The Law of Ukraine
On Commodity Exchange
Date of Entry into Force:
December 10, 1991
According to the Law commodity exchange is the organization which unites legal entities and natural persons conducting manufacturing and commercial activity and aims at ensuring of services in making exchange agreements, reveal of goods prices, demand and supply for goods, studies, sorting out and easing of goods circulation and connected with it trade operations.
Commodity exchange does not deal with commercial mediation and does not aim at getting profit.
The Law sets rights and obligations of commodity exchange.
Bodies of state power shall not be founders and members of commodity exchange. Commodity exchange shall be founded on the grounds of respective agreement between the founders. Each founder of commodity exchange shall pay share contribution. Commodity exchange operates on the basis of statute. In commodity exchange statute shall be mentioned:
- commodity exchange name and location;
- staff of founders;
- object and goals of commodity exchange activity;
- types of funds created by commodity exchange;
- bodies of commodity exchange management, procedure of their creation and competence, commodity exchange organizational structure;
- procedure of admitting new members and stopping membership;
- rights and obligations of commodity exchange members and of commodity exchange before third persons as well as of members before commodity exchange and of commodity exchange before its members;
- procedure and conditions of sanctions application;
- property responsibility of commodity exchange members;
- procedure of commodity exchange stopping.
Commodity exchange managing bodies shall be:
- general meeting of members;
- commodity exchange committee;
- control commission.
The Law stipulates that property of commodity exchange shall be formed by:
- share, entrance and periodic contributions;
- earnings from commodity exchange transactions and services rendered by departments of commodity exchange;
- penalties for violation of commodity exchange statute and rules of commodity exchange trade;
- other monetary inpayments which do not run counter with current legislation.
Pursuant to the Law commodity exchange transaction is an agreement which meets totality of the following requirements:
- it is purchase and sale, delivery or exchange of goods permitted to circulate on commodity exchange;
- its participators are commodity exchange members;
- it is registered on the commodity exchange not later than the day after the agreement conclusion.
Commodity exchange operations shall be performed only by commodity exchange members or brokers. Commodity exchange brokers are natural persons registered on the commodity exchange. Commodity exchange brokers fulfill errands of commodity exchange members, which they represent, concerning conducting of commodity exchange transactions by looking for contracts and submission of performed by them transactions for registration on commodity exchange.
On commodity exchange it shall be prohibited to:
- purchase and sell goods with the purpose of influence price dynamic;
- accomplish any agreed actions of commodity exchange trade participants, if such actions aim at or may cause change or fixation of current commodity exchange prices;
- spread false information which may cause artificial change of conjuncture.