt to mitigate the negative effec
Next, once you familiarize fundamental factors that justify the need to establish a commodity
exchange infrastructure are invited to go to the discussion and review of the practical functionality, which
necessarily must have a successful model of commodity exchange trading.
9.c Formation of the market value: representation, recognition and justification
Formation of market prices by entering into exchange transactions can lead to many positive results, the
main ones are as shown below in the form of diagrams.
Diagram 9.c.1. Formation of the market value: representation, recognition and justification
Function
Objectives
Advantages for the manufacturer
Other benefits
Formation of the market price refers to the mechanism by which prices reflect information known to the
market. The level of prices set in the open market, thus transmits an accurate description of the situation
prevailing supply / demand in the major commodity markets, whether in the spot market for the delivery
or forward / futures markets for supplies to the specified location in the future. Benefit from the market
price can be classified as those that arise from a more efficient process of price formation, and those
arising in connection with the provision of more and better information about the market. The former
refers to the benefits of proper alignment of supply and demand, ensuring that the signal of market
pricing caused efficient production, procurement and investment decisions participants in the sector. The
latter refers to the benefits of the publication and dissemination of market information, price
transparency, providing background information on accessible, credible and neutral price for sector
participants. The effect is recognized by all market price is set for additional improvements in the field,
the most significant of them are listed below.
Dissemination of information about the price reduction of information asymmetry and positive trend in
profitability for farmers: Easily accessible background information on prices can benefit farmers who
otherwise disconnected from the market and are vulnerable to receiving sub-optimal prices and
conditions from better-informed intermediaries . The information disseminated by the exchange can
therefore reduce the asymmetry of information that gives the privilege of intermediaries, and may
enhance the ability of participants in the commodity sector - to make better decisions in the light of a
more accurate understanding of market conditions. For example, with reference to Ethiopia, the
magazine Economist (2007) registered as intermediaries margin plus other market failures have added 20
percent to the cost of grain. The magazine claimed that "the information that is critical for efficient trade,
poor. But, in many ways, thanks to technology, the situation is improving. Mobile phones are helping
farmers to learn about the differences between the prices from which they could benefit. In some cases,
information of the market, encouraged farmers to diversify their crops. "
Improved yield dynamics of farmers and reduced market volatility of cash: There are two things in this
activity. Both are associated with market prices sensitizing producers to the expected price levels,
allowing them to adjust their behavior.
• Lower within-instability: at the micro level, the availability of information on the market price of
manufacturers, shows how the price develops, shows expectations for its development - during the
season. This gives them the opportunity to decide when there is an optimal time to deliver goods to
market. At the macro level, it can lead to a decrease in pre-season price fluctuations. The arrival of the
goods on the market is becoming more precarious, instead comes more goods, not the frequency of all
delivered batches, which can cause a surge in prices and the fall, during the development of the season.
Nevertheless, it is important to note that the farmer depends not only on access to information and
finance and storage in order to be effective choice of when to deliver products to the market. Morgan's
study (1999), referring to the British potato market, following the introduction of the London futures
market potatoes in 1980, suggested that farmers' decisions about storage, based on the futures of
information was an important factor in reducing the volatility of the spot price.
• Reduction In Season instability: at the micro level, the presence of futures prices for the upcoming
season provides manufacturers, with effective leadership, to decide which crops to plant - and how much
- in order to maximize the expected return during the next harvest. The use of spot prices as a
benchmark - the way that many farmers currently use - can lead to an exacerbation of intraseasonal
instability known as "web effect" - pre-season fluctuations in prices. Futures prices tend to provide a
more accurate indicator of the future spot price at the time of harvest. Thus, at the macro level, if the
market expects the deficit for this product in the next season, the futures prices will rise, and farmers will
have an incentive to the best way to plant this crop, thereby mitigating the expected shortfall (and vice
versa). However, it is important to note that the farmer is also dependent on the availability of resources,
expertise and environment that allows the rotation or intercropping. Several studies have shown that the
birth of the modern futures contract on the Chicago Mercantile Exchange, about the 1870s led to a
marked reduction in price volatility over the offseason spot (see., Chandler, 1977 and Santos, 2002).
More efficient pricing and effective price discovery for the production, procurement and investment
decisions: Efficient pricing of agricultural products may increase the efficiency of resource allocation in
the agricultural sector. Prices usually act as a signal that informs the participants regarding the sector of
commodity production, purchasing and investment decisions. Thus, as in this sector stronger pricing
reflects the basic supply / demand, in the same way decisions lead to the most effective results, which
may increase the net income and welfare sector participants. However, the futures price, which is
determined by the market, will represent only a biased indicator of future cash prices to the extent that
the interest of participation in the market based on the interests of the entire supply chain. Providing an
effective, open and transparent platform for trade on a daily and ongoing basis, commodity exchanges
can become an effective basis for this purpose. The high level of participation, proceeding from the
interests of the main producers, processors and the buyer - both domestic and foreign - to strengthen
the mechanisms of formation of market prices. Conversely, the lack of involvement of sectoral interests
weakens it. Moreover, in an environment where pricing in the domestic industry differs significantly from
the pricing in world markets with a local platform reflecting the internal framework can provide better
identification of the financial instrument price in the open outcry pit trading to the domestic industry.
Finally, commodity exchange provides the basis for the convergence of futures and spot prices that
delaetobscheetsenoobrazovaniebolee effektivnym.Etot principle works in two directions. Firstly, if the
futures and cash prices become unbalanced - for example, due to the distortion caused by short-term
speculative movements - market participants can buy at the same time in the cash market prodavatna
futures market (or vice versa) in order to avoid arbitrage transactions by such differences, and fix the
discrepancies in the level of prices nadvuh markets. Second, when a futures contract comes vfazu
delivery before expiration, market participants may require receipt or delivery of the physical product
through the exchange. Risks associated with delivery lead kkonvergentsii fyuchersovi cash prices as they
approach expiration period.
9.d Risk management: price risk, counterparty risk, the risk of logistics, payment and settlement risk
Function
Objectives
Advantages for the manufacturer
Other benefits
Diagram 9.d.1. Price Risk Management
Commodity exchange can provide solutions to manage price risk by offering trading in commodity fyuchersamii
option contracts (Note: There are also commodity risk management tools that are normally traded directly by the
parties, or outside the stock exchange without intermediaries. These include forwards, "exotic" options and swaps.
However, these tools provide enhanced services to exchange registration and clearing). These tools take into account
the fact that in the event of the state of the sector, the participants of the commodity sector more vulnerable to the
notorious price volatility (volatility), which have long suffered from the global commodity markets (Picture 9.d.1),
which relates to the goods under consideration in this study.
Picture 9.d.1. Volatility of prices for some commodities, 1986-2002
Coffee Palm Oil Corn Wheat Soy Beef
Source: Gilbert (2004).
Note: The instability is calculated as the standard deviation of annual price changes.
Price volatility breeds risk, and vulnerability to risk is considered to be one of the four parameters that
constitute poverty (Note: The World Bank's World Development 2000-2001. 2001. The four parameters it is income poverty, poor health, illiteracy, vulnerability to risk and voicelessness / powerlessness). In an
unstable and uncertain prices, farmers are exposed to price risk from the moment they decide to plant
crops, and every time they buy and use products such as fertilizers or pesticides, or use hired labor. They
will never know whether the cover price they receive at the end of their expenses and will be
compensated if their efforts. Such risks can keep farmers from serious investment in the modernization of
its operations, and can, instead, bring them into a vicious circle of low productivity and low incomes.
Thus, price volatility creates and contributes to poverty in rural areas.
Using the tools associated with commodities, to hedge the risk of changes in commodity prices could
bring more certainty about the cycle of planting, which will allow active participants in the commodity
sector to commit themselves to investing, resulting in long-term profitability and increase the feasibility of
planting crops with elevated risk and higher returns. Even in a long-term decline in prices for their
products, the ability to hedge against short-term fluctuations in price gives farmers the space to adjust
the cropping systems and diversification of risks.
Citing a number of studies Varangis, Larson and Anderson (2002: 6) argue that "there is convincing
evidence that farmers in poor rural communities tend to move away from risk and take steps that lead to
the production of a smaller but more stable income." In while many of the mechanisms used currently
informal (see. table 1 of this report), farmers facing the most important task to reduce the risks implies
that the solutions manage the risks associated with the market, there are significant opportunities.
However, it should also be remembered that price risk - this is just one of the risks faced by farmers that
he can form a complex relationship with other risks (Fafchamps, 2000), and that he may not be the most
relevant risk - especially in a situation where a relatively large source of income farmer is associated with
non-agricultural activities.
Further, the government also fall under the strong influence of volatility in commodity prices - this applies
both to countries importers who depend on raw food and energy products, as well as to countries
exporters that may largely depend on commodities in terms of revenue and foreign currency, as well as
considered as a source of employment, growth and poverty reduction. Thus, the same priorities
applicable to producers to manage vulnerability risks apply to governments.
Exchange Traded price risk management tools can be used by farmers or other members of the
commodity sector directly - either through direct membership on the stock exchange, or, more likely,
through a broker, accredited by the exchange. However, the direct involvement of farmers in the
commodity markets faced a number of obstacles, convincingly documented evidence: the size of the
contracts; which can significantly exceed the annual production; lack of knowledge, resources and
capacity; infrastructure deficiencies; the complexity of implementation, exceeding the potential of the
farmer, as well as alertness brokers "who do not want to engage in a new and unfamiliar client base of
small producers, which is characterized by high transaction costs, reduced access to credit and risk of
loss of income" (ITF- CRM, 2003: 2).
Picture 9.d.2. Typology of risk management tools
In addition, farmers may use exchange-traded instruments indirectly through an intermediary,
such as an association of farmers. Mediators can aggregate demand for hedging few small farmers to
trade on the stock exchange, to manage market positions, and then at the appropriate time to eliminate
the contract. Another form of indirect use may include OTC tool, the use of which the parties agree is the
exchange. This provides greater flexibility between the tool supplier - usually a financial institution, and
the recipient of the instrument - whether it is a major producer or intermediary. OTC instruments
described in the study of methods of trade coffee, options include "average price" and "zero cost"
(Rutten and Yousef, 2007) (Note: the average price options (also known as Asian options) are
implemented depending otsredney tsenyv for, say, season, rather than on individual daily price
movements, as would be the case with stock options. options nulevoystoimosti allows manufacturers to
obtain a protection against falling prices vobmen to waive some or all of the potential benefits from
higher prices).
