/KASE, September 23, 14/ – Following a decision of Kazakhstan Stock Exchange
(KASE) Board of Directors as of September 25, 2014 a new financial instrument on
the foreign currency market – the Chinese yuan – is admitted to circulation on
KASE.
The opening of trading in the Chinese yuan on KASE trading floor coincides with
the meeting of Kazakhstan-Chinese Sub-committee on financial cooperation which
is scheduled for September 24-25 in Almaty.
In KASE trading system the new instrument has been assigned a trade code –
CNYKZT_TOD.
Trading in the Chinese yuan will be conducted within KASE morning trading
session from 10:15 to 11:00 o'clock Almaty time. Settlements will be carried out
on the day of deal conclusion, i.e. according to the T+0 system.
In accordance with KASE internal document "Rules on Execution of Settlements on
Foreign Currency Trades Results", trade participants, except for market-makers,
shall be obliged to credit the yuan they are selling or the tenge in payment for
the yuan they are buying to KASE correspondent accounts in the preliminary
delivery mode before the beginning of trades – before 10:15 o'clock Almaty time.
KASE members that failed to meet this condition, will not be admitted to trades
CNYKZT_TOD.
Following a decision of KASE Management Board, as of September 25, 2014
Subsidiary Bank "Bank of China in Kazakhstan" JSC and Subsidiary Bank "Sberbank
of Russia" have been assigned the status of market-makers for the Chinese yuan.
In the initial stage of operation of the new market segment trade participants
will be entitled to conclude transactions only based on market-makers'
quotations.
According to KASE, the launch of exchange-based trading in the Chinese yuan
will lead to an increase in the share of exchange-based transactions and to a
growth in the volumes on the foreign currency market, as well as will strengthen
the international status of the tenge and ensure execution of settlements on the
international market in national currencies without the dollar and euro as
intermediaries.
Due to the launch of the new instrument on the foreign currency market, the
following amendments have been made to the following KASE internal documents:
- Regulations of Trades and the Confirmation System Operation
http://www.kase.kz/files/normative_base/reglament_trade_eng.pdf
- Rules on Execution of Settlements on Foreign Currency Trades Results
http://www.kase.kz/files/normative_base/dmoney_eng.pdf
- Regulations on Market-Makers
http://www.kase.kz/files/normative_base/market_maker_eng.pdf
[2014-09-23]