The Kazakhstan Stock Exchange is a stock exchange located in Almaty , Kazakhstan. The exchange was founded in On November 15, , Kazakhstan introduced its own currency, the tenge.

The next day, November 17, , the National Bank of Kazakhstan and 23 local leading commercial banks took a decision to found a currency exchange.

The previously existing Center for execution of inter-bank currency transactions Currency exchange used to be a structural unit of Kazakhstan's National Bank. The main task assigned to the new exchange was to set up and develop the national currency market following the introduction of the tenge.

The exchange was incorporated as a closed joint-stock company on December 30, under the name Kazakhstan Inter-Bank Currency Exchange. On March 3, the exchange was re-registered under the name Kazakhstan Interbank Currency Exchange due to the need to match the exchange's name to the current legislation. On July 12, the exchange was re-registered under the name Kazakhstan Inter-Bank Currency and Stock Exchange following the shareholders' decision to let the exchange begin operating on the securities market.

On October 2, the exchange obtained license No. On April 12, the exchange was re-registered under the name Kazakhstan Stock Exchange, since the current legislation banned the stock exchange from carrying out functions of a commodity exchange. On November 13, the exchange obtained an unlimited license to operate securities trading from the National Commission of the Republic of Kazakhstan on Securities.

Potential of the Kazakh Stock Exchange - The Market Mogul

Since the new Act of the Republic of Kazakhstan "On Securities" dated March 5, restricted the stock exchange's operation to securities only, the general meeting of shareholders in April decided to reorganize it by making it separate closed joint-stock company Almaty Financial Instruments Exchange AFINEX , which was registered on July 30, As of September 1, the trading in foreign currencies and futures contracts moved to the AFINEX trading floor.

The exchange itself underwent a re-registration on July retaining its former name. With the Act of the Republic of Kazakhstan "On Making Changes and Additions to Some Legal Acts of the Republic of Kazakhstan Regarding Joint-Stock Companies" of July 10, coming into effect, the ban prohibiting the exchange to operate trading in foreign currencies and financial instruments other than securities, was lifted, which made it possible to affiliate the AFINEX to the exchange.

The relevant decision was taken at a general meeting of shareholders on January 6, , and on March 16, an appropriate state re-registration of the reunited exchange was effected. On December 15, KASE was authorized as a special trading floor of the regional financial center of Almaty.

On August 23, a general meeting of KASE shareholders took a decision to commercialize KASE. As part of KASE commercialization, the former voting principle "one shareholder — one vote" was scrapped and the traditional principle "one share — one vote at the general meeting" was adopted. IPO of KazMunaiGas Exploration Production using KASE settlement system.

Conducting of 17th General Assembly of Federation of Euro-Asian Stock Exchanges FEAS.

Signing of mutual co-operation memorandums with Korea Exchange , Istanbul Stock Exchange and Tehran Stock Exchange. KASE obtains status of fully-fledged member in World Federation of Exchanges WFE. The Exchange is a commercial organization operating as a joint-stock company. Bodies of the Exchange are as follows:. KASE holds the following licenses issued by the Committee for Control and Supervision of the Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan:.

As of October 1, KASE had 46 shareholders, including banks, brokerage firms, asset management companies, Single Accumulative Pension Fund JSC and other institutions. The total number of authorized shares of Kazakhstan Stock Exchange equals to 5,, pieces; , shares are outstanding. KASE's Articles of Incorporation stipulate a " golden share ", which is held by the National Bank of the Republic of Kazakhstan.

It carries the right to veto decisions made by KASE bodies on issues of currency regulation and regulation of Kazakhstan government bonds market. KASE has three categories of membership. Depending on the type of financial instruments an organization is interested to trade in, it can become a member of KASE's currency, stock or derivatives. It is also possible to enjoy simultaneous membership in two or three of these categories.

The first foreign currency trading in US dollars took place in Today, transactions on this market account for about half of the total volume of trade on KASE. Currently, trading on KASE is conducted in US dollars, euros, Chinese yuan and the Russian Ruble and the tenge, as is Euro-USD trading. Throughout the day, KASE holds three foreign currency trading sessions: At the end of a trading day, KASE performs net-clearing of each currency instrument.

Settlements are made by KASE Settlements department based on data provided by the Clearing department according to the DVP Delivery Versus Payment principle.

Most currency market members work on KASE in the mode of immediate delivery of tenge and foreign currency. New currency market members and or particular banks prone to risks are required to pre-deliver the currency being sold. This sector features bonds issued by the Ministry of Finance and the National Bank of the Republic of Kazakhstan as well as by local executive authorities. All municipal bonds and bonds of the Ministry of Finance are offered in KASE trading system.

The National Bank offers its notes independently. In recent years, there have been at least government securities worth a total of about 1,7 billion USD in constant circulation on KASE.

Today, this sector trades financial instruments of over 80 issuers, mainly stocks of local and foreign companies. The total shares market capitalization makes up more than 42,5 billion USD. The main bulk of the market is occupied by companies from mining, energy and financial sectors. There are around corporate bonds listing on KASE issued by more than 75 domestic and foreign companies in accordance with Kazakh and foreign legislations.

The total amount of debt available for trade on KASE is valued at approximately million USD. The official list is dominated by bonds issued by banks. Companies from other sectors form an insignificant share.

This system is based on the use of margining and special clearing guarantee and reserve funds. One of the largest segments of KASE is the repo transactions market, which traditionally accounts for almost half of the total volume of exchange trading.

It features two sectors: In the latter case, the question is about the anonymous trades using the order-driven market method in which Kazakhstan's tenge is offered, and the repo interest rate means the price. The terms of the repo transactions are standard. The risk management system in the automatic repo market is based on limiting the term of the repo transactions to thirty days and binding the repo item to the market price.

