I.O.'S ORDER OF THE MINISTER OF NATIONAL ECONOMY OF THE REPUBLIC OF KAZAKHSTAN

of March 30, 2015 No. 280

About approval of Rules of stock exchange trading

According to subitem 2-1) of article 4 of the Law of the Republic of Kazakhstan of May 4, 2009 "About commodity exchanges" PRIKAZYVAYU:

1. Approve the enclosed Rules of stock exchange trading.

2. To provide to department of regulation of trading activity of the Ministry of national economy of the Republic of Kazakhstan:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan its direction on official publication in periodic printing editions and in information system of law of Ad_let;

3) publication of this order on official Internet resource of the Ministry of national economy of the Republic of Kazakhstan.

3. I reserve control of execution of this order.

4. This order becomes effective after ten calendar days after day of its first official publication.

Approved by the Order of the acting minister of national economy of the Republic of Kazakhstan of March 30, 2015 No. 280

Rules of stock exchange trading

Chapter 1. General requirements

1. These rules of stock exchange trading (further – Rules) are developed according to subitem 2-1) of article 4 of the Law of the Republic of Kazakhstan "About commodity exchanges" (further – the Law) and determine procedure for activities of participants of stock exchange trading when making stock exchange transactions with exchange goods.

2. The basic concepts and terms which are used in these rules:

1) stock exchange trading – the business activity on realization of exchange goods performed at commodity exchange by carrying out the exchange biddings electronically, registration and execution of transactions according to the legislation of the Republic of Kazakhstan on commodity exchanges;

2) the exchange broker (further – the broker) – the subject of entrepreneurship performing the activities at commodity exchange and making transactions with exchange goods on the order for the account and for the benefit of the client;

3) the stock dealer (further – the dealer) – the subject of entrepreneurship performing the activities at commodity exchange and making transactions with exchange goods in the interests and at own expense;

4) exchange providing – the cash cover brought on returnable basis by participants of stock exchange trading in commodity exchange or clearing center of commodity exchange for participation in the exchange biddings as ensuring execution of the obligations on the concluded stock exchange transactions;

5) the exchange biddings – the process which is carried out within these rules, directed to transactions on exchange goods on the basis of the electronic applications submitted to the electronic trading system of commodity exchange providing automation of process of the conclusion of stock exchange transactions;

6) members of commodity exchange are the brokers, dealers and market makers accredited by commodity exchange according to the procedure, determined by the Law;

7) trade lot – quantity of exchange goods, multiple to which there shall be quantity of exchange goods specified in the request for sale (purchase) of exchange goods;

8) participants of stock exchange trading are the clients, brokers, dealers and market makers interacting at commodity exchange on statutory rules of stock exchange trading;

9) exchange goods – the standardized or not standardized goods allowed by commodity exchange to exchange trade taking into account the restrictions established by the Law;

10) basis of delivery - the conditions of the foreign trade transaction providing distribution between the seller and the buyer of obligations on promotion of goods, execution of the relevant documents and payment of transportation expenses, determination of the moment of transition from the seller to the buyer of the property right to goods, risk of accidental damage or loss of goods, and also the delivery date;

11) the standardized goods – the homogeneous goods included in the Single commodity nomenclature of foreign economic activity of the Eurasian Economic Union, and (or) unit of which are identical in every respect, have similar characteristics and consist of similar components that allows them to perform the same functions having property of complete interchangeability of batches from different producers including carbon units;

12) not standardized goods – the goods which are not withdrawn from circulation or not limited in turnover, the goods except for standardized, carbon unit, real estate and intellectual property items;

13) the client – the physical person including registered as the individual entrepreneur or the legal entity using services of the broker for transactions with exchange goods, according to the procedure, established by the Law;

14) spot goods - the goods which are in warehouse with immediate delivery or with its delivery in the future;

15) futures transaction – stock exchange transaction which object is the future;

16) option transaction – stock exchange transaction which object is the option;

17) the forward transaction – stock exchange transaction which object is the forward;

18) the cross-transaction – stock exchange transaction in case of which the broker, being effective at the request of two different clients, acts both from the seller, and from the buyer;

