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Kazakhstan Stock Exchange
Қазақстан қор биржасы
Qazaqstan qor bırjasy
TypeStock Exchange
LocationAlmaty, Kazakhstan
Coordinates43°14′14″N 76°54′56″E / 43.2373°N 76.9155°E / 43.2373; 76.9155
FoundedNovember 17, 1993 (1993-11-17)
Key peopleAlina Aldambergen (CEO)
Aliya Moldabekova(Chairman of the Board of Directors)
No. of listings194
Market capUS$45.3 billion (2020) Shares
VolumeUS$572.5 million (2020) Volume and structure of market turnover
IndicesKASE Index[1]
Bonds Indexes (in English)

The Kazakhstan Stock Exchange (KASE; Kazakh: Қазақстан қор биржасы, romanized: Qazaqstan qor bırjasy) is a stock exchange located in Almaty, Kazakhstan. The exchange was founded in 1993.


On November 15, 1993, Kazakhstan introduced its own currency, the tenge. The next day, November 17, 1993, the National Bank of Kazakhstan and 23 local leading commercial banks took a decision to found a currency exchange. The previously existing Center for execution of inter-bank currency transactions (Currency exchange) used to be a structural unit of Kazakhstan's National Bank. The main task assigned to the new exchange was to set up and develop the national currency market following the introduction of the tenge. The exchange was incorporated as a closed joint-stock company on December 30, 1993, under the name Kazakhstan Inter-Bank Currency Exchange.

On March 3, 1994, the exchange was re-registered under the name Kazakhstan Interbank Currency Exchange due to the need to match the exchange's name to the current legislation.

On July 12, 1995, the exchange was re-registered under the name Kazakhstan Inter-Bank Currency and Stock Exchange following the shareholders' decision to let the exchange begin operating on the securities market. On October 2, 1995, the exchange obtained license No. 1 to carry stock exchange transactions, however this license only covered the right to operate trading in government securities only. On April 12, 1996, the exchange was re-registered under the name Kazakhstan Stock Exchange, since the current legislation banned the stock exchange from carrying out functions of a commodity exchange. On November 13, 1996, the exchange obtained an unlimited license to operate securities trading from the National Commission of the Republic of Kazakhstan on Securities.

Since the new Act of the Republic of Kazakhstan "On Securities" dated March 5, 1997 restricted the stock exchange's operation to securities only, the general meeting of shareholders in April 1997 decided to reorganize it by making it separate closed joint-stock company Almaty Financial Instruments Exchange (AFINEX), which was registered on July 30, 1997. As of September 1, 1997 the trading in foreign currencies and futures contracts moved to the AFINEX trading floor. The exchange itself underwent a re-registration in July 1997 retaining its former name.

With the Act of the Republic of Kazakhstan "On Making Changes and Additions to Some Legal Acts of the Republic of Kazakhstan Regarding Joint-Stock Companies" of July 10, 1998 coming into effect, the ban prohibiting the exchange to operate trading in foreign currencies and financial instruments other than securities, was lifted, which made it possible to affiliate the AFINEX to the exchange. The relevant decision was taken at a general meeting of shareholders on January 6, 1999, and on March 16, 1999, an appropriate state re-registration of the reunited exchange was effected.

On December 15, 2006, KASE was authorized as a special trading floor of the regional financial center of Almaty. On August 23, 2007, a general meeting of KASE shareholders took a decision to commercialize KASE. As part of KASE commercialization, the former voting principle "one shareholder – one vote" was scrapped and the traditional principle "one share – one vote at the general meeting" was adopted.

