KASE Limits Maximum Size of Lot on Special Trades
OREANDA-NEWS. April 12, 2011. By a decision of Kazakhstan Stock Exchange (KASE) Board of Directors changes and additions # 6 (amendments) to KASE internal document "Regulations on Trading Methods" (Regulations) have been approved, reported the press-centre of KASE.
The amendments have been submitted to the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (FSA) and will be made effective upon their approval by the said agency.
The most important amendment to the Regulations envisages that at conducting special trades the maximum size of one lot at offering (sale, buy-out, purchase) may not exceed 5 % of the proposed amount of the financial instrument being offered (sold, bought out, purchased). There had not been any such limit before. It has been introduced in order to create competitive environment at trades, where the trades initiator's work with a foregone counteragent would be complicated by a higher than before likelihood of a broad range of investors participating in the special trades, since blocks of shares to be offered at the trades may not be sold as a single lot.
In addition, when submitting a request to KASE for conducting special trades, their initiator will now have to indicate the seller's bank details for crediting of money in order to avoid a possibility of transferring the money directly to the seller's client. With the purpose of implementing this amendment the term "bank account" has been introduced into the Regulations,
meaning "a bank account of a KASE member or an issuer in Kazakhstan tenge opened at a bank - resident of the Republic of Kazakhstan, which is used for crediting of money coming in from KASE".
The renewed text of the Regulations will be published on KASE website, at http://www.kase.kz/files/normative_base/methods_eng.pdf after approval by FSA.
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