KASE Will Use Frankfurt Trades Method
OREANDA-NEWS. November 09, 2011. Kazakhstan Stock Exchange (KASE) by its decision of November 27, 2011 approved change and additions # 34 (the amendments) to KASE internal document "Regulations of Trades and Confirmation System Operation", effective from November 21, 2011, reported the press-centre of KASE.
The amendments have been developed in compliance with decision of the Council on Financial Stability and Development of Financial Market of the Republic of Kazakhstan.
The amendments stipulate that trades in securities (shares, corporate bonds and government bonds), executed by the continuous counter auction are transferred to the standby mode, during which they are executed by the Frankfurt trades method:
- in case of coincidence or crossing of prices, indicated in the counter orders for selling and buying shares, admitted to circulation on KASE in case of no deals in these shares during 5 and more calendar days;
- in case of coincidence or crossing of prices, indicated in the counter orders for selling and buying bonds, admitted to circulation on KASE.
Up to date, the standby mode when trading bonds has not been used, and when trading shares this mode has been used in case of no deals in shares during 15 and more calendar days.
In addition, according to the Regulations the standby mode is applied in case of coincidence or crossing of prices of orders for selling and buying shares, admitted to circulation on KASE, the price of a supposed deal differs from the price of the last deal in these shares by 10 % for liquid shares and 5 % for illiquid shares, and in case of coincidence or crossing of prices indicated in preliminary counter orders for selling and buying.
The Regulations revised text is available on KASE website at http://www.kase.kz/files/normative_base/reglament_trade_eng.pdf
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