/KASE, July 1, 2016, June 30, 2016 news repeat/ – On July 1, 2016 Kazakhstan
Stock Exchange (KASE) will move to a new discounting system for non-indexed
government securities (GS) of the Republic of Kazakhstan to determine their
value as subjects of automatic repo transactions.
We remind you that for this purpose KASE internal document "Methodology of
Securities Valuation" (Methodology) was duly amended and a new version of
KASE internal document "Specification of Automatic Repo Market"
(Specification) was approved. The amendments to the Methodology and
redrafted Specification will enter into force on July 1, 2016.
The Methodology of Securities Valuation was amended so that for the automatic
repo purposes the non-indexed GS market price must be represented by their
nominal value including the accrued coupon interest not paid as of the valuation
date.
The Specification introduces a new procedure to discount a market price of non-
indexed government securities (GS) of the Republic of Kazakhstan, denominated
in tenge. Their prices are discounted:
by 5%, if there are not more than 180 days prior to the redemption of bonds;
by 7% with a term to maturity from 181 to 360 days;
by 10% with a term to maturity from 361 days to three years;
by 15% with a term of three to five years;
by 20% with a term of five to 10 years;
by 25% if there are more than 10 years remaining before maturity.
Before these GSs prices with a maturity not exceeding 360 days were discounted
by 5%, more than 360 days – by 10%.
• Specification effective before July 1, 2016,
http://www.kase.kz/files/normative_base/sp_repo_eng.pdf
• Specification effective as of July 1, 2016,
http://www.kase.kz/files/normative_base/sp_repo_new_eng.pdf
• Methodology of Securities Valuation effective as of July 1, 2016,
http://www.kase.kz/files/normative_base/met_ocen_zb_eng.pdf
are currently available on KASE website.
[2016-07-01]