Transparent pricing: the list of products that must be traded exclusively on commodity markets has been expanded

The NSSMC (National Securities and the Stock Market Commission) informs about changes in the list of types of products that are traded exclusively on organized commodity markets.

From now, trade operations in wood (timber), crude oil, gas condensate and liquefied gas must be carried out on commodity exchanges.

In accordance with the Resolution of the Cabinet of Ministers of Ukraine dated July 26, 2022 №834, amendments were made to the appendix to the Resolution of the Cabinet of Ministers of Ukraine dated December 30, 2021 №1433 On Approval of the List of Products, Trade in which is carried out exclusively on organized commodity markets (hereinafter – the Regulation).

The NSSMC welcomes the approval of the mentioned changes, which will certainly lead to transparent pricing.

The NSSMC draws the attention of entities that carry out their activities with products that are included in the list determined by the Cabinet of Ministers of Ukraine of December 30, 2021 №1433, to the need to comply with the requirements of current legislation and to carry out relevant operations on organized commodity markets, the functioning of which is ensured professional participants of such organized markets.

At the same time, realizing that in order to trade on the organized commodity market, bidders need to perform a certain list of actions, in particular, with regard to authorization at market operators, the NSSMC will not apply mandatory law enforcement measures to such participants during the first month from the entry into force of the amendments to the Regulation.

For reference. The legal conditions for the creation and functioning of commodity exchanges on the territory of Ukraine as organized commodity markets are determined by the Law of Ukraine On Commodity Exchanges (hereinafter – the Law). In accordance with the first part of Article 3 of the Law, a commodity exchange is a legal entity operating in the form of a joint-stock company, a limited liability company or a company with additional liability and carries out professional activities in the organization of trade in products on commodity exchanges, professional activities in the organization of concluding derivative contracts on commodity exchanges, as well as other types of activities provided by the Law.

According to Article 9 of the Law of Ukraine On Commodity Exchanges, the rules of the commodity exchange are the main document that regulates the procedure for conducting exchange operations, concluding exchange agreements (exchange contracts), conducting exchange trade and resolving disputes on these issues.

Exchange operations – an action (a set of actions) of the commodity exchange and/or participants of exchange trades, aimed at concluding and executing of exchange agreements and exchange contracts (point 5 of part one of Article 2 of the Law).

OTC transactions – an action (a set of actions) of a party (parties) to an OTC contract regarding products concluded outside the commodity exchange, aimed at concluding and executing such a contract (point 11of part one of Article 2 of the Law).

According to paragraph 2 of the fourth part of Article 3 of the Law, the commodity exchange may carry out an OTC transactions with exchange or other goods in cases provided for by law.