Article 1. To introduce into the Law of the Republic of Uzbekistan dated July 2, 1992 No. 625-XII «On exchanges and exchange activities» (as amended by the Law of the Republic of Uzbekistan dated August 29, 2001 No. 260-II) (Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 2001 , No. 9-10, Article 171; Bulletin of chambers of the Oliy Majlis of the Republic of Uzbekistan, 2005, No. 9, Article 311; 2006, No. 10, Article 536; 2009, No. 9, Article 337; 2013, No. 10, Article 263) amendments and additions, approving its new edition (attached).

Article 2. The Cabinet of Ministers of the Republic of Uzbekistan:

to bring government decisions in accordance with this Law;

to ensure the review and cancellation by government bodies of their normative legal acts that contradict this Law.

Article 3. This Law shall enter into force six months after the date of its official publication.

The purpose of this Law is to regulate relations related to the organization and activities of exchanges.

The legislation on exchanges and exchange activities consists of this Law and other legislative acts.

If an international treaty of the Republic of Uzbekistan establishes other rules than those stipulated by the legislation of the Republic of Uzbekistan on exchanges and exchange activities, then the rules of the international treaty apply.

Exchange — a legal entity that organizes exchange trading based on established rules in a predetermined place and at a specific time.

Exchanges are created exclusively in the form of joint stock companies.

Exchanges operate in the form of commodity, stock and currency exchanges.

The company name of the exchange must contain the word «exchange».

A legal entity that does not meet the requirements of this Law shall not have the right to use the word «exchange» in its company name, words derived from it and combinations with it, except as otherwise provided by law.

Exchanges acquire the right to carry out exchange activities after obtaining a license in the prescribed manner.

The charter of the exchange must contain the following information:

full and abbreviated company name, location (mailing address), exchange email address;

size of the authorized fund (authorized capital) of the exchange;

quantity, face value, types (simple, preferred) of shares issued by the exchange;

Exchange management structure, the number of members of the supervisory board, the audit commission and the executive body of the exchange, the procedure for their formation, the powers of these bodies.

The charter of the exchange may contain other information in accordance with the law.

The management bodies of the exchange are the general meeting of shareholders, the supervisory board and the executive body of the exchange.

The general meeting of shareholders of the exchange elects the supervisory board of the exchange (hereinafter — the Exchange Council).

The powers of the Exchange Council include:

determination of the main directions of the exchange development;

approval of exchange trading rules;

approval of the procedure for admission to membership of the exchange, suspension, termination of membership;

monitoring the activities of the exchange;

establishing fines for violation of exchange trading rules and the procedure for their collection;

establishment of membership fees and fees for services provided by the exchange;

approval of the procedure for the formation and use of fund resources to ensure the execution of concluded exchange transactions.

The Exchange Council may exercise other powers in accordance with the legislation and the charter of the exchange.

Management of current activities is carried out by the executive body of the exchange, whose powers are determined by the charter of the exchange.

The exchange has the right to:

create quotation, arbitration, listing, control and other exchange commissions;

stop exchange trading if quotes (prices) of exchange goods deviate by more than the maximum size determined by the exchange;

organize and conduct competitive, auction, exhibition and fair tenders, state and corporate purchases in accordance with the law;

issue exchange bulletins, directories and other information and advertising materials.

The exchange may have other rights in accordance with the law.

The exchange is obliged to:

organize exchange trading;

carry out quotation (pricing) of exchange goods based on the ratio of their supply and demand;

timely inform members of the exchange about the place and time of exchange trading on trading floors and in sections;

create conditions for ensuring the execution of concluded exchange transactions;

carry out determination, clarification and offset of mutual obligations of exchange members and their clients (clearing), as well as mutual settlements between them through special accounts opened with the bank;

keep separate accounting of cash funds of the exchange, members of the exchange and their customers;

regularly (at least once a week) post quotations (prices) of exchange goods on its official website, as well as inform exchange members about the results of each exchange trade.

The exchange may carry other obligations in accordance with the law.

Exchange is the activity aimed at organizing and streamlining the market for commodities and the formation on it of prices for commodities based on supply and demand.

