(Restated) Notification of the Agricultural Futures Exchange of Thailand No. TorGorKhor 2/2551 re: Trading Platform Officers ******************** By virtue of clause 7 of Regulation of the Board of Directors of the Agricultural Futures Exchange of Thailand re: Rules, Procedures and Conditions Concerning Trading in Agricultural Commodities, B.E. 2547 (2004), dated 21 March 2004, as amended by Regulation of the Board of Directors of the Agricultural Futures Exchange of Thailand re: Rules, Procedures and Conditions Concerning Trading in Agricultural Commodities (No. 3), B.E. 2548 (2005), dated 28 September 2005, the Agricultural Futures Exchange of Thailand hereby issues the following Notification: Clause 1. The following shall be repealed: 1.1 Notification of the Agricultural Futures Exchange of Thailand No. TorGorKhor 5/2548 re: Trading Platform Officers, dated 17 November 2005; 1.2 Notification of the Agricultural Futures Exchange of Thailand No. TorGorKhor 7/2548 re: Trading Platform Officers (No. 2), dated 21 December 2005; and 1.3 Notification of the Agricultural Futures Exchange of Thailand No. TorGorKhor 6/2549 re: Trading Platform Officers (No. 3), dated 23 June 2006. Clause 2. In this Notification: rules and regulations mean any rules, regulations, notifications, orders, resolutions and circulars issued by the Agricultural Futures Trading Commission, the Office of the Agricultural Futures Trading Commission, the Board or the Exchange; Board means the Board of Director of the Agricultural Futures Exchange of Thailand; Exchange means the Agricultural Futures Exchange of Thailand; Act means the Agricultural Futures Trading Act B.E. 2542 (1999) and its subsequent amendments; trading platform means a system which is used for futures trading as procured by the Exchange and which comprises the J-Trader system, the System and Risk Administration (SARA) system and the Back Office system; trading platform officers means (1) trading operators; (2) SARA operators; and (3) Back Office operators; trading operator means a person who is appointed by a member and registered with the Exchange to perform order entry related functions on the J-Trader system; SARA operator means a person who is appointed by a member and registered with the Exchange to perform risk administration related functions on the SARA system; 1
Back Office operator means a person who is appointed by a member and registered with the Exchange to perform functions on the Back Office system at the level of Back Office Manager (BOM); customers means the buyers or sellers who engage in futures trading on the Exchange through futures brokers or futures agents and member means a futures broker or futures agent who is permitted by the Exchange to conduct futures trading on the Exchange. Chapter 1 Qualifications of Trading Platform Officers Clause 3. A person to be nominated by a member for registration with the Exchange as a trading platform officer shall possess the qualifications and be free of the disqualifications as follows: 3.1 possess the following qualifications: 3.1.1 be of legal age; 3.1.2 have graduated with at least a bachelor s degree or its equivalent or, in the case of a person having graduated with a degree lower than a bachelor s degree but not lower than a Higher Vocational Certificate (HVC), have no less than one (1) year of work experiences in fields related to trading in futures contracts, futures commodities, or securities; *3.1.3 have a valid certificate issued by the Exchange, as follows: 3.1.3.1 when applying for registration of a trading operator, such person must have a certificate showing that he/she has completed a training in knowledge of trading platform operations under the trading operator course, unless such person possesses the qualifications under clause 18; 3.1.2.1 when applying for registration of a SARA operator or Back Office operator, such person must have a certificate showing that he/she has passed a test of knowledge in trading platform operations under a training course organized for the type of trading platform officer that the member wishes to register; (*Clause 3.1.3 was amended by Notification of the Agricultural Futures Exchange of Thailand re: Trading Platform Officers (No. 3), dated 28 September 2012.) registration; and 3.1.4 be a full-time, permanent employee of the member applying for the 3.1.5 in case of having been a trading platform officer of another member, have proven that he/she has been duly released from such duties, without any offense or damage; 3.2 be free of the following disqualifications: been bankrupt; 3.2.1 be an incompetent or a quasi-incompetent person, or be or have ever 3.2.2 ever have been convicted by a final judgment to imprisonment for an offense related to forgery and counterfeiting, commerce, or properties; 3.2.3 ever have had his/her registration or any license issued under the law on futures trading, securities and exchange or other relevant laws withdrawn for any offense pursuant 2
