Rules of Trading on the Interbank Foreign Exchange Market through the Automated Trading System of the National Bank of the Kyrgyz Republic

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Approved by the Resolution of the Board of Directors of the National Bank of the Kyrgyz Republic No. 10/16 dated March 28, 2013

Rules of Trading on the Interbank Foreign Exchange Market through the Automated Trading System of the National Bank of the Kyrgyz Republic

(In the edition of Resolutions of the Board of Directors of the National Bank of the Kyrgyz Republic dated April 26, 2017 No. 17/3, August 30, 2017 No. 2017-P-09/39-7-(DCP), December 14, 2022 No. 2022-P-09/78-14-(NPA), and April 2, 2026 No. 2026-P-09/20-4-(NPA))

1. GENERAL PROVISIONS

1. These Rules of Trading on the Interbank Foreign Exchange Market through the Automated Trading System of the National Bank of the Kyrgyz Republic (hereinafter - "the Rules") define the procedure for conducting foreign currency operations on the interbank foreign exchange market of the Kyrgyz Republic through the Automated Trading System of the National Bank of the Kyrgyz Republic (hereinafter - "ATS").

2. These Rules are developed by the National Bank of the Kyrgyz Republic (hereinafter - "National Bank") to promote the development of an efficient, reliable, transparent and liquid interbank foreign exchange market through the functioning of the ATS.

3. The conditions and rules established by the Regulation on the Operation of the Automated Trading System of the National Bank of the Kyrgyz Republic (hereinafter - "Regulation on ATS Operation") apply to these Rules.

4. These Rules regulate the procedure and principles of conduct for Trading Participants when concluding deals through the ATS, based on the principles of fair competition and ensuring equal rights for all Trading Participants.

5. Trading Participants in the ATS are commercial banks of the Kyrgyz Republic meeting the requirements of paragraph 14 of these Rules. The National Bank is a Trading Participant with a special status.

6. A Trading Participant may conduct the following types of deals through the ATS in its own name for its own account and in its own name on behalf of clients for their accounts: • purchase-sale of non-cash foreign currency for non-cash Kyrgyzstani som (hereinafter - "som"); • purchase-sale of cash foreign currency for som; • purchase-sale of non-cash foreign currency on swap terms, where one of the exchanged currencies is som.

7. A deal concluded through the ATS, by agreement of Trading Participants, does not require mandatory signing of a written contract for such deal, and the fulfillment of obligations under the deal is carried out in accordance with the procedure and conditions established by these Rules. Trading Participants may conclude separate bilateral contracts regulating detailed settlement conditions for deals.

8. Relations regarding concluded deals between a Trading Participant and the National Bank are governed by these Rules and the corresponding bilateral General Agreement on the procedure for conducting operations through the ATS and settlements between the National Bank and Trading Participants, as per Appendix 1 to these Rules.

9. When concluding deals through the ATS, a Trading Participant must be guided by these Rules.

2. DEFINITIONS AND TERMS

For the purposes of these Rules, in addition to those specified below, definitions and terms established in the Regulation on ATS Operation apply:

10. Deal Date – a trading day on which a deal is concluded in the ATS.

11. Settlement Date – a trading day on which funds are credited/entered into the Trading Participant's accounts in accordance with the conditions of the concluded deal in the ATS.

11-1. Compliance Check – internal measures, procedures and control systems applied by financial institutions to comply with legislation on countering the financing of criminal activities and money laundering (AML/CFT).

(In the edition of Resolution No. 2026-P-09/20-4-(NPA) dated April 2, 2026)

12. Foreign Currency Purchase-Sale Deal – the conclusion of an agreement between a seller and buyer of foreign currency, whereby one party agrees to sell foreign currency, and the other agrees to buy foreign currency at an agreed price and under agreed conditions.