Main stages in formation and development of KASE

1993 Start of foreign currency trading
1995 Start of government securities trading
1996 Start of futures contracts trading
1997 Start of trading in listed shares, state-owned shareholdings, and unlisted securities
1998 Launch of direct deals system on KASE

Start of trading in Kazakh Eurobonds

1999 Start of trading in listed corporate and municipal bonds

Launch of nego repo market

2001 Start of trading in bonds of international financial institutions

Launch of auto repo market

2002 First trading in promissory notes
2003 Start of trading in foreign government securities
2006 Start of trading in foreign corporate bonds

IPO of KazMunaiGas Exploration Production using KASE settlement system

2007 Creation on KASE of a special trading floor of the regional financial center Almaty

Commercialization of KASE

2008 Approval of KASE's Corporate Governance Code

Launch of currency swap transactions market

2009 Restoration of market uniformity through amalgamation of KASE main trading floor and RFCA special trading floor
2010 Launch of modernized derivatives market based on new risk management system
2011 Inclusion of KASE in list of Dow Jones FEAS participants

Launch of a securities trading system based on T+0 (gross) settlements scheme with fully pre-positioned collateral

Conducting of 17th General Assembly of Federation of Euro-Asian Stock Exchanges (FEAS)

Signing of mutual co-operation memorandums with Korea Exchange, Istanbul Stock Exchange and Tehran Stock Exchange

Creation of new multi-functional online trading system "STrade"

2012 KASE obtains licenses for performing clearing of transactions in financial instruments and for carrying out particular types of banking transactions (opening and maintaining of bank accounts for legal persons)

Setting up of clearing department on KASE

2013 Launch of new shares index – Kazakhstan Traded Index Local (KTX Local) – calculated by Wiener Borse AG (WBAG)

KASE obtains status of fully-fledged member in World Federation of Exchanges (WFE)

2014 The first trades in the Chinese yuan (CNY)

Launch of yield indicators of currency swap transactions SWAP-1D and SWAP-2D

Launch of the exchange market indicator of short money MM index

KEGOC JSK IPO s part of the "People`s IPO" program

KASE today


The Exchange is a commercial organization operating as a joint-stock company. Bodies of the Exchange are as follows:

Exchange management


KASE holds the following licenses issued by the Committee for Control and Supervision of the Financial Market and Financial Organizations of the National Bank of the Republic of Kazakhstan:

Activities of the Exchange are mainly regulated by the following normative legal acts:

  1. The Civil Code of the Republic of Kazakhstan;
  2. The Act of the Republic of Kazakhstan "On Joint-Stock Companies";
  3. The Act of the Republic of Kazakhstan "On the Securities Market";
  4. The Act of the Republic of Kazakhstan "On Investment Funds";
  5. the Rules for Execution of Activities of the Operator of Trading in Securities and Other Financial Instruments approved by resolution No. 170 of the Agency of the Republic of Kazakhstan for Control and Supervision of the Financial Market and Financial Organizations dated October 29, 2008;
  6. Resolution No. 195 of the management board of the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations "On Requirements for the Trading Operator's Organizational Structure and for the Composition of the Stock Exchange’s Listing Commission and on Approval of the Rules of Operation for the Trading Operator’s Structural Unit Monitoring Transactions Executed in the Trading Operator’s Trading System" dated November 28, 2008.
  7. Resolution No. 77 of the management board of the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations "On Requirements for Issuers and Their Securities (Being) Admitted to Circulation at a Stock Exchange, as well as to Particular Categories of a Stock Exchange’s List" dated May 26, 2008;
  8. Resolution No. 196 of the management board of the Agency of the Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations "On Approval of the Rules for Classifying Deals Concluded in the Organized Securities Market as Executed for Purposes of Manipulation, for Setting Up and Operation of the Exchange’s Board of Directors’ Committee on Classifying Securities Deals as Executed for Purposes of Manipulation, as well as on Approval of its Quantitative Composition" dated November 28, 2008.

KASE shareholders

As of December 1, 2019, the total number of announced common shares of Kazakhstan Stock Exchange Inc. makes up 5,000,000 units, 974,373 shares are placed, the number of shares repurchased by the Exchange is 13,329. 49.1% of the total number of outstanding shares is held by the National Bank of the Republic of Kazakhstan in accordance with resolution No.

KASE's Articles of Incorporation stipulate a "golden share", which is held by the National Bank of the Republic of Kazakhstan. It carries the right to vote decisions made by KASE bodies on issues of currency regulation and regulation of Kazakhstan government bonds market.


