KASE Board of Directors Fixed Q3 2016 Discount Rates

The Board of Directors decided not to define the discount rate for debt securities from the buffer category before the deals in this category's securities are concluded due to the absence of representative selection on securities of that category for calculation of the rate based on results of twelve months preceding that quarter and impossibility to apply the rate which was fixed for the third quarter of 2013 in the current market situation 


According to item 17 of the Rules the Exchange must weekly release on its website data on the fair value of illiquid debt securities issued by organizations-residents of the Republic of Kazakhstan and included in the Exchange's official  list. At this the mentioned securities mean securities whose market value (yield) cannot be calculated in accordance with the Exchange's internal document "Methodology of Securities Valuation".

According to item 16 of the Rules the fair value of the mentioned securities is defined based on the Exchange's internal document "Methodology of Calculation of the Weighted Average Yield of Debt Securities', whereas the discount rate is  used as such yield. Discount rates on the mentioned securities are determined by the Exchange's Board of Directors once a quarter for each particular category  (sub-category) of sector "debt securities" of the Exchange's official list based on the above-mentioned Methodology based on the annual weighted average yield  in the respective category (sub-category) based on results of twelve months preceding this quarter.

Currently, the Exchange shall consult with the National Bank on the situation around defining the discount rate for the buffer category bonds.