Kazakhstan's stock market is still quite young compared to the U.S. or European markets. It is difficult to compare it with large global developed markets such as Forex. If we consider the history of the development of markets, the volume and quantity of instruments offered, it is obvious that not so many of them are traded here in Kazakhstan. Liquidity is quite low and there are some regulatory restrictions inherent in emerging markets.
Individuals and legal entities can trade on the stock market and on the derivatives market of KASE via Internet using STrade, a software product for the stock market. Besides, there are other systems provided by brokers - members of the Exchange.
STrade is a trading terminal through which the clients of a broker, who is a member of KASE, can submit client orders to buy or sell financial instruments traded on KASE via Internet.
For more information on STrade product developed by eTrade.kz, a subsidiary of KASE, please follow the link.
Yes. Workshop announcements are published in the news feed. Besides, everyone can get familiarized with KASE Training Trading System and try their hand at stock trading in real time using virtual money.
You can learn it here.
To buy or sell securities on the stock exchange, you should contact an organization that is a member of the Exchange by the relevant category. The list of the Exchange members with membership categories, addresses and telephone numbers is published here.
To purchase STrade online trading system, you need to contact the broker, who is a member of KASE and who provides online trading services to his/her clients. The list of such brokerage firms is available here.
In accordance with the Law "On the Securities Market" of the Republic of Kazakhstan, only professional participants of the securities market can conduct activities in the securities market. The Exchange is an organizer of trading and it serves as a platform, where professional participants of the market buy and sell securities.
The stock exchange can issue and sell its securities as an issuer, as well as buy and sell securities of other issuers as an investor through an authorized broker.
Securities may be included in the Official List of the Exchange or admitted to trading in the "Non-Listed Securities" sector.
The procedure for including securities in the Exchange’s Official List is set by the Listing Rules.
The procedure for admittance of securities to trading in the "Non-Listed Securities" sector is established by the Rules of Admittance of Securities to the Non-Listed Securities Sector.
No. In accordance with the legislation of the Republic of Kazakhstan, only members of relevant categories of the Exchange are entitled to participate in trading sessions conducted by the Exchange, including when they act in the interest and at the expense of third parties i.e. their clients. Individuals can participate in trading only through brokerage firms that are members of the Exchange.
Listing requirements are established by the Resolution of the Board of Directors of the National Bank of Kazakhstan "Requirements for Issuers and Their Securities being Admitted (that have been admitted) to Trading on the Stock Exchange and also for Certain Categories of Stock Exchange's List" No. 189 dated October 22, 2014 and by the Listing Rules.
There are no differences. Listing requirements to foreign and Kazakh issuers and their securities are uniform and they established by the Resolution of the Board of Directors of the National Bank of Kazakhstan "Requirements for Issuers and Their Securities being Admitted (that have been admitted) to Trading on the Stock Exchange and also for Certain Categories of Stock Exchange's List" No. 189 dated October 22, 2014 and by the Listing Rules.
In accordance with Article 14 of the Listing Rules, the admittance initiator should submit an application for including securities in the Exchange’s Official List under the relevant category and a package of documents, the list of which is established by Article 24 of the Listing Rules.
The list of documents is defined in paragraph 8 of the Rules for Admittance of Securities to Trading in the "Non-Listed Securities" sector.
The deadline for the Exchange to consider an application for including securities in the Official List and for preparation of relevant conclusion is set by Article 14 of the Listing Rules.
In accordance with Article 14 of the Listing Rules, the conclusion on the possibility of including securities in the Exchange's Official List or on giving the Exchange’s consent to include the bonds intended for issuance in accordance with the legislation of a country other than the Republic of Kazakhstan in the Official List or on the possibility to transfer securities from the lower category of the Official List to a higher category should be prepared within twenty business days following the date of the acceptance of relevant application for consideration.
If an issuer and/or its securities fail to comply with the listing requirements, the substantiated refusal to accept the application for consideration should be prepared within five working days from the date of the decision.
