Wednesday June 3 2015
News Source: Global Exchanges
Focus: Trading Systems and Technology
Type: General
Kazakhstan Stock Exchange (KASE) announced earlier in the year plans to adopt a T+2 settlement cycle in 2015. Currently, settlement of transactions with securities takes place on a trade-by-trade basis under the same day settlement scheme. During the first stage of migration to settlement cycle T+2, it will apply to the most liquid securities – shares of KASE Index. Later T+2 will be gradually introduced to other financial instruments traded on KASE.
The change in the settlement period is in line with the Concept for Development of the Financial Market of Kazakhstan 2030 and within the scope of the strategic vision of KASE to create a favourable environment for trading and settlement that both serves the needs of trade participants and investors and complies with best international standards and practices.
In order to mitigate risks associated with an extended settlement period KASE will implement a risk management system that includes partial margining, price change limits, and clearing funds.
KASE has recently published a Q&A on T+2 and Procedures for execution of deals on the stock market according to the T+2 scheme.
Click here for procedure document
Click here for T+2 Q&A
Click on the link above for further details.