АVМЕКАМ MARKET MAKER WILL APPEAR ON KASE SOON

/KASE, Oct.28, 99/ - the Kazakhstan Stock Exchange informs, that in the near future the first official market maker will appear in the АVМЕКАМ sector of the State Securities (SS) secondary market. Most likely, it will be the State Accumulate Pension Fund (SAPF). The state currency bonds АVМЕКАМ (KZ55L0804A42, circulation 6 years, coupon rate 6.14%p.a., US dollars denominated) were issued on April 12, 1999 with the purpose of protection of accumulative pension funds (PF) against devaluation. АVМЕКАМ were entered into circulation by exchange of the not indexed SS from the PF portfolios. As a result the main volume of these obligations has appeared in the SAPF portfolios. Because of small yield these securities were unpopular and almost did not trade in the market. Now the Exchange Council and the Members Assembly have developed and have authorized the new normative document "Rules of market maker activity on KASE". They also have developed and have approved the responsibility and right of the members of exchange, which have the АVМЕКАМ market maker status. The normative documents are handed for the approval to the National Securities Comission (NSC). Introduction of the АVМЕКАМ market maker status should increase volumes of trade in this financial tool. It is an urgent question, because the yield of these securities has increased in the last time and varies now from 15.0 to 15.4% p.a. in a hard currency expression, that is beyond comparison with other SS. According to the new normative documents the market makers are obliged within all trade day to support in the KASE's trade system the firm purchase and sale quotes of АVМЕКАМ. They also are obliged to support the minimum volume of the obligatory quotation ($10,000 in the АVМЕКАМ nominal value), accessible to the deals at the any moment of trade day. There are also obligations concerning spread - the difference between the supply and demand prices should not exceed 3% from the quotation value. Besides the Rules provide some requests, which should help to maintain the stable АVМЕКАМ market. From the market maker's privileges the main is the right to half of a brokerage, which will be paid to exchange by the all АVМЕКАМ buyers.