Trading in securities opens based on the statement of the admittance initiator of these securities and their market-maker (if in accordance with the listing requirements the availability of a market-maker is mandatory).
If within three months of the date of entry into force the decision of the Listing Commission on including the securities in the Official List, no trading has opened, an issue of delisting these securities will be brought up at the next meeting of the Listing Commission.
A listing agreement established responsibilities and liability of the admittance initiator on the disclosure of information while the securities are present on the Official List, as well as the terms of keeping confidential information by the Exchange.
The Exchange provides listing agreement after accepting the application for including securities in the Official List for consideration.
For including securities in the Official List and for ensuring their presence in the list, the issuer of these securities must be annually audited by one of auditing firms that meet the requirements for audit firms established in Appendix 1 to the Regulations on the Board of Directors' Committee on Financial Reporting and Auditing of Issuers.
The list of audit firms recognized by KASE and relevant requirements for audit firms is set by Appendix 1 to the Regulations on the Board of Directors' Committee on Financial Reporting and Auditing of Issuers is published here.
Preliminary conclusion is provided according to Article 13 of the Listing Rules.
In accordance with Article 11 of the Listing Rules, the issue of including securities of a non-financial organization in the Exchange's Official List is considered only if a financial advisor took part in the preparation of the documents of such non-financial organization for obtaining the Exchange’s conclusion on the possibility to include the securities in the Official List.
For financial institutions, as well as for those organizations, whose securities are listed under a simplified procedure, it is not necessary to have a financial adviser.
Under Article 11 of the Listing Rules, only those members of the Exchange, who are eligible to participate in trading in corporate securities included in the Official List and who have a license to conduct brokerage and dealing activities on the securities market under the first category (with the right to maintain clients' accounts as a nominee holder) can act as financial advisors.
The Exchange does not give any recommendations on the choice of a financial adviser.
In accordance with the Rules of Defining Amounts, Terms and Payment Procedure for Listing Fees and similar fees, the Exchange charges the following types of listing fees:
*for consideration of an application for including securities in the Official List (transferring securities from lower category of the Official List to a higher one) – 0.025 % of the value defined by paragraph 9 of the Rules of Defining Amounts, Terms and Payment Procedure for Listing Fees and similar fees with a minimum fee of 100 monthly calculations indices (MCI) and with a maximum fee of 1,000 MCI. If the Listing Commission refuses to include the securities in the Official List, this fee will not be refunded;
*entrance listing fee comes to 0.025% of the value defined by paragraph 9 of the Rules of Defining Amounts, Terms and Payment Procedure for Listing Fees and similar fees with a minimum fee of 100 MCI and a maximum fee of 3,000 MCI. This fee is charged for including securities in the Official List. When securities are transferred from the lower category of the Official List to a higher one, the maximum fee is 1,250 MCI;
*annual listing fee comes to 0.025% of the value defined by paragraph 14 of the Rules of Defining Amounts, Terms and Payment Procedure for Listing Fees and similar fees with a minimum fee of 100 MCI and a maximum fee of 2,000 MCI. This fee is charged for each year of presence of the securities on the Official List.
Information on issuers’ ratings is published on the Exchange's website at http://kase.kz/en/emitters.
The admittance initiator of these securities will be the payer of listing fees unless otherwise is stated in the application on including securities in the Official List. If the admittance initiator of these securities is not the payer of listing fees, written consent of an actual payer of listing fees to assume the obligation to pay listing fees must be provided to the Exchange.
Using T+2 scheme Kazakhstan Stock Exchange trade participants are getting an opportunity to exercise securities transactions using partial prefunding and making final payment for obligations derived from these transactions on the second day following the transaction date. This opportunity will allow not only to reduce transaction costs of the participants, but also to facilitate better managing of their assets during several working days before the settlement date. Generally T+2 is considered a standard scheme in the international markets and is fully compliant with the requirements of the International Organization of Securities Commissions, IOSCO, based on which the maximum period between the date of transaction conclusion and the date of settlement should not exceed three days. Advantages of T+2 scheme over T+0 scheme are: first, future transaction obligations can be financed partially instead of full financing; second, T+2 scheme that is new for our trade participants, is conventional for international trade participants and their clients. As such T+2 scheme is intended to increase liquidity of shares traded under this regime both via increased participation from Kazakhstan trade participants and via attracting international trade participants.
