Article 8 of the Regulation on Intermediaries Trading on Commodity Exchanges, entitled “Security,” requires intermediaries to provide security in an amount to be determined.
The amount of security to be provided by intermediaries is determined by the relevant Exchange Assembly, taking into account the intermediary’s transaction volume.
“Intermediaries are required to provide security in an amount to be determined by the Assemblies, taking into account the intermediary’s transaction volume. The security may consist of cash, a bank letter of guarantee, a first-degree mortgage on real estate, government bonds, treasury bills, or a merchant guarantee accepted by the Board of Directors.”
Acceptable Types of Security
- Cash
- Bank letter of guarantee
- First-degree mortgage on real estate
- Government bonds
- Treasury bills
- Merchant guarantee accepted by the Board of Directors
