The post-trade infrastructure:
OVERALL ORGANISATION
For post-trade activities, AIX has set up two separate legal entities:
- Astana International Exchange Central Securities Depository Limited (AIX CSD) is a private company incorporated under the Acting law of the AIFC responsible for daily cash and securities settlement and depositary activities. AIX CSD holds a commercial license from the Registrar of Companies of the Astana Financial Services Authority (AFSA). AFSA, where AIX CSD is incorporated, also acts as the AIX CSD’s Regulator. AIX CSD is solely owned by AIX.
- Astana International Exchange Registrar Limited (AIX Registrar) is incorporated as a private company under Astana International Financial Centre (AIFC) law and holds a commercial license from the Registrar of Companies of the Astana Financial Services Authority (AFSA. The AIX Registry stores and maintains the central registry of shareholders.
- All day-to-day post-trade operational duties are performed by the Clearing & Settlement Department of AIX based on an Infrastructure, Resources & Services Agreement between AIX and AIX CSD.
OPERATIONAL MODEL
Depending on the asset class, AIX offers different types of settlement and depositary models. In all cases, settlement of on-exchange trades is conducted on a T+2 basis and can be done in a variety of different currencies.
- All AIX trades are settled directly at the AIX CSD.
- For international securities, the custody and depository service for the AIX CSD is provided by Euroclear Bank S.A./N.V., allowing investors to receive these securities into the AIX CSD or to settle off-Exchange transactions at an International CSD.
- For domestic Kazakh securities, the custody service for the AIX CSD is also provided by KACD in Almaty.
- AIX Registrar is responsible for keeping records of debt and equity securities issued and registered in AIFC.
PARTNER BANKS
AIX partners with a number of commercial banks where cash-settlement accounts are held. Information on cash-settlement banks is provided by the AIX CSD to new Participants. AIX will seek to expand the number of partner banks to ensure faster transfer processing for market participants operating outside of Kazakhstan.
TECHNOLOGY
Both AIX CSD and AIX Registrar systems and front-end applications are powered by Avenir Technology, a well-established provider of post-trade infrastructure and applications.
For more information on Avenir Technology, please visit: http://www.avenir-technology.com/
The AIX CSD also utilizes the SWIFT network for post-trade messaging with its participants.