Kazakhstan’s Astana International Exchange (AIX) has introduced four initiatives including a new custody model, multi-currency settlement, securities lending and borrowing, and covered short selling.
According to AIX, the introduction of a new custody model provides a major improvement for institutional investors.
AIX explained that the institutional investors’ assets, whether cash or securities, will remain under the safekeeping of a custodian who is a participant of the AIX central securities depository.
Trading members will keep providing the trading service and will “give up” the resulting trades to the custodian who will “take up” the trade and subsequent cash or securities settlement obligations.
In the absence of a confirmation from the customer to its custodian, the settlement obligation remains with the trading member, AIX noted.
Meanwhile, multi-custody settlement allows investors to trade securities listed in Kazakh Tenge and settle these trades in USD.
Additionally, it will have the facility to add additional settlement currencies based on customer demand, AIX revealed.
The new service is made available to trading members using the FIX protocol and all the data needed to use the service is displayed on the Market Watch page of the AIX website.
Securities lending and borrowing is available to appointed market makers after being authorised by AIX regulation and compliance.
AIX noted that they aim to improve the overall efficiency of its market place while increasing international investors’ level of confidence.
Olivier Gueris, COO, AIX, commented: “These go far beyond what is generally offered in frontier markets.”
“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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