Draft law on improving exchange trading discussed with the business community
On February 26, 2021, under the chairmanship of the Minister of Trade and Integration of the Republic of Kazakhstan, B. T. Sultanov, a meeting was held on the draft law "On Amendments and Additions to certain Legislative Acts of the Republic of Kazakhstan on the development and improvement of exchange trading".
The meeting was attended by Chairman of the Agency for the Protection and Development of Competition of the Republic of Kazakhstan Serik Zhumangarin, Vice-Minister of Trade and Integration of the Republic of Kazakhstan Yerzhan Kazanbayev, as well as representatives of the business environment.
Thus, the draft law on the improvement and development of commodity exchanges provides for two norms that have caused a public outcry among representatives of the business environment.
One of the innovations was the increase in the authorized capital of commodity exchanges from 300 to 700 thousand times the size of the MCI with the requirement to make at least 25% in monetary terms, the remaining 75% - securities and liquid real estate (buildings, structures put into operation, not under encumbrance and located within the settlement).
At the same time, the bill proposes to establish a 3-year delay for the monetary formation of the authorized capital and 5 years for bringing the authorized capital to 700 thousand times the size of the MCI.
At the same time, the Agency for the Protection and Development of Competition proposes to reduce these terms to 6 months.
In turn, the Ministry of Trade believes that the terms can be reduced to 18 months.
They also discussed the issue of organizing trading only in exchange-traded goods.
The Ministry of Trade proposes to establish a distinction between commodity exchanges and electronic trading platforms. At the same time, provide for the organization of trading only in exchange-traded goods.
This rule is proposed in order to bring it in line with international experience, as well as to distinguish between commodity exchanges and electronic trading platforms. Commodity exchanges will only be able to trade exchange-traded commodities. In turn, the weak players of the exchange market will move to the category of ETP (electronic trading platform).
Following the discussions, and voice of the business community, the Minister of trade and integration Bakhyt Sultanov proposed to study the issue of formation of capital markets in monetary terms, and to consider the question of the formation of the minimum amount of equity commodity exchanges.
"It is also necessary to work on the standardization of non - standardized goods on commodity exchanges, so that in the future only standardized goods can be traded on commodity exchanges," Bakhyt Sultanov said.
In addition, the head of the department proposed to create a working group and introduce new tools to the draft law by March 2, 2021.
Recall that the Head of State in his Message of September 1, 2020, indicated the need to restore order in exchange trading.
In order to fulfill this order, the Ministry of Trade and Integration is assigned the action provided for in paragraph 46 of the ONP to improve the regulation of the activities of commodity exchanges.
Sincerely, the press service of the
Ministry of Trade and Integration of the Republic of Kazakhstan
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