KASE has three categories of membership. Depending on the type of financial instruments an organization is interested to trade in, it can become a member of KASE's currency, stock or derivatives. It is also possible to enjoy simultaneous membership in two or three of these categories.

53 professional market participants held the KASE member status as of October 1, 2018.

Participation in activities of international institutions

KASE is:

KASE markets

KASE operates the following markets:

Foreign currencies market

The currency market is one of the first markets organized on KASE and it has been operating since the latter's inception. The first foreign currency trading in US dollars took place in 1993. Today, transactions on this market account for about half of the total volume of trade on KASE. Main participants of KASE currency market are Kazakhstan's second-tier banks and the National Bank of the Republic of Kazakhstan.

Currently, trading on KASE is conducted in US dollars, euros, Chinese yuan and the Russian Ruble and the tenge, as is Euro-USD trading. Pairs USD/KZT and EUR/KZT along with regular transactions are traded as currency swaps with terms of one and two days.

Traditionally, USD/KZT trades make up more than 95% of the turnover in the foreign currency market. Throughout the day, KASE holds three foreign currency trading sessions: morning, afternoon and evening sessions. The first two are dedicated to trades settled on the day of transaction and in the evening session currency is traded according to the Т+1 and Т+2 settlement schemes.

At the end of a trading day, KASE performs net-clearing of each currency instrument. Settlements are made by KASE Settlements department based on data provided by the Clearing department according to the DVP (Delivery Versus Payment) principle. Most currency market members work on KASE in the mode of immediate delivery of tenge and foreign currency. New currency market members and (or) particular banks prone to risks are required to pre-deliver the currency being sold.

The banks acting as correspondents of KASE are:

KASE's currency market plays an important role in Kazakhstan's economy. In recent years, its share in the total turnover on Kazakhstan's interbank currency market has been between 50 and 83%. This is where the average-weighted USD/KZT exchange rate is fixed, which is used as the official exchange rate by the National Bank of the Republic of Kazakhstan the next day.

Securities market

Government securities

This sector features bonds issued by the Ministry of Finance and the National Bank of the Republic of Kazakhstan as well as by local executive authorities. All municipal bonds and bonds of the Ministry of Finance are offered in KASE trading system. The National Bank offers its notes independently.

In recent years, there have been at least 200 government securities worth a total of about US$1.7 billion in constant circulation on KASE.

Equity securities

Today, this sector trades financial instruments of over 80 issuers, mainly stocks of local and foreign companies. The total shares market capitalization makes up more than US$42.5 billion. The main bulk of the market is occupied by companies from mining, energy and financial sectors.

Corporate debt securities

There are around 288 corporate bonds listing on KASE issued by more than 75 domestic and foreign companies in accordance with Kazakh and foreign legislations. The total amount of debt available for trade on KASE is valued at approximately US$300 million. The official list is dominated by bonds issued by banks. Companies from other sectors form an insignificant share.

Settlements on the securities market

All settlements on securities transactions on KASE are executed by the Central Securities Depository (CSD) in the "transaction after transaction" mode on the day of transaction conclusion (using the T+0 scheme with full advance payment). The DVP principle is applied and prior to making a transaction, the money and securities which are the subject of the transaction should be in the CSD's accounts.

In order to increase the effectiveness of the stock market's settlement infrastructure and to attract foreign investors on to KASE, the Exchange is working along several lines. They include the introduction to the securities market of the multilateral net clearing and settlements using the Т+n (0<n<4) settlement scheme with partial securing of transactions and a modern system of risk management. This system is based on the use of margining and special clearing (guarantee and reserve) funds.

Repo transactions market

One of the largest segments of KASE is the repo transactions market, which traditionally accounts for almost half of the total volume of exchange trading. It features two sectors: the "nego" repo market where deals are carried by way of direct (negotiable) transactions and the "auto" repo market. In the latter case, the question is about the anonymous trades using the order-driven market method in which Kazakhstan's tenge is offered, and the repo interest rate means the price. The terms of the repo transactions are standard.

