BROKERAGE FIRMS WILL BE GIVEN THE RIGHT TO PARTICIPATE IN TRADING IN FOREIGN CURRENCIES ON KASE

21.05.18, 15:32
/KASE, May 21, 2018/-Kazakhstan Stock Exchange (KASE) informs that brokerage 
firms would be provided access to trading in KASE Forex market in the nearest 
future.

Relevant amendments on providing brokerage firms with the right to participate 
in trading in the Forex market were made to the Rules for Brokerage and/or Dealer 
Activities in the Securities Market approved by the Resolution of the Board of 
the National Bank of the Republic of Kazakhstan No. 9 dated February 3, 2014. 
The amendments became effective on April 22, 2018.

Currently, brokerage firms should do the following to gain access to foreign 
currency trading on KASE:

- have a license of the National Bank of Kazakhstan to conduct banking operations 
  in national and foreign currencies;

- go through the procedure of obtaining KASE membership in "currency" сategory.

In accordance with the Regulations on Membership Fees and Exchange Dues 
(Regulations), the entrance membership fee for "currency" category for brokerage 
firms will be 1 500 MCI, monthly membership fee for "currency" category will be 
25 MCI.

Also, the KASE commission fee on foreign currency transactions is set at the rate 
of 0.0005% of the amount of each transaction made by a brokerage firm. If such a 
KASE member is both the seller and the buyer in any transaction, the member will 
pay the fee for this transaction twice, both as a seller and as a buyer.

The following conditions are envisaged for participation of brokerage firms in
the trades on Forex market:

- settlements on trading will be made on conditions of the preliminary delivery 
  of the foreign currency sold and prepayment for the foreign currency bought;

- net purchase amount per day will be limited to a maximum of US $100,000 per one 
  client brokerage firm, the tenge equivalent will be calculated at the official 
  rate of the National Bank of the Republic of Kazakhstan in effect on the day.

At present, a brokerage firm can connect to the  trading system of the stock 
exchange market in a test mode.

As reported earlier, the following amendments were made to KASE internal documents 
in order to regulate the terms for admission of a brokerage form to the stock 
exchange market:

- Membership Regulations – https://kase.kz/files/normative_base/members.pdf

- Regulations on Membership Fees and Exchange Dues  – 
  https://kase.kz/files/normative_base/tariff.pdf

- Rules on Execution of Settlement on Foreign Currency Trading – 
  https://kase.kz/files/normative_base/dmoney.pdf

[2018-05-21]