ADVOKS GLOBAL · KENYA
The Capital Markets (Commodity Markets) Regulations
47. Composition of the Fund
Edition: 2022-12-31 · In force
47. Composition of the Fund
(1)The Settlement Guarantee Fund shall consist of—(a)contributions from a commodity exchange and its clearing house;(b)contributions from settlement banks of a commodity exchange as may be determined by the board of a commodity exchange, with the approval of the Authority, from time to time;(c)such sums of money as accrued from interest and profits from investing the assets of the settlement guarantee fund;(d)such money recovered by or on behalf of a commodity exchange from entities whose failure to meet their obligations to investors results in payments from the settlement guarantee fund; and(e)such sums of money as are received for purposes of the settlement guarantee fund from any other source approved by the commodity exchange.(2)Money accumulated in the settlement guarantee fund may be invested by the commodities exchange in such manner as set out in the rules of the Settlement Guarantee Fund.(3)A commodity exchange shall recommend the amount of additional contributions or deposit to be made by each of its members.(4)A clearing house shall, in respect of settlement of transactions, guarantee financial settlement of such transactions to the extent it has acted as a legal counter party.