13. Foreign Currency Swap Deal (Swap) – the conclusion of an agreement for currency exchange, whereby one party agrees to exchange foreign currency for the other party's national currency with an obligation for the reverse exchange of principal amounts and accrued interest through a pre-agreed term.

3. ACCESS TO TRADING

14. To obtain access to trading in foreign currencies in the ATS, a commercial bank must submit a letter of intent for obtaining access to trading in foreign currencies in the ATS to the National Bank and meet the following requirements: • hold a license from the National Bank for conducting banking operations in national and/or foreign currency and have permission to purchase and sell (exchange) foreign currency in its own name and to conduct operations on foreign currency accounts for clients and to purchase (exchange) foreign currency on behalf of a client;

(In the edition of Resolution No. 2017-P-09/39-7-(DCP) dated August 30, 2017) • (Expired in accordance with Resolution No. 2017-P-09/39-7-(DCP) dated August 30, 2017) • hold a correspondent account in national currency at the National Bank; • hold a correspondent account in foreign currency; • submit to the National Bank the Trading Participant's Undertaking as per Appendix 2 to these Rules; • submit to the National Bank the Power of Attorney for Dealers authorized to conclude deals in the ATS as per Appendix 3 to these Rules; • meet technical requirements necessary for connecting to the ATS; • not be in processes and/or procedures provided by the Law of the Kyrgyz Republic "On Banks and Banking Activity" (Temporary Administration, Bank Liquidation).

(In the edition of Resolution No. 2022-P-09/78-14-(NPA) dated December 14, 2022)

By a separate decision of the Board of Directors of the National Bank, Participants undergoing processes and/or procedures provided by the Law "On Banks and Banking Activity" may also be admitted to trading in the ATS.

(In the edition of Resolution No. 2022-P-09/78-14-(NPA) dated December 14, 2022)

15. The Trading Participant's Undertaking and the Power of Attorney for Dealers are signed by the head of the executive body of the commercial bank with first signature rights.

16. The Power of Attorney for Dealers is provided by a Trading Participant at the beginning of each new calendar year and remains valid until the end of that year. In case of changes to the dealer composition, the Trading Participant must submit a new Power of Attorney for Dealers.

4. GENERAL PROCEDURE FOR CONCLUDING DEALS

17. The schedule for trading sessions for foreign currency purchase-sale deals and swap deals is established in accordance with the Regulation on ATS Operation.

18. The procedure for settlement of foreign currency purchase-sale deals and swap deals is established in accordance with the Regulation on ATS Operation.

19. The type of foreign currency available for concluding deals in the ATS is determined by the National Bank.

20. A Trading Participant may conclude deals in the ATS using the following trading mechanisms: ■ Negotiation Module; ■ Anonymous Trading Module.

21. The Negotiation Module ensures the purchase-sale of foreign currency based on bilateral negotiations between seller and buyer. Orders in the Negotiation Module can be submitted with the following order types: • "Negotiation" order type - implies discussion of deal conditions and requires approval by both Trading Participants. The initiating Trading Participant ultimately approves the order, and the deal is considered concluded; • "Deal" order type - expresses a firm intention of the initiator to conclude a deal under the specified conditions and does not require further discussion. Approval by the initiator is not required. A Trading Participant wishing to fulfill this order concludes a deal by selecting the "conclude deal" menu command.

22. The Anonymous Trading Module ensures purchase-sale of foreign currency in anonymous trading mode, and the ATS automatically concludes received orders on a "buy cheaper, sell dearer" principle. Orders are always anonymous and do not contain information about the Trading Participant who posted them. A deal does not require approval by both Trading Participants. Simultaneous posting of "buy" and "sell" orders by one Trading Participant is automatically rejected by the ATS.

23. In the Negotiation Module, a Trading Participant can select the order attribute "Divisible/Indivisible". The "Indivisible" attribute means that the order can only be fulfilled in full. The "Divisible" attribute means that the order can be fulfilled either fully or partially.

