Yearbook 2020
New trading and clearing system ASTS+ and Implementation of CCP services
Within strategic cooperation with the Moscow Exchange (MOEX),KASE launcheda new trading and clearing system ASTS+ in the stock market and foreign exchange market. This allowed KASE to provide CCP services in all financial instruments of the stock market, including government securities, corporate bonds, as well as money market instruments such as repo. Trading in all 38 financial instruments of the foreign exchange market, including five currency pairs (USDKZT, RUBKZT, CNYKZT, EURKZT, EURUSD) with settlement terms T + 0, T + 1 and T + 2, currency swap operations in relation to the US dollar, Russian ruble, Chinese yuan, euro with settlements in tenge and deliverable futures on the dollar-to-tenge rate are carried out in ASTS +. In terms of trading in the stock market, modernization included all financial instruments of the stock market in the buy-sell andrepo market modes. Trading participants can use the netting of purchasesale and repo transactions.
KASE also launched new transformation division for business process automation and development of a new back-office system.
With the introduction of ASTS + in the stock market and the introduction of automated default management process, the Exchange began to perform the functions of the CCP in all exchange markets. The implementation of the CCP was carried out in stages, starting in 2012 in the derivatives market, continuing in 2018 in the foreign exchange market and ending in 2019 in the stock market.In 2020, the protection level of the CCP was improved.
As of January 01, 2021, there were 177 instruments in the T + lists, and 176 instruments in the T + collateral lists. The Exchange can perform CCP functions for all instruments for which trades are open, depending on the trading mode in which the instrument is traded. As of January 1, 2021, 717 instruments were implemented by clearing, for which the exchange performed the functions
of the CCP.
KASE's transition to modern trading and clearing technologies capable of processing an average daily volume of transactions of billions of dollars, supporting a wide range of instruments for different categories of clients, will allow to step into a new stage in the development of the foreign exchange market in Kazakhstan.
Increasing liquidity in the government securities market
Within the framework of facilitating the increase in liquidity in the stock market, throughout the yearKASE has worked on enhancing trade in government securities and introduced a new program for market makers in government securities. As a result, in 2020, the volume of trades in the secondary market for government securities increased 2.4 times (or by 155%).
This was achieved due to a number of factors, including maintaining a sufficiently high level of the base rate, moderate volatility of the tenge exchange rate, joint work of the National Bank and the Ministry of Finance to reduce the number of GS issues in circulationand increase the volume of existing issues, as well as measures taken by the Exchange to increase liquidity of the given market.
Upgrade the main indicator of the money market TONIA
With support from National Bank of Kazakhstan and EBRD, KASE changed the procedure for calculating the main indicator of the money market TONIA. The introduction of a new calculation methodology was carried out in order to create a risk-free benchmark in the money market of the Republic of Kazakhstan, based on the principles of reliability of indicators and in accordance with the best international practices.
Debt market of the Kazakhstan
With the support of KASE, the IV Cbonds round table "Debt market of the Republic of Kazakhstan" was held.During the event the issues of raising debt capital and the potential of the investor base, as well as the impact of global factors on the regional market and its indicators were discussed. Representatives of regulators, leading local and international banks, international rating agencies, professional participants of the securities market and others took part in the roundtable.