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Law No. 129 Of 21 July 2000 Approving Ordinance No. 69/1997 Concerning Commodity Exchanges

Original Language Title:  LEGE nr. 129 din 21 iulie 2000 pentru aprobarea Ordonanţei Guvernului nr. 69/1997 privind bursele de mărfuri

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LEGE no. 129 129 of 21 July 2000 for approval Government Ordinance no. 69/1997 on commodity exchanges
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR no. 361 361 of 3 August 2000



The Romanian Parliament adopts this law + Article 1 Approval Government Ordinance no. 69 69 of 28 August 1997 on commodity exchanges, issued pursuant to art. 1 lit. c) of Law no. 134/1997 for the empowerment of the Government to issue ordinances and published in the Official Gazette of Romania, Part I, no. 227 of 30 August 1997, with the following amendments and additions: 1. The title of the ordinance shall read as follows: "" Ordinance on regulated commodity markets, services and derivatives " 2. Article 1 shall read as follows: "" Art. 1. -(1) This ordinance establishes the organization, operation, regulation and supervision of commodity exchanges. (2) Stock exchanges are markets of general interest, regulated and authorized, which provide their members and clients with centralized conditions of negotiation, as well as risk management through trading and clearing systems, for operations of: a) sales and purchases in sight or at term, having as their object goods such as agricultural products or raw materials intended for processing, from the category of those who, by their nature, are fungible goods or mobile goods by anticipation; b) sales and purchases in sight or term by spot or forward contracts, having as their object representative securities on goods, the type of repository and the warant, the conosament, the insurance policy and the like, agreed and classified by the supervisory and regulatory authority, as well as term acquisitions or sales by futures or options; c) sales and purchases at term of monetary and financial assets or securities on monetary or financial assets, as well as other assets agreed and classified by the regulatory and supervisory authority; d) chartering, maritime and inland waterway insurance and cargo; e) sales and purchases using other financial instruments qualified by the supervisory and regulatory authority. (3) Stock exchanges are obliged to develop and disseminate in Romania and other countries trading reports, in order to establish prices for producers and consumers of goods, products and by-products resulting from them, as well as in the purpose of facilitating the commercial operations involved. " 3. Article 2 shall read as follows: "" Art. 2. -(1) Stock exchanges shall be established by the stock exchange companies on the basis of the law, with the authorization of the supervisory and regulatory authority. Commodity exchanges shall be authorised as self-regulatory bodies by the supervisory and regulatory authority, if they meet the conditions laid down in the Regulation on the authorisation and operation of self-regulatory bodies. (2) The establishment of a stock exchange requires the participation of at least 25 brokerage companies authorized to trade in the stock exchange, according to the law. " 4. In Article 3, the introductory part, as well as letters a), b), c) and d) shall read as follows: "" Art. 3. -For the purposes of this ordinance, the following terms and expressions shall be defined as follows: a) monetary asset refers to the national currency issued by the National Bank of Romania in accordance with the law or to convertible currency; b) financial asset is a security issued by a central or local public authority, such as a treasury certificate, a fixed interest bond, variable or indexed or a portfolio of securities that is the subject of the listing on a the regulated market of securities, but with negotiation on the futures market or with options organized on commodity exchanges, on the basis of a synthetic instrument, such as a stock exchange index or an index calculated at the bank interest rate, as well as an index the exchange calculated on the basis of another stock exchange index; c) brokerage company is the company established on the basis of Law no. 31/1990 on companies, republished, as amended, authorised by the regulatory and supervisory authority, as an intermediary in the stock exchange, as a member of a stock exchange, of an affiliated member of a stock exchange goods or compensating members, having as their object of activity the negotiation of offers and the completion of contracts on the stock exchange on their own account or on behalf of third parties; the brokerage company may be authorized as a market maker, if it meets the capital requirements established by the regulatory and supervisory authority's regulations; and if they are strongly committed to buying/selling when there are excess sales/purchase orders; d) broker is a natural person, attested by the association of the commodity exchange where he operates and authorized by the regulatory and supervisory authority, which has in his sole discretion the negotiation of offers of sale and purchase in the account of a brokerage company, as well as chartering, maritime and river insurance; ' 5. In Article 3, after letter d), the letter d ^ 1 is inserted) with the following contents: "" d ^ 1) trader is a natural person attested by a commodity exchange and authorized by the regulatory and supervisory authority, who has in his sole discretion the negotiation of sale-purchase offers on his account and on his behalf, on the basis of a permit issued by the Exchange; " 6. in Article 3, letters g), i), j), k), l), n), o) and p) shall read as follows: " g) a stock exchange contract is a spot, forward, futures or options transaction, according to the regulations of this ordinance; ........................................................................... i) confidential information is the information on the content of a document or document regarding a commodity exchange, brokerage company, compensation house or consulting company or in connection with the patrimonial commitments of the to them, which, if brought to the attention of the public or a competing