Specifications of the new instrument has been approved at KASE - futures contract on AVMEKAM

/IRBIS, Dec.22, 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 specifications of the new derivative financial instrument were approved: futures contract on special currency state bonds. According to the specifications, futures contract is six month delivery futures, with one (standard number of base assets) $1 bond being a base asset for it. Minimal lot of the instrument on KASE - 10,000 contracts. Execution day - last Friday of calendar month. If Friday falls on holiday, then execution day is the next closest working day when the trades in futures contracts are held on KASE. Final settlement price of the instrument is set on the last trade day of the Exchange. The first futures trade day - last Friday of calendar month, which is set apart from the execution day by six months. Last trade day of the Exchange is determined by the specifications as the working day, "preceding the execution day by three working days". This futures contract is going to be quoted in US dollars per share with double digit accuracy. Tic - 0.01. Tic is equivalent to 0.01 US dollars in Kazakhstan tenges, and calculated at weighted average rate of US dollar settled at Exchange trades on the day the settlement price is calculated. There is no limit for settlement price changes. The limit for the share of the market is 20% and used if this particular account has an opened position for sale or purchase of 3 mln or more contracts. Deposit margin rate equals 3% of the cost of opened position at the price of an opened position. Guaranteed fee does not exceed 1% of the cost of the contract with the minimum number of guaranteed fees - 500,000. Exchange's fee on this instrument is 0.5 US dollars for purchase and sale of 10,000 contracts, including execution of the contracts. Commission is collected by KASE once a month. Commission is recalculated in tenge at an official rate of the National bank of Kazakhstan effective on the last working day of the month where the futures operations were held. Code of the futures to be used in trade system of KASE will contain ten symbols: Х1Х2Х3Х4Х5Х6Х7Х8Х9Х10, here Х1 - code of the futures - "F"; Х2Х3Х4Х5 - code of AVMEKAM (AMKM); Х6Х7Х8Х9 - execution date of the futures (Х6Х7 - year, when the futures should be executed, year 2000 is shown as 00, Х8Х9 - month, when the futures is executed); Х10 - "D" - code of the futures, which indicates that the futures is executed by delivering the base assets. Information on the beginning of the trades in new financial instrument, and the calculation system of the deals and the system of fulfilling contractual obligations will be given additionally.