Multi-currency settlements allow investors to trade securities listed in Kazakhstan Tenge (KZT) and make settlements in USD (or vice-versa) with the option to add additional settlement currencies based on customer demand. The service is available to trading members using the FIX protocol, and the information needed to use the service (conversion rate) is displayed on the AIX website Market Watch page.
An efficient securities lending and borrowing regime not only increases market liquidity but also strengthens market participant and investor confidence that the AIX is a reliable market to invest in.
Securities lending and borrowing is available to appointed market makers after being authorised by AIX Regulation & Compliance. Securities lending may also be used to prevent settlement failures. The Securities Lending and Borrowing Programme is governed by the industry-standard Global Market Securities Lending Agreement (GMSLA) or any other agreement accepted by AIX. Market makers entering into a valid GMSLA with an authorised lender will also be allowed to perform covered short selling.
There is currently one authorised lender offering the service. The AIX CSD is responsible for processing while any risks are monitored and managed by the AIX itself.
AIX CSD processes incorporate entitlements in diverse currencies and asset classes at the request of issuers. Issuers credit dividend and coupon payments to AIX CSD cash-settlement accounts for onward remittance to investor accounts.
Creation/Cancellation of Global Depositary Receipts (GDRs)
The AIX CSD receives and processes requests from investors to create GDRs or redeem GDRs for common shares. The service itself is performed by the depositary bank in charge of the GDR programme while all communication with brokers is handled by the AIX CSD.
The AIX CSD routinely makes security transfers to or from the AIX CSD at the request of investors through their broker.
KZT-denominated securities may be transferred to or from the Almaty-based Kazakhstan Central Depositary.
USD-denominated securities may be transferred to or from Euroclear and then to other CSDs linked to Euroclear.
Russian Rouble-denominated securities may be transferred to or from the Moscow-based National Securities Depositary to other CSDs to which it is linked.
Security transfers are made free-of-payment.
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