company, such as a commodity exchange, brokerage company, compensation house or consulting company, would influence transactions on the market at term and with options, would artificially affect the supply-demand ratio or would cause moral damage or materials of a stock exchange, brokerage companies, compensation houses or consulting companies; j) a member of the stock exchange is a commercial company with the status of shareholder of a commodity exchange, which has obtained the right to make transactions on the market available, futures and options or only on the market available; k) compensating member is the member of the regulated market of commodities, services and derivatives, which also concurrently holds the membership or shareholder in a compensation house agreed by the stock exchange and which, thereby, has the right to register at the clearing house the transactions of brokerage companies; l) the scholarship orders are firm instructions, transmitted in writing or verbally, provided that the recordings on the magnetic tape are admitted as evidence in court, by a client to his brokerage company or by a company to his broker, which record how to negotiate an offer to sell or buy on the market available, futures or options; .......................................................................... n) the futures market refers to a specialized market, organized by a commodity exchange company for the negotiation of offers and the issuance of futures contracts; o) the market with options refers to a market organized by a commodity exchange for the negotiation of offers and the completion of contracts with options; p) the market consulting company is the company authorized by the supervisory and regulatory authority, which provides consulting services on behalf of third parties, on the technique of exchange negotiation, the analysis of the markets available, at term and options, as well as evaluation studies of the stock market. " 7. in Article 3, after letter r), the letter r ^ 1 is inserted) with the following contents: " r ^ 1) the stock exchange company is the stock trading company, established according to the law and regulations of the supervisory and regulatory authority, autonomous in relation to market participants and providing public utility services for brokerage companies and their customers. " 8. The title of Chapter II shall read as follows: "" CHAPTER II Regulatory and supervisory authority ' 9. Article 4 shall read as follows: "" Art. 4. -The regulator, supervision and control of commodity exchanges is the National Securities Commission. " 10. Article 5 shall read as follows: "" Art. 5. -The number of members of the National Securities Commission is amended from 5 to 7, one of which will be appointed as Vice President, responsible for commodity exchanges. " 11. In Article 6, the introductory part and the letters a)-j) and l)-p), shall read as follows: "" Art. 6. -The National Securities Commission shall have the following tasks in the execution of this ordinance: a) to issue rules on the authorization, registration and operation of commodity exchanges, brokerage companies, brokers, consulting companies, compensation houses and accounting expertise companies for commodity exchanges; b) to endorse or cancel, as the case may be, the operating regulations issued by each commodity exchange, after verifying their compliance with the provisions of this ordinance, and to issue recommendations on the content of the scholarship regulations, to ensure their compliance with this ordinance; c) authorise commodity exchanges, technical expertise companies, brokerage, clearing houses, consulting companies and brokers operating within the futures markets, with options or in relation to them, to prepare and maintain a register of authorized persons; d) temporarily suspend or cancel the authorization of a brokerage company, a broker, a stock exchange, compensation houses, consulting companies or accounting expertise, if they bring moral or material damage to the customer. to whose account they operated; e) issue general disciplinary rules for brokerage companies and their brokers on the negotiation of offers, execution of orders, to ensure transparency of transactions, advertising rules and fair competition, as well as rules with the reception and transmission of privileged or confidential information; f) to classify the stock exchange operations, the scholarship orders and the concluding notes that are drawn up by the brokers for each transaction concluded; g) to cancel the transactional regulations, the rules or decisions issued by a commodity exchange or to order the withdrawal or cancellation of a sales order, if they are issued, are executed or were executed in violation of the provisions the presence of orders or of the stock exchange regulations, issued in accordance with its provisions; h) order the cancellation of a futures contract or with options, if it has been perfected on the basis of a privileged, confidential information or a pre-contractual agreement between two clients, through their brokerage companies or between them; i) to impose on the compensation houses to increase the value level of the guarantees constituted by each brokerage company in order to operate on the futures market and with options, if the level of the correlation of the various types of goods or volume futures and options transactions negatively influence the national economy; j) establish the level of tariffs charged for the services they provide; ......................................................................... l) verify the legality of the decision to exclude a brokerage company from the scholarship association and reject it if it is not legal; m) to delegate to its departments one or more of the prerogatives with which it is vested by law, for the supervision of the activity of commodity exchanges and for the research of the facts by which the provisions of this ordinance have been violated and the regulations it has issued; the delegation concerns and the designation of the persons invested, the tasks, the categories of acts it may issue, and the duration of the delegation; n) carry out checks and investigations on commodity exchanges, compensation houses, brokerage companies, consulting companies, accounting expertise companies or any person or entity with regard to compliance with the provisions of the presence of ordinances and regulations issued by the National Securities Commission; o) to conclude agreements with similar institutions in other countries and with the National Bank of Romania, for the purpose of developing the stock market; p) to submit to the Government proposals to amend the legislative framework on commodity exchanges. " 12. Article 6 (1), point k) shall be repealed. 