LEGAL DOCUMENTS

APPROVED

by the Regulation of the Board of Directors

of the OJSC Belarusian Universal Commodity Exchange

of 08.01.2007 No 1

PROVISION

ON DEPOSITING AN ADVANCE BY AN EXCHANGE TRADE PARTICIPANT AS A METHOD OF ENSURING OF OBLIGATIONS FULFILLMENT OF THE EXCHANGE TRADE PARTICIPANTS ON EXCHANGE TRANSACTIONS AND CONTRACTS FOR EXCHANGE SERVICES

1. General provisions

1.1. on Depositing an Advance by an Exchange Trade Participant as a Method of Ensuring of Obligations Fulfillment of Exchange Trade Participants on Exchange Transactions and Contracts for Exchange Services (hereinafter referred to as the Provision) has been developed in compliance with the  Rules of Exchange Trade in the OJSC Belarusian Universal Commodity Exchange (hereinafter referred to as the Rules) with the purpose to create an effective mechanism of ensuring of obligations fulfillment of exchange trade participants on exchange transactions (contracts) and contracts for exchange services at the OJSC Belarusian Universal Commodity Exchange (hereinafter referred to as the Exchange).

1.2. The following terms and their definitions are used in this Provision:

the advance – the amount of funds provided by an exchange trade participant to the Exchange as ensuring of obligations fulfillment of exchange trade participants on exchange transactions (agreements) and contracts for exchange services;

the free advance – the amount of advance of an exchange trade participant deposited to the subaccount of the Exchange, free from obligations on fulfillment of exchange transactions (agreements) and contracts for exchange services, which they can manage within the limits provided in this Provision;

blocked advance - the amount of advance of  an exchange trade participant ensuring of obligations fulfillment of exchange trade participants on exchange transactions (contracts) and contracts for exchange services, which they cannot manage until the complete fulfillment of the obligations.

1.3. The advance ensures of the following obligations fulfillment of exchange trade participants:

signing of registration card of the exchange transaction on the day of the trading session;

drawing up and submission the exchange contract for registration to the Exchange not later that within 10 working days after the day of conclusion the exchange transaction;

signing and submission of the transaction register of an exchange trade participant within the terms and according to the procedure that are established by the Exchange;

payment of the exchange fee on the exchange transaction fulfilled within the terms and according to the procedure that are established with the contract for exchange service;

obligations provided for with an exchange transaction (agreement) and (or) securing of the said client’s obligations for the benefit of whom the exchange transaction has been concluded as well as other obligations in compliance with the agreement on the advance, by the exchange broker.

1.4. The advance shall be transferred by an exchange trade participant to the Exchange subaccount on the basis of the agreement on the advance, which is a supplement to the contract for exchange services.

1.5. The rates of the advance charged from exchange trade participants shall be established by the Exchange and brought to the notice of exchange trade participants in compliance with the procedure that is determined with this Provision.

The amount of the advance charged by the Exchange from exchange trade participants is differentiated and depends on the group of the exchange commodities that are announced for purchase (sale) and cannot be less than the minimal advance amount.

The amount of the advance shall be calculated with multiplying the advance rate by the amount of exchange commodities that are announced for purchase (sale) in compliance with this Provision or other method in compliance with other resolutions of the Exchange.

2. Depositing the advance by exchange trade participants

2.1. In order to participate in the exchange auctions, the access to which is implemented by the Exchange on condition of advance depositing, such exchange trade participant shall provide the advance to the Exchange in compliance with the procedure that are determined with this Provision.

2.2. The Exchange notifies exchange trade participants on the necessity to deposit the advance by posting the relevant information at the official website of Exchange or in any other way available.

2.3. The advance of the exchange trade participant shall be deposited to the Exchange subaccount not later than within two (2) working days preceding to the day of trading session.

The date of depositing the advance by the exchange trade participant shall be the date of its depositing to the Exchange subaccount.

The currency of the advance of the exchange trade participant, who is a resident of the Republic of Belarus, shall be Belarusian rubles.

