FEDERAL LAW OF THE RUSSIAN FEDERATION

of July 27, 2010 No. 224-FZ

About counteraction to unauthorized use of insider information and to market manipulation and about modification of separate legal acts of the Russian Federation

Accepted by the State Duma on July 2, 2010

Approved by the Federation Council on July 14, 2010

Chapter 1. General provisions

Article 1. Purpose and sphere of regulation of this Federal Law

1. The purpose of this Federal Law is ensuring fair pricing on financial instruments, foreign currency and (or) goods, equalities of investors and enforcement of trust of investors by creation of legal mechanism of prevention, identification and suppression of abuses at the organized biddings in the form of unauthorized use of insider information and (or) market manipulation.

2. This Federal Law governs the relations connected with financial instruments, foreign currency and (or) goods which are allowed to trade at the organized biddings in the territory of the Russian Federation, and (or) with financial instruments, foreign currency and (or) goods concerning which the application about the admission to trade at the specified biddings, with financial instruments which price depends on the financial instruments, foreign currency and (or) goods allowed to trade at the organized biddings and (or) with financial instruments which price depends on financial instruments, foreign currency and (or) goods concerning which the application about the admission to trade at the specified biddings is submitted is submitted.

3. This Federal Law is not applied to the relations connected:

1) with implementation by the Central bank of the Russian Federation (Bank of Russia) and the other persons acting from his name, financial instrument transactions, foreign currency for the purpose of realization of functions by the Bank of Russia on implementation of single state monetary policy, protection and ensuring stability of ruble, ensuring stability and development of the financial market of the Russian Federation;

2) with implementation by the Government of the Russian Federation or the federal executive body authorized by it, the supreme executive bodies of the government of subjects of the Russian Federation or financial bodies of subjects of the Russian Federation according to the laws of subjects of the Russian Federation of financial instrument transactions for the purpose of national debt management;

3) with implementation by executive bodies of municipalities (local administrations) according to charters of municipalities of financial instrument transactions for the purpose of management of municipal debt.

4. Requirements to procedure for use and protection of the insider information relating to the data which are the state and tax secret, and also responsibility for violation of the specified procedure are established in accordance with the legislation of the Russian Federation about the state secret and the legislation of the Russian Federation on taxes and fees.

5. Requirements of this Federal Law on creation of the list of insider information, and also the requirement of Articles 8 - the 11th this Federal Law do not extend to issuers of foreign securities which securities are allowed to trade at the organized biddings without the conclusion of the contract between the organizer of trade and such issuer, executive bodies of the government of foreign state, public legal entities, local government bodies of foreign state which bear on its own behalf or on behalf of foreign state responsibility according to obligations to owners of securities on implementation of the rights affirmed by these securities.

Article 2. The basic concepts used in this Federal Law

1. In this Federal Law the following basic concepts are used:

1) insider information - exact and specific information which was not distributed (including the data which are trade, official, bank secret, the mystery of communication (regarding information on postal money transfers) and other secret protected by the law) and which distribution can have significant effect on the prices of financial instruments, foreign currency and (or) goods (including the data concerning one or several issuers of issued securities (further - the issuer), one or several managing companies of investment funds, mutual investment funds and non-state pension funds (further - managing company) or one or several financial instruments, foreign currency and (or) goods);

2) financial instrument transactions, foreign currency and (or) goods (further also - transactions) - the transactions and other actions directed to acquisition, alienation, other change of the rights to financial instruments, foreign currency and (or) goods, and also the actions connected with adoption of obligations to make the specified actions, including drawing of requests (making orders) or cancellation of such requests;

3) the organizer of trade - person which is the organizer of trade in the value determined by the Federal Law "About the Organized Biddings";

4) provision of information - the actions directed to receipt of information by certain group of people in accordance with the legislation of the Russian Federation about securities;

5) distribution of information - action:

a) information directed to obtaining by the uncertain group of people or on information transfer to the uncertain group of people, including by its disclosure in accordance with the legislation of the Russian Federation about securities;

b) information connected with publication in mass media, including in electronic, information and telecommunication networks access to which is not limited by certain group of people (including the Internet);

c) information connected with distribution through electronic, information and telecommunication networks access to which is not limited by certain group of people (including the Internet);

6) goods - things, except for securities which are allowed to trade at the organized biddings in the territory of the Russian Federation or concerning which the application about the admission to trade at the specified biddings is submitted;

7) the foreign issuer - the foreign organization which signed the contract with the organizer of trade based on which securities of this foreign organization (except for the securities certifying the rights concerning securities of other organization) or the securities of other organization certifying the rights concerning securities of this foreign organization are allowed to trade at the organized biddings in the territory of the Russian Federation;

8) market manipulation - intentional actions which are determined by the legislation of the Russian Federation on counteraction to unauthorized use of insider information and to market manipulation or regulations of the Bank of Russia as a result of which the price, demand, the offer or the trading volume deviated by the financial instrument, foreign currency and (or) goods level or were supported at the level, significantly different from that level which would be created without such actions.

2. The concept "under control person" is used in this Federal Law in the value determined by the Federal Law of April 22, 1996 No. 39-FZ "About the security market".

Article 3. The data relating to insider information

1. The legal entities specified in Items 1, of 3, of 4, of the 11 and 12 article 4 of this Federal Law shall based on provisions of this Federal Law and taking into account features of activities of the legal entity to constitute own lists of insider information. Own lists of insider information of the legal entities specified in this part include including insider information which list affirms the regulation of the Bank of Russia, and affirm person performing functions of sole executive body.

2. To insider information of the bodies and organizations specified in Item 9 of article 4 of this Federal Law, the Bank of Russia belongs:

1) information on the decisions on results of the biddings (tenders) made by them;

2) information obtained by them during performed, and also information on results of such checks;

3) information on the decisions made by them concerning persons specified in Items 1, of 3, of 4, of the 11 and 12 article 4 of this Federal Law about issue, suspension of action or about cancellation (response) of licenses (permissions, accreditations) on implementation of certain types of activity, and also other permissions;

4) information on the decisions on administrative prosecution of persons specified in Items 1, of 3, of 4, 11 - 13 articles 4 of this Federal Law and also on application made by them to specified persons of other sanctions;

5) other insider information determined by their regulations.

3. The bodies and the organizations specified in Item 9 of article 4 of this Federal Law the Bank of Russia shall approve the regulations containing exhaustive lists of insider information according to methodical recommendations of the Bank of Russia.

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