OREANDA-NEWS. April 27, 2010. Kazakhstan Stock Exchange (KASE) published on its website the following press release "On creation of Kazakhstan Association of Securities Dealers" at http://kase.kz/files/press/ru/releases/10_04_21_KASD.pdf, reported the press-centre of KASE.

The national stock market largest operator announced creation of Kazakhstan Association of Securities Dealers (KASD).

The Association creation was initiated by BTA Securities, Verniy Capital, RESMI Finance & Investment House, Kazkommerts Securities, Centras Securities, Troika Dialogue Kazakhstan, Halyk Finance, supported by Financial Institutions' Association of Kazakhstan, Kazakhstan Stock Exchange and Central Securities Depository, which together with above organizations plans to become the KASD member.

The Association main goal is to introduce into the Kazakhstan stock market practice high professional behavior ethical standards based on the mutual acknowledgment and confidence, and deliberate observance of legal norms, exchange trades and settlements rules, customs of honest business. Therefore, only those organizations that have the long-term positive reputation, recognized on the securities market will be admitted to the KASD membership.

The main prerequisite of KASD creation became the critical situation related to the confidence in the domestic stock market operator on behalf of both their services users and the professional community. This situation can be briefly characterized as follows:

- the rapid increase in previous years of the licensed market participants   number and their employees without ensuring the business behavior quality (as the "newcomers" often did dishonest business and did not have an understanding of being honest)

- regular cases of making negotiated deals and prices manipulation, non-fulfillment of obligations on deals made (including through using those mechanisms, which initially were introduced by the regulator and the exchange to advocate investors interests)

- introduction to the market participants minds of the principle "fast money at any cost", ignoring of honesty and fair competition

- the lack of efficient ways of joint protection of rights and interests of market professional participants and their clients in case of defaults on corporate bonds

- distribution on the securities market of aggravating mutual and overall suspicion

Retention of mentioned and other signs affects the national financial system, including efforts made to attract new issuers and investors to the market. Given these conditions KASD creation demonstrates that the stock market of Kazakhstan has robust forces able to consolidate and restore the trust to the young and developing market.

The Association objectives is to form and implement business behavior standards, control of these standards observation by KASD members, active involvement to documents drafting, defining the strategy and tactics of the domestic stock market development, creation of the system of traders and other specialists attestation/certification to operate on the securities market.
Possible area of KASD activities - creation of the arbitrate to consider disputes and discords between the Association members.

So far KASD nearest plans include forming of constituent documents, registration as a legal entity, forming of internal regulations and procedures.

It is proposed that the Association Council will be entered by S. Akhanov, E. Abdrazakov, K. Damitov, A, Joldasbekov, A. Elemessov, T. Isataev, K. Mazhibaev. KASD will be managed by the Association President and A. Joldasbekov was proposed as the candidate to this position.