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Law No. 512 Of 12 July 2002 Approving Government Emergency Ordinance Nr. 27/2002 On Regulated Markets And Derivative Financial Instruments

Original Language Title:  LEGE nr. 512 din 12 iulie 2002 pentru aprobarea Ordonanţei de urgenţă a Guvernului nr. 27/2002 privind pieţele reglementate de mărfuri şi instrumente financiare derivate

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LEGE no. 512 512 of 12 July 2002 for approval Government Emergency Ordinance no. 27/2002 on regulated commodity markets and derivatives
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 576 576 of 5 August 2002



The Romanian Parliament adopts this law + Article 1 Approval Government Emergency Ordinance no. 27 27 of 13 March 2002 on regulated markets in commodities and derivatives, published in the Official Gazette of Romania, Part I, no. 232 of 8 April 2002, with the following amendments and additions: 1. Article 2 shall read as follows: "" Art. 2. -The implementation of this emergency ordinance, as well as the control of compliance with its provisions, are entrusted to the National Securities Commission, hereinafter referred to as C.N.V.M., vested for this purpose with regulatory powers and supervision, including the power of authorization, delegation, decision, prohibition, intervention, monitoring, inspection, investigation and administrative sanction, under the conditions, modalities and limits established by this Emergency Ordinance and by C.N.V.M. regulations " 2. In Article 4 (1), paragraphs 15, 21, 22, 23, 24, 25, 26 (b) and 30 shall read as follows: "" 15. privileged information-information of any nature regarding exchange operations or traded assets that have not yet become public and whose disclosure could influence quotations or other aspects of trading on stock exchanges. of goods; .............................................................. 21. member of the stock exchange-legal person who, fulfilling the conditions provided by this emergency ordinance and by the regulations of C.N.V.M., has the right to conclude transactions on one or more markets developed by a commodity exchange; 22. compensating member-legal person who, fulfilling the conditions provided by this emergency ordinance and the regulations of C.N.V.M., has the right to register at the clearing house the derivatives, traded on markets developed by a commodity exchange; 23. scholarship order-the firm instruction that records how to negotiate a request or offers on an available market or derivatives; 24. markets available-specialized markets, developed by a commodity exchange, which provide the conditions for the negotiation and conclusion of transactions with spot and forward contracts; 25. derivatives markets-specialized markets, developed by a commodity exchange, which provide the conditions for the negotiation and conclusion of transactions with derivatives; 26. regulated markets-available markets or derivatives, which cumulatively meet the following conditions: ............................................................... b) comply with the regulations of C.N.V.M., as well as the regulations of the commodity exchanges authorized by C.N.V.M., which define the conditions of access to the market, as well as the operating conditions; ............................................................... 30. Stock Exchange Company-stock trading company, constituted according to Law no. 31/1990 on companies, republished, with subsequent amendments and completions, and this emergency ordinance, authorized by C.N.V.M., autonomous in relation to market participants providing services of public interest through Commodity exchanges established; ' 3. In Article 4, paragraphs 4 and 5 shall read as follows: " (4) The clearing house, clearing members, commodity exchanges, members of the commodity exchange, brokers, traders and any other entity operating on a commodity exchange shall ensure confidentiality of the open accounts and their structure, with the exceptions provided for by the legislation in force and by the regulations of the stock exchanges and the compensation houses. (5) In case of dispute the individual acts issued by C.N.V.M. regarding the qualifications provided in par. (3) may be appealed before the Supreme Court of Justice to the Administrative Court. " 4. In Article 5, paragraphs 2 to 6 shall read as follows: " (2) The scholarship company issues nominative shares that must be paid in full in cash at the time of the application for authorization. (3) A shareholder of the stock exchange company may not hold directly or through persons involved more than 5% of the voting rights conferred by the shares issued by it. (4) The minimum limit of subscribed and paid-up share capital is established by regulations of the C.N.V.M. (5) At the establishment of the scholarship company shall be registered with the Trade Register Office on the basis of the establishment authorization issued by C.N.V.M. Based on the proof of registration at the Trade Register Office, the scholarship company shall request C.N.V.M. authorization to operate. (6) The conditions underlying the authorization issued by C.N.V.M. must be observed for the duration of the existence of a scholarship company. Any modification thereof is subject to the authorization of C.N.V.M. " 5. Articles 6 to 8 will read as follows: "" Art. 6. -The main activity of the stock exchange company is the administration of commodity exchanges. The scholarship company can also carry out related