From December 3 KASE Commissions ASTS+ Trading and Clearing System and Starts Performing Functions of Central Counterpart on Stock Market on Deals Concluded in That System

Kazakhstan Stock
Exchange (KASE, or the Exchange) informs you that following a decision of KASE’s
Board of Directors from December 3, 2019 commissions the trading and clearing
system ASTS+ (hereinafter – ASTS+).

Switching of trading in instruments from the current trading system to ASTS+
will be carried out by stages. During the first stage – from December 3 –
trading will be conducted in ASTS+ in:

– shares, securities of investment funds, ETF – with settlements in tenge;

– Eurobonds, depositary receipts – with settlements in US dollars.

Trading in Eurobonds with settlement in tenge and other financial instruments
of the stock market, including instruments of the repo market, will be carried
out in the current trading system of KASE on terms before the announcement of
the second stage of switching the trading to ASTS+.

Modes of trading in the ASTS+ will be divided in two categories, each of them
defines the settlement base and terms of collateral provision:

– “List Т+” – financial instruments admitted to trading with partial
collateral;

– “List Т0” – financial instruments admitted to trading on terms of full
prepayment (with full coverage).

On deals concluded in modes “with partial collateral” and “with full coverage”
with settlements in tenge and US dollars based on results of the trading day the
single clearing will be carried out with generation of resulting net claims and
net liabilities of clearing participants.

Lists of trading modes and transactions of the trading and clearing system
ASTS+ are available on KASE website at
http://kase.kz/files/normative_base/trading_mode_ASTS.pdf

Lists of financial instruments of the trading and clearing system ASTS+,
classified by groups and trading modes are available at
http://kase.kz/files/normative_base/financial_instruments_1st_release_ASTS.xlsx

During one calendar month after the launch of the ASTS+, market-makers on
securities traded in the ASTS+, will not be subject to sanctions in case of
failure to fulfill or violation of market-makers’ duties.

From December 3 the Exchange will start performing functions of the central
counterpart on the stock market on deals in financial instruments, concluded in
the ASTS+. At the same time, settlement in money on said deals will be carried
out by KASE using the correspondent account in the Central Securities Depository
JSC. The settlement organization for securities on all deals concluded on KASE
remains the Central Securities Depository JSC.

Due to the transition of trading to the ASTS+ and start of the Exchange’s acting
as the central counterpart on the stock market, respective amendments were
made to KASE’s internal documents, as well as necessary new internal documents
were developed. Said amendments will be effective as of December 3, 2019.

Updated internal documents with said amendments and new internal documents of
KASE, developed due to the launch of commissioning of the ASTS+ and start of the
Exchange’s acting as the central counterpart, are available on KASE website in
section “Rules for ASTS+” at http://kase.kz/en/kase_rules_asts/

In the same section there are replies to the frequent questions on the operation
of the trading and clearing system ASTS+ –
http://kase.kz/files/mix/faq_asts.pdf