Yes, in addition to current commission fee, a clearing fee will be charged on the transactions with securities made according to T+2 settlement scheme. The rate of the clearing fee will be 0.001% of the transaction amount, which is payable by each party of the transaction.
Assets (securities and money) of trading participants recorded in relevant accounts in the Central Securities Depository, which acts as a settlement organization on the stock market that operates under the T+2 settlement cycle, will be used not only to pay for obligations arising from concluded transactions, but also to ensure future transactions. Therefore, participants’ ability to withdraw assets will depend on the adequacy of required assets on the accounts of these participants. It will be possible to withdraw only that part of assets that makes up the difference between the total amount (number) of assets on a separate account and the amount (number) of the assets blocked as collateral for transactions, including future transactions. In any case, each asset withdrawal request submitted by a participant to the Central Depository will be redirected to the Exchange, and only if the asset adequacy is successfully verified, the participant will be allowed to withdraw the assets.
The positions generated as a result of submission of orders and conclusion of transactions, which actually represent the number of securities (the amount of money) accounted for at the trading account ( money account) of the trading participant, are recorded in the section of each trading account in the Exchange’s trading system. Such accounting is done automatically in the trading system. Orders submitted to the trading system form a planned position, the deals concluded form current (open) position and have an impact on the change of the planned position.
The settlements on transactions with securities concluded according to T+2 settlement scheme are conducted by the Central Depository on the T+2 day after the close of trading and after the clearing session until 7 p.m. Almaty time. Trading participants must deposit assets by 5.20 p.m. Almaty time on the T+2 day.
Yes. Risk management system and mechanisms to regulate defaults used by KASE are designed to minimize the consequences of such failure to deliver assets. In any case, the participant to whom the obligations have not been fulfilled will receive cash equivalent of the expected assets, which may be will consist of both margin and guarantee fund contributions of the insolvent participant, and funds of the Exchange’s reserve fund created specifically to cover liabilities of insolvent participants.
The transfer of title to securities will be held based on the results of settlements on the T+2 day.
Only after the shares will be credited to its account i.e. two days after the transaction date. In other words, if the date of fixing the register for payment of dividends on shares of any name falls on the two days following the date of the transaction to buy shares, the person, who acted in this transaction as the seller, will have the right to receive dividends until the time when shares are deposited to the account.
With shares in the KASE Index universe.
Current KASE trading system. It is currently being modified to support the new T+2 scheme.
Commissions and clearing fees are debited in the same way as fees for transactions made according to T+0 settlement scheme, i.e. monthly based on the invoices issued by KASE according to relevant procedure.
No, assets are accounted for in one account of the trading participant. It means that the trading participant has a single position for accounting for assets related to transactions made according to both T-0 and T+2 settlement schemes.
The settlement date for T+2 settlement scheme will be the second working day after the transaction date. For example, if the transaction was made on Friday, the settlement date will be Tuesday next week. If Monday is a day off, the settlement date will be postponed from Tuesday to Wednesday.
Any order submitted to KASE trading system for executing a trade transaction with securities should at least be secured by an initial margin taking into account the margin rate on the securities in respect of which the order is being submitted. Sell order can be fully secured by securities based on the number of such securities in the order.
No, they can't. All orders to conclude opening deals in the market of repo with netting must be fully secured? The reason for this is that the opening deals are settled on the day when such transactions are made.
The transition period will last at least 30 calendar days. The date of the beginning of the transition period will be announced further.
No, they won't.
A trading participant who failed to meet its obligations on the transactions it has made will be declared insolvent and will be required to pay a penalty of 0.1% of the amount of outstanding obligations for each day when the default was addressed. taking into account the number of days.