13. Article 6, after letter p), insert letters p ^ 1)-p ^ 3) with the following contents: " p ^ 1) to develop and adopt rules and to issue acts in the application of this ordinance; p ^ 2) adopt the Rules of Procedure for the arbitral chambers of the stock exchanges; p ^ 3) to endorse the establishment of professional associations in the field of commodity exchanges. " 14. Article 6 (2) shall be repealed. 15. in Article 6, after paragraph 1, paragraphs 2 to 5 shall be inserted as follows: " (2) For the performance of its functions the National Securities Commission shall develop regulations, issue individual instructions and acts, by decisions and opinions. (3) The regulations of the National Securities Commission refer to: a) the general principles for the organization and functioning of self-regulatory bodies; b) the organization and functioning of professional associations of commodity exchanges, brokerage companies, brokers, commodity managers and consulting companies; c) information to be communicated to the National Securities Commission; d) the operation of the compensation houses e) the regime of privileged and confidential information. (4) The instructions refer to: a) the conditions of authorization or withdrawal of authorization, as the case may be, for stock exchanges, brokerage companies, consulting companies and compensation houses; b) obligations of record, reporting and advertising. (5) The individual acts issued concern the decisions by which the National Securities Commission: a) authorize the regulations of the commodity exchanges or cancel or suspend certain clauses stipulated in these regulations; b) authorizes, suspends or withdraws permits for stock exchanges, brokerage companies, consulting companies, compensation houses, commodity fund managers, professional associations of brokerage companies or brokers, and the like, where applicable. ' 16 articles 7, 8, 9 and 10 shall be repealed. 17. Article 11 shall read as follows: "" Art. 11. -(1) Persons registered in the scholarship association and who are entitled and the quality of the clearing member have the right to negotiate and to perfect contracts in the markets to be available, futures and options only if their brokerage companies have been authorized in advance by the National Securities Commission. People registered in the scholarship association, but who do not have the status of a clearing member, can negotiate and perfect contracts only through a clearing member. (2) Persons registered in the scholarship association and who do not have the status of a clearing member have the right to negotiate and to perfect contracts on the market to be available only if the scholarship to which they operate was authorized by the National Commission of Values Securities. " 18. Article 12 shall read as follows: "" Art. 12. -(1) The rights of a member of the scholarship, as regulated in art. 11 11, are lost by exclusion. The exclusion is without prejudice to the rights arising from the quality of shareholder of a person in a stock exchange company. (2) The exclusion sanction shall be pronounced motivated by the scholarship association under the conditions and in the situations provided for in this ordinance and may be challenged within 15 days at the National Securities Commission. (3) The exclusion decision remaining final shall be displayed at the premises of the commodity exchange, to which the excluded one has treated business, shall be communicated to the other stock exchanges in the country and shall be published by the National Securities Commission in the Official Gazette of Romania, Part IV. " 19. Article 13 shall read as follows: "" Art. 13. -(1) The Exchange Association may decide that third-party legal entities become affiliated members of the Exchange, if, in advance, they have concluded with a scholarship member a franchise agreement to provide brokerage services, but only with authorization. The National Securities Commission. (2) The affiliated members shall negotiate on the stock exchange under the same conditions as the members of the stock exchange, starting with the date on which they obtained authorization from the National Securities Commission. " 20. In Article 14, paragraphs 1, 2 and 3 (a) shall read as follows: "" Art. 14. -(1) The current management activity of the operating systems of a commodity exchange is provided by a board appointed by the general meeting of stockholders of the stock exchange company, among its officials, for a period of 4 years, in accordance with with the provisions of the law and regulations of the National Securities Commission. (2) The members of the board of the stock exchange company may not be administrators, censors, shareholders or associates on a commodity exchange, compensation house, brokerage company or consulting company. (3) The Board of the Exchange Company has the following tasks a) to develop the operating regulation and to submit it for approval to the board of directors, the association of the stock exchange and the National Securities Commission; " 21. In Article 15, the introductory part, as well as the letters b) and e) shall read as follows: "" Art. 15. -The activity of the board of the scholarship company is coordinated by a president appointed in accordance with the law, which, in addition to the duties provided for in the constitutive act of the scholarship, is ............................................................................ b) to order the organization of supervision of the way in which the brokers comply with the rules of conduct and honest practice regarding the negotiation in the scholarship venue; ........................................................................... e) to make available to the National Securities Commission the log book of the scholarship or any act requested, to verify how the provisions of this ordinance, the scholarship rules or the regulations issued by the Commission are observed National of the Securities pursuant to it. " 22. The title of Section III of Chapter III shall read as follows: " SECTION III Commodity Exchange Association " 23. Article 16 shall read as follows: "" Art. 16. -The commodity exchange association comprises brokerage companies that are a member of that commodity exchange and who conduct market transactions at available, futures or with options, if they have obtained authorization from the National Commission. Securities. " 24. Article 17 shall read as follows: "" Art. 17. -(1) The stock exchange association shall meet at least once a year, after the meeting of the ordinary general meeting of shareholders of the stock exchange company, and shall be legally constituted by three quarters of the total number of its members. Decisions of the association shall be taken by an absolute majority of the votes ((. The vote shall be secret where the circumstances require such a measure or at the request of at least one third of the members present. When the scholarship association proceeds to elect the president or vice president, the vote is always secret. (3) If at a first convocation no three-quarters of the members have met, a new assembly shall be convened within 15 days, which shall be legally constituted by one third of the total number of its members. " 25. In Article 18, the introductory part and letters c), d), e) and g) shall read as follows: "" Art. 18. -The stock exchange association has the following tasks: ......................................................................... c) to debate the scholarship activity report, drawn up by the scholarship board, to submit it to the National Securities Commission; d) to give reasons for the suspension from negotiations of brokers for a period of between one month and 6 months or their exclusion, in the event of serious deviations from the rules of conduct issued by the National Securities Commission and from the commodity exchange regulations; e) to decide the suspension of brokerage companies from negotiations for a period of between one month and 6 months, in case of serious deviations from the norms of conduct issued by the National Securities Commission and from the operating regulation of the scholarship or for the non-payment of the fees due; ........................................................................... g) to pronounce the exclusion of a brokerage company from the association, if it has committed serious deviations from the scholarship regulation and from the norms issued by the National Securities Commission, likely to cause moral or material damage a customer in whose account he operated or for the state of bankruptcy declared by court decision. " 26. in Article 18, paragraph 2 is inserted as follows: " (2) The scholarship association may not include on the agenda and shall not debate and approve any problem related to the competence of the general meeting of shareholders among those provided by Law no. 31/1990 ,, republished. " 27. The title of Section I of Chapter IV shall read as follows: "" SECTION I Brokerage companies " 28. Article 19 shall read as follows: "" Art. 19. -Brokerage companies, members of a commodity exchange, may provide brokerage services and other commodity exchanges, if they obtain prior authorization from the respective exchanges and the National Securities Commission. " 29. In Article 20, the introductory part and letters a), b) and d) shall read as follows: "" Art. 20. -The authorization of a brokerage company by the National Securities Commission is subject to examination: a) legal formation as a company, according to Law no. 31/1990 , republished, as amended; b) the object of activity exclusively, provided for in the company contract and in the statute, in accordance with the legislation in force; ............................................................................ d) existence in an account at the clearing house, at a clearing member or at a bank of a risk fund, to cover possible losses on the futures market or with options. " 30. In Article 21, points a) and c) shall read as follows: " a) the negotiation of tenders and the completion of contracts on the market available, futures or options on behalf of third parties or on their own account; ............................................................................. c) mandate-based management for the establishment of guarantees on futures and options contracts, as well as for the payment of the premium to contracts with options perfected to the account of third parties; " 31. in Article 21, after letter d) the letter e) shall be inserted as follows: "" e) any other related services, subsidiaries, adjacent or complementary to the operations referred to in lett. a)-d), agreed and classified by the National Securities Commission. " 32. Article 22 shall read as follows: "" Art. 22. -(1) Brokerage companies, through their brokers, execute sales or purchase orders and respond, in the event of the execution of a contract to maturity, to the transmission of all information on the delivery of goods, payment of the price and fulfillment obligations assumed through them. Brokerage companies are required to maintain confidentiality in relation to the person on whose behalf they negotiate, unless they are in a state of judicial liquidation. (2) Brokerage companies are required to execute with good credentials, confidentiality and diligence the orders that are transmitted to them by their customers, in the order in which they received them, and to enroll them, along with the contracts they have concluded, in the registers that the Commercial Code or other laws require. (3) In good faith it is understood the obligation of a brokerage company and its broker to defend the interests of the clients it represents; by confidentiality it is understood the obligation of a brokerage company and its broker not to disclose the orders it has received and the operations it is to conclude or which it has concluded; due diligence is understood the obligation of a brokerage company to negotiate through an broker an offer, strictly