KASE HAS DEVELOPED SPECIFICATIONS OF US DOLLAR MARKET-MAKER'S STATUS

/IRBIS, Dec.20, 99/ - By the decision of joint meeting of the Board and the Committee of KASE board council for currency market dated December 19 of this year new normative document of the Exchange was approved - amendment 3 to "Rules of market-makers' activities": "Specifications of US dollar market-maker's status". The document is enacted from January 1, 2000. Status of US dollar market-maker is given by the Board of KASE based on applicable application submitted by the member of the Exchange. The member of the Exchange, claiming to US dollar market-maker status, should have shareholders' equity equal to or exceeding 5 mln USD in Kazakhstani tenges. US dollar market-maker has following responsibilities: - maintaining at least one firm quotation for buy and one firm quotation for sale not less than $300 thousand in the Trade system of KASE during additional session (11:30AM - 3:00PM Almaty time, TOD terms); - resumption of mandatory quotation in case of its removal or satisfaction within 45 seconds; - supporting the spread between the best mandatory quotations not more than 0.05 tenge for net-positions of USD1 mln and 0.10 tenge for net- positions of USD2 mln. Net-position means the difference between purchase and sale volumes of US dollars by the market-makers on current day session, in absolute values. US dollar market-maker has following rights: - not to fulfill his/her obligations from 1:00PM to 2:00PM Almaty time; - change the prices of mandatory quotations previously set provided the requirements for the spreads are met; - neglect the mandatory quotation if the market-maker's net position reached 5 mln US dollars. If an extraordinary situation emerges in the market, US dollar market-maker has the right to take a time-out not exceeding 15 minutes and not to put mandatory quotations during this time. Time-out right is granted only once per trade day. Benefits, granted to US dollar market-maker, concern the commission of the Exchange. Member of KASE, who received a status of US dollar market- maker, is free from paying the commission for trades in US dollars at KASE within any session no matter what kind of payment and delivery is used. He pays a fixed membership fee of $1,500 monthly. Responsibility of US dollar market-maker means the system of fines paid to the Exchange if some or other violations of the terms stipulated in the Specifications of US market-maker status.