Yes, it is possible. That part of obligations, which was not fulfilled on T+2 day, will be fulfilled within the following days as part of the default regulation procedures including forfeits.
The margin consists of the initial margin and maintenance margin. Initial margin rates are set depending on the volatility of securities, i.e. the lower the volatility of the security, the lower the rates on this security. The maintenance margin makes up 80% of liabilities on the initial margin. The initial margin rates are set in accordance with the internal methodology for calculating risk parameters of the Exchange and are available to trading participants in the trading system. For example, if the initial margin rate is 15% and the share price is 1,000, then the amount of the initial margin will be 150 and the maintenance margin will be 120. However, if the share price rose to 1,050 the next day, then the amount of the initial margin calculated at the same rate would be 157.5 and the required maintenance margin fee would be 126. This difference of 6 (126-120) is the reason for the margin call, for which the participant must contribute additional 6 on its margin account to restore the initial margin balance to the required level.
Yes, there is. Repo transactions on the repo market with netting, which will be launched around the same time as the launch of trading according to T+2 settlement scheme, are designed to help trading participants attract assets required for settlement at acceptable rates with the transfer of title to the subject of repo transactions from a seller to a buyer and with settlements of opening transactions on the date of these transactions (T+0). Closing transactions are calculated on T+1 day, which provides for the possibility to transfer positions. The results of opening and closing repo transactions are included in the overall netting together with the results of trade deals concluded under T+2 scheme.
Yes, they can, but only if they are trading orders to sell or orders to make repo opening transactions in the repo market with netting. In both cases, the collateral is 100%.
The collateral is calculated at the margin fee rate of the maximum planned position in absolute terms: sale or purchase. If they are not equal to zero, then the collateral will not be equal to zero.
Yes. The rates of margin contributions for securities are calculated based on the volatility of these securities and are set in the trading system once a day before the start of trading. Depending on changes in the volatility of securities, the rates of margin contributions will be revalued and the rates would be updated.
Yes. They are taken into account. For example, if the margin is 10%, then the remaining 90% must be supplied to the accounts in the Central Depository on the settlement date in order to settle liabilities.
During the transition period, when there will be two settlement cycles T+2 and T+0 in place at the same time, non-government securities traded under T+2 settlement scheme will be assigned temporary codes, for instance, "ABCD_T2."
DvP-3. DVP (Delivery versus payment) is the method for settling transactions with securities, where securities and money are exchanged simultaneously. In the DVP-3 model, settlements are made by way of netting of payment and securities transfer liabilities.
In the Procedure for Making Transactions on the Stock Market under the T+2 Settlement Scheme available at http://www.kase.kz/files/normative_base/por_t2.pdf
There are four different ways to connect to MOEX TCS:
Terminal connection using *Trade SE International application;
*using ASTS Bridge;
*using FIX protocol;
*using FAST protocol.
Detailed instructions on how to connect using each of the above methods can be obtained here. For each type of connection, you need to create separate accounts in MOEX TCS.
To create test account with MOEX TCS, you must send written email request to the KASE Support Service.
To obtain test keys, you must send free-form request to email@example.com indicating company name and contacts.
Positions will not be synchronized. New cash and financial instruments must be credited to the new ASTS+ trading system. Some positions must be left in the old AST trading system for open obligations to be executed on the settlement day.
In the Central Depository, each trading participant and its client have a personal account with two sections: "Main (AVAIL)" and "Exchange (KASE)". If financial instruments are in the AVAIL section, their balances will make to the old AST trading system. If financial instruments are in the Exchange (KASE) section, their balances will make to the new ASTS+ trading system. The software WKS Depositor provided by the Central Depository is used to transfer financial instruments between sections. For issues related to charging financial instruments to test accounts, please send written request to the Central Depository by email to BerkutalimovT@kacd.kz.