24. In the Anonymous Trading Module, all orders have the "Divisible" attribute.

25. The ATS allows selecting a settlement date equal to the current trading day or later.

26. A Trading Participant may modify and/or cancel a submitted order in the ATS only if no deal has yet been concluded for that order.

5. PROCEDURE FOR CONCLUDING BUY-SELL DEALS

27. To conclude a foreign currency purchase-sale deal in the ATS, a Trading Participant may submit orders via the Negotiation Module and Anonymous Trading Module.

28. To conclude a foreign currency purchase-sale deal in the ATS, a Trading Participant needs the following information: • type of currency; • order direction (for sale and/or for purchase); • foreign exchange rate (specified to four decimal places); • order amount in foreign currency (specified to two decimal places); • order amount in som (automatically recalculated); • settlement dates for foreign currency and som.

29. The minimum permissible order volume in the ATS for US Dollars is 50,000 (fifty thousand) US Dollars. For other foreign currencies, there is no minimum permissible order volume in the ATS.

30. When registering a purchase-sale foreign currency order in the Negotiation Module, Trading Participants determine settlement dates for each currency of the deal: • settlement date for som; • settlement date for foreign currency.

31. In the Anonymous Trading Module, a Trading Participant cannot determine settlement dates for deal currencies. All settlements are carried out on the current trading day.

6. PROCEDURE FOR CONCLUDING SWAP DEALS

32. To conclude a swap deal in the ATS, a Trading Participant may submit orders only via the Negotiation Module.

33. To conclude a swap deal in the ATS, a Trading Participant needs an order direction (for sale and/or for purchase) specifying the following information: • type of currency; • exchange rate for foreign currency in the initial part (specified to four decimal places); • exchange rate for foreign currency in the final part (specified only if there is no interest rate for foreign currency and som); • interest rate for foreign currency and som (specified only if there is no exchange rate for foreign currency in the final part); • order amount in foreign currency (specified to two decimal places); • order amount in som (automatically recalculated); • settlement dates for foreign currency and som of the initial and final parts.

34. When registering a swap order, Trading Participants determine settlement dates for each currency of both parts of the swap deal, including: • settlement date for som of the initial part; • settlement date for foreign currency of the initial part; • settlement date for som of the final part; • settlement date for foreign currency of the final part.

35. The settlement date of the final part of a swap deal cannot be less than or equal to the settlement date of the initial part.

36. When registering a swap order, the ATS automatically inserts into the fields for exchange rates of the initial and final parts of a swap deal a value equal to the official foreign currency rate effective on the date of concluding the swap deal. A Trading Participant may change the value of the current official foreign currency rate.

37. The ATS automatically calculates interest on a concluded swap deal. The interest accrual period for a swap deal is defined as the time interval expressed in calendar days, calculated from the day following the debit/credit of funds in national/foreign currencies to the day of reverse debit/credit of funds in national/foreign currencies, inclusive.

38. A Trading Participant may modify the following conditions of a previously concluded swap deal before the period in which the ATS automatically completes the swap deal arrives, and requires approval of the modified conditions by both Trading Participants: • early termination; • extension.

39. Upon early termination of a swap deal, the ATS automatically recalculates interest taking into account the early termination.

40. Upon extension of a swap deal, the ATS automatically recalculates interest taking into account the extension period.

7. PRINCIPLES OF CONCLUDING DEALS

41. A Trading Participant concludes deals strictly based on posted orders.

42. When concluding deals in the ATS, Trading Participants must observe the following priorities: • when posting a purchase order by a Trading Participant, a deal is concluded first with the Trading Participant offering a lower sell rate than the buy rate and up to a rate equal to the buy rate; • when posting a sell order by a Trading Participant, a deal is concluded first with the Trading Participant offering a higher buy rate than the sell rate and up to a rate equal to the sell rate; • when there are multiple orders with identical currency rates, the Trading Participant who posted the order at that rate earlier has priority, regardless of the displayed currency volume. In case of purchase/sale of currency not in full from the initially displayed volume, a deal is concluded with the next Trading Participant based on the order posting time.

