As of September 15, the Methodology for calculating stress collateral will come into effect

14.08.24 14:22
/KASE, August 14, 2024/ – By a decision of the Management Board of Directors of KASE Clearing Centre JSC (KACC) dated July 31, 2024, the internal document of KACC "Methodology for calculating stress collateral" (Methodology) was approved, with effect as of September 15, 2024. The new Methodology has been developed in accordance with international standards in order to improve the risk management system: - the calculation of the initial margin rate includes a stress buffer of 25 % of the weight of stress observations, consistent with EMIR standards and business practices in the market; - requirements have been established for an additional type of margin collateral – stress collateral, which is the individual collateral of a clearing participant in the stock and foreign exchange markets, determined by the Clearing Centre using risk parameters for stress, in order to cover credit and market risks, as well as systemic risk for transactions with financial instruments. The text of the Methodology is published on KACC's Internet resource at http://kacc.kase.kz/en/clearing/ [2024-08-14]