As of october 1 KASE starts acting as central counteragent on foreign currency market

Monday, 1 October 2018

Kazakhstan Stock Exchange (KASE, or the Exchange) announces that KASE’s Board of Directors
approved the date of October 1, 2018 as the date of the start of the Exchange
acting as the central counteragent (CC) on the foreign currency market.

The Exchange starts acting as the central counteragent on the foreign currency
market as part of implementation of its 2016-2018 development strategy, in terms
of widening its clearing activities.

The availability of the central counteragent purpose on KASE’s foreign currency
provide participants of the exchange’s currency market with safety and a
guaranty of fulfillment of their requests regarding concluded deals in case of
a failure of any trading participant, by way of establishing a risk management
system on the exchange’s currency market.

As part of implementation of the CC project, KASE in association with the
National Bank worked on updating the legal framework and regulations, renewed
the internal norms of KASE, its information systems, developed an automated
system of risk management on the currency market based on KASE’s operational
trading and clearing system.

Besides, the Exchange developed a web-module using which clearing participants
of the currency market will in the real time mode receive information about the
market value of their current obligations, the value of the margin contribution
and its sufficiency, as well as about values of risk-parameters used for
defining market indicators.

Currently, authorized by a separate license, the Exchange carries out clearing
on several markets: the stock market (Т+2), currency and derivative markets.
Apart from provision of clearing services on mentioned markets KASE performs
functions of a central counteragent on the derivatives market.