in accordance with the instructions received Legally by an order. (4) Brokerage companies are obliged to treat distinctly, as the customer's goods, all amounts, securities and other goods received in order to constitute the margin, to guarantee and to carry out transactions or to perfect contracts, as well as the results obtained from such operations on behalf of the respective client. Such amounts, securities or other assets of the client will be recorded in separate records and will not be confused with the respective brokerage company funds or used for the benefit of another customer to constitute the margin or to guarantee transactions either contracts or to obtain or grant credits. " 33. In Article 23, the introductory part and letters a), b) and f) shall read as follows: "" Art. 23. -The brokerage company is prohibited: a) to associate with another brokerage company for the joint execution of all orders received or part thereof, without the consent of his client; b) to liquidate by clearing the futures contracts or with options without the prior consent of the customer or, unless the customer has not paid the financial obligations according to the norms established by the stock exchange or for non-compliance with imposed by the compensation house; ........................................................................... f) to transmit a stock exchange order on the futures market or with options without the constitution of the guarantees required by the compensation house or without payment of the premium. " 34. Article 24 shall read as follows: "" Art. 24. -Brokerage companies have the right to request and receive from their customers any measure of protection against their own financial risk, resulting from the guarantee of contracts completed through them. " 35. In Article 25, paragraph 1 shall read as follows: "" Art. 25. -(1) Brokers are individuals who negotiate offers on sale and/or purchase. They are separately authorised for the market for available, futures and options, according to the types of transactions that the commodity exchange facilitates. " 36. Article 26 shall read as follows: "" Art. 26. --(1) Brokers shall be authorized by the National Securities Commission on the basis of the certificate of attestation obtained from the association of goods exchange to which they will carry out their activity. (2) In order to obtain the certificate of attestation the applicant must have the minimum age of 21 years and the civil rights exercise and meet the professional standards established by the association of goods exchange where he will carry out activity. (3) I cannot obtain the certificate of attestation to persons with criminal records, persons previously dismissed for disciplinary violations in their capacity as broker, according to the norms issued by the National Securities Commission. " 37. In Article 27, letter a) shall read as follows: "a) to be shareholders, associates or administrators or censors on a commodity exchange, the clearing house, a competing brokerage company or a consulting company or accounting expertise, authorized by the National Securities Commission;" 38. In Article 28, paragraph 2 shall read as follows: " (2) In good faith it is understood the obligation for each broker to defend the interests of the brokerage company they represent; by discretion it is understood the obligation not to disclose the order with which it was charged, the operations it is to conclude or which it has concluded, as well as to preserve the confidentiality of the data entered in the report card with end notes and in the journal log; due diligence is understood the obligation to negotiate in accordance with the instructions received lawfully by order. " 39. The title of Chapter V shall read as follows: "" CHAPTER V Organizing markets for available, futures and options " 40. In Article 29, paragraphs 1 to 5 shall read as follows: "" Art. 29. --(1) On the basis of the authorization granted by the National Securities Exchange Commission, as self-regulatory bodies, may establish specialized markets to facilitate transactions in available, futures and options. ((2) The organization of futures and options markets is allowed, each in part, only with the prior authorization of the National Securities Commission. (3) An available market may be organized without prior authorization of the National Securities Commission only if the scholarship company that organized it has been authorized to organize the commodity exchange, in accordance with the provisions of this ordinance. (4) Exchange contracts completed by an unauthorized legal person or in a scholarship that has not received authorization for the organization of the market in available, futures or with options are void of law. (5) On the stock exchanges, within each organized market, the scholarship meetings shall be conducted distinctly, according to the rules of the auction with outcry or in computerized system. " 41. In Article 30, paragraphs 1 and 2 shall read as follows: "" Art. 30. -(1) The offer of sale/purchase represents the manifestation of the firm and irrevocable will of a customer to perfect a contract, in accordance with the operating regulation of the stock exchange and with the provisions of this ordinance. (2) In order to be valid, the offer must be firm, be expressly formulated, according to the advertising rules imposed by the scholarship regulation, and be complete. " 42. In Article 31 (1), letter b) shall read as follows: "" b) futures or options, in futures and options markets. '; 43. In Article 31, paragraphs 3, 4, 6 and 7 shall read as follows: " (3) Forward is a contract of sale-purchase, with negotiable clauses and with suspensive term, which is executed at the maturity agreed by the parties. The term of a forward contract can be set up to 18 months, but not less than 10 days. (4) The futures shall mean a contract of sale-purchase with a standstill period, but with uniform clauses, which confer on each party: a) the possibility to compensate him at any time until the deadline is fulfilled; b) the possibility to execute the contractual obligations at the agreed maturity, on the basis of a notification; once with the transmission of the notification the contractual obligations are executed