30.09.2016, 19:25
As of October 1 Redrafted Regulations on Market Makers
OREANDA-NEWS. September 5, 2016 news repeat/ – Following a decision of Kazakhstan Stock Exchange (KASE) Board of Directors dated August 31, 2016, KASE redrafted internal document called "Regulations on Market Makers" (Regulations) was approved, with effect as of October 1, 2016.
The redrafted Regulations are to update the current Regulations and contain general rules of activities of market makers. The redrafted Regulation no longer contains the issues decisions on which in accordance with the legislation of the Republic of Kazakhstan do not fall under the exclusive competence of KASE Board of Directors.
These issues concerning the procedure for the assignment and loss of the market-maker status of KASE members, as well as the conditions and procedure for carrying out market makers activities on KASE were included in a new KASE internal document "Rules of Market Makers Activities" (Rules), which was approved by KASE Management Board decision dated August 16, 2016 to enter into force on October 1, 2016.
Compared with the conditions and procedure of activities of market makers on the KASE, which were established by the Regulations effective before October 1, 2016, the following significant amendments were made to the Regulations. Market Maker for Securities may select one of the two schemes to announce and/or maintain their mandatory quotations:
Scheme 1 provides for wider spreads and smaller volumes of mandatory quotations, thus exemptions from payment of commission fee is not changed and comprises 50% relative to the rate applicable to the transactions concluded by a market maker;
Scheme 2 provides for more narrow spreads and larger volumes, the exemptions from payment of commission fee is 100% (full exemption from payment of the commission), if market maker announces and/or maintains the mandatory quotations using his own account (in their own interests and at their own expense).
In order to go from one scheme of announcing and/or maintaining the mandatory quotations to another, the market makers should provide KASE with a statement following no particular form not later than five business days before the beginning of a calendar month (no transfer from one scheme to another is permitted within a current month).
The redrafted Regulations are to update the current Regulations and contain general rules of activities of market makers. The redrafted Regulation no longer contains the issues decisions on which in accordance with the legislation of the Republic of Kazakhstan do not fall under the exclusive competence of KASE Board of Directors.
These issues concerning the procedure for the assignment and loss of the market-maker status of KASE members, as well as the conditions and procedure for carrying out market makers activities on KASE were included in a new KASE internal document "Rules of Market Makers Activities" (Rules), which was approved by KASE Management Board decision dated August 16, 2016 to enter into force on October 1, 2016.
Compared with the conditions and procedure of activities of market makers on the KASE, which were established by the Regulations effective before October 1, 2016, the following significant amendments were made to the Regulations. Market Maker for Securities may select one of the two schemes to announce and/or maintain their mandatory quotations:
Scheme 1 provides for wider spreads and smaller volumes of mandatory quotations, thus exemptions from payment of commission fee is not changed and comprises 50% relative to the rate applicable to the transactions concluded by a market maker;
Scheme 2 provides for more narrow spreads and larger volumes, the exemptions from payment of commission fee is 100% (full exemption from payment of the commission), if market maker announces and/or maintains the mandatory quotations using his own account (in their own interests and at their own expense).
In order to go from one scheme of announcing and/or maintaining the mandatory quotations to another, the market makers should provide KASE with a statement following no particular form not later than five business days before the beginning of a calendar month (no transfer from one scheme to another is permitted within a current month).
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