Finally, price risk management can be integrated into the physical trade contracts between market
participants throughout the supply chain. They can also be built into contracts between the party of the
commodity sector and the service provider, for example, the financier or the supplier of funds. Under this
arrangement, the counterparty will implement hedging and transfer benefits to the manufacturer - for
example, the price for future delivery, which is fixed in advance or with reference to certain agreed
criteria, valid at the time of delivery or shortly before it.
Forwards, futures, options and swaps are the most common tools available to manage the price risk
(Picture 9.d.2). Nevertheless, each instrument has different functions and different requirements of the
different usage cost implications - which makes tool selection depending on the type of user as well as on
the specific user situation (Table 9.d.4). For example, it is believed that the purchase of "put options" -
options that give the holder the right but not the obligation, to make the sale at a certain price level on
or before a specified date - as the most suitable solution for commodity producers:
For suppliers, the most important obstacle to doing business with goods producers from developing
countries is credit risk. Structuring the business so that as derivative products are the simple put options
with an advance payment in cash eliminates the credit risks positions supplier iotkryvaet door
dlyavedeniya biznesas clients, which otherwise would not have access. Customers from developing
countries also do not want to start with a complex hedging strategies for them preferable to start with
simple tools. As they become more experienced in the use of hedging instruments and are an acceptable
form of security for the supplier, they can probably switch to other forms of hedging instruments.
Table 9.d.4 «Forwards, futures and options for farmers: the pros and cons."
Description
Forwards
Futures
Options
Exchange Traded
Counterparty Risk For
No
Depends on the contractor may be high
flexible
Yes
Minimum
Yes
minimum
Inflexible
inflexible
Yes
No
low
Low costs - usually deducted
from the payment by the
buyer at time of purchase
No
Yes
High
The need for an
intermediate margin as long
as the contract is closed
No
Yes
high
Buyer Options: lump
may be high
Conditions Of A Contract
Estimated Delivery
Flexibility Terms
Regulatory Oversight
Involvement Of Cash Flows
Тем не менее, возникает два вопроса: во-первых, опционы иногда могут быть слишком
дорогими, поскольку зачастую премии слишком высокие именно тогда, когда они больше всего
нужны, а во-вторых, эти инструменты, как правило, направлены не беднейших, а на коммерчески
ориентированных фермеров (Варангис, Ларсон и Андерсон, 2002). Основным выводом является то,
что необходимым условием для эффективного использования фермерами управления ценовыми
рисками является некоторая степень организации и коммерциализации фермеров.
Использование местной площадки развивающейся страны для управления рисками может
при определенных обстояtelьствах быть выгодным, если сравнивать с использованием хорошо
известных международных бирж. Проблемы, связанные с доступом на международные биржи
обычно включают в себя контроль за потоками валюты, капиталом и товарами; неустойчивость
обменного курса, а также строгие кредитные требования и правила "знай своего клиента", которые
зачастую не позволяют брокерам в развитых countries начинать бизнес с развивающимися
countriesи (Table 9.d.4). Важно отметить, что также зачастую существуют обширные, основанные
на рисках, расхождения в динамике цен на международных фьючерсных рынках по сравнению с
внутренними рынками наличных сделок, что подрывает эффективность хеджирования. Многие из
этих проблем могут и должны решаться на местной площадке.
С другой стороны, многие биржииспытывают трудности при попыткеввестиконтракт
натовар,
которыйотличается
отустановленного
международного
стандарта.Некоторыебиржирешают эту проблемупутем приобретения лицензии на условия
контрактов
и
расчетные
ценыустановленного
типового
контракта
умеждународной
биржи, ипредлагая их в местной валютеи торговле на внутренних площадках. Этот подходможет
привести в соответствие методы, используемые на внутреннем рынке наличных сделок, с
практикой хорошо известных международных рынков, по мере того, как местные участники
будутприспосабливаются кмеждународным условиям контракта.Он также предлагает возможности
для арбитража как на рынке наличных сделок, так и фьючерсном рынке– как внутри страны, так и
на международном уровне -для лучшего согласованияценмежду ними.
Наконец,основанные на рынке решениямогут иметьсущественные преимущества
передгосударственным
вмешаtelьством
в
вопрос
неопределенностицены
натовары. Варангис иЛарсон(1996)выделяют четыре таких преимущества:
•
•
•
•
Вместо административно установленных цен они полагаются на определенные рынком
цены;
Они переносят риск на субъекты, способные и готовые взять на себя риски;
Они могут быть связаны с инструментами финансирования, что в некоторых случаях делает
возможным финансирование с более низкими затратами;
В большинстве случаев, их стоимость ниже, чем затраты, предусматриваемые
государственными программами.
Рыночно-ориентированный подход с использованием биржевых инструментов может почти
напрямую копировать существующие государственные программы. Например, Сен (2005)
предполагает, что надлежащее использование биржевых опционов может копировать механизм
минимальной поддержки цен на пшеницу, используемый Правиtelьством Индии и влекущий за
собой экономию от $ 35 до $ 151 за tonsу, в зависимости от структуры и целей государственных
программ.
9.e. Инвестиционные возможности: профессиональные участники рынка, спекулянты
Diagram 9.e.1. Предоставление возможностей для инвестирования
Function
Objectives
Advantages for the manufacturer
Other benefits
In recent years, deals with commodity derivatives are characterized by a significant increase. The
increase in some cases can be considered as an increased involvement of the physical market
participants. However, markets are also attracting a growing number of institutional investors, due to
higher prices and increased volatility (volatility).
Commodities are increasingly seen by investors as a separate asset class (the Bank of France, 2006).
Commodity sector offers a combination of high yield and high volatility - the second highest category for
each indicator, among all traditional asset classes (stocks, bonds, real estate).
According to the presented index zdestovarnomu bank Goldman Sachs, commodities outperform all
classes aktivovv of the annual return for commitments isklyucheniemdolgovyh emerging markets. They
are also the most unstable of vsehinvestitsionnyh directions except in emerging markets securities.
The analysis shows that investment in commodity futures markets lead to other positive results. These
results include the ability to hedge against inflation (predictable and unexpected) and improved portfolio
diversification due to the low correlation in price movements with traditional asset classes (Ibbotson
2006, National Bureau of Economic Research, 2004). Portfolio diversification is particularly important for
pension funds and insurance companies, which generally tend to carefully balance the balance of risk and
reward in order to fulfill its obligations to customers in the long run. According to a trade investor of the
largest Dutch pension fund, "... most of all, value-added product is its ability to reduce the overall risk
without prejudice to the expected total income. When it comes to the possibility of diversification of
commodities as an asset class, we can say that "water wears away the stone" (Binen 2005: 61).
Another possible advantage - it sposobnostnekotoryh vidovfinansovyh institutions to make arbitrage
transactions. Arbitrage operations can be defined as the simultaneous sale and purchase of two related
agreements to take advantage of the difference in pricing between them. This can be done in the context
of domestic contracts between the one and the same product, which expires in different months of the
calendar. This is known as a "calendar spread" - the purchase of a futures contract for wheat with the
expiration of the next month, and the simultaneous sale of a futures contract for wheat, delivery of which
is within the six-month period. It can also be carried out between the contracts of one and the same
product at different stages of the supply chain, such as "spread between spin soybean soybeans and
their derivatives - soybean oil and soybean meal. In the local market, the presence of investors engaged
in arbitrage may lead to more stable prices in the domestic market. in the international market, arbitrage
operations can be performed between the two products, in various international markets, such as
soybeans, sold on the Chicago Mercantile Exchange and soybeans at BM & F. This can effectively keep
the prices on the domestic market, according to the world price movements.
Commodity exchanges also offer a number of wider benefits, as formally established place for
investment. Firstly, the exchange clearinghouse acts as the counterparty to all transactions that reduce
the risk of counterparty default and provides a more secure and reliable environment for investments
(Note: After an urgent transaction is completed, a dedicated exchange clearinghouse guarantees the
performance of each contract by positioning themselves between the parties to the transaction,
becoming the buyer to every seller and the seller to every buyer, acting as a central counterparty.
Clearing House, and then controls the risk of this guarantee through a number of mechanisms, which
includes a system of collateral, controlled on a daily basis and minimum capital requirements for all
market participants. Secondly, rules, regulations and procedures for managing exchange, coupled with
his reguliruyuschimii intermediary bodies, provide jobs in an orderly manner, within the legal framework,
which may be to improve the investment yapraktika and controversial issues may be arbitrated. Third,
the speculative interest, which is generated by the Exchange, as a rule, it is necessary to provide liquidity
(Corcoran et al., 2003).
However, it should be borne in mind that the role of speculation on commodity exchanges participation
strongly contested. In some situations, exchange trade, especially speculative, considered by
governments ilio bschestvom as wasteful or not morally desirable. Sometimes this is aggravated by the
lack of conceptual clarity about what exchange trading, and who are the punters / participants. Exchange
trade can be defined as participation in the market, in order to profit from the correct expectations of
future price movements. Many forms of investment in the financial markets are a form of stock trading stocks, bonds, property prices can go down as well as up, as well as commodity prices. Farmer, which
contains the culture of the deposit of inflation expectations in the future, but no hedging of this position,
too, in its own way is a speculator - is that the farmer would lose if prices fell.
Other organizations involved in the chain of commodity supply, can and should be traded on an
exchange. There are responsible and frivolous speculation pozitsii- the latter are those that leave punters
open dlyaubytkov that he or she can not afford pozvolit.Est situation, "excessive speculation" that
somehow defined situations that cause "sudden or unreasonable fluctuations or unwarranted changes in
prices for such goods "(Government of the United States commodity Exchange Act of 1936, 1 (6a),
Exchange and regulatory authorities impose regulations to control such situations. There is also an
important difference between speculation and manipulation, which is defined as" the deliberate conduct
calculated to deceive investors by controlling or artificially affecting the securities market "(Commission of
the United States securities and Exchange Commission potsennym, 2007).
The consequences of speculation in the markets are far from clear. On the one hand, analytical evidence
suggests that punters follow hedzheramiv establishing position - which meant that it was hedgers, are
responsible for changes in the price and nespekulyanty (IMF, 2006b; Hay, HranayovaiOsvald, 2005). On
the other hand, can also be true that the presence of active speculators to market prices respond quickly
to new information, and sometimes overreact, which leads to high short-term instability that may be
problematic for hedgers in terms of state management open positions. This
dvoystvennostmneniyaotrazhena See the following assessment of the Bank for International Settlements:
"Intuitively, one would expect a significant inflow of funds into commodity markets, causing a sharp rise
in prices, perhaps to higher levels than justified by economic fundamentals. Authentic evidence seems to
support this view, as financial activities are widely grown in parallel scenes in the last chetyrehlet.Tem,
however, the results of empirical studies on the impact of the growing presence of financial investors in
commodity prices are less clear. Several recent studies that examine the relationship between the activity
of investors and commodity prices, show that changes in prices led to a change in investor interest, and
not vice versa ... In spite of all these factors, still seems difficult to coordinate an increase in futures
prices to economic realities, especially in the case of copper "(Bank for International Settlements, 2007:
61)."
