Amendments to Clearing Rules for Transactions with Financial Instruments came into effect on October 1

/KACC, October 3, 2024/ – By a decision of the Board of Directors of KASE Clearing Centre (KACC) dated October 1, 2024, changes and additions No. 2 (amendments) to KACC's internal document "Clearing Rules for Transactions with Financial Instruments" (the Rules) were approved, with effect as of October 1, 2024. The amendments provide, among other things, for the following: - the concept of "sanctions restrictions" was introduced; - the right of KACC's Management Board to declare a clearing participant insolvent in the event of the application of sanctions to the clearing participant, its beneficial owner or an organization that directly or indirectly owns or controls the clearing participant; - concepts used in KACC's internal document "Methodology for determining the amount of stress collateral" (stress collateral, risk parameters for stress, systemic risk) have been introduced; - KACC's authority to determine and require stress collateral using stress risk parameters; - the obligation of a clearing participant in the stock and/or currency markets to form stress collateral; - the right of KACC to take action against a clearing participant (declaring the clearing participant insolvent or changing the category of the clearing participant to the category "with full coverage") in the event of its failure to provide stress collateral within the timeframes established by the clearing rules. In addition, in order to provide flexibility to the provider bank and/or correspondent bank of KACC for any foreign currency, the right is granted for such clearing member to use this currency for the purpose of forming collateral. The limit on the use of this currency as collateral for such clearing member is set by KACC taking into account the possibility and conditions of using this currency for settling defaults in the currency market. Editorial and clarifying amendments have also been made to the text of the Rules. The updated text of the Rules will be published on KACC's Internet resource at http://kacc.kase.kz/en/clearing/ [2024-10-03]