KASE's Board of Directors approves amendments to Rules of Executing Clearing Activities on Deals in Financial Instruments

30.06.20, 15:43
/KASE, June 30, 2020/ – By a decision of the Board of Directors of Kazakhstan Stock Exchange (KASE) of June 29, 2020, changes and additions No. 6 (amendments) to KASE's internal document "Rules of Executing Clearing Activities on Deals in Financial Instruments" (Rules) were approved. Said amendments will be put into effect from the date of commissioning of the second release of the trading and clearing system ASTS+ on the stock market, which will be announced additionally. Said amendments were made for purposes: - clarification of the concept of a voluntary provider applicable only to a client clearing account; - clarification of the concept of checking the adequacy of collateral on a full coverage basis; - exception of setting the rate of the limit for price change on financial instruments due to the introduction/availability of other risk parameters of the central counterpart's risk management system that controls the market risk of financial instruments; - change in the mechanisms of recognizing clearing participants as unfair and insolvent in case of failure to meet the Exchange's requirements for partial collateral due to different temporary procedure of making the Exchange's requirements for collateral in various exchange markets; - transfer of authorities to the Exchange's Management Board on determining the frequency of reviewing the risk parameters within the framework of the Exchange's Management Board approval of the Methodology for determining risk parameters; - describing the procedure for transferring coupon interest or dividends on repo transactions with the central counterpart and transferring coupon interest on transactions of bonds purchase and sale from one clearing account to another if the register of securities holders is fixed during the repo transaction period or between the date of conclusion and the settlement date of the purchase-sale transaction; - describing the procedure of settlements related to transfer of trading involving transactions without the central counterpart to the trading and clearing system ASTS+; - changing the price thresholds in the range of which the Exchange, with the participation of providers, carries out forced liquidation procedures; - describing the procedure of resolving the default of net obligations on securities subject to redemption; - cancelling the establishment of limits on open positions for all clearing participants of the derivatives market and replacement with the Exchange's right to establish such limits in an amount determined in accordance with the decision of the Exchange's Management Board for any clearing participant of the derivatives market, if there is information about the deterioration in the financial condition of the clearing participant or other information that may affect the ability to fulfill obligations on transactions; - describing the procedure of opening and using clearing and trading and clearing accounts for concluding transactions without the central counterpart due to the transfer of trading on transactions without the central counterpart on a gross basis to the trading and clearing system; - liquidation of inaccuracies. The updated Rules will be released soon on KASE website. [2020-06-30]