The KASE Clearing Center's Asset Investment Policy sets forth the principles, goals and requirements for placement of KASE Clearing Center's own funds as well as the assets of clearing participants. The policy defines approaches to formation of three investment portfolios:
Formed from the KASE Clearing Center’s own assets (excluding guarantee and reserve funds).
The goal is to preserve and increase the capital with a minimal risk level.
Includes guarantee and reserve funds formed from contributions of clearing participants and funds of the KASE Clearing Center.
The goal is to ensure settlement of transactions in case of default by one of the clearing participants.
Formed from the participants’ collateral funds recorded in the correspondent accounts of the KASE Clearing Center.
The goal is to ensure instant liquidity and cover the requirements for operations in the relevant market sectors.
The policy is aimed at ensuring safety and liquidity of assets, minimizing the financial risks and achieving an optimal level of profitability, taking into account the requirements of legislation and internal regulatory documents of the KASE Clearing Center. The KASE Clearing Center adheres to the principle of high liquidity when placing assets, ensuring the possibility of their rapid conversion into cash without a significant change in value. Maintaining the required liquidity level is a key condition for timely fulfillment of obligations to clearing participants and ensuring the smooth functioning of clearing processes.
The policy defines the permitted financial instruments for each portfolio, concentration limits, requirements for counterparty ratings, asset structure and investment terms. Investments are made in compliance with the principles of diversification, transparency and strict risk management.
The policy is regularly updated to reflect changes in regulatory requirements and market conditions and serves as the basis for responsible and safe placement of assets of the KASE Clearing Center and its participants. The KASE Clearing Center ensures enhanced control over all types of risks through application of established limits, regular stress testing and daily portfolio status monitoring. The risk management system operates continuously and enables timely identification and elimination of deviations, ensuring a high level of investment reliability.
Asset security
The Clearing Center ensures observance and protection of shareholders' rights, guaranteeing their equal and fair access to information, the opportunity to participate in the company management and protection from actions violating their interests.
High liquidity
Assets are invested primarily in highly liquid financial instruments, which allow them to be quickly converted into cash without a significant change in value. This ensures timely fulfillment of obligations to the market participants and return of collateral funds.
Risk management and limits
Each portfolio has a system of credit, market and liquidity risk restrictions, including limits on issuers and counterparties, portfolio structure requirements and investment term limits. Exceeding of the limits is monitored and subject to elimination within the established time.
Portfolio diversification
Investment portfolios are formed taking into account a diversification by types of financial instruments, issuers, terms to maturity and currencies, which reduces concentration of risks and contributes to sustainability of the KASE Clearing Center's investment activities. Asset investment policy
Separate accounting and transparency
Asset and income accounting is maintained separately for each portfolio, ensuring operational transparency and the ability to independently assess the investment performance. Investment processes are regulated by the Clearing Center’s internal documents and are subject to internal control.
Income targeting
The KASE Clearing Center annually sets a target level of return for each investment portfolio based on investment goals and budget indicators. This ensures predictability of results and consistency of investment activities with the financial planning of the Clearing Center.