within a period of time that cannot be more than 10 days. .......................................................................... (6) The futures contract shall be highlighted in the account at the clearing house, in the books of the stock exchange and of the brokerage company in whose account it was negotiated and in their electronic system, as well as in the card with closing notes of the broker. (7) The contract with options means a convention that confers to the buyer of the contract with the right options, but not the obligation, to sell or to buy a quantity determined from a commodity, a monetary, financial asset or a contract futures, at an agreed price, referred to as the exercise price, within a defined period or on its expiry, in exchange for payment of a premium to the seller The buyer in a contract with options may exercise the right to the maturity of the contract, abandon the option until the maturity of the contract or compensate for his contract. " 44. In Article 32, paragraphs 1 and 2 shall read as follows: "" Art. 32. -(1) Purchasing and sales through futures contracts or contracts with options shall be performed only in commodity exchanges, in distinct sections, organized by product class, transaction nature and contractual maturity, in the hours established for scholarship meetings, under penalty of their nullity. (2) The spot and forward contracts, as well as chartering and maritime and river insurance shall be negotiated by the brokerage companies in the stock of the exchanges or outside them, with the obligation of each brokerage company to enroll them in the log-book of the scholarship within one day, under penalty of their nullity. " 45. Article 33 shall read as follows: "" Art. 33. -(1) Exchange operations are commercial techniques regarding the negotiation of offers, the completion and connection of contracts with options, futures, forward and spot, in order to hedge the financial risks caused by price volatility or making a profit. ((2) The mechanisms specific to the performance of the stock exchange operations are laid down in the regulation of operation of each commodity exchange, pursuant to their self-regulatory power conferred by the National Securities Commission. " 46. In Article 34, paragraphs 1, 2, introductory and b)-f) of paragraph 3 shall read as follows: "" Art. 34. -(1) Transactions on the futures market or with options shall be made by a clearing house, the activity of which shall be established by its own rules of operation, with the opinion of the National Securities Commission. (. The clearing house may be established as: a) trading company on shares, by members of the stock exchange, banks and insurance companies, in order to ensure the record of futures and options, settlement of payments and compensation of futures and options contracts; b) department within a commodity exchange. (3) For the operation of futures markets or with options the compensation house shall perform the following tasks .......................................................................... b) records and guarantees futures and options; c) assume the obligation to become a party in all futures contracts and with options negotiated in the scholarship venue, through novation; d) ensure the execution of uncompensated futures contracts until maturity, as well as the execution of contracts with options exercised according to its operating rules; e) request funds for the issuance of futures contracts and options contracts, for the maintenance of these contracts on the futures market or with options until clearing or maturity, as the case may be; f) reassess at the market the position of each futures contract or with uncompensated options. " 47. Article 35 shall read as follows: "" Art. 35. -(1) The deposits constituted for the guarantee of futures and options contracts, on behalf of a clearing member, but in the account of a third party, are evidenced separately by the clearing member's account, at an appropriate level, according to the request the compensation house, in order to ensure the solvency and protection of the clearing member and of the customer it represents. (2) Stock exchanges and clearing houses are obliged to adopt and impose strict rules on the confidentiality of open accounts on behalf of a clearing member, as well as in relation to the structure of these accounts. (3) The identity and the structure of the accounts will be known only by the National Securities Commission, by an express request, for the cases provided in art. 11 11, art. 18 lit. f) and h), art. 23 and to art. 27 lit. b)-f), as well as by the Arbitral Commission of the Exchange, by a court, in the event of the resolution of a dispute, or by the syndic judge, in the case of bankruptcy. " 48. The title of Chapter VII shall read as follows: "" CHAPTER VII Liabilities and penalties ' 49. In Article 36, paragraph 1 and points a)-c), e), f), i) and k) shall read as follows: "" Art. 36. -(1) The National Securities Commission shall be empowered to apply sanctions in the event of violation of the provisions of this ordinance or of the regulations it has issued pursuant to it. (2) It constitutes the following facts, if, according to the conditions in which they were committed, they are not provided by the criminal law as crimes: a) receipt of an order or negotiation of tenders without authorization of operation issued by the National Securities Commission; b) the execution of a discretionary order, without the consent of the customer; c) the lack of a separate record in the books of a brokerage company between futures contracts and with options completed on their own account and contracts concluded on behalf of third parties; .......................................................................... e) the receipt of an order or the negotiation of an offer in the account of a person in recovery or in bankruptcy; f) non-execution of an order or contract by a brokerage company, which produces moral or material damage to a client, member of the scholarship association or of the scholarship company; .......................................................................... i) the transmission of an order by a brokerage company to another brokerage company without the consent of the