I.O.'S ORDER OF THE MINISTER OF NATIONAL ECONOMY OF THE REPUBLIC OF KAZAKHSTAN

of November 25, 2015 No. 729

About approval of Rules of implementation of clearing activities for stock exchange transactions and Requirements to the hardware and software of clearing center of commodity exchange

According to subitem 3-6) of Article 4 and Item 7 of article 17 of the Law of the Republic of Kazakhstan of May 4, 2009 "About commodity exchanges" PRIKAZYVAYU:

1. Approve:

1) Rules of implementation of clearing activities for stock exchange transactions according to appendix 1;

2) Requirements to the hardware and software of clearing center of commodity exchange according to appendix 2.

2. To provide to department of regulation of trading activity of the Ministry of national economy of the Republic of Kazakhstan:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan the direction it the copy on official publication in periodic printing editions and in information system of law of Ad_let;

3) publication of this order on official Internet resource of the Ministry of national economy of the Republic of Kazakhstan.

3. To impose control of execution of this order on the supervising Vice-Minister of national economy of the Republic of Kazakhstan.

4. This order becomes effective after ten calendar days after day of its first official publication, except for appendices 2 to this order which becomes effective since January 1, 2017.

Appendix 1

to the Order of the Acting Minister of national economy of the Republic of Kazakhstan of November 25, 2015 No. 729

Rules of implementation of clearing activities for stock exchange transactions

Chapter 1. General provisions

1. These rules of implementation of clearing activities for stock exchange transactions (further - Rules) are developed according to the Law of the Republic of Kazakhstan of May 4, 2009 "About commodity exchanges" (further - the Law) and determine procedure of clearing activities for stock exchange transactions.

Requirements of these rules do not extend to clearing activities for futures and option transactions which procedure is regulated by the legislation of the Republic of Kazakhstan on the security market.

2. In these rules the following concepts and terms are used:

1) the settlement organization - the bank of the second level or the organization performing separate types of banking activities with which the clearing center of commodity exchange signed the agreement on order of interaction when carrying out the exchange biddings and (or) implementing payment under the bargains concluded at the exchange biddings;

2) clearing - process of determination, check and information transfer about requirements and (or) obligations of members of commodity exchange as a result of the conclusion of stock exchange transactions, including as a result of implementation of netting of obligations, and preparation of the documents (information) which are the basis of the termination and (or) execution of such obligations;

3) clearing center of commodity exchange - the independent clearing organization with which the commodity exchange signed the agreement on clearing servicing;

4) authorized body - authorized state body in the field of commodity exchanges.

3.  No. 30 is excluded according to the Order of the Minister of Trade and integration of the Republic of Kazakhstan of 03.09.2019

4. Clearing servicing of commodity exchange by the foreign legal entity with accomplishment of functions of its clearing center is not allowed.

Chapter 2. Implementation of clearing activities

5. For implementation of clearing activities for stock exchange transactions the commodity exchange signs the agreement on clearing servicing with the clearing organization.

6. The agreement of commodity exchange with the clearing organization contains conditions about order of interaction of the parties, exchange of information, making of procedures in the course of implementation of stock exchange trading.

7. For the purpose of implementation of clearing, calculations and accounting of stock exchange commitments the clearing center of commodity exchange signs with the settlement organization the relevant agreement on order of interaction when carrying out the exchange biddings and (or) implementing payment under the bargains concluded at the exchange biddings.

8. Depending on stock exchange transactions on which clearing activities are performed clearing centers perform the functions determined by Item 6 of article 17 of the Law.

9. For accomplishment of the functions the clearing center performs collection, processing and storage of information on stock exchange transactions on which the clearing center performs clearing servicing, its reconciliation and adjustment in the presence of discrepancies.

10. The clearing center performs storage of information and the documents connected with clearing activities and daily backup of such information.

Backup copies are subject to protection against unauthorized information access and are stored in the reserve technical center of clearing center before their replacement with updated backup copies.

11. The clearing center of commodity exchange provides permanent readiness of the reserve technical center for immediate activation. The reserve technical center conforms to the following requirements:

1) contains backup copies of information connected with clearing activities, identical to the main information;

2) contains the copy of the software and hardware of the clearing center of commodity exchange used in the course of implementation of clearing activities for stock exchange transactions;

3) it is provided with the communications necessary for implementation of activities of clearing center of commodity exchange;

4) in case of impossibility of implementation of clearing in the location of clearing center of commodity exchange is represented by possibility of implementation of clearing no later than the next working day after emergence of this situation.

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