Coal exchange trading rules changed in Kazakhstan

12/12/2023

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The Ministry of Trade and Integration approved amendments to the Exchange Trading Rules in the coal section. The corresponding Order was approved on December 6, 2023 No. 420-НК.

The document expands the range of exchange trading entities classified as coal sellers to include coal producers carrying out mining in accordance with a subsoil use contract (coal open-pit mine, coal mine) and (or) processing (enrichment) of coal.

Coal buyers will participate in exchange trading on a regional basis, depending on regional needs.

Only regional operators of a particular region accredited by local executive bodies will take part in the auction.

The list of buyers of municipal coal is subject to posting on the website of the authorized body exercising management in the coal industry.

New requirements for the seller have been expanded, according to which he must provide to the authorized body in charge of the coal industry a monthly breakdown of the supply of municipal coal planned for delivery to the domestic market for the next production year from the total annual volume established by the List of Exchange Commodities.

The authorized body in charge of the coal industry, based on the seller’s data provided for the monthly breakdown of supplies of municipal coal, generates information taking into account data from local executive bodies on the volume of consumption of municipal coal by the population in the context of each region.

This information is posted on the Internet resources of this body, and is also sent to local executive bodies for their subsequent posting on Internet resources.

To ensure transparency of pricing in the coal market in order to prevent sharp price increases, sellers ensure the sale of municipal coal through the commodity exchange in the following order:

50% of the volume is sold at spot trading;

50% of the volume is sold subject to monthly payment and delivery for a period of 6 to 12 months.

For participants in exchange trading, the amount of exchange security is set at no more than three percent of the proposed exchange transaction

The commodity exchange must ensure that the return of exchange collateral is carried out by the clearing organization no later than 5 working days from the date of submission of an application for the return of funds by the trading participant.

These amendments come into effect upon the expiration of ten calendar days after the day of its first official publication.

The Ministry of Trade and Integration notes that according to paragraph 3 of Article 15 of the Law of the Republic of Kazakhstan “On Commodity Exchanges”, transactions with exchange-traded goods included in the List of exchange-traded goods, made in violation of the requirements, outside of commodity exchanges, are declared invalid upon the claim of interested parties, the antimonopoly authority or prosecutor.

According to paragraph 3 of Article 268 of the Code of Administrative Offenses of the Republic of Kazakhstan, the sale of goods included in the list of exchange goods outside commodity exchanges entails a fine for individuals in the amount of seventy, for small businesses or non-profit organizations – in the amount of one hundred, for medium-sized businesses – in the amount of one hundred forty, for large businesses – in the amount of four hundred monthly calculation indices.

Source and Credit: agmpnews.kz

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