to such laws, including ever have had his/her registration or any license issued under similar foreign laws withdrawn, unless an exception is granted by the Exchange; and activities. 3.2.4 ever have been dismissed, discharged, or laid off due to dishonest Trading platform officers who are registered with the Exchange under this Notification shall maintain the qualifications and be free of the disqualifications under this clause throughout the period during which they are trading platform officers. Chapter 2 Application for Registration as Trading Platform Officers Clause 4. To apply to register a person as a trading platform officer, a member shall submit an application together with the supporting documents and evidence, in the form prescribed by the Exchange, and pay the registration fee of Baht 500 (five hundred baht) per person per system. (This rate is VAT exclusive.) *Clause 5. Unless otherwise permitted by the Exchange, the number of trading platform officers of a member shall be as follows: 5.1 no less than two (2) trading operators; 5.2 no less than one (1) SARA operator; 5.3 no less than one (1) Back Office operator. A member may not apply for registration of any person as a trading platform officer on more than one system, and the trading platform officer may not perform functions on systems other than the system on which he or she is registered with the Exchange. The provisions in this clause shall not apply to futures traders. (* Clause 5 was amended by Notification of the Agricultural Futures Exchange of Thailand re: Trading Platform Officers (No. 2), dated 21 May 2012.) Clause 6. When the Exchange examines the evidence relating to the qualifications of the person nominated by the member and is satisfied that such evidence is accurate and complete, the Exchange shall register such person as a trading operator, SARA operator or Back Office operator as requested by the member and issue to such person a user login and password for performing functions on each system for or on behalf of such member. Clause 7. In case of a change in the information of any trading platform officer of any member, such member shall notify the Exchange of the change, in the form prescribed by the Exchange, within fifteen (15) business days from the day following the date of such change. Chapter 3 Rights and Duties of Trading Platform Officers Clause 8. Trading platform officers shall have the following duties: 8.1 to comply with the Act and rules and regulations in the same manner as the members who have a duty to comply therewith, to the extent exercisable by such officer; and 3
8.2 to perform or refrain from any acts as prescribed by the Exchange. Clause 9. Trading platform officers shall not undertake the following acts: 9.1 use information of the customers or the futures trading data obtained through the performance of his/her duties to procure benefits for himself/herself or for other persons; 9.2 act in a manner that damages, may damage, or will evidently lead to damage to the Exchange; 9.3 disclose his/her user login and password to other persons; and clause 8.1. 9.4 cooperate or assist other persons in the violation of or non-compliance with Clause 10. In addition to the provisions under clause 9, trading operators may not undertake the following acts: 10.1 enter bids or offers which are not in conformity with the provisions of the Exchange, or which are known or should be known to be a possible offense under the Act or the rules and regulations; and 10.2 enter bids or offers for his or her own benefit or for the benefit of other persons through customers accounts. Chapter 4 Penalties and Disclosure of Penalties Clause 11. Members shall cause their trading platform officers to strictly comply with this Notification, and other relevant rules and regulations. In the event that a member s trading platform officers violates the rules and regulations, such member shall be liable for the actions of the trading platform officers if the member fails to prove that it has exercised sufficient care in supervising its trading platform officers. In addition, if any trading platform officer violates or omits to perform his/her duties in accordance with the regulations of the Exchange, or gives false statements or acts in any manner which may cause damage to the trading platform, or participates in such acts, the Exchange may impose any one or combination of the following penalties on such trading platform officer: 11.1 warning; 11.2 probation; 11.3 temporary suspension from performance of duties; and 11.4 withdrawal of registration. The penalties and disclosure of the penalties under the first paragraph shall be in accordance with the Exchange s rules and regulations concerning the consideration of offenses and penalties. Clause 12. The Exchange may disclose the penalties imposed on the trading platform officer to the member who requested the registration or other members, in writing, or as the Exchange deems appropriate. 4
