Amendments to Rules for Market Makers' Activities in effect from June 1

22.04.24 16:24
/KASE, April 22, 2024/ – By a decision of the Management Board of Kazakhstan Stock Exchange (KASE or the Exchange) dated April 17, 2024, changes and additions No. 21 (amendments) to KASE's internal document "Rules for market makers' activities" (the Rules) were approved, with effect from June 1, 2024. The amendments define the following conditions for market makers in the repo market, the underlying assets of which are one-day general collateral certificates (GCC): - the minimum volume of maintaining for sale or buy quote is 1.0 billion tenge; - the maximum spread size is 1.0 % of the yield when issuing buy and sell quotes. At the same time, the market maker will be allowed to announce and maintain mandatory quotes in one direction. In this case, the spread should be no more than 1 percentage point of the last value of the TONIA indicator; - aggregate daily minimum volume – 5 times the minimum volume of the mandatory quotation with the option of not maintaining further obligations. Market makers on repo transactions with one-day GCC will be provided with preferences on the payment of commission and clearing fees in the amount of 75 %. When the market maker reaches the volume of repo transactions with one- day GCC in the amount of 300.0 billion tenge, a discount on the payment of these fees in the amount of 100 % is provided. At the same time, if a market maker violates his duties during a trading session, this KASE member loses the right to a preference on paying the Exchange's commission fees on transactions concluded during this trading session. In case of violation of its duties by a market maker, the following sanctions are applied to this KASE member: - for the first failure to fulfill obligations within one calendar month, a KASE member loses the right to a preference in paying commission fees on transactions concluded during a particular trading session; - for a subsequent case of failure to fulfill the duties of a market maker within one calendar month, KASE has the right to deprive a KASE member of the status of a market maker. The updated text of the Rules will be published on KASE's Internet resource at https://kase.kz/ru/kase_rules/ (tab "Trading" – "Market Makers"). [2024-04-22]