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

/IRBIS, Jan.26, 00/ - By the decision of meeting of the currency market Exchange Council Committee of Kazakhstan stock Exchange dated January 25 of this year the Rules of US dollar market-maker's activity, KASE's normative document was changed. In particularly, the following changes were made in Specifications of US dollar market-maker's status, amendment 3 to the Rules: Requests to the market maker are toughed. The member of the Exchange, claiming to US dollar market-maker status, should have shareholders' equity equal to or exceeding 10 mln USD in Kazakhstani tenges (5 mln USD before). The market maker responsibilities are also edited. The monthly market maker member's due is reduced to equivalent of $500 from $1,500. US dollar market-maker has now the following responsibilities: - maintaining at least one firm quotation for buy and one firm quotation for sale in the KASE Trade system during additional session (11:30AM - 3:00PM Almaty time, since Feb.01, 00 - 11:30AM - 15:00PM, TOD terms); - supporting the spread between the best mandatory quotations not more than 0.05 tenge for net-positions to $1 mln and 0.10 tenge for net- positions to $2 mln. At that the volume of the mandatory quotation, available for the transaction during the whole day should be not less than $300,000. The volume can be less if the mandatory quotation satisfaction can result in excess net - item of market maker of volume $ 2 millions. Another variant is also possible: - supporting the spread between the best mandatory quotations not more than 0.1 tenge for net-positions to $2 mln. At that the volume of the mandatory quotation, available for the transaction during the whole day should be not less than $1 mln. The volume can be less if the mandatory quotation satisfaction can result in excess net - item of market maker of volume $ 2 millions. - at the mandatory quotations canceling or satisfaction, within 1 minute to maintain a new mandatory quotations (45 second - before). The US dollar market maker rights are changed insignificantly. The lunch break is increased: instead of one hour from 1AM:00 till 2:00PM - 12:30AM till 2:00PM. However since February 01 the day time session, during which the market maker should execute the responsibilities, will last to 3:30PM Almaty time (to 3:00PM before). The market maker responsibility was not changed. Section concerning exemption from responsibilities was essentially changed. According to new edition the market maker of US dollar has the right to not execute the mandatory quoting and spreads of the mandatory quotations maintenance in the following cases: - banks - operators of the exchange market are establishing in the interbank market quotations with spread not less than 0.25 tenge. For the given situation definition the REUTERS data are used; - state bodies of Kazakhstan are changing the legislation of republic, which can affect the exchange market of Kazakhstan; - the events occurring on the Kazakhstani territory or somewhere can affect essentially the internal exchange market of Kazakhstan. At that the market maker will receive the right to not execute the indicated responsibilities only after the information from KASE. In turn, the appropriate decision can be made by the Board of KASE - till convocation of the Exchange Council Committee.