Arbitration by Commodity Exchanges

Article 41 — Commodity exchanges may act as arbitrators in resolving disputes between their members or disputes arising from contracts where such a provision is included in those contracts.

For a commodity exchange to act as an arbitrator, the parties must agree in writing that their dispute will be resolved through arbitration by the commodity exchange and submit a request accordingly.

Arbitrator or Arbitral Tribunal

Article 42 — Disputes agreed to be resolved through arbitration by the commodity exchange shall be examined and decided by an arbitrator or arbitral tribunal selected by the parties and/or the board of directors from among those included in the list of arbitrators approved by the assembly. However, the parties may also select arbitrators who are not included in the list approved by the assembly. In such cases, the dispute shall be examined and decided by those arbitrators.

Unless otherwise agreed in writing, the dispute shall be resolved by an arbitral tribunal consisting of three arbitrators. However, the parties may agree, through an arbitration clause or agreement, that their dispute will be resolved by a sole arbitrator.

For the resolution of a dispute between the parties, each party shall select its own arbitrator, and the commodity exchange's board of directors shall select the third arbitrator. If the parties fail to appoint their own arbitrators, those arbitrators shall also be selected by the board of directors. The selected arbitrators shall determine which arbitrator will chair the tribunal.

If it is decided that the dispute between the parties will be resolved by a sole arbitrator, that arbitrator shall be selected by mutual agreement of the parties from among those included in the list of arbitrators approved by the assembly or from outside that list. If the parties cannot select an arbitrator by mutual agreement, the commodity exchange's board of directors shall select one from the list approved by the assembly.

Application for Arbitration and Objection

Article 43 — A party wishing to initiate arbitration shall apply to the commodity exchange directly or through its branches by submitting a petition. The petition shall state the names and addresses of the parties or their representatives, the subject matter of the dispute, the claimant's request, the legal grounds and evidence relied upon, and shall include the arbitration clause or agreement.

Upon application, the secretary general of the commodity exchange or a staff member appointed by the secretary general shall investigate whether a valid arbitration clause or agreement exists between the parties under the provisions of Law No. 1086 on Civil Procedure. If the investigation establishes that the arbitration request is valid and based on justified grounds, the respondent shall be notified. The notification shall state that the respondent may apply to the competent court within seven days of receipt and object to the resolution of the dispute through arbitration.

If the respondent does not apply to the competent court within the prescribed period to object to the resolution of the dispute through arbitration, the commodity exchange shall send each party a copy of the list of arbitrators approved by the assembly and request that they select their arbitrators and notify the commodity exchange within no more than seven days of receipt. If the arbitrator or arbitrators selected from the list approved by the assembly or from outside that list are not notified to the commodity exchange within this period, the board of directors shall select them from the list approved by the assembly.

If the respondent applies to the competent court and raises an objection within the prescribed period, the commodity exchange shall await the decision to be rendered by the competent court under the expedited procedure as to whether the dispute between the parties may be resolved through arbitration by the commodity exchange and shall act in accordance with that decision.

If the court decides that the dispute is to be resolved through arbitration, action shall be taken in accordance with the third paragraph of this Article. If the court decides that the dispute cannot be resolved through arbitration, the claimant's petition shall be rejected.

Challenge and Withdrawal of Arbitrators

Article 44 — Following the selection of the arbitrator or arbitrators, the commodity exchange shall notify the parties and the arbitrator or arbitrators in writing.

The parties may request the challenge of the arbitrator or arbitrators before the competent court under the provisions of the Law on Civil Procedure No. 1086 dated 18/6/1927, within no more than five days from receipt of the notice specified in the first paragraph of this Article.

The arbitrators may withdraw from their duties by applying to the commodity exchange in writing within no more than two days from receipt of the notice specified in the first paragraph of this Article.

If the arbitrators do not accept the assignment, resign, die, are removed, or a party's request for challenge is accepted, new arbitrators shall be selected in their place in accordance with the provisions of this Regulation.

Preparation for the Hearing and Examination

Article 45 — Once the appointment of the arbitrator or arbitral tribunal becomes final within the framework of Article 45 of this Regulation, the petition and its annexes submitted to the commodity exchange by the claimant shall be delivered to the arbitrator or arbitral tribunal after the arbitrators' fees and the advance payment for arbitration expenses determined by the board of directors have been collected from the claimant.

The arbitrator or arbitral tribunal shall determine the form and duration of the examination within five days from the delivery of the statement of claim and its annexes and shall notify the respondent of the statement of claim and request a written defence. The arbitral tribunal may assign the examination to one of its members.

The arbitrator or arbitral tribunal is authorised to examine all documents relating to disputes referred to it, hear the parties, sworn witnesses and experts, conduct or commission on-site inspections, require the parties to appoint experts on matters requiring specialised and technical knowledge, or appoint an expert if the parties cannot reach an agreement.

If the arbitrator or arbitral tribunal decides to hold a hearing after receiving the respondent's written defence within the prescribed periods and completing the examination, the scheduled hearing date shall be notified to the parties.

Right to Defence and Examination of the Case File

Article 46 — The respondent must be requested to submit a written defence and must be granted at least ten days from receipt of the relevant notice to do so. The notice shall state that failure to submit a defence within the prescribed period will be deemed a waiver of the right to defend and that a decision will be made on the basis of the available evidence.

