On Approval of the Regulations on General Requirements forthe Exchange Sales' Electronic System

REGULATIONS
on General Requirements for the Exchange Sales' Electronic System

 The present Regulations, in accordance with the Law of the Republic of Uzbekistan "On Exchanges and the Exchange Activity", Resolution by the President of the Republic of Uzbekistan dated April 2006 No PP-335 "On Measures aimed at Perfection of Activity of the State Property Committee of the Republic of Uzbekistan" and Resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated February 4, 2003 No 66 " On Licensing of the Exchange Activity", set the purposes, Tasks, principles of Expert Examination on possibilities of use of the software tools  automatizing the Exchange  Technologies within the territory of the Republic of Uzbekistan.

I. GENERAL PROVISIONS

1. The present Regulations determine general requirements for the Exchange Sales' Electronic System.

2. The Exchanges, both operating and claiming to get a License  for the Right to Carry Out the Exchange Activity, shall, without fail, possess the functioning Exchange Sales' Electronic System, meeting the requirements of the present Regulations.

II. THE MAIN TERMS AND DEFINITIONS

3. The following Terms and Definitions are being used at the present Regulations:

Software Tool (further referred to as "SF") - an object consisting of the software, procedures, rules and, if stipulated, the accompanying documentation and data related to functioning of the data-processing system;

Exchange Sales' Electronic System (further referred to as "ESES") - the global distributed information system, including in itself a complex of software-device means allowing members of an Exchange to participate in the Exchange Sales at the real-time mode in way of a remote access  from any geographic point of the Republic of Uzbekistan;

Server - a computer device (system), managing a certain kind of the network resources;

Work Station (Terminal) - a computer possessing the specialized software being at an Exchange Participant's disposal and connected to the Exchange Sales' Electronic System.

III. REQUIREMENTS FOR THE EXCHANGE SALES' ELECTRONIC SYSTEM

4. ESES shall provide:

•  functioning within the conditions of the Internal Connection Lines;
•  functioning within the conditions of the Corporative Connection Lines;
•  arrangement, maintenance and reflection of information on Brokers' Offices, Brokers, Dealers, Clients of the Brokers' Offices on basis of connection with data-bases;
•  maintenance and reflection of information on Applications, Deals, Sales' Results and Reports on basis of connection with data-bases;
•  maintenance and reflection of information on basis of reference sources maintained within the data-bases;
•  arrangement of operation of the Complex of Software Tools through a Menu System supported by brief instructions, hints and explanations;
•  constant exchange of information among the Exchange Participants (independent of their physical whereabouts) at the real-time mode;
•  to the Exchange Members (Brokers, Dealers and others) the work within the system when being outside the Sales' Hall of an Exchange;
•  a kind of technology allowing the information inserted from any Work Station (Terminal) immediately become available to all participants connected to the Exchange Sales' Electronic System;
•  unification of the information circulating within the system, arrival of the information (inserted from some Work Station) into the system only under condition of forming it as per the rules established by the Exchanges beforehand;
•  forming the necessary analytical material, making extracts on state of the markets for certain assets being under sales (financial instruments, goods etc.), groups of assets, turnover volumes, demand and offer volumes, quotations, open interest (not yet sold) volumes, lots' sizes, processes of quick and easy search of information upon various criteria.

5. ESES shall contain in its structure the automated Journal for Recording the Operations occurred during the Sales' Sessions (electronic Minutes of Sales) registering the following operations and data:

•  sales' opening;
•  sales' closing;
•  identification of sales' participants;
•  time of entrance into the system made by a sales' participant;
•  time of exit from the system made by a sales' participant;
•  time of placing the application made by a sales' participant;
•  time of withdrawal of the application made by a sales' participant;
•  time of changes within the contents of the application made by a sales' participant;
•  time of a deal effected by a sales' participant;
•  name of an asset;
•  quantity of assets shown at an application;
•  quantity of lots;
•  price for an asset.

Format of fixation time shall indicate: a year, a month, a day, an hour, a minute, a second (with precision minimum of 0,1 second).

6. ESES shall provide the strict conformity of reports on the Exchange Sales performed to the contents of the Operations' Journal.

