Strategy

The strategy of Kazakhstan Stock Exchange Inc. development for 2007–2010 (the Strategy) defines the main directions of growth of Kazakhstan Stock Exchange Inc. (KASE) and the quintessential business events that should be carried out within the framework of these directions.

Ideological principles of the Strategy are based on:

• the historical factors considered by KASE in the course of development and realization of the Strategy;

• the key statement determining KASE business behavior, specifically stating:

  "The Exchange is a top regional financial market that empowers the investors from around the world to trade in a wide spectrum of financial instruments being exposed to minimum calculated risks and in accordance with the best international practices and also to use diversified high-quality concomitant services of the Exchange";

• the guidelines of KASE operation and development, among them those that read:

  "As its main rivals KASE considers the stock exchanges that attracted, attract and are seeking or potentially able to attract securities of the Kazakhstan issuers for offering and circulation at their trading floors"

  "KASE should be a type of a trading floor where Kazakhstan and foreign issuers by way of one public offering (IPO) can raise not less than the equivalent of 50 million of USD"

  "The target investment audience of KASE is comprised of Kazakhstan institutional investors, however, at the same time, for the purposes of maintaining of price and volume balances on the national stock market KASE should be looking forward to attracting of "quality" foreign investors to this market"

  "The Exchange stock market should be regarded by retail investors (including the managing companies providing services to such investors) as a convenient and effective floor for cash investments and financial instruments speculation"

The main directions of KASE development in accordance with the Strategy are as follows:

1. Commercialization. Corporate Structure.
2. Members of the Exchange.
3. Financial instruments.
4. Listing.
5. Disclosure of information on issuers and their activities.
6. Trades.
7. Technologies.
8. Settlements.
9. Information Support.
10. Regulatory and Supervisory Functions of the Exchange.
11. Tariff Policy.
12. Marketing and PR policy.
13. Location of the Exchange.
14. Organizational structure and human resources management.
15. Financial Activity of the Exchange. Capitalization of the Exchange.

The Strategy was ratified by the decision of the Exchange Council of July 26, 2007 and approved by the decision of the KASE shareholders annual General meeting of August 23, 2007.

The Strategy was developed on the basis of the agreements reached by the KASE Conciliatory Commission in the course of negotiations with the management of the Agency of the Republic of Kazakhstan on regulation of the regional financial center of Almaty.

• Kazakhstan Stock Exchange 2007–2010 Development Strategy