RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of January 28, 2016 No. 11

About approval of Requirements to risk management system of the central partner, to conditions and procedure for monitoring, control and risk management of the central partner

According to the Law of the Republic of Kazakhstan of July 2, 2003 "About the security market" the Board of National Bank of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Requirements to risk management system of the central partner, conditions and procedure for monitoring, control and risk management of the central partner.

2. To department of methodology of control and supervision (Abdrakhmanov N. A.) in the procedure established by the legislation of the Republic of Kazakhstan to provide:

1) together with Legal support department (Sarsenov N. V.) state registration of this resolution in the Ministry of Justice of the Republic of Kazakhstan;

2) the direction of this resolution in the republican state company on the right of economic maintaining "The republican center of legal information of the Ministry of Justice of the Republic of Kazakhstan":

on official publication in information system of law of Ad_let within ten calendar days after its state registration in the Ministry of Justice of the Republic of Kazakhstan; for inclusion in the State register of regulatory legal acts of the Republic of Kazakhstan, Reference control bank of regulatory legal acts of the Republic of Kazakhstan within ten calendar days from the date of its obtaining by National Bank of the Republic of Kazakhstan after state registration in the Ministry of Justice of the Republic of Kazakhstan;

3) placement of this resolution on official Internet resource of National Bank of the Republic of Kazakhstan after its official publication.

3. To department of the international relations and public relations (Kazybayev A. K.) provide the direction of this resolution on official publication in periodic printing editions within ten calendar days after its state registration in the Ministry of Justice of the Republic of Kazakhstan.

4. To impose control of execution of this resolution on the vice-chairman of National Bank Smolyakov O. A.

5. This resolution becomes effective after ten calendar days after day of its first official publication.

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of January 28, 2016 No. 11

Requirements to risk management system of the central partner, conditions and procedure for monitoring, control and risk management of the central partner

1. These Requirements to risk management system of the central partner, conditions and procedure for monitoring, control and risk management of the central partner (further – Requirements) are developed according to the Law of the Republic of Kazakhstan of July 2, 2003 "About the security market" (further – the Law on the security market) and establish requirements to risk management system of the central konragent, conditions and procedure for monitoring, control and risk management of the central partner.

2. In Requirements the following concepts are used:

1) price risk - the risk of emergence of expenses (losses) owing to change in value of financial instruments arising in case of change of conditions of the financial markets influencing market value of financial instruments, goods;

2) reputation risk - probability of emergence of losses, non receipt of the planned income in result of narrowing of client base, decrease in other indicators of development owing to forming in the society of negative idea of financial reliability of the central partner, quality of the rendered services or nature of activities of the central partner in general;

3) currency risk - probability of emergence of financial losses owing to adverse changes of the foreign exchange rates when implementing by the central partner of the activities;

4) the settlement organization - the organization performing the organization of calculations (payments) for transactions with financial instruments;

5) guarantee fund - the means created at the expense of fees of clearing participants and intended for decrease in risks of activities of the clearing organization (the central partner) when servicing clearing participants;

6) credit risk - the probability of emergence of losses arising owing to failure to carry out by the partner of the obligations according to resolutive conditions;

7) legal risk - probability of emergence of losses owing to:

violations by partners of requirements of regulatory legal acts of the Republic of Kazakhstan, and also conditions of the signed agreements;

imperfections of system of law (discrepancy of the legislation, lack of precepts of law on regulation of the single questions arising in the course of activities of the central partner);

assumptions of legal mistakes when implementing activities (the wrong legal advice bureaus or incorrect creation of documents, including by consideration of matters of argument in judicial authorities);

non-compliance with the legislation of the Republic of Kazakhstan by the central partner of requirements, and in the relations with nonresidents of the Republic of Kazakhstan - the applicable legislation of other states;

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