KASE launches Eurobond trading with US dollar settlements

Kazakhstan Stock Exchange (KASE, Exchange) as of September 17, 2018 launches trading in listed
Eurobonds with settlements in US dollars.
The purpose of opening Eurobonds trading with settlements in US dollars on KASE is to provide
individuals and legal entities with access to trading and settlements in debt securities, denominated in
foreign currency, without performing additional currency conversion procedures.
Trading in Eurobonds with settlements in US dollars will be carried out in a separate version of the
trading system using the Т+2 settlement scheme and clearing based on the trading day results. This
scheme allows conclude deals with partial securing. At that, the delivery of the asset for settlements
must be performed by the trading participant by 17:00 o’clock of the settlement day (on the second
day after the deal conclusion).
In this separate version of the trading system, one-day repo transactions with Eurobonds will be
possible. These transactions will be part of the single clearing of Eurobonds purchase-sale
transactions concluded in US dollars in the same version of the trading system.
For purposes of covering the risk of Eurobonds price changes emerging in case of failure of any
trading participant, the margin contribution (partial security of the transaction) of that participant will be
used represented by foreign currency (US dollars) and Eurobonds available in the participant’s
account at the Central Depository.
Trading in Eurobonds with settlements Т+0 in Kazakh tenge will be continued on KASE as usual.
Hence, from September 17, 2018 KASE will feature two methods of concluding deals in listed
Eurobonds denominated in US dollars: according to Т+2 using clearing and USD settlements, and
according to scheme Т+0 with settlements in Kazakh tenge in the mode “transaction by transaction”.