/KASE, July 30, 2020/ – Kazakhstan Stock Exchange (KASE or the Exchange)
announces that the second release of the trading and clearing system ASTS+
(hereinafter, ASTS+) for the stock market will be put into operation as of
August 3, 2020.
From that date, all financial instruments of the stock market will be traded in
ASTS+. In the trading system, which currently operates on the stock market (the
ACT), trading of financial instruments of the stock market will be closed,
except for the possibility to settle closing repo transactions that were opened
in the ACT before the launch date of the second release of ASTS+.
We remind that the transfer of trading in financial instruments of KASE stock
market from the current trading system to ASTS+ will be done in stages. Starting
December 3, 2019 (first stage) in ASTS+, trading is held:
- shares, securities of investment funds, ETFs - with settlements in tenge;
- Eurobonds, depositary receipts - with settlements in U.S. dollars.
In total, 266 financial instruments (174 issues of securities and 92 automatic
repo instruments) were transferred to ASTS during the first phase.
Eurobonds with settlements in tenge and other financial instruments of the stock
market, including repo market instruments, were traded in the ACT until August
3.
From August 3, 620 financial instruments will be transferred to ASTS+, including
469 issues of securities in the stock market buy/sell sector and 151 instruments
of the automatic repo market.
At the same time, 178 financial instruments will be traded with settlements
T+2. The average daily trading volume of all instruments that will be available
in ASTS+ amounts to KZT411.5 billion (KZT27.3 billion on the stock market and
KZT384.3 billion for automatic repo operations).
From this date, the Exchange will act as a central counterparty on the stock
market for all transactions with all securities, except for repo transactions
with a number of financial instruments settled on a gross basis - for each
individual transaction.
All transactions with the central counterparty will be cleared on a net basis
by determining net positions of clearing members for their execution during
settlement clearing sessions. The Exchange as a central counterparty for such
transactions will guarantee their execution.
Thus, netting of positions of participants in all types of stock market
transactions, including buy/sell and repo sectors will be introduced in the
organized market of the Republic of Kazakhstan for the first time. This will
significantly improve efficiency of liquidity management of the Exchange
members and will lead to the reduction of their transaction costs.
Settlements in money on transactions with a central counterparty KASE will
carry out independently using a correspondent account in the Central Securities
Depository.
The Central Securities Depository remains the settlement organization for
securities on all transactions concluded at KASE, which will be conducted
without participation of a central counterparty, in money and in securities.
Relevant amendments have been made to internal documents of KASE and new
internal documents have been developed, which will be put into effect as of
August 3, 2020 due to the launch of the second release of ASTS+. These
documents are available on the KASE website in section "The Rules for ASTS+"
at
http://kase.kz/en/kase_rules_asts/
In the same section, there are answers to frequently asked questions about work
with the trading and clearing system ASTS+
http://kase.kz/files/mix/faq_asts.pdf
A press release on the event will be published on the KASE website shortly in
the "Press Releases" section -
http://kase.kz/en/press_releases/
[2020-07-30]