43. A Trading Participant is prohibited from: • colluding to manipulate foreign exchange rates; • exerting direct or indirect pressure on other Trading Participants to change their market behavior; • disseminating knowingly false information among other Trading Participants to influence the market situation; • using non-standard vocabulary, expressing insults towards Trading Participants, providing comments on deals.

44. A Trading Participant bears full responsibility for the correctness and confidentiality of deals concluded by dealers/controllers of that Trading Participant.

45. In case of a Trading Participant's violation of paragraphs 42 and 43, the ATS Administrator sends them a warning notice.

46. Repeated violations by a Trading Participant of paragraphs 42 and 43 are grounds for suspending their access to trading.

47. If a Trading Participant intentionally fails to conclude deals on posted orders, thereby hindering the deal conclusion process in the ATS, any other Trading Participant has the right to apply to the ATS Administrator via the ATS negotiation system with a statement regarding such Trading Participant. The ATS Administrator, via the ATS negotiation system, sends a warning notice to the hindering Trading Participant requiring conclusion of a deal or cancellation of the order. Failure by such Trading Participant to comply with the warning notice is grounds for suspending their access to trading in the ATS.

8. RIGHTS, OBLIGATIONS AND LIABILITY

48. The rights and obligations of Trading Participants and the National Bank are determined in accordance with these Rules and the Regulation on ATS Operation.

49. A Trading Participant, having signed the General Agreement, confirms their consent with the deal conclusion conditions outlined in these Rules and undertakes not to refuse fulfillment of obligations under concluded deals.

50. A Trading Participant must timely carry out all necessary actions to ensure the availability of the corresponding amount of funds in national currency on their correspondent account at the National Bank to enable the ATS automatic execution of settlements for national currency by concluded deal on the corresponding settlement date.

51. A Trading Participant must timely carry out all necessary actions to credit the corresponding amount of funds for cash/non-cash foreign currency on the corresponding settlement/completion date.

52. A Trading Participant has the right to apply to the ATS Administrator with a statement regarding non-fulfillment of obligations by one of the Trading Participants, providing corresponding supporting documents. Upon confirmation of non-fulfillment, the ATS Administrator may suspend access to trading in the ATS for the Trading Participant who failed to fulfill their obligations until full fulfillment.

53. Non-fulfillment of a Trading Participant's obligations under a deal includes: • absence of sufficient funds in national currency on the Trading Participant's correspondent account at the National Bank on the corresponding settlement/completion date; • incomplete and/or untimely crediting of the corresponding amount of funds in foreign currency to the Trading Participant's correspondent account on the corresponding settlement/completion date.

54. The National Bank bears no responsibility for settlements in foreign currency between Trading Participants.

9. FINAL PROVISIONS

55. The procedure for concluding deals on the interbank foreign exchange market of the Kyrgyz Republic through the ATS is governed by these Rules and the Regulation on ATS Operation.

56. Amendments and additions to these Rules may be made by the National Bank to improve the process of concluding deals on the interbank foreign exchange market of the Kyrgyz Republic through the ATS.

Appendix 1 to the Rules of Trading on the Interbank Foreign Exchange Market through the Automated Trading System of the National Bank of the Kyrgyz Republic No. ______ dated "______" _____________ 2012

Standard Format GENERAL AGREEMENT BETWEEN THE NATIONAL BANK OF THE KYRGYZ REPUBLIC AND A COMMERCIAL BANK ON THE PROCEDURE FOR CONDUCTING OPERATIONS THROUGH THE AUTOMATED TRADING SYSTEM OF THE NATIONAL BANK OF THE KYRGYZ REPUBLIC AND SETTLEMENTS

