/KASE, April 22, 10/ - Kazakhstan Stock Exchange (KASE) published on its
website the following press release "On creation of Kazakhstan Association of
Securities Dealers" at
http://kase.kz/files/press/ru/releases/10_04_21_KASD.pdf
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Today, on April 21, 2010, the national stock market largest operator announced
creation of Kazakhstan Association of Securities Dealers (KASD).
The Association creation was initiated by BTA Securities, Verniy Capital, RESMI
Finance & Investment House, Kazkommerts Securities, Centras Securities,
Troika Dialogue Kazakhstan, Halyk Finance, supported by Financial Institutions'
Association of Kazakhstan, Kazakhstan Stock Exchange and Central Securities
Depository, which together with above organizations plans to become the KASD
member.
The Association main goal is to introduce into the Kazakhstan stock market
practice high professional behavior ethical standards based on the mutual
acknowledgment and confidence, and deliberate observance of legal norms,
exchange trades and settlements rules, customs of honest business. Therefore,
only those organizations that have the long-term positive reputation, recognized
on the securities market will be admitted to the KASD membership.
The main prerequisite of KASD creation became the critical situation related to
the confidence in the domestic stock market operator on behalf of both their
services users and the professional community. This situation can be briefly
characterized as follows:
- the rapid increase in previous years of the licensed market participants
number and their employees without ensuring the business behavior quality
(as the "newcomers" often did dishonest business and did not have an
understanding of being honest)
- regular cases of making negotiated deals and prices manipulation, non-
fulfillment of obligations on deals made (including through using those
mechanisms, which initially were introduced by the regulator and the
exchange to advocate investors interests)
- introduction to the market participants minds of the principle "fast money at
any cost", ignoring of honesty and fair competition
- the lack of efficient ways of joint protection of rights and interests of market
professional participants and their clients in case of defaults on corporate
bonds
- distribution on the securities market of aggravating mutual and overall
suspicion
Retention of mentioned and other signs affects the national financial system,
including efforts made to attract new issuers and investors to the market. Given
these conditions KASD creation demonstrates that the stock market of
Kazakhstan has robust forces able to consolidate and restore the trust to the
young and developing market.
The Association objectives is to form and implement business behavior
standards, control of these standards observation by KASD members, active
involvement to documents drafting, defining the strategy and tactics of the
domestic stock market development, creation of the system of traders and other
specialists attestation/certification to operate on the securities market.
Possible area of KASD activities - creation of the arbitrate to consider disputes
and discords between the Association members.
So far KASD nearest plans include forming of constituent documents, registration
as a legal entity, forming of internal regulations and procedures.
It is proposed that the Association Council will be entered by S. Akhanov, E.
Abdrazakov, K. Damitov, A, Joldasbekov, A. Elemessov, T. Isataev, K.
Mazhibaev. KASD will be managed by the Association President and A.
Joldasbekov was proposed as the candidate to this position.
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[2010-04-22]