activities, such as: organization of tenders for sales and purchases of products, services and works, assets of legal and physical persons, realization, administration and marketing computer systems specific to commodity exchanges, organization of seminars and courses, in order to prepare participants in the field of commodity exchanges, or other qualified activities such as C.N.V.M. Article 7. -(1) The stock exchanges, as well as the totality of the tangible and intangible assets necessary for their organization and functioning are part of the trade fund of the stock exchange company. (2) The scholarship company will provide the logistics and specialized personnel necessary for the optimal operation of the commodity exchanges. (3) For the administration of the stock exchanges established by this scholarship company establishes and charges levies, tariffs and commissions that enter into force after their notification to C.N.V.M. Article 8. -The scholarship company has active and passive procedural legitimation, respectively, for any rights and obligations, claims and complaints related to the activity of the goods exchanges established and, if applicable, that of the compensation house, organized as department. " 6. In Article 9, paragraph 1 (a), (c), (d), points (1) and (6) and (2) shall read as follows: " a) the establishment, operation and abolition of a stock exchange; ............................................................... c) admission of the category of traders as operators to trading on the markets of derivatives developed on a commodity exchange; d) ratification of the decisions of the Management Board regarding: 1. approval of the regulations of the commodity exchanges; ............................................................... 6. the admission of traders to trading on the derivatives markets, developed by a commodity exchange; ............................................................... (2) Ratification of the decisions of the board of directors, according to par. ((1) lit. d), will take place in the vicinity of the general meeting of shareholders. " 7. In Article 10, letter a) shall read as follows: "" a) the right to trade in goods exchanges only with their authorization by the C.N.V.M.; " 8. Article 11 shall read as follows: "" Art. 11. -In order to ensure the minimum operating conditions established by the regulations of C.N.V.M. the scholarship company will act to modernize and develop the commodity exchanges established by it. " 9. In Article 14, paragraph 1 shall read as follows: "" Art. 14. --(1) The management of a stock exchange shall be entrusted to the council of the stock exchange, appointed by the board of directors of the stock exchange company for a term of 4 years, which may be renewed. " 10. In Article 15 (1), the letter j) shall read as follows: "j) submit for approval C.N.V.M. trading on the markets of financial instruments derived from new derivatives and new underlying assets;" 11. Title III shall read as follows: "Operators of commodity exchanges" 12. Article 16 shall read as follows: "" Art. 16. -(1) Under the conditions laid down by the articles of association of the stock exchange company, the shareholders may acquire one or more trading venues on the stock exchanges. ((2) The shareholders of a stock exchange company may submit the use of trading venues on the stock exchange to one or more companies, Romanian legal entities, agreed by the stock exchange company, for the exclusive purpose of negotiating applications and offers and to conclude transactions, as well as financial investment services companies from another state, authorized by C.N.V.M. to provide directly financial investment services on the territory of Romania. " 13. In Article 17, letter b) shall read as follows: "b) cumulatively meet the conditions laid down in the regulations of the C.N.V.M. and of the respective stock exchange." 14. In Article 22, letter a) shall read as follows: "a) the negotiation of applications and tenders and the conclusion of transactions in markets developed by a commodity exchange;" 15. In Article 24, letter f) shall read as follows: "f) require customers to refrain from any actions or inactions aimed at causing damage to the operators of commodity exchanges, stock exchange companies and clearing houses." 16. In Article 26, letters e) and f) shall read as follows: " e) notify immediately to the stock exchange company, the compensation house and the clearing member the triggering of the judicial reorganization or bankruptcy procedure on customers who have ongoing obligations to the compensation house; f) to notify immediately to the stock exchange company, to the compensation house, to the clearing member and to their own customers the triggering of the judicial reorganization or bankruptcy procedure on them. " 17. In Article 27, letter f) shall read as follows: "f) to conclude transactions on a customer's account, for the purpose of closing positions in the absence of an order of that customer, if it has the amounts, values or goods necessary to guarantee open positions;" 18. In Article 36, paragraph 1 shall read as follows: "" Art. 36. --(1) In order to achieve the purpose for which they were established, commodity exchanges shall develop markets to be available and/or derivatives markets. " 19. In Article 39, paragraph 1 shall read as follows: "" Art. 39. -(1) Investment advisory services include, but are not limited to: the technique of negotiation on commodity exchanges, analysis of derivatives, markets available and