19) self-regulatory organization – the non-profit organization in the form of association (union) based on voluntary participation of commodity exchanges, brokers or dealers and included in the register of self-regulatory organizations in the field of commodity exchanges;

20) the request for sale (purchase) of exchange goods – the proposal (offer) of the participant of the exchange biddings on sale (purchase) of exchange goods or the notification (acceptance) of the participant of the exchange biddings on adoption of the offer on purchase (sale) of exchange goods containing all conditions necessary for the conclusion of stock exchange transaction according to these rules;

21) the settlement organization – the bank of the second level or the organization performing separate types of banking activities with which the clearing center of commodity exchange signed the agreement on order of interaction when carrying out the exchange biddings and (or) implementing payment under the bargains concluded at the exchange biddings;

22) opening price – the price with which the exchange biddings in the mode of standard auction, or the price of the first committed stock exchange transaction on specific exchange goods (group of goods) at the specific exchange bidding in the mode of double counter auction begin;

23) the potential supplier – the dealer or the client applying for the conclusion of stock exchange transaction on purchases of subsoil users of not standardized goods;

24) exchange collection – the fee charged by commodity exchange from participants of stock exchange trading for registration of stock exchange transaction;

25) the mode of double counter auction - the trade mode in case of which stock exchange transactions are concluded anonymously as a result of sales contest and buyers and the price of the standardized goods is established on equilibrium level of the demand and supply;

26) trading day – day of work of commodity exchange during which it holds the exchange auction;

27) authorized body in the field of regulation of trading activity (further – authorized body) – the central executive body performing state regulation and coordination in the field of trading activity;

28) the trade mode – set of conditions of the announcement of requests and the conclusion of transactions in trade system of commodity exchange;

29) trading session – period of time of trading day during which traders expose in trade system of commodity exchange of the purchasing request (sale) of exchange goods and on them stock exchange transactions are concluded;

30) the mode of standard auction – the trade mode in case of which stock exchange transactions are concluded during the auction on lowering or increase at the best price for the buyer (seller) – the initiator of auction;

31) clearing center of commodity exchange – the independent clearing organization with which the commodity exchange signed the agreement on clearing servicing;

32) commodity exchange – the legal entity created in form of business of joint-stock company, performing organizational and technical supply of the biddings by their direct carrying out with use of electronic trading system of commodity exchange;

33) the trader – the worker of the participant of the exchange biddings authorized by him on implementation in trade system of commodity exchange of the actions connected with the conclusion of transactions on behalf of the participant of the exchange biddings, and registered by commodity exchange in the procedure established by it;

34) the market maker – the legal entity creating and maintaining liquidity of the stock exchange market by drawing of quotations and adoption of obligations on purchase and sale of terminal contracts;

35) the applicant – the broker, the dealer, the market maker wishing to undergo the procedure of accreditation in commodity exchange as the member of commodity exchange;

36) the quotation of the market maker – the request for purchase/sale of the terminal contract submitted to trade system of the exchange the market maker within accomplishment of the obligations and meaning its unconditional consent to conclude the bargain on the terms of this request;

37) the dealer having the industrial certificate, – the potential supplier applying for the conclusion of stock exchange transaction on purchases of subsoil users of not standardized goods, the having relevant document issued according to the procedure, established by the legislation of the Republic of Kazakhstan, confirmatory that the supplier is domestic manufacturer of goods;

38) oil products - separate types of oil products: gasoline, aviation and diesel fuel, fuel oil, road bitumen;

39) the delivery plan of oil products – amount of monthly needs of areas, cities of republican value and the capital in the oil products made in the Republic of Kazakhstan;

40) closing price – the price at which the exchange biddings on not standardized goods in the mode of standard auction, or the price of the last committed stock exchange transaction on the specific standardized goods (group of goods) at the specific exchange bidding in the mode of double counter auction come to an end;

41) the basic price – the price established on exchange goods during the exchange biddings, accepted for calculation of the minimum and maximum level of the change in price during the trading session;

42) weighted average price – the price for specific exchange goods which developed following the results of the exchange biddings during the determined period of time (trading session, trading day, trade month) received by calculation of ratio between money turnover of the specific period of the corresponding period, divided into physical turnover.

