Board of Directors approves new internal document of KASE "Regulations on Membership Fees, Exchange Charges and Clearing Fees"

17.07.18 17:52
/KASE, July 17, 2018/ – By the decision of the Board of Directors of the Kazakhstan Stock Exchange (KASE or the Exchange) dated July 13, 2018, new internal KASE document "Regulation on Membership Fees, Exchange Charges and Clearing Fees" (Regulation) was approved. The Regulation will become effective on the date when KASE starts operating as a central counterparty in the foreign exchange market, which will be announced additionally. The Regulation was developed due to the forthcoming start of operation of KASE as a central counterparty on the Exchange's foreign exchange market and splitting of revenues from this market into the Exchange's membership fees as an organizer of trading and into clearing fees of the Exchange as a clearing organization that acts as a central counterparty in the foreign exchange market. In order to optimize the structure of the rules of the KASE, the Regulation combines the norms of the two existing documents: Regulation on Membership Fees and Exchange Dues and the Regulation on Clearing Fees. The Regulation stipulate five payment schemes for membership fees and clearing fees for KASE members of "currency" category: • three schemes for all participants of the foreign exchange market of their choice; • one scheme for the National Bank of the Republic of Kazakhstan; • one scheme for brokerage firms. In accordance with the Regulation, commission fees in the foreign exchange market are not set and are not chargeable. For market-makers of the foreign currency market, the Regulation has set preferences for payment of a monthly membership fee - 50% of the amount for a market maker on the US dollar and 100 MCI for a market maker on another foreign currency. At present, the following fees and charges are levied on KASE foreign currency market: - (at the option of trades participants) monthly membership fee of 400 MCI without additional payment of commission fees or 300 MCI with payment of commission fees from monthly net position of 0.05% of the net position value reduced by US $3 mln; - monthly membership fee of 200 MCI without additional payment of commission fees for the market maker for the US dollar; - monthly membership fee of 300 MCI without additional payment of fees for a market maker for another foreign currency; - monthly membership fee of 125 MCI without additional payment of commission fees for the National Bank of the Republic of Kazakhstan; - monthly membership fee of 50 MCI with an additional payment of commission fees of 0.0005% of the amount of each transaction for brokerage firms. The Regulation establishes a fee for the extension of the trading day and fee for the extension of the clearing session (currently there is a general fee for the extension of the operational day). The amount of the fee is kept at the same level: 10 MCI for the first case during the calendar month, 20 MCI for the second, and 50 MCI for subsequent cases in the same month. In addition, the Regulation stipulates that clearing fees for repo transactions with netting are levied on each deal, which is part of such transaction (at present, fees are collected only from the closing repo transaction). The fee rate was increased to 0.0005% from 0.0000065% of the transaction amount. Other provisions of the Regulation including the rates of contributions and fees, as well as the procedure for their payment comply with the current norms established by the Regulations on Membership Fees and Exchange Dues and the Regulation on Clearing Fees. Regulation on Membership Fees and Exchange Fees and Regulation on Clearing Fees will be declared no longer in force on the first working day following the date of introduction of the Regulation. The regulation will be published on the KASE website soon. [2018-07-17]