KASE makes changes and additions in the exchange trade Rules

/IRBIS, Oct.08, 99/ - On October 07, 1999 the KASE's Council has made modifications and additions in the exchange trade Rules and in the Applications to them. Changes and the additions were made in the text of Rules of exchange trade on the basis of the requirements, stated in the "Rules of securities trade organizers activity" (called further "Rules of trade organizers"), authorized by the resolution #19 of the National Securities Commission of Kazakhstan (NSC) of December 23, 1998, and according to the changes made by the NSC resolution #28 of April 09, 1999. In a general part of the Rules: - the list of concepts is extended; - the order of distribution of KASE's information is regulated; - cases of obligatory trade suspending are established. The Rule of listing is added by a concept "the admission Initiator". The list of securities, allowed to trade without a listing procedure, is complemented. According to the Rules of trade organizers the requirements to the listed companies are specified. The delisting reasons are complemented. Henceforth delisting will be made in next cases: - recognition of the securities issue not holding; - if volume of trade in the shares during a year has made a volume smaller, than 0.5% from the sum of issue; - market - makers absence. The order of a voluntary delisting is reconsidered. The order of listing commission formation by the KASE's representatives is simplified. The order of the first trades opening is reconsidered. According to developed variant of Rules of market-makers activity on the Non-state Securities market it is offered to establish two categories of market-makers: the experts and simple market-makers. The distinction between these categories consists in the different degree of responsibility and measures of their stimulation. According to Rules, the expert duties are: - maintenance of spread of own quotations in volume no less than 3%; - maintenance of minimum volume of quotations not lower than 50,000 US dollars; - implementation of the requirements for market price fluctuations smoothing. Duties of the market-maker are: - maintenance of spread of own quotations in volume no less than 3%; - maintenance of minimum volume of quotations not lower than 50,000 US dollars. The Rule provides more essential stimulation of the experts than of market- makers. In the Rule of membership on KASE it is offered to refuse the membership contracts. The written offer of the KASE members candidate about his consent with the internal Exchange's documents will carry out the role of the contracts. Requirement to the KASE members to grant to the Exchange the quarter financial reporting and obligatory information about all sanctions, imposed on them by NSC or by Stock Exchanges is established. According to Rules of the trade organizers, some changes will be implemented in the Order of accounts. In particular it is planned to forbid on KASE the transaction, whose accounts can be made through the independent registrars. (However at the present time more than 90% of all transaction are concluded by such way). With introduction of a market-maker institute it is offered to change system of the Exchange's taxes collection. Changes, accepted by the KASE's Council are brought in the NSC for consideration and co-ordination. For implementation of the updated normative documents, the changes should be authorized by the General Meeting of the KASE and NSC members.