The Exchange opens a correspondent account in the Central Depository. Money is deposited to the Exchange’s correspondent account by a transfer from a bank account in the Central Depository or other sources (through Kazakhstan Interbank Settlement Centre (KISC)) using WKS Internet Banking software of the Central Depository or by sending SWIFT (MT) message to the Central Depository (for trading participants not using WKS Internet Banking software. Cash descriptor must be specified in the "Purpose of Payment"box:
*OWNI – Own money;
*CLTI – Client – aggregated money;
*KASI – Custodial – aggregated money;
To withdraw money, you must send an XML file (the message structure is described in the examples) to the Exchange via eTransfer software. Messages should be sent using test eTransfer (220.127.116.11:5500) for user SKASE004 (test user KASE). Cash withdrawal is available in KZT and USD from the following trading accounts:
from own account (S+/OWNI);
from customer aggregated account (L+/CLTI);
from client account (I+/ CLTI/I+1*********);
from custodial aggregated account (K+/KASI);
from custodial client account (C+/ KASI/С+1000000000).
Transferring money to one client account (I+/C+): ASTS TS – Menu – Action – Transfer Application – Enter for Money (Shift+F6) – Enter Transfer Options (Write off from L+/K+, Credit to I+/С+) – Enter Application.
Transferring money to large number of client accounts (I+/C+): ASTS TS – Menu – Action – Enter package... (Ctrl+F2) – Money Transfer Tab – Download – Select file with prepared template – Check the list of downloaded package (‘trading account’ box - L+/K+, ‘partner trading account’ box - I+/C+) – Enter whole package
Transferring money from one client account (I+/C+): ASTS TS – Menu – Action – Transfer Application – Enter for Money (Shift+F6) – Enter Transfer Options (Write off from I+/ C+, Credit to L+/K+) – Enter Application.
Transferring money from large number of client accounts (I+/C+): ASTS TS – Menu – Action – Enter package... (Ctrl+F2) – Money Transfer Tab – Download – Select file with prepared template – Check the list of downloaded package (‘trading account’ box - I+/C+, ‘partner's trading account’ box - L+/K+) – Enter whole package.
All accounts will be automatically transferred to the new system.
Transactions with the CCP will be made in the ASTS+ TS with trading and clearing accounts (TCA):
*with S+ prefix on a clearing member’s own money;
*with I+ prefix on the transactions of clients of the Broker/Bank as a broker;
*with С+ prefix on the transactions of custodian’s clients.
In the new trading system, all accounts opened in the Central Depository will be tied to accounts created for making deals. For trading in the interests of the Custodians’ clients according to the scheme "at the custodian client’s expense", Authorized Trading Participant must provide an application from a trading participant to open a second-level clearing account to the Exchange in accordance with Appendix 5 of the Rules for Conducting Exchange Activities.
A clearing member, who is a user of the Control and Support System (Custodian) and whose accounts will be used for settlement of transactions concluded by the Authorized Trading Participant with second-level TCAs, must provide the Exchange with an application of clearing member to appoint an authorized trading participant (a broker) for its clearing account in accordance with Appendix 2 of the Rules for Clearing Transactions with Financial Instruments.
For trading in the interests of the Custodians’ clients according to the scheme "at a broker’s expense" from a separate account or for separating transactions and positions made using own TCA S+ or client’s TCA I+, trading participants may provide the Exchange with an application of trading participant on opening second-level TCA in accordance with Appendix 5 of the Rules for Conducting Exchange Activities.
Loading instruments, one market and one regime. After successful authorization, you need to select required "Market" in the left side of a dialogue box that pops up and then select "Regime" in the right side of the dialogue box;
Loading instruments, several individual markets or regimes. After successful authorization, in the left side of a dialogue box that pops, you need to select several required markets holding down the Ctrl key, and then whilst keeping the Ctrl key held down select several required regimes in the right side of the dialogue box;
Loading instruments, several consecutive markets or regimes. After successful authorization, you need to select several consecutively displayed markets in the left side of a dialogue box that pops holding down the Shift key, and then whilst keeping the Shift key held down select several consecutively displayed regimes in the right side of the dialogue box;
Loading all instruments of the ASTS+ TS. After successful authorization, in the dialog box that pops up, you need to press the combination of the keys Ctrl+A, all markets in the left side of the dialogue box and all regimes in the right side of the dialogue box will be selected.
