AmendmentTrade

Ethiopia Commodity Exchange Internal Rules Amendment (Directive No.775/2021)

Ethiopia Commodity Exchange Authority775/2021

Summary

This document amends the Revised Internal Rules of the Ethiopia Commodity Exchange (No. 12/2020, though referenced as 559/2021 in one instance) by adding new sub-articles and modifying existing ones. These amendments cover various aspects including membership category changes, trading permissions for Non-Member Direct Traders, rules for Trade Representatives, procedures for document submission and verification, warehouse receipt auctions, pre-trade information dissemination, daily price limits, trade transaction reporting, contract amendment proposals, and disciplinary actions for trade representatives.

Who's affected

Members and Non-Member Direct Traders of the Ethiopia Commodity Exchange, and Trade Representatives operating within the exchange.

Action required

Affected parties should review the specific amendments to understand how they impact their operations and ensure compliance with the updated internal rules.

Key points

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  • Amendments to the Ethiopia Commodity Exchange Internal Rules (No. 775/2021).
  • Clarification on membership and Non-Member Direct Trader category changes and trading.
  • Rules for Trade Representatives' employment termination and service transfer.
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    • Member responsibility for document genuineness and information accuracy.
    • Procedures for contract amendment proposals and appeals.
    • Disciplinary actions for Trade Representatives, including suspension.

Requirements

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  • Switching membership categories is permissible under specific conditions.
  • Individuals/organizations with shares as Member or Non-Member Direct Trader may trade in a special window as Non-Member Direct Trader if listed by the Ministry.
  • Members must not conduct trades outside permitted categories, types, or trading centers.
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    • Failure to properly register, maintain, or execute client orders is a violation.
    • Transfers of membership seats are subject to specific conditions and service fees.
    • Trade Representatives have rights to terminate employment and switch, but may face waiting periods unless exceptions apply.
    • Members are responsible for checking the genuineness of documents submitted and ensuring correct information registration.
    • Non-Member Direct Traders must adhere to trading only permitted commodities or follow procedures to trade others.
    • Daily price limits may be set by the Ministry or pertinent institution, with the Exchange able to conduct trading based on these.
    • All executed trades must be submitted for clearing and settlement on the day of trade.
    • Bonded yards must carry out specified tasks in addition to those in Article 8.12.5.
    • Members may act on behalf of clients for document submission, ensuring genuineness and correct registration.
    • Trade representatives committing multiple disciplinary offenses may be suspended.

Rights and permissions

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  • Members may be allowed to trade in a special trading window as Non-Member Direct Trader under certain conditions.
  • Any person may be permitted to trade only one commodity or specified commodities as a Non-Member Direct Trader.
  • A Trade Representative has the right to terminate employment and provide services to another Member or Non-Member Direct Trader, subject to certain conditions.
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    • Aggrieved persons may appeal decisions of the Exchange to the Ethiopia Commodity Exchange Authority.
    • Members have the right to act on behalf of clients for document submission.
    • The Exchange may conduct trading based on daily price limits set by the Ministry or other pertinent institution in exceptional circumstances.

Restrictions

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  • Cannot change from a Special membership category to an Ordinary Membership or vice versa.
  • Cannot change from a Non-Member Direct Trader category to a Membership category.
  • Trade Representatives must wait at least one year to serve another Member or Non-Member Direct Trader if they haven't served the previous one for at least one year, with exceptions.
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    • Non-Member Direct Traders must adhere to trading only permitted commodities unless they terminate undertakings and fulfill admission requirements.
    • Trading of contracts is subject to daily price limits, with exceptions possible.
    • Trade Representative committing three or more disciplinary offenses within six months may be suspended.

Penalties

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  • Trade representatives committing three or more disciplinary offenses within six consecutive months may be suspended from the Exchange's Trading Platform for up to one year.

Objectives

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  • To clarify and update rules regarding membership and trading categories.
  • To define procedures and conditions for Non-Member Direct Traders.
  • To regulate the conduct and responsibilities of Trade Representatives.
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    • To enhance transparency and efficiency in trading operations.
    • To establish clear processes for contract amendments and dispute resolution.
    • To outline disciplinary measures for violations.

Organizations

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  • Ethiopia Commodity Exchange (ECX)
  • Ethiopia Commodity Exchange Authority
  • Ministry or other pertinent institutions

Legal references

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  • Ethiopia Commodity Exchange Proclamation No.550/2007
  • Ethiopia Commodity Exchange Authority Proclamation No.551/2007
  • Revised Internal Rules of the Ethiopia Commodity Exchange No.12/2020
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    • Ethiopia Commodity Exchange Internal Rules Amendment No.775/2021
Original sourcehttps://justice.gov.et/en/directives/ethiopia-commodity-exchange-internal-rules-amendment-directive-no-775-2021/
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