Looking at the debate from a different perspective, often market participants themselves, the direct
producers, consumers, prices are moving up, while calling speculation manipulation as a cause of
unjustified price increases. This may be an attempt to reduce the effect of the intervention of the
Government posnizheniyu prices. On the other hand, farmers and other producers usually benefit otrosta
prices (until the benefits are otrosta prices throughout the supply chain). A third view is that the market it is only a means of communication.
As long as the market creates the conditions for a fair, efficient and transparent market, with appropriate
regulatory oversight in place, the exchange usually argue that they should not be responsible for the
prices, which are formed in their markets.
9.f Promoting trade in goods: the unification of the rules of trade, international trade
Diagram 9.f.1. Trade Facilitation available commodity
Function
Objectives
Advantages for the manufacturer
Other benefits
The generally accepted theory is that the development of futures markets occurs after the formation of
orderly spot market (Nair, 2004). However, recent studies suggest that under certain conditions the
appearance of the commodity futures market can stimulate the formation of spot markets. The basis of
this opinion on the idea exchange as "islands of excellence", spreading the highest levels of
representation of its main trading functions on those spot markets that it serves. There are four aspects
of the impact of:
Formation of refined spot prices: for a more effective functioning of futures markets require that the
official spot reference price was available to all market participants. Transactions to hedge risks, are only
effective if the dynamics of prices in the futures markets and spot markets are closely interconnected.
This is due to the fact that the provision of such transactions in the futures market obligation to
compensate for the dynamics of prices in the spot market. If the difference between the prices of these
two markets (known as the "basis") is quite large, it is considered that the hedges are subject to "basis
risk". Basis risk increases with decreasing correspondence between the dynamics of prices in the futures
markets and spot markets. The greater the basis risk, the less effective hedging transaction in the futures
market will offset the impact on the spot market.
It is important to note that the basis can be calculated only if the available spot reference prices.
However, in many developing countries spot market can be disorganized and fragmented. In such a case,
establish a national spot price for a particular product is not possible. In such situations, the futures
markets can independently establish official spot price for the establishment of a clear basis and basis risk
to market participants.
As the market price, neutral and official spot price can provide important background information for
farmers and other participants in the commodity sector in transactions with customers and
intermediaries. Moreover, by establishing a clear and recognized the difference in costs associated with
the purchase or delivery to various locations, Exchange can unite national markets by increasing the
mobility of goods.
Enables business transactions in the spot market: when entering into new and untested markets
participants Mercantile Exchange wish to receive guarantees, faced with three major uncertainties: Will I
be able to buy or sell goods when I need it to be? Did you follow the terms of the deal my contractual
partner? Will comply with received my goods required quality standards? (or in respect of the seller, if the
buyer finds that the goods supplied by me are of good quality)? Commodity exchange can provide such
guarantees, in exceptional cases, acting as a channel of delivery. Although the vast majority of futures
contracts do not lead to actual delivery of the goods, the possibility of delivery provides assurance to
market participants in the event that the normal channels of cash transactions of goods is not
functioning. Furthermore, the Exchange, as the principal contractor, guarantees the performance of the
contract according to the established conditions, thereby providing further safeguards for market
participants in the transaction.
Warranty claims for physical delivery channels is not limited to corporate structures. With this in mind,
the Executive Director of the World Food Programme (WFP) - one of the largest buyers of Ethiopian
grain, believes that the proposed formation of the Ethiopian Commodity Exchange (ECEX) «allow for the
purchase of more efficient, perhaps even using the futures» (Economist, 2007 ). Since WFP is going to
carry out most of their purchases in the local spot markets of developing countries - where conditions
and practices often do not meet the standards - "funding sources believe that the commodity exchanges,
such ECEX, can play a significant role in the fight against poverty and low levels of income in the
commodity market, particularly in developing countries »(Economist, 2007).
Improvement of infrastructure: Exchange in advance by stimulating the creation of a network of
warehouses, designed to improve the efficiency of supply management processes and software, can
significantly improve the storage infrastructure and logistics for the traded goods.
It is well known that developing countries are faced with high costs of transportation and storage.
Exchange can increase storage capacity. Moreover, warehouses accredited exchange, have greater
incentives to the introduction of tough and effective control practices supplies, categorized delivered
goods and providing permanent storage in an appropriate and safe environment. This can reduce costs
due to prolonged or improper delivery procedures, as well as reduce losses arising from damage to the
goods during storage in poor conditions. Given the export market, the availability of first-class
warehouses in the port may be a prerequisite for trade.
Reliable system management software, and in particular warehouse receipts or certificates may provide
commodity finance sector in more appropriate for the expected proportion of investors. It is possible to
avoid the forced sale as farmers can store their goods in a secure warehouse, they can get access to
funds to cover investment and operating costs and can wait for better market conditions for the sale of
goods, and not to put it up for sale soon after the harvest when prices tend to the lowest value. As a
result, farmers can ensure a better implementation of income and the best placement for receipt of
medium- and long-term investments. Moreover, it may be reduced within the seasonal variability
(volatility) of prices in the agricultural market as the best storage conditions allow separated in time
supply of cereals on the market throughout the season.
Quality development: standardizing specifications for goods accepted for delivery commodity
warehouses, in accordance with the needs of industry, the exchange may encourage the development of
clear and precise set of quality standards. As a result, may increase the level of understanding by farmers
of quality standards and their ability to follow these standards. Clear and generally accepted standards of
quality, especially those that provide incentives for the production of high-quality products, especially
encourage farmers to improve product quality and better meet the requirements for the development of
the supply chain of goods, in which quality standards are playing an increasingly important role.
We can distinguish three approaches to quality standards. One approach is to determine the "fair average
quality", which represents the bulk of the product (eg, crude palm oil Bursa Malaysia). It is used at a low
diversity of products. In another approach is taken basic level, on the basis of which the allowances and
discounts offered (eg, soybeans DCE). This approach is used when a clear-cut classification based on
clear and understandable to the difference in quality, such as the content of impurities in the delivered
soy. A third approach is to determine the premium as the suitability for delivery (eg, cardamom MCX). It
can be advantageous in the event that the buyer or the foreign markets especially demanding on the
quality.
In this case, not for quality products can be offered discounts for supply, or it can be generally rejected.
In any case, the determination of the premium as their suitability to the delivery provides for demanding
buyers and exporters of quality guarantee in case of purchase of products on the market, since in this
case the exchange acts as an absolute guarantee of high quality goods they need.
Whichever option is chosen, the result may be a greater focus on the quality manufacturers.
Manufacturers can become more aware of quality issues in the market and can take action to improve
the quality of their products. However, it should be noted that while the remaining disparities may persist
- or even increase - for example, some market participants have the power to establish standards, and
which are able to follow these standards.
There are also restrictions on the use of standards for quality classification of a particular exchange. The
requirement to liquidity of futures markets means that the quality requirements can not be extrapolated
to niche markets. The need for financial instruments available for delivery on the futures exchange
contracts must be relatively large to prevent the possibility of blackmail and avoid the occurrence of
circuit transactions.
9.g. Stimulation of direct financing of commodity markets: cheaper resources by minimizing the risks and
the standard rules of organized commodity market
Diagram9.g.1. Facilitating financing in the agricultural sector
Function
Objectives
Advantages for the manufacturer
Other benefits
Lack of access to affordable sources of financing is a major problem faced by many producers in
developing countries. Financiers often believe that agriculture is an area supposedly extremely high-risk
and low-income standard types of bank loan. This means that farmers and other entities tend to pay
higher interest rates, both through formal and informal channels through. Alternatively, they may opt out
of credit and closed-loop low investment and low profitability. Nevertheless, developed commodity
finance, which reduce the risk to investors and costs by combining traditional financial instruments and
services Mercantile Exchange. Lower risks and associated lower costs may encourage banks to a
corresponding reduction in interest rates attributable to the borrower. Perhaps the most simple model is
a loan for working capital using warehouse receipts or certificates as collateral. Warehouse receipt
financier provides a reliable collateral, which can be used in the case of non-payment of debt. Exchange
financier provides a mechanism for assessing collateral for insurance changes its value and to extinguish
the debt in case the borrower defaults. Exchange may also provide additional guarantees by evaluation
and accreditation of warehouses that store goods. The key factors for this model are reliable, warehouse
receipts, reliable system of warehousing and management agencies and providing an opportunity for
banks and professional securities market participants to participate in futures transactions in goods.
There is an alternative mechanism by which the market can independently assist producers in accessing
finance commodities directly from the capital market investors. This tool is an exchange agreement
repurchase concluded with farmers, also known as "reverse repurchase
agreements".Онимогутбытьструктурированыкакпотоварноматериальнымзапасам,такипобудущимплатежам. As for the already produced goods, warehouse
receipt is sent stockbroker, owner of the goods and signs an agreement to repurchase the receipt at a
set price (eg, $ 1,000) after a certain period of time (eg, three months). Broker places this "package" in
the exchange network, and investors are able to offer a price for it. Investors know that in three months
they will receive $ 1,000. The higher their proposed price, the lower the effective interest rate, they will
receive. In cases where the Repurchase agreements are structured around future payments rather than
around the already produced goods, requires a higher degree of structuring in order to reduce the
financial and operational risk. However, in any case, Exchange withdraw money from bank accounts to
transfer securities, increasing access to finance and reducing the cost of funds to the borrower.
For participants of the commodity sector, there is a third possibility relatively easily obtaining sources of
funds through "direct arbitration." The futures price for the goods must be equal to the spot price for this
product plus "operating costs" - ie the cost of storage and interest payments until the date of delivery to
the exchange by the end of the term of the futures contract. If the futures price exceeds the real cost of
maintaining a position, a market participant may record a profit by buying goods in the spot market and
simultaneously selling the same product in the futures market. By the time of termination of the contract
goods are delivered to the Exchange for profit market participant. (If the futures price falls below the
actual cost of maintaining the position of the reverse procedure is performed). This is a relatively easy
way to get cash market participant having access to the actual product. It is important to note that these
actions prevent speculators whose actions may lead to price level, sound basic principles of supply and
demand. In this case, arbitration will restore direct price to a level sound basic rules.
