Kazakhstan’s AIX introduces securities lending
11 July 2019 Kazakhstan
Image: Shutterstock
Kazakhstan’s Astana International Exchange (AIX) has introduced four initiatives including securities lending and borrowing, covered short selling, multi-currency settlement and a new custody model.
Securities lending and borrowing is available to appointed market makers after being authorised by AIX regulation and compliance.
The securities lending and borrowing programme is governed by the industry standard Global Master Securities Lending Agreement (GMSLA) or any other agreement acceptable to AIX.
According to AIX, market makers entering into a valid GMSLA with an authorised lender will also be allowed to perform covered short selling.
Meanwhile, the multi-custody settlement allows investors to trade securities listed in Kazakh Tenge and settle these trades in USD with the facility to add additional settlement currencies based on customer demand.
Additionally, the new custody model provides an improvement for institutional investors and their assets remain under the safekeeping of a custodian who is a participant of AIX central security depository.
AIX noted that they aim to improve the overall efficiency of its market place while increasing international investors’ level of confidence.
Commenting on the introduction of the new features, Olivier Gueris, COO, AIX, said: “These go far beyond what is generally offered in frontier markets.”
He added: “The introduction of these initiatives will have a major positive impact on the liquidity of our marketplace while also helping to attract new institutional investors to AIX, based on their increased level of confidence that it is a safe and sound market through which to invest.”
Securities lending and borrowing is available to appointed market makers after being authorised by AIX regulation and compliance.
The securities lending and borrowing programme is governed by the industry standard Global Master Securities Lending Agreement (GMSLA) or any other agreement acceptable to AIX.
According to AIX, market makers entering into a valid GMSLA with an authorised lender will also be allowed to perform covered short selling.
Meanwhile, the multi-custody settlement allows investors to trade securities listed in Kazakh Tenge and settle these trades in USD with the facility to add additional settlement currencies based on customer demand.
Additionally, the new custody model provides an improvement for institutional investors and their assets remain under the safekeeping of a custodian who is a participant of AIX central security depository.
AIX noted that they aim to improve the overall efficiency of its market place while increasing international investors’ level of confidence.
Commenting on the introduction of the new features, Olivier Gueris, COO, AIX, said: “These go far beyond what is generally offered in frontier markets.”
He added: “The introduction of these initiatives will have a major positive impact on the liquidity of our marketplace while also helping to attract new institutional investors to AIX, based on their increased level of confidence that it is a safe and sound market through which to invest.”
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