Bishkek No. _________________ dated "_" ______________ 20__

The National Bank of the Kyrgyz Republic, hereinafter referred to as "National Bank", represented by ________________________________, acting on the basis of ______________________________________, on one part, and ______________________________, hereinafter referred to as "bank" or "Participant", represented by ____________________________________, acting on the basis of ___________________________ on the other part, together hereinafter referred to as "Parties", based on the Regulation on the Operation of the Automated Trading System of the National Bank of the Kyrgyz Republic (Resolution of the Board of Directors No. ____ dated _________________) and the Rules of Trading on the Interbank Foreign Exchange Market through the Automated Trading System of the National Bank of the Kyrgyz Republic (Resolution of the Board of Directors No. ____ dated _________________) (hereinafter - Regulation and Rules), have concluded this General Agreement on the procedure for conducting operations through the Automated Trading System of the National Bank (hereinafter - General Agreement) as follows:

1. Subject of the General Agreement

1.1. The subject of this General Agreement is to define the conditions and procedure for regulating legal relations arising from conducting operations on the interbank foreign exchange market through the Automated Trading System of the National Bank of the Kyrgyz Republic (hereinafter ATS) between the National Bank and a bank that is one of the trading participants in the ATS.

1.2. The provisions of this General Agreement apply to the following types of deals through the ATS: • purchase-sale of non-cash foreign currency for non-cash Kyrgyzstani som; • sale by the National Bank of cash foreign currency for non-cash Kyrgyzstani som.

1.3. Definitions and terms used in this General Agreement are analogous to those defined in the Regulation and Rules.

2. General Conditions

2.1. A deal concluded through the ATS does not require mandatory signing of a written agreement for such deal.

2.2. Crediting and debiting of funds in national currency to the corresponding accounts of the bank and National Bank is carried out by the ATS via correspondent accounts in national currency.

2.3. Settlements for operations on the interbank foreign exchange market through the ATS in national currency funds are carried out: • via the National Bank's account in national currency - "Account for Foreign Currency Operations". Details of "Account for Foreign Currency Operations": No._____________________ • via the bank's correspondent account at the National Bank "Correspondent Account of the Bank". Details of "Correspondent Account of the Bank" No._____________________________

2.4. Crediting of funds in foreign currency to corresponding accounts is carried out independently by the bank and National Bank.

(In the edition of Resolution No. 2026-P-09/20-4-(NPA) dated April 2, 2026)

2.5. Settlements for each type of foreign currency are carried out by the bank through one registered correspondent account in the ATS for each type of foreign currency.

2.6. In case of changes to foreign currency account details, the Parties undertake to notify each other immediately in writing, signed by authorized officials, no later than the day of concluding the deal.

(In the edition of Resolution No. 2026-P-09/20-4-(NPA) dated April 2, 2026)

2.7. Transferring an incomplete amount of funds when conducting settlements for non-cash and cash deals in the ATS is not permitted.

2.8. When crediting and debiting funds via the bank's correspondent account at the National Bank, all conditions and rules established by the legislation of the Kyrgyz Republic and bilateral contracts establishing correspondent relations between the National Bank and the bank, as well as this General Agreement, apply to the bank.

2.9. In cases where the settlement date for a deal concluded in the ATS is declared a non-working day in the Kyrgyz Republic or in the currency-issuing country, funds are credited on the next working day.

(In the edition of Resolution No. 2026-P-09/20-4-(NPA) dated April 2, 2026)

3. Conducting Settlements for Deals with Non-Cash Foreign Currency

3.1. Receipt of non-cash funds in foreign currency and national currency into corresponding accounts must be carried out on the corresponding settlement date according to the conditions of the concluded deal.

3.2. In cases where the National Bank sells non-cash foreign currency to a bank, the ATS transfers funds in national currency from the bank's correspondent account at the National Bank to the "Account for Foreign Currency Operations" on the corresponding settlement date.

3.3. After fulfilling the conditions of paragraph 3.2 of this General Agreement, the National Bank transfers funds in foreign currency to the foreign currency account...