Astana International Exchange (“AIX”, “Exchange”) is pleased to announce the 23rd successful Securities Lending and Borrowing deal since the start of this activity in March 2020. Over this period, the securities lending activity totalled $600K / 850,000 securities in 7 different symbols.
There are currently one Authorized Lender and 3 Authorized Borrowers. There are 15 active loans while 8 were successfully closed.
Olivier Gueris, Chief Operating Officer of AIX, said:
“AIX is one of the very few frontier markets to offer its market-makers a securities lending service to cover short-selling positions within a robust and proven operational and risk-management framework. Worldwide, securities lending is a mature, and effective market activity that has persisted through macroeconomic events such as credit shocks, the sovereign bond crisis and now the pandemic. In addition to bringing return benefits to lenders, securities lending plays an important role in the smooth functioning of developed financial markets by supporting market liquidity and efficiency.”
Securities Lending and Borrowing is available to appointed Market Makers after being authorized by AIX Regulation & Compliance. Securities lending may also be used to prevent settlement failures. The Securities Lending and Borrowing program is governed by bilateral arrangements based on industry-standard securities lending agreement. Market Makers entering into a valid securities lending agreement with an authorized lender are allowed to perform covered short selling.
AIX was formed in 2017 within the Astana International Financial Centre development framework. AIX shareholders are AIFC, Goldman Sachs, 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. More details:www.aix.kz
The Astana International Financial Centre was created by the initiative of the First President of the Republic of Kazakhstan, Leader of the Nation, Nur-Sultan Nazarbayev as part of the “100 steps to implement five institutional reforms” national program. The Centre’s development strategy until 2025 was approved by the Management council of the AIFC during the council’s meeting on July 2, 2020. In accordance with the strategy, the vision of AIFC is in becoming the leading financial centre in the region that includes Central Asia, the Caucasus, EAEU countries, western China, Mongolia, and Eastern Europe. The mission of the AIFC is in assisting the sustainable and long-term development of the region. As the head of state Tokayev noted, “AIFC, with its unique opportunities, can act as a universal platform that connects the countries in the region. ”The strategic directions for the sustainable development of the AIFC include the development of a circular economy, financial technologies, and “digital financial centre.” https://aifc.kz/