3. Stock exchange trading is performed on the basis of equality of participants of stock exchange trading, according to the legislation of the Republic of Kazakhstan on commodity exchanges.

4. Development and approval of own Rules of stock exchange trading by commodity exchanges is not allowed.

5. The commodity exchange provides to all participants of stock exchange trading equal conditions on the conclusion of stock exchange transactions and is guarantor of legality of stock exchange transactions.

6. On the organizational technical issues connected with the organization and the tendering by exchange goods which is not settled by rules of stock exchange trading and requiring additional regulation, the commodity exchange approves the relevant internal regulating documents.

7. The commodity exchange provides integration of Internet resource and electronic trading system of commodity exchange with the information system "Single Window of Purchases".

8. The income of commodity exchange is created at the expense of admission and annual fees of members of commodity exchange, payments for use of property of the exchange, registration and registration of stock exchange transactions and due to other receipts which are not prohibited by the Law.

Chapter 2. Conditions and procedure for accreditation of members of commodity exchange, suspension and termination of their accreditation

9. Accreditation in commodity exchange grants the right to brokers, dealers, market makers to participate at the exchange biddings and to perform stock exchange transactions in compliance the Law and these rules.

10. The broker and (or) the dealer is allowed to be the member of two and more commodity exchanges.

11. The physical person directly or indirectly owning the minimum share in property of the legal entity, and also exercising individual control based on the civil relations which are available for it is not allowed to be the head and (or) the founder (cofounder) of two and more brokers and (or) dealers and (or) market makers.

12. Members of commodity exchange do not allow actions (failure to act) which will entail disclosure of the data which are trade secret at commodity exchange.

13. For passing of accreditation in commodity exchange the following requirements are imposed on the applicant:

1) to have civil legal capacity;

2) to be solvent, not to have tax debt;

3) not to be subject to insolvency proceeding or liquidation, is not seized its property, its financial and economic activities are not suspended;

4) availability at the workers holding executive positions, the higher education;

5) lack of not removed or unspent conviction for making of crimes in the field of economic activity and corruption crimes (for the first head).

14. For accreditation in commodity exchange by the applicant submits to commodity exchange the following documents and data:

1) the application for admission in members of commodity exchange;

2) the copy of the provision and (or) the charter approved in the procedure established by the legislation taking into account the made changes and (or) additions (notarized in case of non-presentation of originals for reconciliation) – in the presence of provision and (or) the charter;

3) Foundation agreement (in the presence);

4) the certificate of statement of the applicant for tax accounting as the taxpayer on value added (in the presence);

5) the original of the financial reporting for the last financial year signed by the first head or person replacing it and also the chief accountant (in the presence);

6) for legal entities – the certificate of state registration (re-registration) of the legal entity;

7) the document confirming payment of the admission fee by the applicant;

8) the certificate of lack of not removed or unspent conviction for making of crimes in the field of economic activity and corruption crimes at the first head of the applicant;

9) information about beneficial owners of the applicant.

15. The decision on accreditation in commodity exchange is made by commodity exchange within five working days from the moment of the reception of an application and documents specified in Item 14 of these rules.

16. About the made decision to the applicant it is reported in writing within one working day after decision about accreditation or refusal in accreditation by commodity exchange.

17. The decision is considered handed in the following cases:

1) purposely – from the date of mark about obtaining;

2) by mail – the registered mail;

3) by electronic method – from the date of sending for the e-mail address specified in the letter to commodity exchange.

18. In accreditation in commodity exchange refuses in the following cases:

1) discrepancy of the applicant to requirements, stipulated in Item 13 these rules;

2) non-presentation, representation not in full and (or) submission of the documents and data specified in Item 14 of these rules containing unreliable information;

3) concerning the applicant there is judgment which took legal effect about prohibition of activities or separate types of activity;

4) inclusion of the applicant, his beneficial owners and (or) his first head in the List of the organizations and faces tied with financing of terrorism and extremism according to the procedure, provided by the Law of the Republic of Kazakhstan "About counteraction of legalization (washing) of income gained in the criminal way and to terrorism financing";

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