The currency of the advance of the exchange trade participant, who is not a resident of the Republic of Belarus, shall be the currency that is indicated by the exchange trade participant in the request for purchase (sale) of the exchange commodities.

2.4. In order to transfer the advance by the exchange trade participant, a payment order shall be drawn up according to the form according to Annex 1. The date of the trading session, for participation in which the advance is provided, shall be indicated in the “Purpose of Payment” field. During the transferring of the advance by an exchange broker, the name of the client for the benefit of whom the exchange transactions are planned to be implemented shall be additionally indicated in the “Purpose of Payment” field.

3. Control on fulfillment of the obligations secured with the advance by the exchange trade participant. Procedure and conditions of deduction the advance by the exchange

3.1. An exchange trade participant has the right to conclude exchange transactions with exchange commodities within the limits of the free advance provided.

The exchange transaction that is concluded with the exceeding of the limits of the free advance provided, shall not be registered by the Exchange.

3.2. During an exchange transaction making by an exchange trade participant, the appropriate advance amount is considered to be blocked at the Exchange subaccount until the moment of complete obligations fulfillment of the secured with the advance by the exchange trade participant.

3.3. The Exchange supervises the timeliness and completeness of the obligations fulfillment listed in subsection 1.3 of this Provision in compliance with the procedure that is established by the Rules.

3.4. Non-fulfillment of the obligations that are listed in subsection 1.3 of this Provision by an exchange trade participant is the violation of the Rules and shall be registered by the authorized employees of the appropriate organization department of the Exchange according to the procedure and in the form established with the Provision on the procedure and conditions of sanctions of OJSC Belarusian Universal Commodity Exchange.

3.5. In case of non-fulfillment of at least one of the obligations secured with the advance by an exchange trade participant, the Exchange shall be entitled to withhold the advance of the exchange trade participant.

3.6. The decision on deduction of the advance of an exchange trade participant (Annex 2) is taken by the Chairman of the Board of the Exchange or his deputy and is drawn up in two (2) copies.

3.7. The Exchange shall send the copy of the decision on deduction of the advance within three (3) working days after taking the decision on deduction of the advance by registered mail with notification of receipt or personally to the authorized representative with taking his signature.

4. Procedure of usage of the advance

4.1. After the Exchange receives the documentary proof of fulfillment of the obligations that are listed in subsection 1.3 of this Provision by the exchange trade participant or their client, the corresponding advance is considered to be unblocked (free).

The advance can be unblocked by the Exchange before the fulfillment of the obligations that are listed in subsection 1.3 on condition of providing of another type of security of fulfillment of the said obligations, corresponding with the requirements of the Rules.

4.2. In case if the amount of the blocked advance is equal or exceeds the amount of non-fulfillment cash obligations of an exchange trade participant on the exchange transactions (agreements), the fulfillment of which is secured with such an advance, the Exchange can transfer the part of the advance necessary to fulfill the said obligations according to the procedure established with subsection 4.6 of the Provision in compliance with the banking details of the counteragent of the exchange trade participant on the exchange transaction.

4.3. The free advance of the exchange trade participant can be used as follows:

returned to the exchange trade participant;

for payments of the exchange trade participant on exchange transactions (agreements) concluded;

registered during the admission of the exchange trade participant to exchange auctions on condition of compliance of the advance currency to the currency in the requests of the exchange trade participant on purchase (sale) of exchange commodities.

4.4. The return of the advance to the exchange trade participant shall be carried out by the Exchange according to the written request of the exchange trade participant (Annex 3) within three (3) banking days after the receipt of such a request.

From the moment of receipt of the written request of the exchange trade participant for returning of the free advance. Such advance cannot be regarded as the ground to admit the exchange trade participant to exchange auctions except the cases of designation from such requests before the moment of their fulfillment.

4.5. The free advance that is uncalled by the exchange trade participant shall be kept at the Exchange subaccount and taken into account by the Exchange when admitting the exchange trade participant to the next trade session according to the procedure established with Section 2 of this Provision.

4.6. The transfer of the free advance of the exchange trade participant to their counteragent’s account shall be implemented by the Exchange on the basis of a payment order (Annexes 4,5) within three (3) banking days after its receipt.