FROM AUGUST 15, KASE LAUNCHES TRADING WITH CLEARING PARTICIPATION CERTIFICATES

/KASE, August 8, 2022/ – Kazakhstan Stock Exchange (KASE, or the Exchange) announces that from August 15, 2022, a new version of the ASTS+ trading and clearing system will be commissioned, which provides for the possibility of making repo transactions with the central counterparty (CCP) with clearing participation certificates. Clearing Participation Certificates (CPCs) are non-issue collateralized perpetual securities issued by the Exchange and certifying the right of their holders to a share in assets held in a specially created guarantee fund of KASE – a property pool. On August 15, one issue of the CPCs will start circulation. It will be backed by a property pool, formed by contributions from the participants of this pool – members of the Exchange, who, having joined the relevant agreement, accepted the terms of this issue. The issued CPCs will be transferred to the specified members of the Exchange (clearing participants). During the circulation period of this issue of CPC, their holders will be able to manage the number of CPCs at their disposal by contributing assets to the property pool and withdrawing from it on the terms determined by the Exchange. Money in tenge and US dollars, as well as securities can be used as contributions to the property pool of a CPCs issue. The current list of assets allowed to be included in the property pool will be published daily on KASE's website. CPCs can be used by their holder as collateral for repo transactions, as well as collateral for transactions with other securities. The use of repo with CPCs provides a trading participant with the opportunity to effectively manage collateral for transactions with the CCP and replace property previously contributed to the pool before the expiration of the repo transaction. At the same time, the value of the contributed assets must correspond to the value of the assets to be replaced. In order to ensure the issuance and circulation of CPCs, following decisions of KASE's Board of Directors and Management Board, respective amendments and new internal documents of the Exchange, which come into effect from August 15, 2022: - changes and additions No. 16 to the Rules for execution of clearing activities on deals with financial instruments; - changes and additions No. 11 to the Rules for execution of exchange activities; - changes and additions No. 5 to the Rules for execution of REPO Transactions in the ASTS+ trading and clearing system; - changes and additions No. 11 and changes No. 12 to the Regulations on trading and operation of the control and collateral system; - changes and additions No. 3 to the Specification of repo transactions carried out by the "automatic" method; - addition No. 5 to the Lists of Trading Modes and Operations of the ASTS+ trading and clearing system; - changes and addition No. 10 to the Instruction on the procedure for assigning codes to members of Kazakhstan Stock Exchange JSC and their accounts, users of trading systems, issuers of securities and financial instruments; - Instructions on the issue, offering, circulation and redemption of clearing participation certificates; - The procedure for opening, maintaining and closing trading and clearing accounts; - amendments No. 4 to the Rules for Conducting Clearing Sessions for Trades with a Central Counterparty; - changes No. 3 to the Formats of Clearing Reports in the Stock Market; - changes and additions No. 7 to the Methodology for determining the risk parameters of financial instruments; - changes and additions No. 4 to the Rules for internal accounting of money and execution of documents in settlements of exchange trading; - additions and change No. 5 to the Rules for Making Cash Settlements of Transactions with the Central Counterparty on the Stock Market. Information on the parameters of the issue of CPCs, transactions with CPCs, as well as the current issue volume and the estimated value of the property pool will be available on KASE's website. [2022-08-08]