The main principles of exchange activity are:

publicity and publicity of exchange trading;

freedom of pricing in exchange trading;

voluntary conclusion of exchange transactions;

equality of conditions for participation in exchange trading for all members of the exchange;

enforcement of concluded exchange transactions.

The regulation of the activities of commodity exchanges shall be carried out by the authorized body in the manner determined by the Cabinet of Ministers of the Republic of Uzbekistan.

The regulation of the activities of stock exchanges shall be carried out by the National Agency of Prospective Projects of the Republic of Uzbekistan.

Exchange goods are goods of a certain kind and quality, including derivative financial instruments (derivatives), admitted in the established manner to exchange trading.

Exchange goods cannot be land, its subsoil, water, other natural resources, objects of cultural heritage and intellectual property, work and services, individually defined things, real estate, as well as property withdrawn from civil circulation in accordance with the law.

Exchange trading — trading in exchange commodities organized by the exchange in accordance with the rules of exchange trading.

Exchange trades are held centrally in electronic form on the exchange with the provision of the opportunity for all exchange members to participate in these trades simultaneously.

The rules of exchange trading must indicate:

regulations on members of the exchange, their rights and obligations;

the procedure for admission of exchange members to participate in exchange trading;

the procedure for admitting goods to exchange trading;

types of exchange transactions;

description of derivative financial instruments (derivatives) circulating at exchange trades;

the procedure for creating conditions for ensuring the execution of concluded exchange transactions;

exchange trading procedure;

the procedure for registration and execution of exchange transactions and exchange trading results;

clearing and settlement procedure;

quotation procedure (pricing) of exchange goods;

the procedure for controlling the exchange pricing process;

procedure for disclosing information on exchange trading;

provisions on liability for violation of exchange trading rules;

procedure for resolving disputes on the exchange.

Other provisions may be indicated in the rules of exchange trading in accordance with the law.

Members of the exchange are legal entities that have received, in the manner established by the exchange, the right to participate in exchange trading and conclude exchange transactions as dealers, market makers and brokers.

A member of the exchange concluding exchange transactions on his own behalf and at his own expense is a dealer. A dealer who has committed to enter into exchange transactions to maintain the level of prices, supply and demand for exchange commodities is a market maker.

A member of the exchange concluding exchange transactions on behalf of the client and at his expense is a broker.

It is allowed to combine the functions of a dealer and a broker by one member of the exchange.

Members of the exchange, with the exception of the currency exchange, may not be public authorities and administrations.

Exchange members participate in exchange trading through their employees authorized to enter into exchange transactions on their behalf (traders).

Exchange members have the right to:

participate in exchange trading and conclude exchange transactions;

participate in the activities of exchange commissions;

take part in the development of exchange trading rules;

use the services provided by the exchange;

receive information on the results of each exchange trading.

Exchange members may have other rights in accordance with the legislation and rules of exchange trading.

Exchange members are required to:

carry out its activities on the exchange in accordance with the legislation and the rules of exchange trading;

timely provide the client with full information related to the execution of exchange transactions in his interests, as well as the execution of his orders;

timely provide the exchange with full information related to their participation in exchange trading and the conclusion of exchange transactions;

when concluding a contract with a client, familiarize him with the rules of exchange trading and the conditions for clearing and settlements;

keep separate records of exchange transactions made at their own expense and at the expense of the client;

keep separate records of the cash of their customers.

Exchange members may also bear other obligations in accordance with the legislation and rules of exchange trading.

An exchange quotation list is a list of goods of a certain kind that do not require a preliminary inspection, characterized by the invariability of quality indicators and the constancy of the conclusion of exchange transactions admitted to exchange trading.

The admission of goods, with the exception of securities, to exchange trading includes the following procedures:

consideration of the application of the manufacturer or supplier of the goods to include the goods in the stock quotation list;

checking the conformity of goods with the requirements of Article 10 of this Law and the first part of this Article;

liquidity assessment of goods;

inclusion of goods in the stock quotation list and its presentation to the exchange members.

The admission of securities to exchange trading (exchange listing) includes the following procedures:

consideration of the application of the issuer of securities to include its securities in the stock quotation list;

assessment of the financial condition of the issuer of securities;

liquidity assessment of securities;

inclusion of securities in the stock exchange quotation list and its presentation to the exchange members.

