The Commodity Exchange Law (Law No.239 of 1950) shall be partially amended as follows:
To Article 13 paragaph 1, the following one item shall be added:
(7) When the maximum limit has been set on the number of members or commodity commission merchants, the said maximum limit.
In Article 15 paragraph 1 item (1), next to "location of the commodity market" shall be added "maximum limit in the case where the maximum limit has been set on the number of members or commodity commission merchants" .
In Article 19 paragraph 2 item (1), "date of which he becomes member" shall be amended as "date within 30 days prior to the date on which he has become a member" , and in item (2) of the same paragraph, "before the date of such filing" as "prior to the date of such filing" .
In Article 20 paragraph 1, "and item (4)" shall be amended as "or item (4)" , and next to "item (4)" shall be added "or if the maximum limit on the number of members or commodity commission merchants is to be set, changed or abolished" ;and next to paragraph 2 of the same Article, the following one item shall be added:
(4) If the application for alteration is concerned with the setting, change or abolition of the maximum limit on the number of members or commodity commission merchants, a document stating therein the reason for such setting, change or abolition.
Next to Aaticle 25, the following one Article shall be added:
(Number of Members)
Article 25-(2). The exchange may set the maximum limit to the number of members by its Articles of Association.
In Article 40, "shall be ordered the suspension or restriction of his transactions on the commodity market" shall be amended as "shall be ordered the suspension or restriction of his transactions on the commoidty market for all or a part of the listed commodities of the said exchange" .
Next to Article 42, the following one Article shall be added:
(Number of Commodity Commission Mrechants)
Article 42-(2). The exchange may set the maximum limit to the number of commodity commission merchants by its Articles of Association.
In Article 44 paragraph 1, item (4) and item (5) shall be made item (5) and item (6) respectively;and next to item (3), the following one item shall be added:
(4) Commodities on which entrustment with transactions on the commodity market are reeceived respectively in the branch offices and other subordinate offices and other subordinate offices or business offices under item (2);
Article 44 paragraph 2 shall be amended as follows:
2 The exchange shall, when it has received an application for registration under the preceding paragraph, decide without delay in accordance with the provisions of the Articles of Association, whether it will admit the applicant for registration to transact the said commodity on the commodity market or not, and submit the same application for registration to the competent Minister, attaching thereto a document stating the contents of the decision.
In Article 47 paragraph 2, "as prescribed in the preceding paragraph" shall be amended as "which has been made the registration under the provision of Article 45 paragraph 1 as receiver of entrustment with transactions on commodity market of the said commodity" .
Next to Article 48 paragraph 1 item (4), the following one item shall be added:
(5) When the exchange does not admit the applicant for registration to transact the said commodity on the commodity market as a commodity commission merchant.
In Article 49 paragraph 1, "If any change occurs in matters in Article 44 paragraph 1 item (1), (2)(4) or (5)" shall be amended as "If any change occurs in the matters stated in Article 44 paragraph 1 item (1), item (3) or item (4) to item (6) inclusive" ;in the proviso to paragraph 2 of the same Article, "Article 44 paragraph 1 item (2)" shall be amended as "Article 44 paragraph 1 item (2) or item (4)" ;in paragraph 3 of the same Article, "matters enumerated in Article 44 paragraph 1 item (3)" shall be amended as "commodity to be transacted by a commodity commission merchant on the commodity market out of the matters enumerated in Article 44 paragraph 1 item (3)" ;in paragraph 4 of the same Article, "Article 44 paragraph 2, Article 45, Article 46 paragraph 2" shall be amended as "Article 44 paragraph 2 (limited to the case where the application for change under the provisions of the preceding paragraph has been made for addition of commodity to be transacted by him as a commodity commission merchant on the commodity market), Article 45" , "Article 15 paragraph 2, Article 44 paragraph 2, Article 45 paragraph 2 and item (4) of paragraph 1 of the preceding Article" shall be amended as "Article 15 paragraph 2, Article 45 paragraph 2 and item (4) and item (5) of paragraph 1 of the preceding Article," , and "'application for registration'in Article 45 paragraph 1" shall be amended as "Article 44 paragraph 2 shall read'application for alteration of registration'and'applicant for registration'as'applicant for alteration of registration', and'application for registration'in Article 45 paragraph 1" .
