LAW ON COMMODITY EXCHANGES IS STILL WAITING ITS TURN FOR AMENDMENT
The State Commission on Commodity Exchanges and Wholesale Markets which has supervisory and licensing functions is practically not operating anymore due to expiration of its mandate.This is so because the Act of Commodity Exchanges and Wholesale Markets, effective since 1996, is quite behind the times, but no new law has been passed yet, although an expert team has been working since last autumn. It is interesting that this happens when exchange trading picks up, and the volumes traded on the three licensed local commodity exchanges increase. Does that mean that the commodities can operate without a regulatory body and take care themselves of the observation of law? This question should be answerwed by the law-makers. The most serious amendment, which has been awaited for a long time and discussed by experts, is the regulation of activities on the wholesale markets and the commodity exchanges, and the drafting of relevant laws. According to recent information, it has already been decided to pass two acts and set up two supervisory bodies - for the wholesale markets and for commodity exchanges, respectively. A week ago the Ministry of Agriculture and Forests filed its draft bill on the wholesale markets, as their operation will be within its authority. The draft bill of the Ministry of Economy, that will set the rules for trade on the commodity exchanges, is yet to be moved to the Council of Ministers. According to experts, acquainted with the bill's drafting, there is no progress at present due to controversies. The main argument is about if the amendments won't create conditions for decreasing the number of licensed commodity exchanges. It seems logical that only one exchange market would remain, having in mind the small volumes of effected deals. The question is whether this should be done gradually or imposed by legislative regulations.