ADVOKS GLOBAL · KENYA
The Capital Markets (Commodity Markets) Regulations
46. Establishment of the Fund
Edition: 2022-12-31 · In force
46. Establishment of the Fund
(1)For the purposes of section 12(1(i) and (j) of the Act, the commodity exchange shall establish a Fund to be known as the Settlement Guarantee Fund for the purpose of providing guarantee to a member of a commodity exchange who fails to meet their clearing and settlement obligations to a commodity exchange arising out of transactions on a commodity exchange.(2)The settlement guarantee fund shall be maintained by the commodities exchange.(3)Subject to the approval of the Authority, a commodity exchange shall prepare rules, procedures, terms and conditions governing the settlement guarantee fund, which may specify the—(a)amount of deposit or contribution to be made by each member of the commodity exchange to the settlement guarantee fund;(b)terms, manner and mode of deposit or contribution;(c)conditions of repayment of deposit or withdrawal of contributions from the settlement guarantee fund;(d)charges for drawing from the settlement guarantee fund;(e)penalties applicable; and