Astana International Exchange (“AIX”, “Exchange”) is pleased to present its results for the nine months of 2024. Since the beginning of the year, the Exchange has shown a significant increase in trading volume, reaching a record year-to-date turnover of $922m. Overall, since the launch of AIX, the trading turnover has totaled more than $2bn.
Assel Mukazhanova, CEO of the AIX, noted:
“Since its inception, AIX has achieved a remarkable trading turnover exceeding US$2 bn, with nearly US$1bn of that generated in 2024. We are also witnessing a significant shift in the composition of our trading members as brokerage houses from foreign jurisdictions now play a predominant role in bringing valuable international expertise and best practices to the market. As we continue to grow, AIX remains committed to enhancing the quality of our services and broadening its geographical footprint, further strengthening our position as an internationally recognized marketplace”
AIX results as of 1 October 2024:
- The trading turnover in 3Q2024 reached $217mln, a 2.7x increase compared to $80mln in 3Q2023.
- 41 instruments were added to the official AIX list in 3Q2024, which now includes 219 securities offered by 131 issuers. A record 18 securities in one month have been listed just during September 2024. Two liquidity management programmes were registered in 3Q2024 as well.
- Foreign participation in equities trading stood at, respectively, 11% (July), 21% (August) and 17% (September).
- Capital raised (debt+equity) since inception amounted to $5.9bn.
- There are currently 56 brokers of the AIX and members of AIX Central Securities Depository (AIX CSD); 22 of them are foreign companies from various European and Middle East countries, CIS, China and supranational organization. In 3Q2024 Investment company Standard (Kazakhstan), Abylai Global Solutions (AIFC), Roemer Capital (Cyprus), KIT Finance and Piter Trust Investments Company (both from Russia) were onboarded as AIX and AIX CSD members. Besides that, Eurasian Bank (Kazakhstan), ITS CSD and RCS Trust and Corporate Services (both from AIFC) were onboarded on AIX CSD as custodians at the AIX CSD.
- More than 1.8mln Kazakhstani citizens hold investment accounts in the AIX CSD. Ten Global Custodians hold sub-accounts at the AIX CSD.
- AIX Qazaq Index is up 12.4% YTD, all-time high at 1,401.28 on 23rd of August 2024.
- Tabys application trading volume since the beginning of the year has reached $9.0mln. 9 of 13 top traded months in Tabys are in 2024. The number of active investors in the app hit 18.9 thousand individuals.
Block trades
Block trading was used to trade large quantities of Black Sea Trade and Development Bank bonds and Solidcore Resources plc. shares and totaled $17m in Q3.
A block trade refers to a large order of securities being bought or sold, typically involving a significant number of shares or debt instruments for a substantial amount of money. These transactions are arranged off the central order book, directly between institutional investors, investment banks, or broker-dealers. Block trades are usually conducted to avoid impacting the market price of the security.
Custody services
- Three local and overseas CSD Participants have signed up to use the new custody service for admitted securities. The service offers the operational convenience of holding all securities admitted to the AIX Official List and/or to trading on other regulated markets under a single roof. The admitted securities are international Euroclearable fixed income securities, as well as KCSD-registered ones, admitted to trading on regulated markets. The new custody service is a perfect fit for small to medium-sized fund managers and broker-dealers who do not have the critical asset mass to have a direct account with an ICSD or a Global Custodian.
Registrar services
- Ten funds and two private companies opened new accounts at the AIX Registrar for the maintenance of their share or unit holders’ registry.
New products
- AIX has added I-REC (International Renewable Energy Certificate) renewable energy certificates to the range of responsible finance products on AIX on September 4, 2024.
The launch of Environmental Instruments on AIX marks a significant step forward in integrating sustainability into the traditional financial markets. By adding products like I-REC certificates alongside conventional capital market offerings, AIX intends to help companies to meet their environmental goals while maintaining financial performance.
- A new segment for Unsponsored Listings has been introduced, allowing the admission of securities to trading on AIX without the issuer’s consent. This aims to increase market liquidity by allowing more securities to be traded on AIX, thus attracting a broader range of securities and investors.
- The listing regime for Funds has been expanded to include Exempt Funds, units of which can now be admitted to trading on AIX Main Market. Units can be bought by Accredited Investors on public markets.
- A free-float threshold for equities listed on AIX Markets has been reduced from 25% to 10%. By lowering the barrier for entry of equity issuers, it will make it easier to list on AIX, thereby improving market accessibility and liquidity.
International cooperation
Astana International Exchange and Muscat Stock Exchange (MSX) have signed a Memorandum of Cooperation (MoC), marking the commencement of a partnership aimed at exploring mutually beneficial opportunities. This collaboration is set to enhance market liquidity and streamline trading mechanisms by facilitating cross-trading of MSX and AIX-listed securities.
Both exchanges are active members of the Tabadul Digital Exchange Hub, an initiative established by the Abu Dhabi Securities Exchange (ADX) to enable bilateral cross-exchange trading. The Tabadul platform connects regional and global markets through a digital exchange network, fostering enhanced cooperation and increasing liquidity across participating markets. Current active members include the Abu Dhabi Securities Exchange (ADX), Muscat Stock Exchange (MSX), Bahrain Bourse (BHB), and Astana International Exchange (AIX).
To further strengthen this partnership, the Muscat Clearing and Depositary Company (MCD) and AIX Central Securities Depositary (AIX CSD) have signed a Memorandum of Cooperation to facilitate cross-listings and the settlement of Tabadul trades between MSX and AIX. This agreement also focuses on enhancing settlement and depository services.
Reference:
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, the Shanghai stock exchange, the Silk Road Fund, and NASDAQ, which also provides the AIX trading platform. The exchange operates within a regulatory environment based on the principles of English Law, thus providing a reliable investment environment. The mission of AIX is to develop an active capital market in Kazakhstan and the region by providing clear and favorable conditions for attracting financing to private and public businesses. AIX develops special segments for mining companies as well as infrastructure projects under the Belt and Road initiative. .www.aix.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction that started (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. www.aifc.kz