In conclusion, it should be noted that there are many other opportunities to create links between
financial management and price risk management in the field of financing agreements and contracts on
physical business operations. An example of each option is shown Varangisom and Larson
(VarangisandLarson) (1996). The first kind of opportunities - is binding conditions repayment producers
to the base price of the commodity using derivatives: in case of falling prices manufacturer pays a
smaller percentage and vice versa. The second option buyer and exporter agree on a fixed price for a
certain amount of goods. Then the buyer provides the exporter with a credit line that is used after
delivery. In turn, the buyer sells the goods to supply futures price risk or fear in the options market.
9.h. Development of the market as a whole
Function
Objectives
Advantages for the manufacturer
Прочиепреимущства
преимущества
Diagram 9.h.1 Assisting in the development of the commodity market
In this category there are four types of effects on the development, through which the exchange may
provide benefits to farmers and the market in general:
Information, training and capacity building: Commodity exchanges are interested in attracting new
entrants to the market, including farmers - a group representing a potentially large and often
untapped source of increasing trade. However, you first need to improve knowledge about the
stock exchange solutions. Efficient use of instruments related to the product, requires knowledge,
appropriate expertise and technical capabilities that farmers and other groups of market
participants, may not possess. Therefore, exchanges, often in collaboration with intermediaries such as brokers or bodies representing industry - often provide potential market participants
educational, informational programs, and programs to strengthen the capacity. In turn, farmers
interested in understanding and using the tools that are provided by Mercantile Exchange. Stock
exchange risk management, market information, financing and other services potentially provide
farmers the tools to dramatically improve the way sales and increase their capacity in comparison
with intermediaries and customers. Thus, training programs, which are organized by the
Exchange, as well as under its auspices, can be mutually beneficial solution both for farmers and
for the exchange.
Boosting international trade: Commodity Exchange may create markets by providing a forum for
discussion, in which multiple buyers and sellers trade agreements related to the product. This
reduces the costs associated with finding a buyer or seller, to which you want to make a deal.
This argument is even stronger in the context of international trade, be it regional or global. The
costs of doing business in the conduct of international trade tend to be more significant than in
the conduct of domestic trade. This is due to factors such as distance, more pronounced
information asymmetries, barriers to trade, various business practices, cultural and linguistic
differences. As the main center of trade in a particular geographical area or political subdivision,
a commodity exchange may have every opportunity to identify methods of cross-border
transactions and communication between the participants of the commodity sector in different
jurisdictions, thereby stimulating regional.
Development and promotion of information and communication technologies (ICT) in the past decade
has seen a gradual shift from the form of trading 'gestures and voice, "based on the physical
presence of market participants in the floor of the exchange, electronic trading, which are made
by market participants remotely from office buildings Exchange . Implementation and
improvement of financial and sales of technology at the moment is a top priority for commodity
exchanges worldwide. ICT has the potential to increase the speed and efficiency of the market,
as well as to reduce the cost of market expansion and development of new products. Moreover,
ICT provides the ability to integrate previously disparate services in an integrated package of
services. It is important to note that ICT can empower exchange ability to overcome barriers to
market entry that confront small farmers and are due to geographical distance and differences in
physical infrastructure. Moreover, the spread of market access with the support of ICT to
previously isolated entities and exchanges can also open opportunities to provide other services
provided in electronic form. It can be banking, insurance, advice on growing grain and weather
reports, e-commerce model for inward investment and equipment.
The development of the exchange industry: There are a number of additional benefits resulting from
the development of commodity exchanges. Because brokers and other intermediaries are
expanding their presence - sometimes opening new branches in towns and villages, sometimes
providing access to using readily available Internet platforms - can be expanded access to
markets and access to services for new entrants, including farmers. Market participants may have
access to the same services through informal and even illegal channels. Therefore, the presence
of the exchange can lead to the formation of more organized structure practices and business
rules. Development of the industry can also lead to the creation of new jobs on the stock
exchange and the relevant organizations, such as brokerage services, warehouses, regulatory
authorities and classifying CAs. Under certain circumstances, trade may increase tax revenues.
Eventually, with the development of the exchange - interaction with market participants in close
and continuous dialogue - is quickly becoming aware of the obstacles to the expansion of the
market, as well as the important risks that market participants would like to reduce. Financial
markets quickly innovate and exchange, working with intermediaries goods sector, can work as a
source for creating new, dynamic products to meet the growing needs of market participants.
Having reviewed in detail each function, you can definitely conclude that the prospects for the
development of effective exchange infrastructure in Kazakhstan and have these features should
be introduced to the market. Each function separately, will less influence, and perhaps can not be
realized. In this context, the implementation of these functions should be considered as a whole,
and to offer this functionality as a set of activities at the same time. As a result, a comprehensive
approach, we will be able to see all the positive results from stock trading, which we have
described above and substantiated.
10. Measures to stimulate the development of electronic exchange trading
10.a Basic models and conditions for the successful development
This section offers research to the attention of the basic models and conditions for further
sustainable development of commodity exchange activities in Kazakhstan. Under the model
implies a set of measures and conditions necessary for the implementation and execution, in
order to obtain maximum results. The below measures developed taking into account the current
situation on the stock market of Kazakhstan and based on international experience, described in
detail previously.
Conditions for prosperity Mercantile Exchange
Commodity exchanges are not always succeed in achieving its goals. Even in prosperous commodity
exchanges, contracts for certain goods are not always doomed to success. Understanding of the
conditions under which the exchange can have a positive assist in the implementation of
development goals is an important step for stakeholders when considering the creation and
development of electronic exchange trading.
The study was reviewed by a number of different jobs, but two documents deserve special attention,
as they are the most suitable and appropriate insight into this issue, taking into account local
conditions in Kazakhstan. The first is a document of the UN Conference on Trade and
Development (1997), he describes in detail the key elements that determine the probability of
success in the implementation of the initiatives of commodity exchange infrastructure. In
particular, this paper analyzes the key strategic choices faced by participants in the creation and
development of commodity exchange, thus assesses to what kind of structure the exchange,
taking into account the priorities of users, what tools and the contract is suitable for different
market conditions of the local market. Second, it is a document that has more to commodity
futures exchanges, but no less interesting, is the work of Shima (2006), which is a detailed study
of the conditions necessary for success, which are exemplified seven exchanges for all developing
countries. Five of them are more or less good levels of liquidity; two - no. According to the
findings can be generalized to make a conclusion:
"Macroeconomic stability and regulations that favor exchange trading is a practical basic prerequisites
for the successful creation of local exchanges. Under these preconditions, a decision on the terms
of the exchange contract and the underlying asset, which decided to enter into circulation, was
an essential element of the following to create a successful exchange infrastructure and achieve
the required level of liquidity. But it is necessary to consider that even with all of these complexes
and complexes under the conditions, the market can not meet the expectations in the absence of
it well-developed financial intermediaries. Financial intermediaries - it channels exchange
instruments, and when these channels are blocked, the task of expanding the market is hardly
feasible. "
This study reinforces some of these conclusions, and complements the subsequent presentation on
the basics of success. First of all, you must indicate that a huge volume of transactions "liquidity" - is a key indicator of success. In the absence of liquid, the level of market prices can
be moved relatively easily by a single transaction, thus subjecting it to the risk potential
manipulation. Also, in the absence of liquidity, market participants can not easily borrow or
vacate their positions in the market due to the lack of existing counterparties. In such
circumstances, the participants may have to accept unfavorable price for the transaction in the
market. Ultimately, liquidity is a prerequisite for effective hedging, and therefore, to engage
participants in the commodity sector. For example, in the absence of liquidity, the futures price
for the goods will not be correlated with the underlying physical market. Under such
circumstances, becomes useless hedging probably costly waste of resources.
Thus, a successful model of development is to achieve liquidity on the exchange contracts and a
strong base of intermediaries including financial, that will provide the necessary service for end
users. With regard to macroeconomic stability and regulatory framework, in Kazakhstan have
these basics, and they create good conditions for the start of liquid exchange-traded instruments.
Further, a very important aspect is the model of regulation of the exchange markets. It is well known
that a balanced regulation is the key to success. For example, the early years of development of
commodity exchanges in China in the early 1990s clearly found the risks arising from the lack of
a central, stabilizing the regulatory framework. Although Chinese commodity exchanges created
liquidity within this legal framework, but it was neither liquidity ordered nor stable. Markets
characterized by insecurity and instability, scale unfit serious losses for market participants, and
abnormal quantitative growth of commodity exchanges and agreements that prevent the proper
development of the market price and risk management. In other examined countries, and in
China after the removal of government shortcomings in the market, harmonized regulatory
framework underpinned the development of commodity exchanges and increase liquidity. This
regulatory framework in each country was characterized by the division of responsibility between
the commodity exchange as a self-regulating organization, agency, government accountability, as
an external regulator.
However, there may be cases where the legal regulation may hinder the development of the market.
Both in China and in India, bans on certain types of tools - in particular, options - and for
participation of certain categories of market participants - particularly banks - limited availability
of services commodity exchanges, in particular for small farmers. Comparison can be made with
South Africa, where a relatively high proportion of farmers - and even farmers who, as a rule,
more The Company now the process of production and marketing, rather than at the average
farmer from China or India - to take part even in the futures markets with options . As a general
rule, options are more understandable and convenient for farmers, rather than futures contracts.
Moreover, South African banks often play a favorable role in structuring risk management
solutions for farmers, which are usually offered in parallel with the procurement contract physical
goods and the provision of funding. This is not to say that such restrictions is a mistake for China
and India - there may be valid reasons for the restrictions by the Government of the tools
involved in the transactions and entities that can participate in the markets, at least in the very
early stages of market development . However, since these two countries there is growth and
development of markets, it became apparent that some of the benefits that may be offered
Mercantile Exchange, were prevented by storing data regulatory prohibitions.
In this regard, a successful model that is applicable in Kazakhstan in terms of effective regulation can
be considered a model with active participation of the state, especially at the initial stage, as a
regulator, which can effectively balance the need to reduce systemic risk in the stock markets,
and to set the right incentives for sustainable development.
Further there are three important conditions for the successful implementation of the model for the
development of trading in Kazakhstan participated maximum possible number of subjects of
trade in goods, the emphasis on education in the development of the market and the conditions
of the market infrastructure.