7. ESES shall provide the conduct of unique automatically awarded number of an operation being performed within  the contents of the Operations' Journal.

IV. REQUIREMENTS FOR THE SOFTWARE

8. STs of the ESES shall be elaborated and exploited with the use of a licensed software.

9. To avoid the complete or partial loss of information and breach at the database's integrity, STs of the ESES's shall be designed so that it provides processing of a user's errors, errors arisen during technical bugs / faults as well as the database errors  with introduction of reports to a user, describing the subsequent actions.

10. ST of the ESES shall contain a module for the control over working of the programs that provides the following functions:

•  identification (recognition), authentication (confirmation of jenuineness) and authorization (possessing the authority) of a user;
•  control over the access to the ESES's resources;
•  registration and analysis of the events occurring within the ESES;
•  control over the integrity of the ESES's resources.

11. ST of the ESES shall not allow insertion of changes into the output data formed upon the results of sales.

12. ST of the ESES shall control over completeness and reliability of data being inserted.

13. ST of the ESES shall contain in itself the following program systems (or provide electronic interaction with the existing program systems) as:

•  sales' system;
•  settle of accounts / clearing system;
•  depositary system (system of the authorized Exchange store-house) (if the sales' technological process foresees interaction with such a system);
•  information / analytical system;
•  data-transmission network (if the sales' technological process foresees interaction with such a system).

14. ST of the ESES shall reliably work at any of the foreseen operational modes within the Uzbek or Russian lingual environment .

15. Presence of documentation necessary for practical application and mastering of the ESES in Russian and Uzbek languages.

V. REQUIREMENTS FOR THE HARDWARE

16. The Server and the Data Communications Equipment shall provide:

output capacity sufficient for providing the schedule of works customary for the Exchanges;

scalability - i.e. possibility to process the growing volumes of information.

17. For the arrangement of the highly reliable systems the Server shall be provided with the disc storage units and power supply sources with the "hot replacement".

18. The Server's ventilation system shall possess the ability for the temperature control.

19. Power supply for the Server shall be provided through an Uninterrupted Power Supply Device (further referred to as the UPSD) with stabilization for the input voltage.

20. The UPSD's capacity shall be selected depended to the capacity consumed by the Server and provide the battery work-period of not less than 30 minutes and be loaded with not more than 75 percent of the nominal capacity.

21. Reservation of data on the disc storage units (for example, a high-level RAID, mirroring), including the external data storage units (for example, a streamer) shall be provided.

22. The Servers shall be provided with the specialized main memory - memory with the errors' detection and correction (EDC), a simple parity control is not sufficient.

23. The room for the Server shall be isolated with access of a limited number of persons, temperature regime maintained within the limits of 20-24 centigrade.

VI. REQUIREMENTS FOR THE INFORMATION SECURITY

24. ESES shall be subject to protection in accordance with the requirements of the present Regulations and other normative documents.

25. Information security shall be provided by the system containing a complex of organizational and technical measures and soft-and-hardware for protection of the information.

Presence of the following items shall be provided:

•  manuals and schemes of passwords' usage for entrance by the staff-members and sales participants into the ESES;
•  schemes of differentiation of the levels of access by the staff-members to information resources and services of the ESES;
•  instructions and documentation on the technology of information reduplication and storage of the data and forwarded messages' copies;
•  documents determining responsibility of the staff-members for behavior which may cause or have caused the disclosure of confidential information;
•  in process of electronic interaction among the market participants, with the aim to protect the information, there shall be a document determining rules of the informational exchange;
•  for the informational exchange an algorithm unified for all participants in technological process of sale, for the data ciphering with a key of not less than 1024 bytes long, shall be applied.

26. Organizational measures shall include the list of actions and requirements regulating the order of involvement of the legal entities and individuals to projecting / designing, exploitation and backing of the ST of the ESES.

27. Activity of the Exchange members within the ESES with the use of cryptographic protection of information, including the means of electronic-digital signature, shall be carried out in order established by legislation.

28. The ST of the ESES's information security providing system shall be implemented by the according security policy providing the in-time detection of threats to security as well as reasons and conditions connected with the breach of their normal functioning.