derivatives markets, analysis of financial instruments. investment efficiency, portfolio selection and management services, risk assessment and management services, as well as publication activities, provision of opinions and investment recommendations in assets. " 20. Article 41 shall read as follows: "" Art. 41. -The available markets are developed exclusively by the commodity exchanges established by a scholarship company authorized by C.N.V.M. and under the conditions of the opinion given by C.N.V.M. " 21. In Article 44, paragraph 1 shall read as follows: "" Art. 44. --(1) The goods for which representative securities of the type of the certificate of deposit or of the consignment are issued may be traded exclusively on their basis, in accordance with the regulations drawn up by the council of the stock exchange. " 22. Article 48 shall read as follows: "" Art. 48. -The arrangements for the negotiation of applications and tenders, and the conclusion of transactions on markets developed by a commodity exchange, shall be laid down in the regulations of its functioning, drawn up by the council of the stock exchange. " 23. In Article 54 (a), point 2 shall read as follows: "" 2. for the duration of his employment or for the duration of the professional activity in the service of a member of the stock exchange or in connection with him, respectively of an investor in the stock exchanges or in connection with him; " 24. Articles 55 and 56 shall read as follows: "" Art. 55. -Any privileged information holder may not perform operations on the stock exchanges for himself or for another, directly or indirectly, or cannot capitalize on that privileged information in any other way, nor transmit them or facilitate their publication to their own advantage or to third parties and will be subject to the rules of conduct provided for in this Emergency Ordinance. Article 56. -(1) All contracts traded on the markets of derivatives developed by a commodity exchange shall be recorded, guaranteed, compensated and settled by a clearing house the activity of which shall be established by Own operating regulation, with authorization of C.N.V.M. (2) The schemes for performing compensations and mutual settlements will be subject to the authorization of the National Bank of Romania. " 25. Article 59 shall read as follows: "" Art. 59. -If a compensation house guarantees, compensates and settles operations carried out in the markets of derivatives of a commodity exchange, the scholarship company will designate a representative with the right to vote on the board. of the administration of the house of compensation, exclusively in matters concerning that stock exchange. " 26. In Article 62, paragraph 1 shall read as follows: "" Art. 62. -(1) The members of the stock exchange shareholders of the compensation house agreed by the stock exchange company, who meet the conditions established by it by their own operating regulations, may be members. " 27. Article 63 shall read as follows: "" Art. 63. -The registration of traded derivatives shall be made at the clearing house only through clearing members. " 28. In Article 65, letter a) shall read as follows: "" a) to register at the clearing house the derivatives traded on the markets developed by the commodity exchange; " 29. In Article 68 (2), points a) and b) shall read as follows: "" a) will no longer enter into transactions on the available markets of the stock exchange; b) may conclude transactions in the markets of derivatives of the stock exchange exclusively for the purpose of closing open positions at the clearing house. " 30. In Article 79, paragraph 3 shall read as follows: " (3) In the case of contravention sanctions, the provisions shall not apply art. 28 and 29 of Government Ordinance no. 2/2001 on the legal regime of contraventions, with subsequent amendments and completions. " 31. Article 84 shall be repealed. 32. Article 86 (3) shall be repealed. 33. Article 87 shall read as follows: "" Art. 87. -Exchange companies and clearing houses are required to constitute risk provisions for operations that are carried out in the derivatives markets, in accordance with the regulations of C.N.V.M., which are deductible at calculation of taxable profit. " 34. in Article 88, after paragraph 2, paragraph 3 is inserted as follows: "" (3) Restrictions on the citizenship of natural persons and residence of legal persons subject to the provisions of this law cease their applicability after the integration of Romania into the European + Article 2 C.N.V.M. will develop and adopt the necessary regulations for the implementation of the provisions Government Emergency Ordinance no. 27/2002 on the regulated markets of goods and derivatives and will publish these regulations within a maximum of 90 days from the date of publication of the present law in the Official Gazette of Romania, Part I. + Article 3 Government Emergency Ordinance no. 27/2002 , with the amendments and completions brought by this law, will be republished in the Official Gazette of Romania, Part I, giving the texts a new numbering. This law was adopted by the Chamber of Deputies at its meeting on June 27, 2002, in compliance with the provisions of 74 74 para. (1) of the Romanian Constitution. CHAMBER OF DEPUTIES PRESIDENT VALER DORNEANU This law was adopted by the Senate at the meeting of 27 June 2002, in compliance with the provisions of art. 74 74 para. (1) of the Romanian Constitution. p. SENATE PRESIDENT, DORU IOAN TARACILA Bucharest, July 12, 2002. No. 512. ------------------