A large number of participants and their diversity in terms of the objectives of participation, hedgers,
speculators, investors, foreign participants, lenders, insurers is an important component of the
development model. The process of formation of liquidity can be significantly facilitated when the
supply chain brings together a diverse range of industries and various interest groups to the
traded underlying asset. For example, the commodity chain for cattle (cattle) from Brazil includes
ranchers, butchers, people, processing meat, exporters, food manufacturers, retail and
restaurant chains, as well as manufacturers of hides and skins and buyers. Finally, the circle of
speculative market participants - including trading companies, banks and investment funds - is
another component of success. Also, there may be cases where a specific group of investors or
potential participants in exchange trading is prohibited trade, but then it must be replenished at
the expense of other groups of participants. For example, in China, the ban on the participation
of institutional investors offset by a huge amount of speculative transactions emanating from
individual "retail" investors.
The emphasis on education in the field of market development, which combines awareness-raising
and capacity-building is an integral part of the formation of liquidity. If the commodity exchanges
and the services they offer are new and unknown, market participants must acquire knowledge
to solve problems not only with the lack of knowledge, but also to facilitate the restructuring of
thinking, which is often necessary.
•
The introduction of new tools and features to address emerging challenges: As part of the BM &
F on the issue of hydrocarbons used exchange mechanisms to facilitate the use of the Clean
Development Mechanism under the Kyoto Protocol. Taking into account the legal and regulatory
tolerances Exchange DCE iMCX seek to introduce weather derivatives in order to enable
producers to cope with the impact of weather risks. In international markets, there are other
tools that can also be used in developing countries, such as freight derivatives to manage the
risks of transport.
As can be seen from the above examples above, the model of exchange trading can be very
versatile, and Commodity Exchange as the subject of trade relations can in different ways,
according to the new and very flexible to respond to current and new challenges. This suggests
that the challenges dictated by modern reality, especially in the integration of markets and trade
erasing boundaries, can be successfully solved by modern exchange instruments.
It Mercantile Exchange in Kazakhstan can catalyze the integration processes in the region,
due to local instruments, local producers can take advantage of the region, as they will be able to
efficiently and much cheaper to manage their risks, plan production, based on stock market
indicators, reduce transaction costs and possible to discover new markets.
Multiplicative effect created Mercantile Exchange
As discussed earlier, the commodity exchanges in developing countries can offer a wide range of
effects on producers and consumers, including the Government, private sector and individual
households.
Estimated impacts were classified into six broad functionm. Three of them can be considered as the
basic functions: the formation of market prices, price risk management and creation of
investment opportunities. The other three can be considered as additional functions deriving from
the core functions: trade facilitation cash commodity, facilitating the financing of the real sector
and the expanded development of the industry (including capacity building, the
internationalization of the market and the use of new technologies).
Studying the experience of the foreign exchanges, was obtained clear evidence of practical benefit to
the market participants associated with the use of exchange risk management tools such as
futures and options contracts. However, it was noted, these tools are usually used directly by
large farmers and producers, and only occasionally by small farmers indirectly through
contractual arrangements with cooperatives, banks or customers. Much remains to be done in
this area, for example, to include risk management solutions in the micro-finance instruments,
along with credit, savings and insurance services.
Next, you need to clearly understand that price risk management is not always the most relevant and
important advantage for farmers - and especially for smallholders - proposed Mercantile
Exchange. In particular, China and India, where the dominant model - small-scale production, it
is clear that the exchange may offer other important advantages: improved access to markets;
support farmers in making better decisions related to the collection and sale of the crop;
reduction of information asymmetry, which had previously favored the more advanced players in
the market; modernization of storage, sorting and technological infrastructure; increased access
to cheaper sources of financing.
In addition, many of these effects can be offered without Mercantile Exchange futures contracts. It is
important for the countries in which the level of development and the needs of market
participants do not support futures trading. Nevertheless, these countries should not preclude the
implementation of other positive effects of commodity exchanges. These include impacts
associated with the development of spot markets and market information systems, as well as
some aspects of facilitating the financing and extended development of the industry. For
example, the Commodity Exchange, trading in cash commodities sort by the quality and
certification accrediting warehousing and offer performance guarantees can directly affect and
have a positive impact on the modernization of the physical infrastructure of the market and the
integration of domestic markets. Pricing and transparency can be improved if the prevailing spot
prices formed on the exchange, constantly disseminated to farmers. A reliable system of
warehouse receipts (grain receipts in Kazakhstan) may contribute to the development of
solutions in the field of commodity finance, as well as the use of exchange mechanisms in
agricultural trade securities. In this regard, all the initiatives undertaken in Kazakhstan on the
issuance of electronic warehouse receipts should be actively supported both by the Government
and market participants, the effect of treatment of grain receipts will only be positive and much
simplify the process of trading on stock exchanges and the OTC market .
Finally, it should be emphasized that the commodity exchanges affect the performance of the sectors
that affect the well-being of people in developing countries. Thus, the main players are
encouraged to be vigilant in its approach to the creation and development of the exchange.
Historical experience shows that futures markets stabilize. However, in the short term,
particularly after the establishment of the exchange or start a new contract may occur during
debugging and adaptation. Education is the key to ensuring that the benefits resulting from the
exchange activities that meet the interests of all parties and were comprehensive. Thus, it is
important that all interested parties have extensive knowledge of the market and have been
trained to use them constructively. Equally important to the stock exchange works closely with
governments and regulators to develop an effective regulatory framework. It should provide
space for the growth of markets and at the same time protect investors who initially did not have
the experience, and sometimes act thoughtlessly, when faced with new opportunities offered by
the exchange.
The key role of the Government
Exchanges, tend to work in an extremely-but not necessarily in highly regulated environments. The
Government
is
responsible
for
establishing
the
regulatory
framework
iobespechenietekuschegonadzora.Vkazhdoy from five countries discussed above, the government
plays an important role in the development of the market and the stock exchange:
• Brazil: The government has made a bet on the use of market mechanisms for the majority of its
initiatives in the area of procurement, support and loans for the sector of small proprietors. Such
use includes the involvement of units of Brazilian Mercantile Exchange BM & F as a mechanism
for the implementation of public policy.
• China: In the early 90's, the government has entered into a double process of eliminating chaos in
the market. Commodity markets were reorganized to direct liquid funds in the integrity and
security of the institution, as well as vertical markets that needed platform for transparent pricing
and confident price risk management.
• India: The Government has established a framework within which in 2002-2003 were created three
new internal multi-commodity commodity exchanges. It is expected that these organizations will
solve deep-seated problems of agriculture in India, including the state of the country's numerous
small-scale farmers, who are often not allowed or forced out of the market.
• Malaysia: Palm oil production is successfully developing in the context of the national development
strategy of the Government. From the outset, the Government made a strategic decision to allow
the market to set prices, knowing that this will provide the best conditions for growth, stability
and integration with the private sector. In addition, the creation and development of the
Malaysian stock exchange took place in the framework of the government's plan for the
integrated development of the capital market, aimed at increasing the international
competitiveness of Malaysia and mobilize sources of comparative advantage.
• South Africa: In the words of Scrimgeour and Sheppard (1998: 1) - "reform in South Africa is in
many respects a model curriculum were carefully considered action." The government has
established a framework has committed itself to a policy of non-intervention, except for the
occurrence of certain strictly defined circumstances and allowed to develop the agricultural sector
provided for in accordance with the objectives of the industry and in line with market pricing
mechanisms.
While government intervention in commodity markets, spot and futures, it may be necessary and
useful, the Government should pay close attention to the impact of the methods and goals of the
intervention. Also, be sure to be entrusted with the responsibility of self-regulated stock
exchange in chisle.Takim, the strengthening of close and constructive relations between the
exchanges, regulators and other government parties is an essential requirement of time for all
parties concerned.
Exchange - this is not an isolated institution
Development model Mercantile Exchange can not be created in isolation. Exchange and its
continuous functional activities are based on and depend on a strong set of related or other
organizations, institutions and structures. These include regulators, brokers, financial institutions,
suppliers, warehouse, logistics services and collateral management agency for the classification
and certification, as well as organizations that collect and disseminate information dealing with
both the spot market and the futures market. Relevant regulatory framework - it is also an
essential condition for the protection of investors, maintain the integrity of the market and the
management of systemic risk. Legislative model should include normative legal acts of general
validity (eg, property laws, treaties offenses banks, bankruptcy, and the general economic
legislation), as well as the laws of special applications aimed at market operations (for example,
laws governing the legal relationship between the customer , brokers, exchanges, clearing
organizations, banks and settlement banks, property and contract rights and interests related to
the market, as well as the failure of a market participant) (Corcoran et al., 2002).
Exchange only as part of a policy framework in the field of commodities, even dynamic. That's why it
should not be seen as a panacea to solve all the problems facing the raw sectors of developing
countries. Public investment in infrastructure, market institutions and capacity building of farmers
- is fundamental conditions. The study shows how the commercialization program and cooperation, designed for small farmers, have become one of the policy priorities in these
economies, and they are now often seen as a precondition for successful participation of small
farmers in the markets. Agricultural research institutions and organizations to support and
expand the business - it's well-established policy instruments for the modernization of commodity
sectors and sources of income of farmers. Export promotion organization and the concept of
regulating international trade in agricultural products, are important factors in the development
of the market. Other policies used to protect and rapid increase of farmers' income levels include
minimum supported state farm prices and government procurement, subsidized loans,
investments and equipment, agricultural insurance; scheme commodity diversification, as well as
tax breaks or exemption from taxes.
The need for further research
This study offers a framework for understanding the results of the development of commodity
exchanges in developing countries.Poskolku this area is developing rapidly and its value is only
beginning to gain general acceptance, recommended further steps to raise awareness in this
area: improving monitoring, evaluation and impact analysis Exchange under various conditions
developing countries; the creation of forums where you can exchange experiences and potential
among stakeholders from different institutional backgrounds -Government, exchanges, private
sector, civil society and academia; generating ideas and policy initiatives for use in other
developing countries; continued awareness on commodity exchanges and their demystification.
In particular, this study revealed a number of data gaps in assessing the impact associated with the
commodity exchanges. Many of the impacts are confirmed allegations of market participants or
supporting literature. Of the 66 alleged positive effects, in support of which will receive a
confirmation information, 38 were not based on quantitative data. Consequently, there are
questions about their coverage, depth and distribution. As for another 10 alleged actions, the
market in question is insufficient evidence of any kind, either "for" or "against". For 38 actions
based on non-quantitative data and 10 alleged actions, which in general is not enough evidence,
there is considerable scope for further research: in particular, the micro-tiered research at the
farmer or investor. Such studies include, primarily, the development of appropriate measurement
and data collection. Nevertheless, it is assumed that not all effects may be appropriate or easy to
evaluate.