VII. ORGANIZATIONAL REQUIREMENTS

29. The ESES shall provide the possibility to work in way of the uninterrupted cycle  within 24 hours round the clock (at workdays).

30. Each participant of the Exchange sales shall have the equal rights and access to the Exchange sales' electronic system. The number of participants shall not be limited by production capacity or equipment-software characteristics of the ST of the ESES.

31. The Exchange shall provide the presence sufficient quantity of Terminals at its Sales' Hall  for the purpose of providing equal conditions for each participant of the Exchange Sales.

32. When organizing its distributed activity (functioning of the remote subsidiaries, isolated broker places, sales' grounds etc.) the Exchange is obliged to provide reliable communication channels, possessing the needed transmission capacity for functioning of the remote points for connection into the Exchange Sales' Electronic System and provide equal conditions of sale for the sales' participants. The Exchange shall not bear responsibility for the capacity for work of a Terminal with technical characteristics and equipment building independently selected and used by the sales' participants.

33. In case of a work in mode of remote access the Exchange shall provide the sufficient number of ports for connection of the remote sales' participants.

34. At the Exchange there shall be the Instruction determining the conditions, requirements and technical characteristics at performing the connection into the Exchange Sales' Electronic System and the sales' participants' working within it in mode of the remote access. The Exchange shall not bear responsibility for the capacity for work and carrying capacity of the communication channels independently selected and used by the sales' participants.

35. The system shall be subject to service only by the staff-members  being specialists in the given field and obligatorily possessing the experience of work with the similar systems at length of not less than three years.

36. The Rules of the Exchange Sales performed within the ESES system approved at the established order shall be provided being at presence.

VIII. EXPERT EXAMINATION OF THE EXCHANGE SALES' ELECTRONIC SYSTEMS

37. The main purpose of conduct of the Expert Examination is the ascertainment of the applicability of the ESES within the Exchange Markets of the Republic of Uzbekistan. The Expert Examination shall be performed by the state body authorized to regulate the Exchange Activity. In case of need the according specialists of other institutions may be involved.

38. The main tasks of conduct of the Expert Examination of the ESES are being:

•  ascertainment of the conformity to technological processes for information processing within the STs to conditions and requirements of legislation regulating the Exchange activity in the Republic of Uzbekistan;
•  ascertainment of the conformity of the ESES to the Information Security requirements;
•  ascertainment of the software and information compatibility between the applied STs of the ESES with the functioning automated systems providing the complete cycle of the operations performed at the Exchanges;
•  putting in good order the software product being applied and control over the new kinds of software purchased or elaborated by the Exchanges.

39. The applied (purchased or elaborated) STs aimed at automation of the Exchanges' activities shall be subject to the Expert Examination.

40. For conduct of the Expert Examination, the Programmer's Manual, the Operator's Manual, the Program[‘s text and other documents shall be presented.

41. Revised ESES (with changes entered or new versions) shall be subject to a new Expert Examination. In such cases the Expert Examination shall be carried out only at a part concerning the changes and additions. At that documents related only to the revised ESES's components. ESES versions changed in consequence of changes and additions into the normative acts shall be presented for an Expert Examination within the three months  since the moment of entrance into force of those  changes and additions.

42. For application of ESESs not having primarily gone through an Expert Examination, sanctions in accordance with the current legislation may be applied towards  the guilty Exchanges.

43. Inconsistency between ESES's information processing technology and terms and requirements of legislation of the Republic of Uzbekistan non-observance of the requirements ESES' information security or the software and information incompatibility  of the ESES being inculcated discovered in process of Expert Examination over the ESES, shall be considered as inconsistency to the licensing requirements and conditions thus being a basis for refusal for issue of a license for performing the Exchange Activity.

44. At a discovery of inconsistency between an ESES and the requirements of the present Regulations as well as other normative acts (as a result of changes or introduction of new requirements) an order indicating the discovered inconsistencies and period for their elimination shall be sent to an Exchange to which previously a license for performance of the Exchange activity  was given.

45. The conclusion on Expert Examination done over an ESES may be subject to a decision appeal by an Exchange in order established by the legislation.

IX. CLOSING PROVISION

46. The present Regulations have been agreed with the Uzbek Agency for Telecommunication and Informatization.