KASE launching Eurobonds trading with settlements in US dollars
Baku, Azerbaijan, Sept. 12
Starting from September 17, Kazakhstan Stock Exchange (KASE) is launching trading in listed Eurobonds with settlements in US dollars, KASE said in a message posted on its website Sept. 12.
The purpose of opening Eurobonds trading with settlements in US dollars on KASE is to provide individuals and legal entities with access to trading and settlements in debt securities, denominated in foreign currency, without performing additional currency conversion procedures, according to the message.
Presently, listed debt securities denominated in foreign currencies are traded on KASE according to scheme Т+0 with settlements in the Kazakh tenge and the necessity of full preliminary depositing of the assets before the moment of submitting the application and conclusion of a deal.
Trading in Eurobonds with settlements in US dollars will be carried out in a separate version of the trading system using the Т+2 settlement scheme (on the second day after the deal conclusion) and clearing based on the trading day results.
This scheme allows concluding deals with partial securing. At that, the delivery of the asset for settlements must be performed by the trading participant by 17:00 (GMT +6) of the settlement day.
In this separate version of the trading system, one-day repo transactions with Eurobonds will be possible. These transactions will be part of the single clearing of Eurobonds purchase-sale transactions concluded in US dollars in the same version of the trading system.
For purposes of covering the risk of Eurobonds price changes emerging in case of failure of any trading participant, the margin contribution (partial security of the transaction) of that participant will be used represented by foreign currency (US dollars) and Eurobonds available in the participant’s account at the Central Depository.
Trading in Eurobonds with settlement scheme Т+0 in the Kazakh tenge will be continued on KASE as usual.