It should also be noted that the evidence in support of the 17 alleged positive detected in only one of
the studied rynkah.Na other markets, or finds evidence that contradicts the appearance of such
impacts, or revealed insufficient evidence "for" or "against" .Thus, there is a need for further
research in order to find out whether there are such effects in other countries, or they are
unique. Vposledny case, further work is required to determine the reasons why certain effects
occurred in only one country, perhaps they are associated with a particular innovative
approaches used by one of the stock exchanges, which can be used as an example and apply it
to other markets in developing countriess order to copy it; possibly due to the fact that local
conditions-social, economic and geograficheskie- are specific to the nature of the market and
cause a unique approach to the development of the exchange.
10.b Commodity exchanges and their regulation
Organization to promote the efficient development of trade have a positive impact on the
development of trade by reducing costs hem and reduce uncertainty in transactions. One way is
to use a set of rules and procedures to regulate trade, thereby providing a high level of
confidence to market participants and their clients with the participation in mutually beneficial
transactions.
As already described in detail in a study by UNCTAD (1997), in addition to general monitoring to
ensure transparent auctions (without manipulation), there are two important thresholds at which
the legal framework has become an important foundation for commodity activities. The first
threshold occurs in the transition from commodity exchange trading products that are physically
located in its premises to trading securities representing rights to the goods. These rights are
enforceable through the establishment of a clear contractual rights and obligations under the
transactions on the stock exchange, as well as mechanisms to ensure their. The second threshold
begins from the moment when the mediators take on responsibilities to represent the interests of
end-users; the activities of these intermediaries should be controlled to ensure that they fulfill
their obligations. In overcoming any of these thresholds, there is a requirement to exchange act
as an independent regulator of the activities carried out in the markets, and for the state, which
provides overall control.
As specified in Annex 2, each level of regulation often brings together a wide range of tools and instruments.
This structure should be reliable, so as to achieve the control objectives. However, the required balance
between the benefits and costs of regulation, as well as between the degree of external regulation and
self-regulation. As regards the first of these balances is to establish an optimal "levels" of regulation
depends to a large extent on the capacity of guarantee that requires market participants. Markets with
advanced experience and relations between the parties, may find it more flexible and lighter regulatory
model than markets in which participants are not familiar with market institutions, contractors and
procedures. With regard to the balance between external regulation and self-regulation, is the right
balance can be regarded as functions, including the level of confidence in the government and market
participants to exchanges and industry self-regulatory mechanisms that operate within their means.
The role of government in the framework of the regulatory structure, usually involves the participation of
supervisory functions, in particular the application of disciplinary measures for those who are trying to
manipulate the markets for their own benefit, to ensure the integrity of contracts and their enabling role,
providing the necessary legal and regulatory framework, and in some circumstances, the elements of the
physical infrastructure, without which markets can not function effectively (eg, warehousing, logistics,
telecommunications and information networks).
The nature of state intervention in commodity markets, the recent historical review with respect to
intervention offers the following conclusion:
"Interventions for the regulated futures markets may be, or discretionary, or automatically (often referred to
as the basis of the rules), and can be initiated by the exchange as a self-regulatory organization or
controller with functions of market surveillance. Intervention on discretionary futures markets typically
include restrictions, suspension or termination of trading in a particular market contracts ... Historical
overview of market intervention demonstrates that the discretionary / arbitrary interference often fail to
achieve the projected political goals, while applying foundation the right to intervene, it is possible to
succeed in a market economy. In practice, discretionary interventions often lead to a variety of
unintended consequences, which are costly to the government and are detrimental to the majority of
people employed in manufacturing and marketing of strategic goods "(Hesaveu, 2007: 3).
10.Use Recommendations
This section provides network specific recommendations that can be put into practice in order to successfully
implement the model for the development of trading goods in the Republic of Kazakhstan. It is generally
assumed that these recommendations will be used in conjunction with the measures for the development
of free economic relations, clear and effective rules for trade in both the local and international markets,
the conditions for attracting investors in Kazakhstan's economy and a strong legislative framework.
• Develop and approve a state program for the development of trading goods in Kazakhstan;
• Develop a comprehensive legal framework designed to support the transparency and integrity of the
commodity markets, to protect market participants from unfair practices, and effectively manage the risks
arising from market operations;
• It is necessary to decide on the model of regulation of the exchange markets and clearing activities. One
model involves the separation of regulation organized markets on the basis of the underlying asset
(commodity or security). An alternative model assumes a single regulation of exchange activity,
regardless of the underlying asset. In Kazakhstan, the regulation is divided. In this study, it is
recommended to combine the regulation of exchanges and clearing activities, as represented here by
international experience both near and far abroad indicates a model with a single regulation. This is due
to the lack of significant differences in the regulation of clearing and trading of commodity and stock
exchange transactions. Significant differences arise at the time of delivery and the movement of assets at
the end of the transaction, and enforcement of stock exchange transactions. It is regulated by the
collateral in the case of goods, ie execution is controlled by withholding funds of participants before the
signing predatochnogo act. In the case of financial assets, it all goes in the mode of delivery-versuspayment system of the central depository;
• In order to fulfill all the rules of the exchange control legislation to ensure adequate powers and capabilities
in terms of supervision and development of the industry. In particular, it is necessary to provide the
regulatory body the appropriate amount of full-time staff to provide opportunities to conduct scheduled
and unscheduled inspections, the results of which take extrajudicial decisions on suspension or revocation
of licenses from organizotorov trading, brokers and dealers;
• In order to increase the level of confidence in the commodity exchange infrastructure by local and
international market participants and investors, it is necessary to develop a set of measures and
requirements which must conform to all commodity exchanges in Kazakhstan.
1. Software commodity exchanges must comply with generally accepted standards of trading. Thus, the
estimated cost of the software, which will provide a complete and secure complex exchange services,
ranging from 1.5 to 7 million. US dollars. The data were taken from the results of the tender on
Kazakhstan Stock Exchange for the purchase of software. In today's stock trading, reliable and high
quality software for the stock market is no different in functionality from the Mercantile Exchange.
2. In order to ensure continuity and avoid risks of trading on non-authorized access to the process and the
results of trading requires modern technological equipment with all the features to ensure the protection
of client assets. This equipment ranges in price from 500 thousand. 1.5 million. US dollars, with the need
for constant updates and the availability of skilled IT personnel to service and support.
3. Everywhere should be introduced for the anonymous auctions with standard functionmi risk management
with the mandatory conditions for the establishment of a guarantee, insurance funds at the expense of
exchange and bidders. Must also be provided a dynamic system for the transfer, recording and storage
Collateral for each auction in order to achieve conditions that do not allow participants to guarantee the
execution of all the conditions of the exchange transaction. In order to ensure the transfer of funds to
the accounts of the exchange, participants must have full confidence and minimal credit risk to the stock
exchange. In world practice, this is achieved by high liquidity and capitalization own exchange
infrastructure.
In this regard, in order to achieve a high level of exchange trading in Kazakhstan in accordance with the best
international practices software, process equipment exchange, modes of anonymous auctions (exchange
glasses) must be supplemented by the following elements:
• The presence of operators of Internet trading (Bloomberg, Reuters, QUIK, NatInvestor) to provide remote
access to all regions of Kazakhstan with the possibility of simultaneous reception and processing of
applications bidders online. This technology makes it possible for applications to eliminate many
intermediaries, to reduce the producer to the consumer directly, to ensure equal access for all to achieve
the most effective dissemination of market information about current prices. The cost of such technology
for the exchange of 200 thousand. Up to 500 thousand. USD.
• The presence of a clearing center, which has the necessary software and technical equipment for clearing
operations. The essence of such operations confined to the synchronization process with the process of
clearing trades on a commodity exchange. Clearing Center at the end of the trading session, every day,
should provide an opportunity in the automated mode to calculate the final pair of buyers and sellers and
trading results to order the change of ownership to the provision on the same day reports to all
participants of the transaction, including the controller. The cost of hardware and software ranges from
1.2 mln. USD.
• A settlement organization. Trading and clearing system of commodity exchange should be integrated with
the settlement organization online. Estimated organization (most often a bank or a private structure) on
trades and orders of the clearing center should provide as soon as possible, the transfer of funds from
the buyer to the seller, timely and daily listing of Collateral and other actions related to the cash flow .
• In order to promote the exchange trades to expand the current list of commodities required to trade on
commodity exchanges. At the same time ensure proper control over the implementation of this provision,
particularly for mandatory 15% turnover in double counter auction, as defined in the legislation;
• As part of the list of mandatory items, designed based on commodity exchanges algorithm of formation of
national price indicators for strategic products for Kazakhstan. Price indicators should be formed within
the open exchange trading mode classical Order book (DVAA);
• The establishment of national price indicators, ensure that export transactions for the sale of strategic
goods through anonymous auctions to increase through commodity exchanges. This measure will provide
a mechanism through which goods produced in Kazakhstan will be sold at the best possible prices by
creating a competitive environment among potential buyers;
• In order to provide services to end-users exchange effective tools for risk management of unwanted
fluctuations in price are widely administered in the treatment of standard futures and options ensuring
risks enforceable term transactions;
• In order to provide liquidity to ensure access to professional participants of the securities to trading on
commodity exchanges;
• Take the necessary measures to ensure that monetary policy is clear and provide a clear mechanism for
foreign currency transactions and free from constraints, overly restrictive exchange functions, except
where the prevalence of other fundamental or strategic state is extremely important development
objectives;
• For effective use of budget funds to provide access and procurement of state bodies and national
companies with the capacity of commodity exchanges;
• Turn on commodity exchanges in Kazakhstan in the list of recognized sources of price within the limits of
the law on transfer tsenooborazovanii. In this case, set the condition that such costs should be formed in
a mode Order book (DVAA);
• Develop elements of "physical" infrastructure designed to support the development of commodity exchange
and the market, including information and communication technology, electric power resources, storage
space and logistics;
• Rebuild the elements of product policy to support the development of commodity exchanges in the
agricultural sector, including small farmers, for example, by integrating the concepts of market functions
in the commercialization program and cooperation smallholders;
• Promote the integration of trade and financial sectors, by removing excessive restrictions on the
participation of financial institutions on commodity exchanges;
• On an ongoing basis to notify about the support provided by the exchange market, thereby instilling
confidence to market participants on the importance of exchange activities and about the government's
attitude to the Commodity Exchange, in general. One clear signal might be to send the internal politics of
the state of food security through exchange mechanisms. Another clear signal could be to provide
government agencies the authority to insurance against adverse effects of the price using price risk
management mechanisms on the stock exchange;
• Raise awareness orealnyh and potential consequences as a result of the development of commodity
exchange, and to understand that the pursuit of these results - a win-win solution kakdlya Exchange and
the economy as a whole;
• Educate key players exchange functionm, operations, services and privileges, including the consumer
market, the participants of the commodity sector, the government, the media, academia and civil society;
• To deepen and expand the influence of the exchange development through innovative use of products,
services, technology and capacity-building programs;
• Establish partnerships with other entities that are in a favorable position as to provide exchange services for
the consumer market and to increase the impact on the consumer market, especially in the agricultural
community. Such persons may include farmers' cooperatives / associations, government agencies,
research institutes, consulting organizations on agriculture, finance and micro-finance organizations, and
civil society organizations;
• Share experiences and best practices with other commodity exchanges in developing countries;
• To support further research on the role of Ypres JURISDICTION commodity exchanges;
• Raise awareness, education and competence among farmers in matters of functions, operations, services
and benefits Mercantile Exchange, including (if applicable) of the relevant application of the principles of
price risk management, market information and financial mechanisms;
• Study the feasibility of mediation between the exchanges and farmers, in particular for the objectives of
association requirements of small farmers and their implementation through the mediation of exchange;
• Assess your ability to manage price risk, especially in cases of an organization to its members of productive
resources, credit, marketing services and technologies;
• Monitor and report on the impact of commodity exchanges in the rural communities, in filling some of the
gaps in the data existing at the moment. It is necessary to inform the stock exchanges about how they
can best improve the relevance and implications of their services for manufacturers.