The security check (partial or full) will be carried out in the context of each client.
No, this option is not available in the ASTS+ TCS.
No, double order cannot be entered in the ASTS+ TCS. Buy and sell orders must be sent separately. Batch entry of orders is possible.
Changes will be made to the ASTS+ TCS to calculate the spread between the yield values.
There will be no time for preliminary trading. During the adaptation period (one calendar month) the Management Board of the Exchange will consider the issue of non-application of sanctions to a market-maker on securities traded in ASTS+ TCS, provided for by the Rules on Market Makers’ Activities.
Yes. To do that you need to go to the Service → Order control settings → Set
Yes. If a user is a market maker on the instrument in respect of which he/she is entering an order, relevant check will be automatically set in the order entry dialogue box. To do this, you need to go to the Service - Settings - Customized settings and check "Check the checkbox "Market-maker's order for market maker' securities".
On financial instruments listed on the "main" section the balances will appear in the AST trading system and on financial instruments listed separately in "KASE" section they will appear in the new ASTS+ TCS.
The table ‘Transactions’ is cleared daily. Information on all repo transactions made during previous and current trading days is available in the Table "Transactions for execution". Information on net positions, liabilities and claims is available in the tables "Liabilities and Claims for Money" "Liabilities and Claims for Securities" and "Liabilities and Claims for Assets".
Three transactions are displayed when one repo transaction is completed:
*repo parent trade → depending on the direction of S/P (sell/purchase) trade or P/S (sell/purchase) trade;
*first part of the repo trade RP1 → depending on the direction of the S (sell) or P (purchase) trade;
*second part of the repo trade RP1 → depending on the direction of P (purchase) or S (sell) trade;
It is possible to change closing date for direct repo transactions In ASTS+ TCS to an earlier date.
When transactions are concluded with the securities on the T+ list before clearing, settlement position changes (you need to either add it in the table "Cash positions" or scroll to the right). Based on clearing results (at the end of the clearing session), planned position changes in money terms and the settlement position is adjusted to the same amount, the incoming position changes in terms of securities and the settlement position is adjusted for the same amount.
The change of a single limit is not essential when repo transaction is concluded. Due to the fact that until you have withdrawn money or securities from a clearing account based on the settlement results, assets to be received on the first leg are still accounted for as collateral and do not lead to a change in a single limit. At the time of the transaction - it is only a interest-rate risk, which is not significant. The change occurs when money or securities are withdrawn.
Because this security is traded on the terms of partial collateral; the "Y" settlement code with method of security means control of partial collateral when an order is submitted.
The exchange certificate will not be sent via new trading system ASTS+. It will be available through eTransfer software.
You can control balances on the current date both in terms of money and the securities on any trading and clearing account in the tables "Cash position" "Position on instruments in securities accounts," as well as on any settlement date in three tables "Claims and Liabilities" in column "Planned T+". "Planned T+" shows projected available balance on relevant settlement date taking into account all transactions concluded before that settlement date.
It is possible to set descriptors "Banning of unsecured sales" and/or "Banning of unsecured purchases" on any own or client’s trading and clearing account. To transfer trading and clearing account to trade with full prepayment of arising liabilities on securities, a ban on short selling in the Table-Trading Accounts is set. Full prepayment of arising monetary liabilities "Banning of unsecured purchases" is set in the Table-Settlement Codes.
FIX service consists of three independent services:
trading service: MFIXTrade is intended for entering and cancelling orders and receiving reports on their execution *in main trading modes;
*information service: MFIXTradeCapture is intended for obtaining information about trades including negotiated deals, repo transactions, execution reports and margins;
*information service: MFIXDropCopy, which is intended for obtaining reports on processing orders and transactions of major trading regimes.
Instructions on ExecutionReport must be tracked in MFIXDropCopy.
All technical questions should be emailed to KASE Support Service.