Goods included in the exchange quotation list are considered admitted to exchange trading.

Foreign currency and government securities are included in the exchange quotation list without the procedure for admitting goods to exchange trading and exchange listing.

An exchange transaction is an exchange-registered contract for the sale of exchange goods concluded on the result of exchange trading recorded by the exchange.

On the exchange, exchange transactions can be made, including:

purchase and sale transactions of exchange goods with the condition of their delivery without delay (spot);

purchase and sale transactions of exchange goods with the condition of their delivery with a delay (forwards);

purchase and sale transactions of derivative financial instruments (derivatives) with an obligation to fulfill them in the future (futures), involving the supply of exchange goods (delivery futures) or the implementation of monetary settlements between the parties to the transaction without supplying exchange goods (settlement futures);

purchase and sale transactions of derivative financial instruments (derivatives) with the right to future purchase or sale of exchange commodities or derivative financial instruments (derivatives) (options);

transactions for the simultaneous purchase and sale of currencies with the condition of settlements on them after a certain period of time at a predetermined exchange rate (currency swaps);

securities purchase and sale transactions with the condition of their repurchase after a certain period at a predetermined price (repo).

Other exchange transactions may be made on the exchange in accordance with the law.

Information about the exchange transaction (except for the name, quantity, quotation (price) of the exchange commodity, the date of the exchange transaction) is not subject to disclosure to third parties. Information on the exchange transaction is provided to the courts, and to the inquiry bodies and investigative authorities — in the presence of a criminal case.

Information on the contents of the exchange transaction related to countering the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction is provided to a specially authorized state body in cases and in the manner prescribed by law.

Information about the exchange transaction is provided to the Accounts Chamber of the Republic of Uzbekistan at its request in order to carry out the tasks assigned to it in accordance with the law.

Exchange trading is conducted on the basis of applications submitted by exchange members in accordance with the rules of exchange trading.

Quotation of exchange goods is carried out automatically at exchange trading in order to determine its exchange price in the manner established by the rules of exchange trading.

The exchange price of securities, with the exception of government securities, obtained as a result of exchange trading, is the market price of these securities at the date of exchange trading.

Registration and execution of an exchange transaction is carried out based on the results of exchange trading in written or electronic form.

Written registration of exchange transactions with securities is not required.

Exchange transactions are not subject to notarization.

Exchanges create conditions for ensuring the execution of concluded exchange transactions by:

clearing and settlement;

exercising control and accounting for the supply of exchange goods if this is provided for by the terms of the exchange establishing mechanisms providing for the preliminary deposit of cash and exchange goods;

monitoring compliance with exchange trading rules and obligations on exchange transactions.

If the exchange is declared bankrupt, the property of the exchange members and their customers on the exchangeʼs accounts is not included in the liquidation mass and must be returned to the exchange members and their customers after fulfillment of their obligations under the exchange transaction.

Foreclosure on the property of members of the exchange and their customers for the obligations of the exchange is not allowed.

The fulfillment of obligations on an exchange transaction in case of insufficient funds of exchange members can be ensured by the funds of the fund for ensuring the execution of concluded exchange transactions, provided to them on a paid and repayable basis.

Exchanges may also create other conditions for ensuring the execution of concluded exchange transactions in accordance with the law.

The exchange is not entitled to:

directly carry out production, trade, trade and intermediary activities, as well as be the founder (shareholder) of other legal entities not related to exchange activities, except as otherwise provided by law;

use the funds of exchange members and their customers to their advantage, except as otherwise provided by law and exchange trading rules.

On the exchange are not allowed to:

circulation of commodities not included in the quotation list;

concerted actions of members of the exchange, which may entail an artificial change or fixing prices;

distribution of false and knowingly false information that may cause artificial changes in market conditions;

registration by the exchange of transactions in respect of exchange goods concluded between its members without exchange trading.

Disputes in the field of exchange activities are resolved in the manner prescribed by law.

Persons guilty of violating the legislation on exchanges and exchange activities are liable in the prescribed manner.