• To recognize the enormous potential of civil society participation in multilateral partnerships for the creation
and development of commodity exchanges;
• Organize channels of market information to small or inaccessible to farmers;
• Study the feasibility of mediation between the exchanges and farmers, in particular for the objectives of
association requirements of small farmers and their implementation through the mediation of exchange;
• For operators supporting or complementary institutions (such as banks, brokers, warehouse operators,
organizations assignment grade) - should be organized in collaboration with commodity exchanges in
general, the development of the market;
• For trading houses, financial institutions and businesses in general - to understand the huge potential, both
in terms of profit and growth, ranging from small producers with access to exchange instruments, and
developing effective tool vie delivery channels to be able to use them effectively.
• To raise awareness and emphasize its importance for governments, civil society, academia and the private
sector;
• Offer a rational understanding of the advantages and disadvantages of commodity exchanges and the
services they offer, based on case studies carried out;
• Promote the exchange of information, best practices and expertise, as among developing countries, and
between developing and developed countries;.
Annex
Appendix 1.1. Table 1.a.1-1 «Electronic Exchange of the world"
BELGIUM
The Brussels Stock Exchange:
http://www.stockexchange.be
Belgian Futures and Options Exchange:
http://www.belfox.be
NASDAQ Europe:
http://www.easdaq.be
GERMANY
The German Stock Exchange:
http://www.exchange.de
Bavarian Stock Exchange:
http://www.bayerischeboerse.de
Börse Stuttgart:
http://www.boerse-stuttgart.de
Hong Kong
Hong Kong Stock Exchange:
http://www.sehk.com.hk
Hong Kong Futures Exchange:
http://www.hkfe.com
DENMARK
Copenhagen Stock Exchange:
http://www.xcse.dk
INDIA
India's National Stock Exchange:
http://www.nseindia.com
INDONESIA
Control Agency market capitalization:
http://www.indoexchange.com
Jakarta Stock Exchange:
http://www.jsx.co.id
Surabaya Stock Exchange:
http://www.bes.co.id
ISRAEL
TASE:
http://www.tase.co.il
ITALY
Italian Stock Exchange:
http://www.borsaitalia.it
Italian Derivatives Market:
http://www.borsaitalia.it
SPAIN
The Madrid Stock Exchange:
http://www.bolsamadrid.es
Barcelona Stock Exchange:
http://www.borsabcn.es
Bilbao Stock Exchange:
http://www.bizkaia.net/Bizkaia/English/General_information/Econ
Spanish financial futures market:
http://www.meff.es
Spanish Options Exchange:
http://www.meffrv.es
Citrus market and commodity futures Valencia: http://drac.medusa.es/fcm/index.html
CANADA
Toronto Stock Exchange:
http://www
The Montreal Exchange:
http://www
Vancouver Stock Exchange:
http://www
Winnipeg Commodity Exchange:
http://www
CHINESE PEOPLE'S REPUBLIC
Beijing Commodity Exchange:
http://bce
Shanghai Metal Exchange:
http://www
MALAYSIA
Kuala Lumpur Stock Exchange:
http://www
NETHERLANDS
The Amsterdam Stock Exchange:
http://www
Combining option traders:
http://www
NEW ZEALAND
New Zealand Stock Exchange:
http://www
NZX Futures and Options:
http://www
NIGERIA
Nigerian Stock Exchange:
http://www
NORWAY
Oslo Stock Exchange:
http://www
PARAGUAY
Asunción Stock Exchange:
http://www
PERU
Lima Stock Exchange:
http://www
POLAND
Warsaw Stock Exchange:
http://www
PORTUGAL
Lisbon Stock Exchange:
http://www
REPUBLIC OF KOREA
Korea Stock Exchange:
http://www
RUSSIA
Russian market:
http://www
Moscow Exchange:
http://w
Siberian Stock Exchange:
http://www
St. Petersburg Stock Exchange:
http://www
St. Petersburg Futures Exchange:
http://www
SINGAPORE
Stock Exchange of Singapore:
http://www
Singapore International Market Monetarist:
http://www
Singapore Commodity Exchange:
http://www
UNITED KINGDOM
London Stock Exchange:
http://www
Investment Exchange Treydpoynt:
http://www
International Petroleum Exchange of London:
http://www
London International Financial Futures and Options Exchange:
http://www
London Metal Exchange:
http://www
OMLX, London Stock Exchange and Derivatives:
http://www
UNITED STATES OF AMERICA
NYSE:
http://www
The stock market NASDAQ:
http://www
The American Stock Exchange:
http://www
Boston Stock Exchange:
http://www
The Chicago Stock Exchange:
http://www
Philadelphia Stock Exchange:
http://www
Chicago Board Options area:
http://www
Chicago marketplace:
http://www
Chicago Mercantile Exchange:
http://www
Exchange Coffee, Sugar and Cocoa:
http://www
Marketplace Kansas City:
http://www
US average Commodity Exchange:
http://www
Minneapolis Grain Exchange:
http://www
New York Cotton Exchange:
http://www
New York Mercantile Exchange:
http://www
NYSE:
ТАЙВАНЬ
Тайваньская Фондовая Биржа:
http://www
ТАИЛАНД
Таиландская Фондовая Биржа:
http://www
TURKEY
Istanbul Stock Exchange:
http://www
FINLAND
Helsing Stock Exchange:
http://www
Finnish options market:
http://www
Finnish Options Exchange:
http://www
FRANCE
Paris Bourse:
http://www
MATIF:
http://www
SWEDEN
Stockholm Stock Exchange:
http://www
SWITZERLAND
Swiss Exchange:
http://www
Swiss Exchange options and financial futures:
http://www
South Africa
Johannesburg Stock Exchange:
http://www
http://www
South African Futures Exchange:
JAPAN
Tokyo Stock Exchange:
http://www
Osaka Stock Exchange:
http://www
Nagoya Stock Exchange:
http://www
Tokyo International Financial Futures Exchange:
http://www
Agricultural Commodity Exchange Kansai:
http://www
The Tokyo Grain Exchange:
http://www
Information from the site: «http://lupiv.narod.ru/borses.htm».
Annex 2.1. The list of commodity exchanges in Kazakhstan (as of November 1, 2013)
№
п/
п
1
2
Name of Commodity
Exchange
Name of Director
License
Address
JSC "Trading license"
Eurasian Trading System"
Chairman of the
Board - Orazaev
Kurmet
Chaymordanovich
State license
number
1000001
number from 1
February 2010
050051,
Almaty,
Dostyk
ave., 136
JSC International
Mercantile Exchange
"Kazakhstan"
President Nurkenova Zhanar
Nurumuhamedovn
a
State license
number 1000012
from March 19,
2010
Astana,
Sary-Arka
district,
ul.Seyfullin
a, 8, EP 25
Phone, fax,
email, w-site
Tel. 8 (727)
244-44-55
Email:ets@ets.kz
www.ets.kz
Tel./Fax:
+7(717) 256 99
63
Сайт: www.mtb
k.kz
E-
mail: info@mtb
k.kz
3
JSC "Universal
Commodity Exchange"
Astana "
Chairman of the
Board Allahverdiev
Mahmoud Adalat
oglu
Chairman of the
Board Bekzhigitova
Gulnara Iranovna
State license
number 1000030
on May 28, 2010
Astana
Sary-Arka
district,
ul.Sүiіnbay
aқyna 85
Astana,
st.
Kenesary
69a, VP-1
RC
"Kaminniy"
telефон 8 (717)
228 96 89
www.http://ut
b.kz
4
"Kazakhstan
International Mercantile
Exchange Universal" El
Kazyna "
5
JSC "Commodity
Exchange" Silk Way "
Chairman of the
Board - Baydalinov
Yerbol
Muhtarovich
State License
№1000155 from
June 17, 2011
Shymkent,
Enbekshy
district,
street Tole
Bi, Building
25.
Tel. 8
(725) 249
4184
сот. 8 701 50061-36
6
JSC "International
Universal Commodity
Exchange" Bereket"
Chairman of the
Board Makatov
Olzhas Orkinovich
State license
number 1000178
from July 8, 2011
Astana, st.
Tashenova,
8
Tel. 8 (717) 222
40 49 (вн. 109)
http://mutb.kz
7
JSC "Commodity
Exchange farmers,
subsoil users and public
institutions"
Chairman of the
Board Aliyev Daniar
Daurenbekovich
State License
№1000359 from
January 13, 2012
Akmola.,
Kokshetau,
ul. Gorky,
d. 67, q. 34-7-8
Tel. 8 (7162)
25-22-76
JSC "Commodity
Exchange" Samruk"
President Orazalina I.S.
State License
№1000426 from
March 2, 2012
Astana city,
district
"Almaty",
ul.Kenesary
40, 1215
Tel. 8 (717) 243
87 83
http://sce.kz/r
u
EMAIL: info@sc
e.kz
9
JSC "Universal
Commodity Exchange"
Eurasia"
President - Denis
Kutuzov
Ignatevich
State License
№1000469 dated
24 August 2012.
Astana,
Yesil
district,
ul.Kunaeva,
29/1, 14th
floor
Tel. 8 (717) 254
04 39
10
JSC "Commodity
Exchange" Caspian"
President Shayahin Erlan
Salkeevich
State license
number 1000472
from October 4,
2012
Astana, st.
