Information on requirements, necessary documents and procedure for obtaining the status of a clearing participant
A clearing participant may be a legal entity that is permitted by the legislation of its country to conclude transactions with financial instruments and that also meets the requirements of the KASE Clearing Center.
When the status of a Clearing Participant is granted, the following categories are assigned:
Based on the type of collateral, a clearing participant may be assigned the following categories:
Without collateral
A clearing participant participates in trading without providing collateral for fulfillment of obligations under transactions on a certain exchange market
This category is assigned by the National Bank of the Republic of Kazakhstan for all exchange markets, as well as to foreign participants of the Tabadul Hub in the stock market
With partial collateral
A clearing participant participates in trading in financial instruments subject to availability of sufficient collateral formed in accordance with the Clearing Rules, to fulfill obligations under transactions and active orders in these trades
With full coverage
A clearing participant participates in trading subject to full coverage of obligations under concluded transactions and active orders in those financial instruments in which these obligations arose
Compliance with requirements
Candidates for clearing participants, including foreign participants of the AIFC, must comply with requirements of the Regulations on Clearing Participants
Consideration of an application from a candidate for clearing participants
To be assigned the status of a clearing participant, a candidate submits an application for assignment of the relevant status, an application for assignment of a category, consent to receive confidential information, and package of documents specified in Regulations on Clearing Participants. If no more than 1 month has passed since assignment of the KASE member status, a candidate may provide only Appendix 2, or Appendix 6, Appendix 4 of the Regulations.
Deciding on assigning the status
Based on the review and analysis of the submitted package of documents, the KASE Clearing Center decides whether to grant or deny assignment of the status of a clearing participant. In case of a negative decision, a candidate for clearing participants has the right, after three months, to re-submit an application for assignment of the status of a clearing participant.
Payment of guarantee fees
A candidate is obliged to pay a guarantee fee to the clearing guarantee fund within 10 (ten) working days after receiving the notification of the decision taken. In case of failure to pay (or paying not in full) within the specified period, the KASE Clearing Center's decision becomes invalid.
The KASE Clearing Center carries out regular monitoring of the clearing participants.
The monitoring covers analysis of the financial condition of a clearing participant, analysis of existence of the facts of non-fulfillment or improper fulfillment by a clearing participant of the obligations under transactions with financial instruments, to pay (additionally pay) the guarantee fees, collateral, to pay the clearing fees, to pay the fines/penalties, analysis of compliance with standards for adequacy of equity capital and liquidity.
A clearing participant is obliged to periodically provide information on corporate actions and events, financial statements and other documents specified in Appendix 9, Appendix 10 to the Regulations on Clearing Participants.