KASE Makes Aendment to Rules of Market-Makers Activities
OREANDA-NEWS. April 05, 2011. Following a decision of Kazakhstan Stock Exchange (KASE) Board of Directors additions and changes # 2 (amendments) to KASE internal document "Rules of Market-Makers Activities" (the Rules) have been approved, reported the press-centre of KASE.
The amendments will be forwarded to the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (FSA) for approval and will be made effective after their approval by the said agency.
Amendments were made to Appendix 2 "Specification of status of a market-maker for stock market members", Appendix 4 "Specification of status of a market-maker for US dollar" and Appendix 5 "Specification of status of a market-maker for Russian Federation Ruble" to the Rules.
The said amendments stipulate the following.
1. The procedure of defining the minimum volume of mandatory quotation for a market-maker has been changed due to the significant deviation of the face value of some KASE official list bonds from their market value. The minimum volume of mandatory quotation for bond market-makers will make up 2,000 MCI (in the current version of the Rules this volume is set in units and must be multiple of 10, or 100, or 1,000 or 10,000 bonds depending on the bond price scale) after the amendments become effective.
2. Requirements for the spread, net position, and volume of mandatory quotation for US dollar and Russian ruble market-makers have been changed due to necessity of abandoning the "floating" requirements for the market-makers in order to simplify the operation of the automatic control system surveying the compliance with the requirements:
- the spread between the best mandatory quotations for US dollar market-makers has been set as a value not exceeding KZT0.1 with a net position of up to USD2,000,000;
- the spread between the best mandatory quotations for Russian ruble market-makers has been set as a value not exceeding KZT0.01 with a net position of up to RUR30,000,000;
- the volume of mandatory quotation for US dollar market-makers has been set as being not less than USD500,000 except for cases when the acceptance of a mandatory quotation may lead to an increase in the market-maker's net position by an amount exceeding USD2,000,000 during a trading day;
- the volume of mandatory quotation for Russian ruble market-makers has been set as being not less than RUR3,000,000 during a trading day;
- US dollar market-makers may refuse displaying the mandatory quotation in case the net position's amount has reached USD2,000,000 during a trading day.
The Rules' revised text will be published on KASE website, at http://www.kase.kz/files/normative_base/m_maker_eng.pdf after approval by the FSA.
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