Tanbalytas,
17
11
JSC "International
Universal Commodity
Chairman of the
Board - Zhunusova
State License
№1000486 from
Semey Str.
Valikhanov
Tel. 8 (717) 257
10 02
Fax: (717) 257
00 80
http://www.tb
c.kz
Tel./fax 8
(7222) 77 30
8
State license
number 1000139
on May 27, 2011
Tel. 8 (717)
241 84 33
Fax:
8
(717) 241 84
21
www.elkazyna.kz
E-mail: info@elkazyna.kz
Exchange" Shygys"
Nazigul
Adilbekovna
January 23, 2013
a, house
157 fl. 12
56
12
JSC "Commodity
Exchange Zhambyl
region"
Chairman of the
Board Baudarbekov
Kenes
Kozhantaevich
State License
№0145469 from
April 16, 2010
Taraz, st.
Suleimenov
a. d.7 "a"
Tel.8 (7262)
45-03-74
Email:itb_taraz@
mail.ru
www.birzhataraz.kz
13
JSC "International
Universal Commodity
Exchange «Diamond»
President Nurashbekov
Baurjan
Sydykovich
State License
№0145573
from April 22,
2011
Taraz, st.
Kenen
Azerbaev,
38 A
14
JSC "Commodity
Exchange" Almaty"
JSC "Commodity
Exchange" Sary-Arka"
-
-
-
Tel. 8 (7262) 42
57 79
Post
address: diamo
ndbirzha@mail.ru
http://www.dia
mond.etaraz.kz/
-
Astana,
Saryarka
district, st.
Beybіtshіlіk
, 18, of.10
Almaty,
Republic
Square,
ug.ul.Furm
anova,
13/195
Tel. 8 (7172)
62-55-16
15
16
Joint Stock Company
"Commodity Exchange
Almaty» (Almaty
Commodity Exchange)
-
-
17
JSC "International
Universal Commodity
Exchange«
AstanaGoldKZ»
-
-
Astana, st.
Kunaeva,
29/1
Tel. +7 (7172)
73-19-10, 7319-11,
www.astanagol
d.kz
18
JSC "Specialized fuel and
energy commodity
exchanges"
Moldagalieva
Gulmira
Bahytzhanovna
-
Astana,
Almaty
region,
ul.Imanova
, 19, of.
501D
Tel +7(7172)
28-93-04
ms.tirzhanova@
mail.ru
19
"Kazakhstan Mercantile
Exchange"
-
-
Astana,
Almaty
region,
st. Imanov,
d. 17, VP-8
Tel +7(7172)
42-08-40, 4208-28
www.aoktb.kz
info_aoktb@ma
il.ru
20
JSC
"Eurasian
Oil
Commodity
Exchange
State license
number
West
Kazakhstan
Tel. 56-99-63,
+7-777-215-
Chairman of the
Board -
Tel. +7 (727)
266-81-07
"Kazyna"
Sisembaeva
Dinara
Aldabergenova
1000157 on 24
June 2011
region,
Oral, street
Moldagalie
v house 21,
45-04
Information from the site: http://comtorg.gov.kz/
Annex 3.1. Scheme of interaction between the participants of the
stock market of Kazakhstan
Regulatory and enforcement
The authorized state body National Bank of Kazakhstan (FSC)
Self-regulatory organizations
Association of Financiers of Kazakhstan (AFK)
Issuers
Stock brokers
Investors
Broker
Dealer
Management Company
Single registrar
(registration of property rights)
Bid (KASE) (tolerance, fixation and reconciliation of transactions in financial instruments)
Clearing organization
(mutual obligations)
Central Securities Depository
(Accounting and Control)
Institutional
Qualified
Transfer agents
Individual
Custodian
Used terms and definitions
Basic commodities - goods that are traded on the stock exchange.
Civil Code - Civil Code of the Republic of Kazakhstan,
The general part of the December 27, 1994 № 269-XII and the Special Part of the July 1, 1999
№ 410-1;
Companies Act - Law of the Republic of Kazakhstan dated May 13, 2003 № 415-II «On JointStock Companies";
Currency Law - Law of the Republic of Kazakhstan "On Currency Regulation and Currency
Control" from 13.06.2005g. №57-III;
Competition Act - Law of the Republic of Kazakhstan "On Competition" dated December 25,
2008 № 112-IV;
The Law on Securities Market - The Law of the Republic of Kazakhstan "On Securities Market"
from 02.07.2003g. №461 - II;
The Commodity Exchange Act - Law of the Republic of Kazakhstan "On Commodity Exchanges"
from 04.05.2009g. №155-IV;
The study - information-analytical studies on the topic: "Analysis of the Republic of Kazakhstan
legislation and regulations organized commodity market";
Qualification requirements - Qualifying requirements for the activities of commodity exchanges,
stock brokers and stock dealers, approved by the Government of the Republic of Kazakhstan from
26.11.2009g. №1942;
The Administrative Code - Code of the Republic of Kazakhstan on Administrative Violations of
30 January 2001 № 155-II;
Monthly calculation index - regularly sets the record for the calculation of benefits and other
social payments, as well as penalties, taxes and other charges in accordance with the legislation of the
Republic of Kazakhstan.
Tax Code - Code of the Republic of Kazakhstan "On taxes and other obligatory payments to the
budget (Tax Code)," December 10, 2008 № 99-I;
Terms currency transactions - Rules of currency operations in the Republic of Kazakhstan
approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan on 28.04.2012g.
№154;
Exchange control regulations - Rules of export-import currency control in the Republic of
Kazakhstan and residents receiving account numbers for export and import, approved by Resolution of
the Board of the National Bank of the Republic of Kazakhstan from 24.02.2012g. №42;
Regulator of the securities market regulator - the National Bank of the Republic of Kazakhstan;
Standard rules of stock trading - Model Rules of exchange trade, approved by Decree of the
Government of the Republic of Kazakhstan from 08.12.2009g. №2042;
Criminal Code - Criminal Code of the Republic of Kazakhstan dated July 16, 1997 № 167-I;
Authorized body - State Institution "Trade Committee of the Ministry of Economic Development
and Trade."
tables
Table 1.A.1 "Milestones exchange trading, and electronic systems in Russia."
Table 1.A.2 "Major events in the history of stock trading, and electronic systems in Kazakhstan."
Table 1.A.3 "Comparative data on Exchange Commission of Kazakhstan, Russia and Ukraine in
2009-2010."
Table 1.s.4. "Technological solutions organization of electronic exchange systems."
Table 3.1 «Indicators exchange turnovers top 10 largest exchanges in the world in 2011-2012."
Table 3.2 «stock market capitalization of the largest exchanges in the world"
Table 3.3 «The total trading volume on the stock exchanges of the CIS in 2011-2012"
Table 4.b.1 «Summary of the structural features of commodity exchanges"
Table 4.b.2. "Brief description of the key factors in the development of commodity exchanges"
Table 5.b.1. "Information on serving issuers, economic partnerships and securities"
Table 5.d.1. "Indicators of the grain market in 2012."
Table 5.d.2. "The total volume of trading on the stock exchanges of the CIS in 2011-2012."
Table 7.a.1 "Differentiation of powers of the Government of the Republic of Kazakhstan and of
the authorized activities of commodity exchanges"
Table 7.b.2 «bans and quantitative restrictions of import and (or) export of certain goods"
Table 7.b.3 «The list of commodities that are sold through commodity exchanges, in excess of
the minimum size to represent the party"
Table 7.c.4 «Activities Clearing Centre"
Table 8.A.1 "The organization of state regulation of commodity exchanges"
Table 8.a.2 "Regulation of the organized commodity market EEA +"
Table 8.b.3 «Restrictions in respect of the organizer of trading and its activities"
Table 8.b.4 «Restrictions to the participants of exchange trade in EEA countries +"
Table 8.b.5 «Restrictions on objects stock trading in EEA countries +"
Table 8.s.6 "Features of the clearing and settlement"
Table 8.s.7 "features the participation of commodity exchanges in the calculations of exchange
transactions"
Table 8.d.8 «Objects derivatives market in the EEA countries +"
Table 8.e.9 "Taxation on exchange transactions"
Table 8.f.10 «Conditions for recognition of digital signatures."
Table 8.g.11 «Foundations of administrative responsibility"
Table 8.g.12 «grounds of criminal responsibility"
Table 8.g.13 «Penalties applied to the organizers of the auction participants to exchange trade."
Table 9.a.1 Transaction costs in the commodity economy
Table 9.a.2 risk management strategy in agriculture
Table 9.b.3 Common methods of dealing with excess influential (instability) of prices of goods
Table 9.d.4 forwards, futures and options for farmers: Pros and Cons
drawings
Picture 1.A.1 The number of exchanges and trade departments of commodity and stock
exchanges
Picture 1.A.2 Main indicators of stock exchanges in Russia, 2000-2011.
Picture 1.A.3 exchange turnover of transactions with real goods (excluding turnover of futures
transactions, $ million)
Picture 1.a.4 Types of operations in exchange turnover (in%)
Picture 1.a.5 The amount of commodity exchanges in Kazakhstan
Picture 1.a.6 The amount of trading conducted in Kazakhstan (in thousands)
Picture 1.a.7 traffic exchanges on the transaction (million)
Picture 1.a.8 exchange turnover by type of operation (2010)
Picture 1.e.9Korrelyatsionnaya strategy for multi-active trade
Picture 3.1 Dynamics of capitalization of the world stock exchanges, in different time zones
Picture 3.2 The structure of the global stock exchange capitalization
Picture 6.A.1 Geographic scope of the study
Picture 6.a.2.- main factors of decision-making
Picture 6.a.3.- Barriers to the development of exchange trading in Kazakhstan
Picture 6.a.4.- Barriers to the development of electronic exchange trading
Picture 6.a.5.-Legislative measures
Picture 9.d.1 volatility in prices of some commodities, 1986-2002
Picture 9.d.2 typology of risk management tools
graphs
Diagram 9.c.1. Formation of the market value: representation, recognition and justification
Diagram 9.d.2. Price Risk Management
Diagram 9.e.3. Providing opportunities for investment
Diagram 9.f.4. Trade Facilitation available commodity
Diagram 9.g.5. Facilitating financing in the agricultural sector
Diagram 9.h.6. Assistance in the development of the commodity market
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