customer; ........................................................................... k) non-registration of futures and options in the log book of the stock exchange, in the bookkeeping of the compensation house, to the brokerage companies or their customers. " 50. Article 37 shall read as follows: "" Art. 37. -(1) The commission with intent or at fault of one of the contraventions provided in art. 36 shall be sanctioned by the National Securities Commission with: a) fine between 10-50 million lei, the amount of which will be indexed periodically according to the inflation rate, by norms established by the National Securities Commission; b) temporary suspension of the operating authorization for a period between one month and 6 months or the cancellation of the authorization, in accordance with the provisions of art. 6 lit. d). (2) The commission of the contraventions shall be found by the officials empowered for this purpose by the National Securities Commission. (3) The sanctioning decisions shall apply to the application of the persons referred to in par. (2) by the National Securities Commission, under the signature of the President, on the basis of the acts of finding and evidence administered, and shall produce their effects from the date of their communication. (4) Decisions for the application of administrative sanctions, issued by the National Commission of Securities, may be appealed, starting from the date of their communication, at the competent court constituted in the first instance, according to art. 2 lit. c) of the Code of Civil Procedure, as well as art. 1 and 6 of the Law on Administrative Litigation no. 29/1990 . ((5) Contraventions provided for in art. 36 the provisions of Law no. 32/1968 establishing and sanctioning contraventions. " 51. In Article 38, paragraph 1 shall read as follows: "" Art. 38. --(1) Litigies arising in connection with the execution of a stock exchange order or a brokerage contract, as well as in connection with the execution of a contract registered on the stock exchange shall be settled by the arbitral Chamber of the Exchange of Goods. " 52. The title of Chapter IX shall read as follows: "" CHAPTER IX Special provisions on the judicial liquidation of brokerage companies " 53. Article 39 shall read as follows: "" Art. 39. -(1) Any creditor whose claim has a commercial cause in a stock exchange contract perfected by a brokerage company may submit a request to the court for the judicial liquidation of the debtor brokerage company's assets, with the proof of termination. payments. (2) The judicial liquidation of the brokerage companies is subject to the provisions of the 6th and 7th sections of the Head. III of Law no. 64/1995 on the procedure of judicial reorganization and bankruptcy, republished. " 54. Article 40 shall read as follows: "" Art. 40. -(1) In the case of admission of the application for the commencement of judicial liquidation all accounts opened in the name of the debtor brokerage company at a bank or the clearing house shall be communicated to the syndic judge, at its request, and shall be treated separate from the accounts by which the debating brokerage company carried out transactions on behalf of its clients. ((2) The balance resulting from the books and accounts opened in the name of a debtor brokerage company shall not be compensated with the balance resulting from the accounts by which the debtor brokerage company opened them to its clients. " 55. In Article 41, paragraphs 1 to 4 shall read as follows: "" Art. 41. --(1) The continuation of the transactions on the stock exchange, in whole or in part, after the start of the liquidation procedure of a brokerage company can be done only with the consent of the creditor or of the majority of creditors, within the limits and under the conditions establish them. Otherwise all futures contracts or with options prepared on stock exchange and non-cadences at the start date of the liquidation procedure shall be compensated according to the stock exchange rules. ((2) The conduct of transactions on the stock exchange is made by the debtor brokerage company, until the closing of the liquidation procedure, or by another brokerage company, which has taken over the stock exchange transactions of the debtor brokerage company. (3) The application for the continuation of the transactions on the stock exchange until the closing of the liquidation procedure is introduced by creditors to the court in whose territorial area the debtor has its main office. Once referred, the Tribunal is obliged to examine the application and the accompanying documents. They must include data on accounts opened on behalf of the debating brokerage company for operations in the account of its creditors, the number and type of non-listed contracts, the contracted product class, the quality and quantity its or the type of monetary or financial asset and its value. (4) If the request for the continuation of the transaction is admitted, the court orders its continuation and designates the brokerage company that will compensate or execute on the stock exchange the futures or options contracts, non-cadences at the date of introduction demand. " 56. Article 42 shall read as follows: "" Art. 42. -The perfection of a contract on the stock exchange in the account of a client of the debtor brokerage company is made with the approval of the syndic judge, only if the offer has been negotiated, at the latest within 5 days of receipt of an order of the scholarship, and it was registered on the stock exchange until the request of the creditors to start the liquidation procedure or subsequently, but not before the end of the 5-day period for the execution of the scholarship order. " 57. Article 44 shall read as follows: "" Art. 44. -In all cases where the exchange rate at a product class, monetary or financial asset exceeds the value of the collateral deposited in the account of an uncompensated futures contract, which the debtor brokerage has concluded on a client's account, then the syndic judge, through the liquidator, with the agreement of the contract holder, compensates for that contract, pays all the debits to the compensation house or transfers the contract to another brokerage company that is not subject to judicial liquidation. " 58. Article 