THE COLLECTIVE AGREEMENT ABOUT ACTIVITY OF PARTICIPANTS IN THE ORGANIZED INTERBANK MONEY MARKET
1. General provisions
1.1. The parties have signed the present Agreement, being guided by aspiration of efficient operation with temporary free money resources. 1.2. The present Agreement (further - "Agreement") about activity of Participants in the Organized interbank money market (further - «OIMM») establishes and regulates an order of information interchange and realization of operations on placing-attraction of interbank credits in national and foreign currencies as a current supply and demand in the organized interbank money market. 1.3. The terms used with the text of the given Agreement are resulted more low:
With the purposes of uniform understanding of terms, during arbitration proceeding, and also in negotiations and during correspondence it is recommended to use following interpretation of terms:
The bank-participant - is a legal body, participant of OIMM having the corresponding licence of National Bank of the Azerbaijan Republic. The dealer makes operations on its own behalf and at own expense or on its own behalf for the account and on the instructions of the client.
The creditor - the participant, wishing to place the interbank credit.
The borrower - the participant, wishing to involve the interbank credit.
1.4. Operations on OIMM are carried out on the basis of standard demands for placing and attraction under the interest rates established by the creditor or the borrower of the interbank credit (further - "Credit"). 1.5. The credit institution, having corresponding articles in the licence of National Bank of Azerbaijan on carrying out of operations in national and foreign currency, and also signed the Protocol on joining to the Agreement, is considered participant of OICM. 1.6. In the organized interbank money market following kinds of operations can be spent: 1.6.1. Operations on attraction/placing of credit resources in the national currency; 1.6.2. Operations on attraction/placing of credit resources in foreign currency.
2. Participants ÎIMM
2.1. Signing of the Protocol on joining to the Agreement is a commitment letter to operate according to the present Agreement. 2.2. Market participants can be: 2.2.1. The National bank of the Azerbaijan Republic; 2.2.2. A Credit institution having corresponding articles in the licence of the National bank of the Azerbaijan Republic on realization of operations in national and a foreign currency. 2.3. The Joint-stock Closed Type Company “Baku Interbank Currency exchange” (further - “BBVB”) carries out following problems at the organized interbank money market: 2.3.1. working out of rules on realization of operations at OIMM according to the given Agreement; 2.3.2. hardware; 2.3.3. informational supply; 2.3.4. storage of demands, negotiations and bargains; 2.3.5. the organization of electronic documents circulation. 2.4. Participants of OIMM undertake not to use methods of an unfair competition at the organized interbank money market.
3. Council of Participants of the Money market
3.1. Council of Participants of a money market forms for association and coordination of Participants activity at the interbank money market of Azerbaijan. 3.2. Council of Participants of a money market is not the legal body. 3.3. Each Participant, who has signed this Agreement, is presented in Council of participants (further – " Council") by one place. 3.4. Main objectives of Council of Participants of a money market are: 3.4.1. OIMM approves rules of realization of operations; 3.4.2. realization of organizational-practical works in the field of formation of an interbank money market in Azerbaijan; 3.4.3. activity in a direction of formation of a modern infrastructure of an interbank money market; 3.4.4. preparation and introduction of new financial instruments in OIMM; 3.4.5. preparation of offers on unification and document circulation standardization at OIMM; 3.4.6. cooperation with National bank of AR on preparation and improvement of the normative acts regulating the work of OIMM; 3.4.7. modification and additions in the present Agreement, and also preparation and acceptance of other necessary documents regulating current activity of Participants of OIMM; 3.4.8. Realization of representation functions. 3.5. Participants independently define number of Board of Council and the candidate of the Chairman of the Ñouncil. 3.6. Council decisions are recorded and within 3 working days are brought to the notice of all Participants. 3.7. Meetings of Council of Participants are spent not less than 1 time in 3 months. 3.8. Council of Participants defines regulations of accepted decisions.
4. An order to join the Agreement
4.1. The given Agreement is opened for signing. 4.2. To join the present Agreement with reservations is not supposed. 4.3. Duties on acceptance in the present Agreement of new Participants are assigned to Council. In case of introduction of a new Participant into the present Agreement, the chairman of the Council immediately informs the Participants of the present Agreement about it. For acceptance in the present Agreement, the candidate puts in the Statement.
5. An order of an exit from Agreement
5.1. Any Participant has the right to leave the Agreement, having notified the Chairman of the council in writing not less than 30 days prior to exit date. 5.2. The exit from the Agreement is possible only after satisfaction the leaving party of the obligations, which have arisen concerning other Participants of the Agreement, according to position of the present Agreement. 5.3. The Chairman of the Council in case of reception of the statement for an exit from the Agreement, immediately notifies about it the Participants.
6. The term of agreement
6.1. The agreement is permanent. 6.2. The first copy of the present Agreement is stored at the Chairman of the Council, other copies (examples) having identical legal force are transmitted to the parties which have joined the given Agreement.
7. An order of solving the disputes
7.1. The disputes arising between the Participants, are solved by negotiation. If as a result of party negotiations do not come to the consent, dispute is solved according to the existing legislation.
8. Additional positions
8.1. Additions and changes to the present Agreement are accepted from outside Council of Participants of the organized money market within the limits of this Agreement. 8.2. The present Agreement comes into force from the date of signing it by the Participants.