Article 50 shall be amended as follows:
(Alteration of Registration and Commission Merchant Guarantee Money)
Article 50. In cases, where a commodity commission merchant has added commodity to be transacted on the commodity market, has established a new branch office of other subordinate office or business office wherein he may be entrusted with transactions on the commodity market, or has added commodity which may be entrusted to him with transactions on the commodity market in his branch office or other subordinate office or business office wherein he may be entrusted with transactions on the commodity market, if he has received a notice from the competent Minister to the effect that the related registration was altered accordingly, he shall deposit with the exchange a commission merchant guarantee money for such Commodity or office of business office in accordance with the provisions of the Article of Association of the exchange.
2 The commodity commission merchant shall not be entrusted with transactions on the commodity market concerning the said commodity, or in the said branch office, or subordinate office or business office, unless he deposited the commission merchant guarantee money under the preceding paragraph.
In Article 51 paragraph 1, "he shall report such fact to the competent Minister" shall be amended as "he shall submit the report to that effect to the competent Minister through the exchange to which he belongs, or belonged" ;in item (3) of the same paragraph, "the commodity market" shall be amended as "all the commodity markets" ;and in paragraph 2 of the same Article, "shall report such fact to the competent Minister" shall be amended as "shall submit the report to that effect to the competent Minister through the exchange to which the said commodity commission merchant belonged" .
In Article 72 paragraph 1, "membership guarantee funds" shall be amended as "membership guarantee funds, commission merchant guarantee money or special security money" .
Next to Article 84, the following one item shall be added:
(Special Security Money)
Article 84-(2). The exchange may, in accordance with the provisions of its Articles of Association, cause a member deposit the special security money on each commodity to be transacted by the said member on the commodity market.
2 A member shall have a right, to receive repayment of member-ship guarantee funds, commission merchant guarantee money and contract margin provided for in paragraph 1 of the preceding Article in accordance with the provision of the same paragraph, with respect to the claims arising from non-fulfilment of obligation based upon the transaction on the commodity market, and when there is still a deficit, he shall have further a right to receive payment in preference to any other creditor with respect to the special security money of the other party the said transaction on the commodity to be transacted on the said commodity market.
3 A member shall have a right to receive repayment of the special security money provided for in the preceding paragraph in accordance with the provision of the same paragraph, when there is still a deficit he shall have further a right to receive payment in preference to any other creditor with respect to the special security money of other members on the commodity to be transacted on the said commodity market, in proportion to the amount of his special security money;provided, however, that such an amount shall be within the limit of balance of the deficit amount obtained after deducting the amount obtained by multiplying that deficit amount by the ratio of the amount of the special security money of that member on the commodity concerned and the total amount of the special security money of all the members other than those of other party of the transaction provided for in the same paragraph on the commodity concerned.
4 When repayment under the provision of the preceding paragraph has been made, the other members provided for in the same paragraph shall have the right to be indemnified by the members of other party of transaction provided for in paragraph 2.
In Article 91 paragraph 1, next to "(in case of Juridical person, the officer)" , "and his employees who are qualified by the Articles of Association of the exchange to which he belongs and were registered as provided for by these Articles of Association" shall be added.
In Article 120 paragraph 1, "by preventing excessive speculation in any commodity under contracts for future delivery causing sudden or unreasonable fluctuation or unwarranted changes in the price of such commodity" shall be amended as "in cases. where the action of the exchange or members has violated, or is feared to violate, this Law, Cabinet Order issued under this Law, ministerial ordinance issued under this Law, disposition made by the competent Minister under this Law, or the Articles of Association, the Business Rule or the Entrustment Contract Regulation of the exchange" .
In Article 121 paragraph 1, "by preventing excessive speculation in any commodity under contracts for future delivery causing sudden or unreasonable fluctuation or unwarranted changes in the price of such commodity" shall be deleted.
Article 142 shall be amended as follows:
(Allowances and Others of Chairman and Commissioners)
Article 142. The chairman and commissioners shall receive allowances and travelling expenses as provided for by law separately.