Government and corporate securities may be the subject of repo transactions on KASE.

The risk management system in the automatic repo market is based on limiting the term of the repo transactions to thirty days and binding the repo item to the market price. Should the closing transaction fail, the repo item will stay with the party to the transaction who gave money. In the "nego" repo market, where the term is limited to 90 days, the system of regular market revaluation of obligations and compensations ("mark-to-market") has been in place since 2010.

All settlements are made through the CSD using the same scheme as the one used to settle securities trades.

Derivatives market

In 2010, KASE instituted a reset of the derivatives market using a modern risk management system which meets international standards. This sector has opened trade in three-month and six-month futures on USD/KZT rate and on the KASE Index. The Exchange acts as the central counteragent for each transaction being concluded and ensures unconditional execution of transactions within amounts of reserve and guarantee funds. Limits were set for both open position and price change for the purpose of minimizing settlement risks.

Since February 1, 2012 a new unit, the Clearing department, has been operating on the Exchange. Based on results of a trading day the Clearing department executes clearing using multi-party netting and generates a report on net liabilities/net claims of clearing participants.

Exchange services

Listing on KASE

KASE listing requirements are governed by a normative legal act of the authorized body.

The Exchange's internal documents establish the procedure and time frames for considering applications for inclusion of securities in the official list, procedures for de-listing of securities, transfer from one category of the list to another, requirements for disclosing information, procedures for payment of listing fees, as well as other listing requirements and procedures.

Requirements for information disclosure

KASE has established requirements for disclosing information during preparation for the listing of securities and while those securities are officially listed on the Exchange. These requirements are applicable to:

More detailed information about these requirements is in the Listing Rules, published on KASE website.

Listing procedure

Listing procedure on KASE includes a check of the issuer and its securities for compliance with the listing requirements established by the authorized body and internal documents of the Exchange; it is carried out based on documents and information submitted to the Exchange.

The decision to officially list a company's securities is made by the Listing Commission.

After the issuer's securities have been included in the Exchange's official list, trade in the securities should be opened within three months after the date of their inclusion.

The legislation of the Republic of Kazakhstan stipulates a system of tax benefits to attract investors to the organized securities market. In particular, the tax payer has the right to a reduced taxable income for the following types of income:

KASE indices and market indicators

KASE is characterized by a set of indicators which are calculated and published by the Exchange in real time mode as well as at the end of a trading day.

KASE index

Composite index weighted by market capitalization which is calculated according to prices of transactions in the most liquid shares on KASE. The index is calculated in real time after each trade is executed.

Corporate bond market indices

This sector of the stock market is characterized by three indicators:

Indices for the corporate bond market are calculated based on the results of each trading day.

Capitalization of the corporate bond market

Shares market capitalization is an indicator that reflects the combined market value of companies whose shares are listed on KASE.

Capitalization of corporate bond market is the combined face value of outstanding corporate bonds listed on KASE.

Calculation of the share market and corporate bond market capitalization is carried out by the Exchange in tenge and US dollars based on the results of each trading day.

Repo market indicators

The TONIA (Tenge OverNight Index Average) and TWINA (Tenge Week Index Average) are weighted average interest rates on opening repo transactions in Kazakh tenge on the automatic repo market.[5] The TONIA indicator reflects the cost of money on overnight repos while the TWINA on repo – for seven days. Underlying assets of repo transactions are Kazakhstan government securities. The indicators are calculated in real time upon the conclusion of each opening nego repo transaction in government securities.

Interbank deposits market indicators

KazPrime is an indicator reflecting the interest rates on Kazakh tenge put in three-month interbank deposits among Kazakh banks with the highest local credit rating.[6] The indicator's fixing occurs at 11:30 Almaty time and within 30 minutes afterwards every signatory of the indicator formation agreement must conclude transactions using quotations he offered, if so requested by the other signatories.

In addition to the KazPrime indicator, the interbank deposit market is characterized by the KIBOR, KIBID, KIMEAN indicators:

Fixing of these indicators is performed by the Exchange at 16:00 Almaty time. Unlike KazPrime quotes used to calculate the indicators are indicative and do not bind banks to perform transactions based on them.

