ADVOKS GLOBAL · KENYA
The Capital Markets (Commodity Markets) Regulations
9. Obligations of a commodity exchange
Edition: 2022-12-31 · In force
9. Obligations of a commodity exchange
(1)A commodity exchange shall have a duty to ensure that—(a)an orderly, fair and transparent market in spot commodity contracts traded at the exchange is maintained at all times;(b)adequate market information is readily available to all participants, investors, media and other relevant stakeholders in a commodity market;(c)risks associated with the operations of the market and the commodity exchange are managed prudently; and(d)the exchange complies with these Regulations.(2)A commodity exchange shall operate its facilities in accordance with its rules as approved by the Authority.(3)A commodity exchange shall—(a)regulate the operations, standards of practice and business conduct of its members, their employees, representatives and associates, in accordance with the exchange's rules;(b)keep such records as are necessary for the proper recording of each transaction in the commodity exchange;(c)preserve confidentiality of all information in its possession concerning its members and their clients, except such information as may be disclosed by the commodity exchange when required to do so, in writing, by its clearing house, the Authority, an order of a Court of law in Kenya and the provisions of any Law of Kenya;(d)publish its rules, fees and charges;(e)identify and manage conflicts of interest;(f)ensure that only licenced warehouses and warehouse operators are used in connection with trading in a commodity market; and(g)provide a robust mechanism for clearing and settlement.(4)A commodity exchange shall immediately notify the Authority where it becomes aware that—(a)a member is unable to comply with any rule of the exchange or any rules relating to financial resources; or(b)a financial irregularity or other matter which, in the opinion of the exchange, may indicate that the financial standing or integrity of a member is in question, or that a member may not be able to meet its legal obligations.