In T+N mode, a securities transaction is concluded today, while payment and delivery of the securities occurs in N trading days
For example, in the T+2 mode, the settlements are carried out on the second trading day after conclusion of a transaction: the buyer transfers funds, the seller transfers securities.
In all such transactions on KASE, the central counterparty is KACC
This means that:
- for the buyer, its counterparty is KACC, and not a specific seller;
- for the seller, its counterparty is KACC, not a specific buyer.
KACC assumes the risk of executing the transactions on the settlement date and manages this risk through a margin collateral system: the participant must deposit a portion of cash and/or securities in advance.
What instruments can be traded in T+N mode?
List T+
Shows which instruments can be traded with the central counterparty and deferred T+N settlements.
Collateral List T+
Shows which instruments from the List T+ can be provided as collateral (pledge) for positions in transactions with T+N settlements
Main criteria for inclusion into the List T+ and the Collateral List T+
Liquidity
- sufficient trading volumes
- regular transactions
- ability to buy/sell without significant price shocks
Issue parameters
- specific issue volume;
- share of securities in free float;
- issue structure (subordinated/unsubordinated, coupon/discount, etc.).
Issuer reliability
- internal reliability group (determined in accordance with internal procedure)
- credit ratings
Pricing quality
- availability of reliable market quotations;
- use of external valuation indicators for quality of valuation price or liquidity assessment.
Main categories of instruments
Government securities of the Republic of Kazakhstan (RK MF, RK NB)
- belong to the most reliable segment of the market;
- available in several accepted currencies;
- used as the basic asset class for T+ transactions and collateral.
Typically, if the technical requirements are met, such instruments are included into both the List T+ and the Collateral List T+.
- belong to the most reliable segment of the market;
- available in several accepted currencies;
- used as the basic asset class for T+ transactions and collateral.
Typically, if the technical requirements are met, such instruments are included into both the List T+ and the Collateral List T+.
- characterized by an established level of credit quality;
- issued in significant volumes and have sufficient circulation;
- a stable market price is formed based on them.
They may be included into the List T+, and if additional requirements are met, into the Collateral List T+.
- securities of large issuers, demonstrating stable trading activity;
- meet the requirements for reliability and liquidity group.
For inclusion into the Collateral List T+, high and stable liquidity and the presence of a market maker are additionally important.
- selected based on quality of the issuer and liquidity parameters;
- generally, they are included in the indices and have a market maker service;
- a stable market price with sufficient data depth is formed based on them.
The most liquid instruments in this category can also be used as collateral.
- issued by supranational institutions with a stable financial reputation;
- have significant volume and transparent pricing;
- demonstrate stable circulation in the market.
Such issues may be included in the List T+ and accepted as collateral if the criteria are met.
- issued by the issuers corresponding to the established ranges of reliability groups;
- circulate in market volumes, providing the opportunity to form a reference price;
- have sufficient trading history and stable liquidity.
Only those issues that meet stricter requirements for reliability, liquidity and risk parameters are included into the collateral.