RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF BELARUS

of December 6, 2023 No. 428

About approval of the Instruction about requirements for implementation of financial instrument transactions of forward transactions

Based on the paragraph of the eighteenth of Article 26 and part one of article 39 of the Bank code of the Republic of Belarus, subitems 2.1 and 2.3 of Item 2 of article 6 of the Law of the Republic of Belarus of July 22, 2003 No. 226-Z "About currency control and currency exchange control", the paragraph of the sixth of article 10 of the Law of the Republic of Belarus of June 21, 2002 "About precious metals and gemstones" the Board of National Bank of the Republic of Belarus DECIDES: No. 110-Z

1. Approve the Instruction about requirements for implementation of financial instrument transactions of forward transactions it (is applied).

2. This resolution becomes effective since January 1, 2024.

Approved by the Resolution of Board of National Bank of the Republic of Belarus of December 6, 2023 No. 428

The instruction about requirements for implementation of financial instrument transactions of forward transactions

1. This Instruction establishes requirements for implementation of financial instrument transactions of forward transactions in trade system of Belarusian Currency and Stock Exchange open joint stock company (further - the exchange).

2. For the purposes of this Instruction following terms are used in the following values:

basic asset - the asset which is the cornerstone of the financial instrument of forward transactions and having cost assessment delivered or used for calculation in case of execution of forward transaction. Belarusian rubles, foreign currency, interest rates, precious metals, financial instruments of forward transactions, except for securities, derivative securities and other financial instruments of forward transactions which regulation performs the republican state body performing state regulation of the security market can be basic asset;

the variation margin - cash amount, the requirement (obligation) of payment of which arises at the parties of forward transaction by results of revaluation of cost of the acquired (sold) financial instruments of forward transactions, the difference of the current and estimated prices which is carried out by assessment performed according to the procedure, established by the exchange;

deposit margin - the cash amount granted by bidders for ensuring obligation fulfillment on forward transactions;

position closing - the termination at the bidder of set of the rights and obligations according to earlier concluded bargains;

clients - the legal and (or) physical persons making transactions with financial instruments of forward transactions through bidders based on the agreements signed with them;

final estimated price - the price of the financial instrument of forward transactions determined in day of its execution according to the procedure, established by the exchange;

position opening - the origin at the bidder of set of the rights and obligations as a result of making of forward transactions by it attracting emergence of requirements and obligations;

line item - set of the rights and obligations which arose at the bidder as a result of purchase (long position) or sales (short position) of the financial instrument of forward transactions;

estimated price - the price of the financial instrument of forward transactions calculated upon termination of the biddings according to the procedure established by the exchange, and used for carrying out revaluation of the acquired (sold) financial instruments of forward transactions and control of limits of price fluctuation of the financial instrument of forward transactions. In day of execution of the financial instrument of forward transactions the estimated price is equal to final estimated price;

the specification of the financial instrument of forward transactions - the local legal act of the exchange determining standard conditions of the financial instrument of forward transactions;

forward transaction - the transaction with the financial instrument of forward transactions made in trade system of the exchange attracting acquisition of rights by its parties of the rights and obligations concerning basic asset according to the specification. Forward transactions are not transactions of bet;

the current estimated price - the price of the financial instrument of forward transactions calculated in certain time during trading by financial instruments of forward transactions according to the procedure established by the exchange. In day of execution of the financial instrument of forward transactions the current estimated price is equal to final estimated price;

the biddings - process of making of forward transactions in trade system of the exchange;

trade system of the exchange - set of the program technical means, databases, telecommunication means and other equipment of the exchange providing tendering with financial instruments of forward transactions;

the trader - the bidder's worker making forward transactions on behalf of the bidder within the powers conferred to him by the power of attorney of the bidder;

bidders - the exchanges allowed to making of forward transactions in trade system according to its local legal acts and agreements signed with the exchange the legal entities having the status of the skilled investor in the security market and the leasing organizations;

net line item - the line item determined as difference between long and short positions by the financial instrument of forward transactions at the bidder.

The term "financial instrument of forward transactions" is applied in the value determined by subitem 2.35 of Item 2 of article 13 of the Tax Code of the Republic of Belarus.

3. Bidders can make:

forward transactions as on its own behalf and at own expense, so from and the name and for customer account;

forward transactions through traders also bear responsibility for all their actions.

4. The exchange develops and approves the local legal acts regulating procedure for trade in financial instruments of forward transactions, and specifications of financial instruments of forward transactions.

5. The local legal acts regulating procedure for trade in financial instruments of forward transactions provide:

list of basic assets;

procedure for admission to trading of bidders and their exception from among bidders;

procedure for making of forward transactions;

procedure for disclosure of information on the name and designation of the financial instrument of forward transactions and about committed forward transactions;

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