«THE AGREEMENT ABOUT MARKET-MAKERING AND INFORMATION INTERCHANGE IN THE ORGANIZED INTERBANK MONEY MARKET»
1. The basic maintenance of the Agreement
1.1. The present Agreement concerns placing in a database of trading system of the Organized Interbank Money Market (further «ÎIMÌ») estimations according to limits (further "limits") of potential borrowers the minimum credit risks of professional participants-banks (further "markets-makers"), carrying out transactions in electronic system on attraction and placing of credit resources on the special method developed by the Baku Interbank Currency exchange (further «BBVB»). Limit indicators have recommendatory character, and their major importance in uniform system consists in detection of estimation to banks the internal potential possibilities in the money market. 1.2. This Agreement is developed within the frameworks of the Collective Agreement «About activity of participants in the Organized Interbank Money Market» 1.3. Participants of the given Agreement are on the one hand the Baku Interbank Currency Exchange and on the other hand the banks-markets-makers, which have signed the Protocol on joining the given Agreement.
2. The rights and responsibilities of markets-makers
2.1. Markets-makers are obliged: 2.1.1. Not later than 15th day of each month following after accounting month to present to BBVB on magnetic carriers or by e-mail (an e-mail: ton@bbvb.org) the monthly balances in format EXCEL the editor; 2.1.2. Daily not less than on five financial tools ("tool" means the credit with the certain term, involved or placed both in manat, and US dollars) to place in OIMÌ rates on attraction and placing of credit resources both in national, and foreign currencies. If during a business day, any demand responds back it should be replaced the other. The rates placed by markets-makers, are exclusively indicative information, their announcement does not impose any obligations on the conclusion of concrete bargains in ÎIMÌ; 2.1.3. Rates of markets-makers participate at daily account of BakıBİD and BakıBOR indicators in an electronic system of trades; 2.1.4. To place in electronic system of OIMM the rate on attraction and placing of credit resources with a deviation limit of size between attraction and placing (margin) no more than 50 %; 2.1.5. To register in electronic system of OIMM all bargains on attraction and placing of credit resources, which have been made by bank out of ÎIMÌ (i.e. in an unorganized part of the market); 2.1.6. To conduct remittances on giving, return of the credit and calculation of interests according to the decision of Board of the National bank of ÀR from the date 17.07.2002 (the Appendix ¹1) by means of the named below clearing account of BBVB: - ÀZN 0137070001031 in the National bank of the Azerbaijan Republic; 2.1.7. To return credits and accrued charges under the concluded bargains in time till 15:00 hours on the Baku time; 2.1.8. In a case of not realizations of the payment provided by item 2.1.6. of the present Agreement, per every day of delay the fine at a rate of 0,1 % from an amount of credit is levied. The size of the fine should not exceed 3 % of credits. In this case BBVB informs all participants of the present Agreement about the default of the obligations by a borrowing bank. 2.1.9. It is duly to pay BBVB the user's fee for service, represented on the present Agreement and cost of remittances for clearing accounts of BBVB. 2.2. The rights of markets-makers: 2.2.1. to make a bargain in ÎIMÌ not only with markets-makers, but also with the banks, which are not markets-makers; 2.2.2. to limit the list of markets-makers and the banks, which are not markets-makers, to whom the information on their limits will be accessible. In this case markets-makers present this list of BBVB by e-mail (an e-mail: ton@bbvb.org); 2.2.3. to make changes if it is necessary in the given list and to inform about it BBVB.
3. The rights and responsibilities of BBVB
3.1. BBVB is obliged: 3.1.1. Not later than 20th day of each month to present markets-makers limits on a current month; 3.1.2. To dispatch the information on current limits of markets-makers to all markets-makers who have joined the given Agreement; 3.1.3. To keep account of the bargains concluded on ÎIMÌ and in the end of a business day to notify all markets-makers a total sum of the involved credits; 3.1.4. To notify all participants of the given Agreement on the markets-makers completely using the limit; 3.1.5. To notify all participants of the given Agreement on the markets-makers violated conditions of the given Agreement and defaulting the obligations taken on bargains made in ÎIMÌ; 3.1.6. To carry out information support to markets-makers, granting them present information, which can influence financial stableness of participants of the given Agreement; 3.1.7. To inform markets-makers on newcomers and the excluded participants of the given Agreement. 3.2. BBVB has the right: 3.2.1. Not to present trading limits to the markets-makers, who in time have not presented accounting data to BBVB.
4. The Responsibility of the parties
4.1. According to the legislation of the Azerbaijan Republic markets-makers bear responsibility for default or partial default of the obligations under the present Agreement. 4.2. BBVB does not bear any responsibility for fulfillment of the bargains concluded on ÎIMÌ. These obligations concern only markets-makers.
5. Rules of payment
5.1. Markets-makers according to the conditions of given Agreement pay to BBVB for services in presenting of limits in ÎIMÌ to 5th day of current month in advance for established month tariff (the Appendix ¹1).
6. Other positions
6.1. The present Agreement comes into force from the date of its signing by Bank-participant and, all Banks-participants which have joined this Agreement are considered as its members, and receive one copy of the signed Agreement.
6.2. All other questions, which arisen between the Parties and have been not provided by the given Agreement, are allowed according to existing legislation of ÀR and the Collective agreement «About activity of participants in ÎIMÌ».