The arbitrator or arbitral tribunal shall grant a new and appropriate period to a respondent who reports an acceptable excuse or is unable to submit a defence due to force majeure. As a rule, force majeure or the excuse must be supported by an official document.

The parties or their representatives may examine the case file throughout the proceedings. The arbitrator or arbitral tribunal and the assigned commodity exchange personnel are obliged to fulfil such requests.

Hearing Before the Arbitrator

Article 47 — The parties shall be heard at the hearing. If one of the parties fails to attend despite due notification, only the other party shall be heard and a decision shall be rendered on the basis of the documents. No proceedings in absentia shall be conducted before the arbitrator.

During the hearing, statements made by either party that may affect the outcome of the case shall be entered in the minutes and signed by the parties at the end of the session. Documents submitted during the hearing shall also be attached to those minutes.

The parties may settle, waive a claim, or accept a claim before the arbitrator or arbitral tribunal. In such cases, the statements shall be recorded in the minutes, which shall be signed by the parties and the arbitrators.

Place of Arbitration

Article 48 — The place of arbitration shall be the location of the commodity exchange chosen by the parties for the resolution of their dispute.

Arbitration Period

Article 49 — The arbitral tribunal must render its decision within six months from its first meeting. If it is decided that the dispute will be resolved by a sole arbitrator, this period shall commence on the date the statement of claim and its annexes are delivered to the arbitrator.

The arbitration period may be extended by the parties' express written consent or by a decision of the competent court upon the request of either party, the arbitrator, or the arbitral tribunal.

If an incident of forgery constituting a criminal offence arises during the examination or hearing, the proceedings shall be suspended until the criminal court renders a decision on the matter, and the arbitration period shall cease to run.

Proceedings conducted and decisions rendered by the arbitrator or arbitral tribunal after the arbitration period has expired shall be null and void, and the dispute between the parties shall be resolved by the competent court.

Decision of the Arbitrator or Arbitral Tribunal

Article 50 — The arbitrator or arbitral tribunal shall render its decision after concluding that the subject matter of the case has been sufficiently clarified and that no further matter remains to be examined.

The arbitral tribunal shall adopt its decision by a majority of its members and by open vote. Dissenting opinions shall be included in the decision. The arbitral tribunal shall convene with all its members. Abstention is not permitted at its meetings.

The arbitrators shall render their decisions in accordance with the rules of law specified in the arbitration agreement or clause. If the applicable rules of law are not specified in the arbitration agreement or clause, the decision shall be rendered, in order of precedence, in accordance with the provisions of the legislation in force, customs, usages and practices, and the principles of equity and fairness.

Decisions rendered by the arbitrator or arbitral tribunal must contain the elements specified in Article 530 of the Law on Civil Procedure and must be signed by the arbitrators after the date of the decision has been stated.

Notification of the Decision of the Arbitrator or Arbitral Tribunal

Article 51 — The decision rendered by the arbitrator or arbitral tribunal shall be communicated to the parties, and a copy shall be placed in the file for retention by the commodity exchange. At the request of either party, the decision shall be submitted to the registry of the competent court together with the case file.

The court shall notify the parties of the decision rendered by the arbitrator or arbitral tribunal, and the decision shall be deemed effective against the parties from the date of receipt.

Approval and Enforcement of the Decision of the Arbitrator or Arbitral Tribunal

Article 52 — Decisions rendered by the arbitrator or arbitral tribunal may be appealed within the framework of Article 553 of the Law on Civil Procedure No. 1086 dated 18/6/1927, or a retrial may be requested against such decisions within the framework of Article 534 of the same Law.

Decisions of the arbitrator or arbitral tribunal submitted to the court shall be approved and enforced within the framework of Article 536 of the Law on Civil Procedure No. 1086 dated 18/6/1927.

Arbitrators' Fees, Arbitration Expenses and Secretariat

Article 53 — Arbitrators' fees shall be determined by a resolution of the assembly, taking into account the amount in dispute. In all cases, such fees may not exceed one per cent of the amount in dispute for each arbitrator. In proceedings conducted by a tribunal, an arbitrator's fee shall be collected separately for each member of the tribunal.

In return for the arbitration services they provide, commodity exchanges shall collect a fee from the claimant in accordance with the tariffs determined by the assembly pursuant to Article 51 of the Law.

Arbitration expenses consist of the costs of the work and procedures specified in the third paragraph of Article 46 of this Regulation, notification expenses, hearing expenses, and the travel and accommodation expenses of the arbitrators.

Arbitration expenses shall be paid from the advance collected. At the end of the arbitration, the advance shall be offset and closed.

If the parties reach an amicable settlement and notify the commodity exchange in writing before the first meeting of the arbitral tribunal in disputes to be resolved by a tribunal, or before the petition and its annexes submitted by the claimant are delivered to the arbitrator in disputes to be resolved by a sole arbitrator, all arbitrators' fees and arbitration service fees collected by the commodity exchange, together with the portion of arbitration expenses deducted from the advance, shall be refunded to the claimant. Arbitrators' fees shall not be refunded for settlements reached thereafter.

Experts and specialists appointed by the arbitrator or arbitral tribunal shall be paid in accordance with the tariffs determined by the assembly pursuant to Article 51 of the Law. In proceedings conducted by a panel, the expert fee collected shall be distributed equally among the experts participating in the panel.

Secretarial duties, including drafting, notifying and filing decisions rendered by the arbitrator or arbitral tribunal, shall be carried out by the secretary general of the commodity exchange or personnel appointed by the secretary general.