KASE Launches Euro/Tenge Currency Swap Transactions
OREANDA-NEWS. December 15, 2009. The Exchange Board of the Kazakhstan Stock Exchange (KASE) approved change and addition No. 28 to KASE internal document "Regulations on Trade and Confirmation System Operation" and changes and additions No. 11 to KASE internal document "Instruction on Coding of Members of Kazakhstan Stock Exchange, Financial Instruments and Issuers", reported the press-centre of KASE.
In accordance with the amendments beginning December 14, 2009 KASE trading system will allow for carrying out of the following currency swap transactions settled in the tenge:
- EURKZT_0_001 - currency swap transactions comprise a euro purchase-and-sale deal executed on the trade day and a simultaneously concluded counter-directed euro purchase-and-sale deal in the same amount executed on the next business day after the trade day;
- EURKZT_0_002 - currency swap transactions comprise a euro purchase-and-sale deal executed on the trade day and a simultaneously concluded counter-directed euro purchase-and-sale deal in the same amount executed on the second business day after the trade day;
- EURKZT_1_002 - currency swap transactions comprise a euro purchase-and-sale deal executed on the next business day after the trade day and a simultaneously concluded counter-directed euro purchase-and-sale deal in the same amount executed on the second business day after the trade day.
Recall, a currency swap transaction is a combination of the two counter-directed deals simultaneously concluded between the two same KASE category "В" members, in the same amount of the same currency, different in settlement terms.
Currency swap transactions may be carried out in the KASE trading system by KASE category "В" members in the day session from 11:30 a.m. through 15:30 p.m. ALT.
Currently, the KASE trading system allows for carrying out of the following currency swap transactions settled in the tenge:
- USD_TOD_TOM (the currency swap transaction trade code will be changed December 14, 2009 into USDKZT_0_001) - currency swap transactions comprise a dollar purchase-and-sale deal executed on the trade day and a simultaneously concluded counter-directed dollar purchase-and-sale deal in the same amount executed on the next business day after the trade day;
- USD_TOD_SPT (new code - USDKZT_0_002) - currency swap transactions comprise a dollar purchase-and-sale deal executed on the trade day and a simultaneously concluded counter-directed dollar purchase-and-sale deal in the same amount executed on the second business day after the trade day;
- USD_TOM_SPT (new code - USDKZT_1_002) - currency swap transactions comprise a dollar purchase-and-sale deal executed on the next business day after the trade day and a simultaneously concluded counter-directed dollar purchase-and-sale deal in the same amount executed on the second business day after the trade day).
According to results of operation in 11 months of 2009 traded value of currency swap transactions on KASE reached KZT2,270 bn (USD15,092 m), which makes 24.5 % of the total currency value traded on KASE in the period.
A list of KASE category "B" members (eligible to trade in currency) is available at the KASE website at http://www.kase.kz/en/membership
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