The Capital Markets (Commodity Markets) Regulations
2. Interpretation
2. Interpretation
In these Regulations, unless the context otherwise requires—"Act" means the Capital Markets Act (Cap. 485A);"Authority" means the Capital Markets Authority established under section 5 of the Act;"board" means the board of directors of a commodity exchange or a commodity broker;"bucketing" means directly or indirectly taking the opposite side of a client's order into a commodity broker's own account or into an account in which a commodity broker has an interest, without open and competitive execution of the order on the trading platform of a commodity exchange;"clearing house" means an entity, approved by the Authority, recognized as a clearing institution on behalf of a commodity exchange, providing the services of clearing and settlement of transactions and guaranteeing settlement on behalf of the commodity exchange;"client" means a person on whose account a commodity broker carries on trading in any spot commodity contract, but does not include directors, key personnel, representatives and related companies of the commodity broker;"commodity" has the meaning assigned to it under section 2 of the Act;"commodity broker" means a company cleared by the exchange and licenced by the Authority to carry on the business of purchase or sale of commodities contracts as an agent for investors or on its own account;"commodity exchange" means an exchange licenced by the Authority to undertake spot commodity trading, and includes any clearing or settlement or transfer services connected with the transaction;"commodity market" has the meaning assigned to it under section 2 of the Act;"Fund" means the Investor Compensation Fund established under section 18 of the Act;"key personnel" has the meaning assigned to it under section 2 of the Act;"market participant" includes commodity brokers, clearing house of a commodity exchange or a client of a commodity broker;"member" means any person, with the approval of the Authority, has been admitted to membership of a commodity exchange and includes a commodity broker and settlement bank of a commodity exchange;"settlement bank" means a bank as defined under section 2 of the Banking Act (Cap. 488), approved by the Authority to facilitate the maintenance of a segregated account and settlement of transactions executed on a commodity exchange;"settlement price" means the daily settlement price at the close of trading;"spot commodity contract" means delivery verses payment contract traded on a commodity exchange for settlement within five working days from the date of the transaction at the exchange;"trading system" includes any system or platform provided by a commodity exchange, which makes available to the members of the commodity exchange, and disseminates information regarding trades effected, volumes and such other notifications as may be placed thereon by a commodity exchange;"warehouse receipt" has the meaning assigned to it under the Warehouse Receipt System Act (Cap. 350);"warehouse receipt system" has the meaning assigned to it under the Warehouse Receipt System (Cap. 350); and"warehouse operator" has the meaning assigned to it under the Warehouse Receipt System (Cap. 350).Source: Kenya Law