Clearing activities
Clearing activities for transactions with financial instruments – process of identifying, verifying and transmitting information about requirements and obligations of clearing participants on a net and/or gross basis for transactions with financial instruments
Clearing activities are carried out by KASE Clearing Centre JSC, a part of KASE group of companies, on the basis of license for clearing activities for transactions with financial instruments No. 3.1.8.2 dated July 21, 2023 and license for banking operations No. 4.3.22 dated August 28 2023 issued by the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market.
Today, Clearing Centre is the only organization that carries out clearing activities and provides central counterparty services on the exchange foreign currency and stock markets, as well as the derivatives market.
Clearing Centre carries out clearing activities for transactions with the following financial instruments:
on the stock market – with financial instruments included in the List of financial instruments of the stock market, for transactions with which Clearing Centre carries out clearing activities, approved by the Board of Clearing Centre;
on the foreign currency market – with foreign currencies;
on the derivatives market – with futures
Risk reduction due to the built-in risk management system of the Central Counterparty
Guarantee of execution of transactions of bona fide clearing participants at the expense of the Central Counterparty
Operational efficiency – reduction of transaction costs due to multilateral netting, a single collateral pool
Assessing the risk of one counterparty represented by the Central Counterparty, rather than multiple counterparties
Increasing the liquidity of assets of clearing participants due to a single limit and netting of positions at different maturities and a portfolio approach when margining transactions
Without providing security for discharge of obligations under transactions on a specific exchange market.
This category on any exchange market is assigned only to the NBK
If there is sufficient collateral, formed subject to the Clearing Rules, to discharge obligations under transactions and active orders at these trades
With full provision of obligations under closed transactions and active orders in those financial instruments in which these obligations arose
Central counterparty (CCP) is an infrastructure organization of the financial market that assumes the risk of failure to discharge the obligation of a financial market participant to supply money or a financial asset by becoming the sole counterparty for all transactions with market participants.
Today, Clearing Centre is the only organization that carries out clearing activities and provides central counterparty services on the exchange foreign currency and stock markets, as well as the derivatives market
The Central Counterparty becomes the seller for each buyer and the buyer for each seller:
- With the CPP, the transaction is divided in half in such a way that for the first transaction, obligations arise between the counterparty (seller) and the CPP, for the second – between the counterparty (buyer) and the CPP
- The CCP becomes a legal party to two transactions, while the original transaction between the counterparties, the seller and the buyer, ceases to exist
- The Central Counterparty guarantees discharge of obligations under closed transactions to each bona fide clearing participant, regardless of discharge of their obligations by other clearing participants
Guarantee of execution of transactions, due to the fact that the CCP acts as a party (buyer and seller) in each transaction
1Settlement of outstanding obligations of mala fide participants, through consummation of transactions for transfer of outstanding obligations, between the CCP and such participants
2Reducing costs for participants due to presence of a single counterparty – the CCP and netting of mutual claims and obligations under transactions
3Checking the availability of collateral (single limit) at the stage of entering an application into the trading system
4Settlement of obligations through collateral in money and securities
5Securities included in List T+ are accepted as collateral
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