KAZKOMMERTSBANK (KAZAKHSTAN) FILED APPLICATION TO KASE FOR GIVING IT A STATUS OF A SPECIALIST ON ITS OWN BONDS

/IRBIS, Nov.02, 99/ - Today OJSC "KAZKOMMERTSBANK" (Kazakhstan, Almaty) applied to KASE with an application for giving it a status of an specialist on non-state issued securities (NIS) - its own bonds (KZ72KA7B9A11, KASE official list of securities, category "В", trade code KKGBb) from November 1, 1999. Specialist on NIS at KASE is a variety of a market-maker. The market makers activities at KASE are regulated by a new internal normative document "Regulations of market makers activities", which is authorized by a resolution #462, dated October 26, 1999, of regulatory structures of KASE and the Directorate of the National Securities Commission of Kazakhstan. According to these regulations, a market-maker status on each NIS is given to KASE member for each securities separately. Depending on the requirements, obligations and rights, relevant to market-makers on NIS, two categories of market-makers on NIS exist - specialist and market-maker itself. Each of the securities can have several market-makers, but only one specialist. When giving a status of a specialist on a certain securities to some KASE member, the market-makers on this particular securities lose their status automatically upon activation of specialist's status. A status of a specialist to some member of the stock exchange can be given on securities which had no specialists before, or after taking the status from KASE member, who acted as such previously. KASE member, who claims to a status of a specialist on a particular securities, should meet some criteria based on: - size of its shareholders' equity; - a license of NSC to engage in brokerage and dealing activities on stock market; - following a quotation procedures of the securities on which it is chosen to be a specialist (complex of these requirements is intended to provide a stability on the market for this financial instrument). Along with these, a specialist is entitled with certain rights and has privileges with commissions. Application of OJSC to give it a status of a specialist on NIS - is the first case on KASE. In the opinion of the stock exchange and the applicant, a specialist on OJSC securities can revive the market for this financial instrument. Issue of bonds of OJSC ($30 mln for 2 years with a coupon of 10% paid semiannually, denominated in US dollars, for the residents of Kazakhstan is serviced in tenge) was registered by the NSC on August 11, 1999. On August 31, 1999 the bonds were entered into KASE official list of securities in category "A". Since then no deals were made at KASE, despite practically daily quotations.