OREANDA-NEWS. January 15, 2013. As previously informed, Kazakhstan Stock Exchange (KASE) Board of Directors by its decision approved  new KASE internal document "Regulations on Market Makers" (the Regulations).

The Regulations have been approved by the Committee on Regulation and Supervision of Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan (FSC NBK). The date when the Regulations come into force will be announced additionally.

The Regulations have been developed to improve terms and procedure of maker makers activities and contains the following main changes and additions to the effective Rules of Market Makers Activities:

- sizes of forfeits for non-fulfillment of market makers obligations and/or their untimely fulfillment have been changed;

- limitations of the maximum size of charged by the exchange forfeits for violations made by maker makers during three and more trading days are stipulated;

- exclusive cases of formal violations by a maker maker of requirements of the Regulations, when KASE Management Board is entitled based on a market maker application to make a decision to refuse charging on this market maker a forfeit have been defined;

- in order to increase securities liquidityс and fulfillment by market makers of functions on "the market forming" were decreased maximum values of maker makers spreads on securities;

- requirements for minimum volumes of best mandatory quotations on securities have been decreased, but were increased requirements on volume of deals, at reaching which marker makers have the right to refuse proposing mandatory quotations;

- were introduced additional terms, when market makers on securities have the right to refuse proposing mandatory quotations;

- was determined that set by corresponding specifications minimum volumes of mandatory quotation must be maintained by a market maker exclusively on best quotations;

- the requirement to maintain mandatory quotations in the exchange trading system during first 15 minutes from the moment of opening of a trading session will be applied exclusively for shares. This change was made due  to the low activity on the bonds market, and that on bonds market makers need additional time to calculate parameters of proposed quotations (in particular on securities quoted in "dirty prices");

- were merged specifications of statuses of market makers on a currency futures and KASE Index futures to the single specification of a market maker on futures. At this the minimum volumes of mandatory quotations, maximum values of spreads and benefits of exchange fees of market makers on futures are set by KASE Management Board due to need in immediate  responses on setting of minimum volumes of mandatory quotations and spreads on the exchange derivatives market, due to the absence at present of a liquidity and/or activity on this market;

- were merged specifications on market maker statuses on US dollar and Russian ruble to the single specification of a market maker on foreign currencies, which was supplemented by provisions on Chinese Yuan. At this benefits of a market-maker on Chinese Yuan are similar to benefits of a market-maker on Russian ruble;

- were excluded all terms on net positions of a market maker on a foreign currency, at this it was set that a market maker on a foreign currency of any denomination is entitled to refuse further announcement and/or maintenance during a trading session of a mandatory quotation for buying (selling) of a foreign currency of this denomination, if earlier during this trading session based on announced by this market-maker mandatory quotations for buying (selling) of a foreign currency of this denomination  were made deals, the amount of which makes up not less than fivefold minimum size of one such mandatory quotation;

- the requirements for the minimum volume of a mandatory quotation for a market maker on Russian ruble for a Russian ruble market maker were increased up to RUB5 million (at present - not less than RUB3 million).

From the date of effect of the Regulations, Rules of Market Makers Activities will be considered invalid.

The Regulations text will be published on KASE website in the nearest time.