Should the closing transaction fail, the repo item will stay with the party to the transaction who gave money. In the "nego" repo market, where the term is limited to 90 days, the system of regular market revaluation of obligations and compensations "mark-to-market" has been in place since All settlements are made through the CSD using the same scheme as the one used to settle securities trades.

In , KASE instituted a reset of the derivatives market using a modern risk management system which meets international standards.

The Exchange acts as the central counteragent for each transaction being concluded and ensures unconditional execution of transactions within amounts of reserve and guarantee funds. Limits were set for both open position and price change for the purpose of minimizing settlement risks. Since February 1, a new unit, the Clearing department, has been operating on the Exchange. KASE has established requirements for disclosing information during preparation for the listing of securities and while those securities are officially listed on the Exchange.

These requirements are applicable to:. More detailed information about these requirements is in the Listing Rules, published on KASE website. Listing procedure on KASE includes a check of the issuer and its securities for compliance with the listing requirements established by the authorized body and internal documents of the Exchange; it is carried out based on documents and information submitted to the Exchange. The legislation of the Republic of Kazakhstan stipulates a system of tax benefits to attract investors to the organized securities market.

In particular, the tax payer has the right to a reduced taxable income for the following types of income:. KASE is characterized by a set of indicators which are calculated and published by the Exchange in real time mode as well as at the end of a trading day. Composite index weighted by market capitalization which is calculated according to prices of transactions in the most liquid shares on KASE. The index is calculated in real time after each trade is executed.

Shares market capitalization is an indicator that reflects the combined market value of companies whose shares are listed on KASE. Capitalization of corporate bond market is the combined face value of outstanding corporate bonds listed on KASE.

Calculation of the share market and corporate bond market capitalization is carried out by the Exchange in tenge and USD based on the results of each trading day. The TONIA Tenge OverNight Index Average and TWINA Tenge Week Index Average are weighted average interest rates on opening repo transactions in Kazakh tenge on the automatic repo market. The TONIA indicator reflects the cost of money on overnight repos while the TWINA on repo — for seven days.

Underlying assets of repo transactions are Kazakhstan government securities. The indicators are calculated in real time upon the conclusion of each opening nego repo transaction in government securities.

KazPrime is an indicator reflecting the interest rates on Kazakh tenge put in three-month interbank deposits among Kazakh banks with the highest local credit rating. The indicator's fixing occurs at In addition to the KazPrime indicator, the interbank deposit market is characterized by the KIBOR, KIBID, KIMEAN indicators:. Fixing of these indicators is performed by the Exchange at Unlike KazPrime quotes used to calculate the indicators are indicative and do not bind banks to perform transactions based on them.

On November 30, the leading global supplier of indices, the Dow Jones Indexes, and FEAS launched the first index of "blue chips" quoted at Euro-Asian stock exchanges — equal-weighted index Dow Jones FEAS Titans Kazakhstan is represented in that index by common shares of Halyk Savings Bank of Kazakhstan JSC , Kazkommertsbank JSC and KazMunaiGas Exploration Production JSC , whose weight in the index basket made up 2.

KASE distributes information generated by the Exchange and provided by its partners issuers, members of the Exchange, etc.

Conventionally, exchange information can be divided into:. The website contains archived KASE news for the past 13 years, located in a section accessible to the public, as well as provides users with access to KASE trade information in real time, with 15 minute delays, and with daily trade totals. In , KASE developed and launched its own trading system that is comparable to its peers developed by specialized companies.

In order to improve the performance of the trading system, revisions and updates are regularly carried out an updated edition is released on average times a year.

Main page - Kazakhstan Stock Exchange (KASE)

Remote access to KASE trading system is accomplished through dedicated channels from Kazakhstan's leading providers and via the Internet. KASE has been permanently improving and developing its corporate governance system in order to protect the interests of shareholders, issuers, Exchange members and investors.

The Exchange's governing body — the Board of Directors Exchange Council — currently comprises 4 independent directors; this body features 4 committees:. To enable collegial decision-making and to avoid conflicts of interests additional working committees were set up at the Exchange, composed not only of Exchange employees, but also of representatives of the authorized body and market participants.

According to requirements set by the authorized body, a permanent compliance control to detect insider deals, fraudulent transactions is carried out. Systems of risk management and internal control consistent with international standards have been set up.

From Wikipedia, the free encyclopedia. Bank CenterCredit Halyk Bank KAZ Minerals Kazakhtelecom KazMunaiGas EP KazTransOil Kcell KEGOC. World Federation of Exchanges.

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By using this site, you agree to the Terms of Use and Privacy Policy. Privacy policy About Wikipedia Disclaimers Contact Wikipedia Developers Cookie statement Mobile view. Yeszhan Birtanov CEO Idel Sabitov Andrey Tsalyuk Natalya Khoroshevskaya Amina Turgulova. KASE Index [1] Bonds Indexes. Start of trading in bonds of international financial institutions Launch of auto repo market. Start of trading in foreign corporate bonds IPO of KazMunaiGas Exploration Production using KASE settlement system.

Creation on KASE of a special trading floor of the regional financial center Almaty Commercialization of KASE. Restoration of market uniformity through amalgamation of KASE main trading floor and RFCA special trading floor. KASE obtains licenses for performing clearing of transactions in financial instruments and for carrying out particular types of banking transactions opening and maintaining of bank accounts for legal persons Setting up of clearing department on KASE.

Launch of new shares index — Kazakhstan Traded Index Local KTX Local — calculated by Wiener Borse AG WBAG KASE obtains status of fully-fledged member in World Federation of Exchanges WFE.