Published
08/06/2026, 18:09On 3 August, President Sadyr Zhaparov signed the law ‘On Commodity Exchanges’. The document is intended to replace the current regulations,which were adopted back in 1992, and effectively rebuild the system of organised commodity trading in Kyrgyzstan.
The Financial Supervisory Authority announced the signing of the law. The authority stated that the legislation is intended to increase transparency in the commodities market, strengthen protection for market participants and create conditions to attract investment.
The main change lies in the transition from general regulation of exchanges to the creation of a fully-fledged electronic trading infrastructure. According to the parliamentary version published, commodity exchanges will be required to operate as public limited companies, and trading must take place via electronic systems.
A Unified State Register of Commodity Exchanges is to be established to keep track of all trading platforms. Specific requirements will be imposed on their capital, financial stability and management. Exchanges will also be required to submit quarterly and annual financial statements in accordance with international standards and to report any breaches or disruptions to the regulator.
Settlements for exchange transactions must be made in KGS. Trading platforms will allow transactions in physical commodities, as well as the use of futures and options – instruments that enable the price of a future delivery to be fixed in advance.
Trading will be able to take place in two modes: a standard auction and a double matching auction. In the latter case, the electronic system automatically matches sellers’ and buyers’ orders, determining the price based on supply and demand.
Another new feature will be a guarantee fund. This is intended to ensure the fulfilment of concluded transactions and reduce the risk of a seller not receiving payment or a buyer not receiving the goods for which they have paid. Settlements and the parties’ obligations will be managed through a clearing system.
Commodity exchanges will also be authorised to conduct public procurement of exchange-traded commodities. The procedure for such procurement and the list of products are to be determined by the Cabinet of Ministers. Furthermore, the government will be able to set a minimum batch size or the proportion of certain goods that must be sold through organised auctions.
In practice, this should make prices more transparent: exchanges will be required to publish price quotes on their websites. Businesses will be able to see the actual market prices at which goods are bought and sold, rather than relying solely on private agreements between individual suppliers and buyers.
