OREANDA-NEWS. October 26, 2010. As was informed earlier, on June 25, 2010 the Board of Directors of Kazakhstan Stock Exchange (KASE) approved new KASE internal document "Regulations on futures market reserve and guarantee funds" (the Regulations), reported the press-centre of KASE.

The Regulations were developed in accordance with the Plan of development of futures contracts market, approved by the Board of Directors on March 30, 2010, for purposes of regulation of settlements at the future exchange market and is an addition to KASE's internal documents approved by the Board of Directors earlier - "Rules of Clearing on Futures Market" and "Rules of Futures Contracts Exchange Trading".

In accordance with the Regulations:
                                                                                
1. The Reserve fund is being formed at the expense of KASE in tenge in the amounts and order, determined by the Exchange's Board of Directors; funds will be kept at KASE settlement accounts and refilled at the expense of:

  - Lump-sum payment;

  - monthly fees at the expense of commissions after trade on the futures market in the amount of 15 % of the commissions, received for the elapsed month; the fees will be credited by KASE within fifteen business days following the elapsed month;

  - additional sums, the size of which is determined by the Exchange Council's separate decisions .

2. Guarantee funds will be formed for each type of futures contracts individually by way of the futures market members contributing a fixed amount of mandatory lump-sum guarantee fees in tenge.

Mandatory guarantee fees will vary for different types of futures contracts. No interest will be accrued and paid for the sum of guarantee fees.

The Regulations define KASE will use the Reserve and Guarantee funds solely in case of insolvency of KASE members for purposes of compliance with their net obligations on the futures market. Guarantee funds may only be used for settlement of futures contracts, for which such funds were formed.

Each one of KASE derivative market members, whose net liabilities were met at the account of reserve and guarantee funds is obliged to compensate the Exchange for the amounts dispensed out of reserve and guarantee funds in full by transferring moneys to KASE's corresponding accounts.

The text of the Regulations is available on KASE website, at  http://www.kase.kz/files/normative_base/funds_eng.pdf