In disclosing the penalties under the preceding paragraph, the Exchange may or may not provide the name of the trading platform officer subject to penalties, a description of the offense and the penalties, and the name of the member who requested the appointment of such trading platform officer. Chapter 5 Termination of Trading Platform Officer Status Clause 13. The trading platform officer status of any trading platform officer may be terminated in any of the following cases: 13.1 death; 13.2 discharge from performance of functions on a member s trading platform; 13.3 termination of employment by a member; 13.4 withdrawal of registration; or 13.5 lack of qualifications or possession of disqualifications under clause 3. Termination of the trading platform officer status of any trading platform officer by reason of lack of qualifications under clause 3.1 shall not prejudice the right of such trading platform officer to be reconsidered by the Exchange for registration as a trading platform officer. Clause 14. Members may request the Exchange to withdraw the registration of their trading platform officers by submitting an application for withdrawal of registration in the form prescribed by the Exchange. In cases where a member discharges a trading platform officer from the performance of functions on the member s trading platform or terminates the employment of such trading platform officer, the member shall notify the Exchange of such event in the form prescribed by the Exchange within five (5) business days from the day following the date of discharging such trading platform officer from the performance of functions on the member s trading platform or date of termination of the trading platform officer s employment, as the case may be. The withdrawal of the trading platform officer s registration under this clause shall not prejudice the right of such officer to be reconsidered by the Exchange for registration as a trading platform officer, and such trading platform officer shall not be considered by the Exchange as possessing the disqualification under clause 3.2.3. Clause 15. The Exchange shall notify the member who requested the registration of the termination of trading platform officer status, in writing, and may notify other members of the same in a manner which the Exchange deems appropriate. Chapter 6 Transitional Provisions Clause 16. Employees of members who were registered with the Exchange as trading platform officers prior to the effective date of this Notification shall be deemed as being registered under this Notification on the effective date hereof and may continue to perform functions on the trading platform under the criteria prescribed herein. 5
Clause 17. Persons who were entitled to be registered as trading platform officers on a temporary basis and employees of members who were permitted by the Exchange to continue to temporarily perform functions on the trading platform under clause 7 of Notification of the Agricultural Futures Exchange of Thailand No. TorGorKhor 5/2548 re: Trading Platform Officers, dated 17 November 2005, as amended by Notification of the Agricultural Futures Exchange of Thailand No. TorGorKhor 6/2549 re: Trading Platform Officers (No. 3), dated 23 June 2006, shall continue with the performance of their functions on the trading platform on a temporary basis, provided that within three (3) months from the effective date hereof such persons shall obtain the valid certificate from the Exchange showing that they have passed a test of knowledge in trading platform operation under a training course organized by the Exchange; otherwise, they shall be deemed to lack the qualification under clause 3.1.3 and their trading platform officer status shall be terminated under clause 13 of this Notification. *Clause 18. Persons who passed the test of knowledge under the trading operator course before 1 October 2012 and received a certificate confirming their successful completion of the test of knowledge under such course shall be deemed qualified to be registered as trading platform officers under clause 3.1.3.1. (*Clause 18 was add by Notification of the Agricultural Futures Exchange of Thailand re: Trading Platform Officers (No. 3), dated 28 September 2012. ) This Notification shall come into force on the day following the date of its publication. Notified on this 4th day of March 2008. (Signed) Nitus Patrayotin (Mr. Nitus Patrayotin) President The Agricultural Futures Exchange of Thailand.. DISCLAIMER: This English translation is being provided for informational purposes only and represents a desire by the Exchange to promote better understanding of the Exchange by non-resident participants. While care has been taken to ensure that the translation is accurate and complete, AFET accepts no liability or responsibility for any loss or damages, including trading losses, that may be incurred from any inaccuracy or omission in the English translation. In the event of discrepancies between the English version and the original Thai version, the Thai version shall prevail. Any dispute that may arise within or without a court of law with regard to the meaning of the words, provisions and stipulations of the rules, regulations and agreements shall be resolved in accordance with the Thai texts. 6