New redaction of "Settlement process on securities deals regulation" come into effect at KASE since July 1

/IRBIS, June 15, 00/ - As it had been informed before, the new redaction of "Settlement process on securities deals regulation" (Regulation) internal normative document was approved by "The exchange trade rules approval" resolution of the Board of Directors of KASE from June 8, #621, 2000. This redaction was approved by the decision of the general meeting of KASE members holding "K", "P", "H" category at May 18. It will come into effect from July 1 according to the Boards decision from June 15, #54/0. The new redaction of the Regulation represents completely revised version of the previous document. Following are the main fundamental revisions and innovations: The legal base to conduct settlements according to the net-position of the trade participant in securities sector (so called netting) was developed at KASE for the first time. The same system are currently being operated at KASE in the forex sector. After the implementation of the system, trader will only conduct settlements according to the operational balance during the day. The regulation stipulates that the list of securities to be traded at KASE using the netting will have to be defined by the Board of KASE. The new redaction also contains legal base for reduction of payments terms in private issue securities sector traded on KASE. This applies only to the securities settled under "T+3" scheme. The regulation also stipulates the order of settlements in PIS traded under "T+2", "T+1", and "T+0" schemes. One more innovation will allow brokers to independently back up rejected payments with the purpose to conduct payments more effectively. The payments might be rejected by the securities market's entities controlling the execution of the payments and the solvency of the parties.