45 shall read as follows: "" Art. 45. -(1) Any participation in the capital of a stock exchange company that confers to the holder or the holders, persons involved or affiliated, more than 5% of the total voting rights in the general meeting of the shareholders and which may be prohibited thus ensure a significant position. (. It shall be prohibited to any person as, directly or indirectly: a) to perform during the same day, for any contract on the futures market or on the market with options, equal transactions or exceeding the limit values established by the National Securities Commission; b) hold for any goods equal positions or exceeding the limits set by the National Securities Commission. (3) I am an exception to the provisions of para. (2) the cases in which the person prepares and submits to the National Securities Commission reports on such transactions or positions, according to the provisions contained in the regulations and provisions of the National Commission of Values Securities and also keeps records of all these transactions and positions, as well as available transactions, stocks and sales and purchase contracts, as provided for in the National Valor Commission regulations. Securities. (. It shall be prohibited to any person as, for any goods: a) manipulate or attempt to manipulate the prices of futures contracts or with options or spot and forward contracts recorded on the commodity exchange; b) to buy a commodity or a stock exchange contract in such a way as to obtain control of its price or to try this; c) to provide false, confusing or unprecision reporting or to be the source of such reports of crops, market information or conditions that influence or may influence the prices of such goods. " 59. Article 46 shall read as follows: "" Art. 46. -(1) Stock exchanges are required to keep log-books for at least 5 years. Copies of the log-books will be submitted at the end of each financial year to the National Securities Commission. Log-books will be able to be checked at any time, at the request of the arbitral Chamber of the Exchange, a court or the National Securities Commission. ((2) Any person or entity authorized or to be authorized as a brokerage, broker or consulting company: a) shall keep the documents and records of its business as a brokerage, broker and consulting company and its transactions and positions, as well as the transactions and positions of its clients, as provided for in the regulations National Securities Commission; b) will prepare reports on the work carried out and on its transactions and positions, as well as on the transactions and positions of its clients, as provided for in the regulations of the National Securities Commission; c) keep such records and records of activities, transactions and positions for at least 5 years; d) shall make these registers and records available to persons empowered by the National Securities Commission to carry out controls. " 60. Article 46 shall be inserted after Article 46 (1) with the following contents: "" Art. 46 46 ^ 1. -By derogation from the provisions of art. 1 1 para. ((2) lit. a), commodity exchanges may facilitate transactions with any type of industrial product for a period of no more than 5 years. Also, commodity exchanges may hold auctions for the sale of assets of companies to which the state is a shareholder, for purchases and public sales of goods and services, as well as for any other products and services. " 61. Article 47 shall read as follows: "" Art. 47. -The commodity exchanges may carry out transactions with monetary assets within the futures markets or with options, based on the special authorization granted by the National Bank of Romania. " 62. After Article 47, Articles 47 ^ 1-47 ^ 4 are inserted with the following contents: "" Art. 47 47 ^ 1. -Companies, banks and investment funds-legal entities-can compensate for the gains or losses resulting from transactions in futures markets and with options with losses or gains made from current activity of these, if the transactions carried out have as an active object referred to in 47. Such compensations will be highlighted accounting according to the methodological norms issued by the Ministry of Finance. Article 47 ^ 2. -Stock exchanges and brokerage companies established before the entry into force of this ordinance will be reorganized within 24 months of the entry into force of the law approving this ordinance, will operate with authorization. The National Securities Commission and will be included in the list of regulated markets, published in the Official Gazette of Romania, Part IV. Article 47 ^ 3. -The amounts from fines imposed by the National Securities Commission shall be constituted in the power source of the Investor Compensation Fund, regulated by the National Securities Commission. Article 47 ^ 4. -Within 60 days from the date of entry into force of the law approving this ordinance the Romanian Parliament will complete the list of members with 2 new members of the National Securities Commission, including the vice president responsible for commodity exchanges. " 63. Article 48 shall be repealed. 64. Article 49 shall read as follows: "" Art. 49. -In application of the provisions of 3 lit. l), of art. 31 31 para. ((1) lit. a) and para. ((2) and (3), as well as of art. 32 32 para. (2) and (3), which concern the market at the available, the National Securities Commission will issue special regulations within 6 months from the date of publication of the law approving this ordinance in the Official Gazette of Romania, Part I. + Article 2 Government Ordinance no. 69/1997 on commodity exchanges, published in the Official Gazette of Romania, Part I, no. 227 of August 30, 1997, with the amendments and completions brought by this law, will be republished, giving the articles and paragraphs the corresponding numbering. This law was adopted by the Senate at the meeting of June 12, 2000, in compliance with the provisions of art 74 74 para. (2) of the Romanian Constitution. SENATE PRESIDENT MIRCEA IONESCU-QUINTUS This law was adopted by the Chamber of Deputies at its meeting on June 13, 2000, in compliance with the provisions of 74 74 para. (2) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT, MIRON TUDOR MITREA -------------