KASE intends tighten the requirements for market-makers

/IRBIS, Sep 29, 00/ - Kazakhstan Stock Exchange (KASE) intends to tighten requirements for securities market-makers. The Exchange Council approved new wording of normative document "Market-makers activity rules" that was admitted on meeting of KASE members holding "K", "P", "H" categories on Oct 1999 and approved by resolution of Directorate of National Securities Commission #462 dated Oct 26, 1999. According to new wording, securities market makers (MM) will be responsible for untimely and incorrect execution of their obligations over specified instruments. For untimely execution of requirements (repeated three times) to set obligatory quotations, the MM must pay fee of $100 in Kazakhstan tenge. The refuse to set quotations according to the specification will be punished by canceling of the MM status and fined on $1000. The refusal is considered to be valid if MM refuses to set quotations during 5 minutes, unless this is not specified. If MM violate the order of voluntary refusal from the status he is fined on$1000. This order assumes a procedure of application including setting obligatory quotations during next ten days. The same requirements have been already applied to the MM of the US dollar. At that time market was not so organized to require to tight measures. The Exchange Council assumes that presently MM institution is well developed. There are ten MM on the market including 1 in the forex market, 7 securities market and 2 in GS market. At present conditions these measures will lead to more liquidity on the market. The new wording of Market makers activity rules was already submitted to NSC for approval.