On November 30, 2011, the leading global supplier of indices, the Dow Jones Indexes, and FEAS launched the first index of "blue chips" quoted at Euro-Asian stock exchanges – equal-weighted index Dow Jones FEAS Titans 50. Kazakhstan is represented in that index by common shares of Halyk Savings Bank of Kazakhstan JSC, Kazkommertsbank JSC and KazMunaiGas Exploration Production JSC, whose weight in the index basket made up 2.07%, 1.85% and 1.91% accordingly as at the beginning of August 2011. Since the index is equally weighted and the weight of each share is limited to two per cent, in total the portion of Kazakh companies' shares in the index made up around 6%. These shares are part of KASE Index's representative list, as well as part of representative lists of indices Dow Jones FEAS Benchmark and S&P Kazakhstan BMI.

In December 2011 KASE joined the agreement between Standard & Poor's Financial Services LLC ("S&P") and exchanges from member countries of the Organization of Islamic Cooperation. Under the agreement S&P intends to calculate, license and distribute in real time the index composed of 50 liquid shares ("S&P Index") traded on exchange markets of countries participating in the Organization of Islamic Cooperation.

KASE information

KASE distributes information generated by the Exchange and provided by its partners (issuers, members of the Exchange, etc.). Conventionally, exchange information can be divided into:

KASE information is distributed primarily through the Exchange's website.[8] The website is currently available in Kazakh, Russian and English languages. It is one of the largest sources of information about Kazakhstan's regulated securities market and it is the only resource for disclosing information about the activities of all listed companies. The website contains archived KASE news for the past 13 years, located in a section accessible to the public, as well as provides users with access to KASE trade information in real time, with 15 minute delays, and with daily trade totals.

In addition, the Exchange provides trade information in real time via:

KASE trading system

In 1997, KASE developed and launched its own trading system that is comparable to its peers developed by specialized companies. In order to improve the performance of the trading system, revisions and updates are regularly carried out (an updated edition is released on average 3-4 times a year).

Trading is conducted daily (except for holidays and days-off).

KASE trading system allows trades in the following ways:

Remote access to KASE trading system is accomplished through dedicated channels from Kazakhstan's leading providers and via the Internet.

Online trading on KASE

KASE provides access to online trading through the following software products:

  1. STrade is a modern, fast and convenient online trading terminal for individuals using a special Transit Order Transmission Mechanism (TOTM) and the digital signature (EDS) that conforms to Kazakhstan's Standard 34.310-2004 A;
  2. a module for exchange of information with the trading system that allows third-party online trading programs to connect to the KASE trading system in order to receive information in real time and submit orders;
  3. transactional FIX-gateway developed on the basis of the international standard of market data transmission, the Fix-protocol, with features similar to those of the information exchange module.

Corporate governance on KASE

KASE has been permanently improving and developing its corporate governance system in order to protect the interests of shareholders, issuers, Exchange members and investors.

The Exchange's governing body – the Board of Directors (Exchange Council) – currently comprises 4 independent directors; this body features 4 committees:

To enable collegial decision-making and to avoid conflicts of interests additional working committees were set up at the Exchange, composed not only of Exchange employees, but also of representatives of the authorized body and market participants.

According to requirements set by the authorized body, a permanent compliance control to detect insider deals, fraudulent transactions is carried out. Systems of risk management and internal control consistent with international standards have been set up.

KASE subsidiaries

See also


  1. ^ "Bloomberg L.P. is First to Provide Kazakhstan Stock Exchange Data". Bloomberg. June 24, 2009. Archived from the original on September 27, 2009. Retrieved September 21, 2009.
  2. ^ Section 1[dead link]
  3. ^ Section 2[dead link]
  4. ^ Section 3[dead link]
  5. ^ Repo indicators[dead link]
  6. ^ KazPrime[dead link]
  7. ^ KIBOR[dead link]
  8. ^ "Index".[dead link]