Central Securities Depository of Kazakhstan: implemented initiatives and plans 2021
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Central Securities Depository of Kazakhstan: implemented initiatives and plans 2021
Presentation for AECSD
Central Securities Depository JSC (KACD)
18 shareholders as of 01.01.2021
KACD was founded on 18 July 1997 under the name "Central Securities
Depository”.
1%
KACD is a non-profit organization operating in the legal form of a joint National Bank of
stock company
29% Kazakhstan
Second-tier
banks
KACD is the only organization on the territory of the Republic of KASE
Kazakhstan that has the right to carry out depository activities and
maintain a system of registers of securities holders 6% 64%
Brokers
On 23 February 2016, Thomas Murray confirmed the KACD rating at A+Presentation for AECSD
About KACD
• KACD accounts with other • Foreign custodian
organizations: accounts with KACD:
Clearstream Banking
PJSC "Best Efforts Bank”
Depository activities (01.06.2021)
NSD (Russia) • 52 clients
VTB Bank (PJSC) • 175.2 thousand subaccounts
• $217.4 billion securities
Euroclear Bank
AO Raiffeisenbank
RUE "RCSD”
(Belarus)
Registrar activities (01.06.2021)
Central Depository PJSC ROSBANK
CJSC (Kyrgyz
Republic) • $378.3 billion securities
• 1.7 million accounts
AIX CSD JSC Citibank KazakhstanPresentation for AECSD
Consolidation of registrar and depository activities
Depository activities (01.06.2021)
52 clients
•175.2 thousand subaccounts Synergy of combining activities
•$217.4 billion securities - A single center for recording ownership rights to
securities
- Simplification of procedures for transferring
Registrar activities (01.06.2021) instruments between the nominee holding system and
the register system
2076 issuers - Reduced operating costs and reduced tariffs for
customers
1.8 million account holders
11 211 operations in 5 monthsPresentation for AECSD
Accounting of money unclaimed by holders
Subject to safekeeping at KACD:
• unpaid dividends for previous periods;
• unpaid instruments related to forced redemptions;
• unclaimed money related to bond redemption (planned)
• unclaimed money related to the liquidation of a joint-stock company (planned)
Scheme of operation:
Transfer of money to a bank
Identification of individuals Calculation of the amount due
account of an individual
Operating results for the period from 2019
11.8 billion tenge 3.9 billion tenge
Received from issuers and Paid to holders
majority shareholders (~ USD (~ USD 9.2 million)
27.6 million)Presentation for AECSD
Electronic services for retail clients
Implemented features for retail
Short-term projects Medium-term projects
customers and issuers
Client authentication by means of electronic Implementation of biometric identification Implementation of banking services for retail
digital signature through face recognition investors
Implementation of remote business
Submission of orders for registrar activities Providing access to trading in unlisted securities
establishment
Exchange of electronic documents with clients Integration with government databases
Attracting retail investors to participate
electronically in corporate events of issuers
Automation of requests to maintain registersPresentation for AECSD
Access of non-residents to the services of the Central Securities Depository
• In 2013, the opportunity to conduct currency transactions, payment of interest and debt in Kazakhstan tenge in the Euroclear and
Clearstream systems was implemented.
• In 2018, government securities of the Republic of Kazakhstan were included in the list of securities settled in the Clearstream system. This
initiative made it possible to carry out settlements on government securities issued in tenge within the framework of Kazakhstan legislation
through Clearstream on the Free of Payment basis.
• In 2020, the international settlement line was upgraded to use the Delivery versus Payment type, which ensured risk mitigation for the
parties involved and was in line with the best world practices.
Central Securities
Clearstream
Depository
•Account with Clearstream and / or with a
• Securities account with
nominee holding an account with Clearstream
•Subaccount with JSC Citibank Kazakhstan KACD •
Foreign broker JSC Citibank KazakhstanPresentation for AECSD
Volume of transactions with government Number of transactions with government
securities of the Republic of Kazakhstan involving securities of the Republic of Kazakhstan
non-residents, 2016 - 2021 (USD million) involving non-residents, 2016 - 2021
30 000,00 10 000
9 263
27 597,35
9 000
25 000,00
8 000
7 222
7 000
20 000,00
6 000
16 108,72
15 000,00
15 523,62 5 000
4 000
10 000,00
3 000
7 558,29
7 028,06 1 908
2 000 1 710 1 579
5 000,00
1 000
118
591,23 0
0,00
2016 2017 2018 2019 2020 2021 (до 01/06) 2016 2017 2018 2019 2020 2021 (до 01/06)Presentation for AECSD
Percentage of net positions for non-residents
Number of net transactions per day with
in the context of all holders of government
government securities of the Republic of
securities of the Republic of Kazakhstan in
Kazakhstan involving non-residents in May 2021
May 2021
40 38
35 Net positions,
government
31
securities (non‐
30 29
residents)
27
11%
25 24 24 24 24
23
22
21
20 20
20 18
16 16
15
12
10
Net positions,
government
5 securities (all
holders)…
0Presentation for AECSD
Structure of securities accounts and sub-accounts in the Central Securities
Depository
Recordkeeping system of the Central Securities Depository
Securities accounts in the system of
registers of instrument holders Clients’ securities accounts
Client / issuer Client / issuer Nominee subaccount
Client / subaccount for Nominee
subaccount for for the aggregate
issuer recordkeeeping of Holder's subaccount
recordkeeeping of recordkeeeping of
subaccount declared subaccount (for foreign
repurchased instruments (for local
instruments nominees)
instruments nominees)
with full subaccount
disclosure of opened with a daily submission of
holder data unique code electronic dataPresentation for AECSD
Exchange operations
In 2021, the Central Securities Depository plans to Assumed conditions to access exchange operations:
obtain a license for exchange operations with foreign
currency in order to:
• Clients:
Optimize clients’ time and expenses on currency Cllients of the CSD
conversion when purchasing securities denominated in
foreign currency • Legal basis:
Agreement for the provision of conversion services in foreign currency
• Technical requirements:
It is planned to provide direct access to trading on the
Facilitate foreign investors' access to securities foreign exchange market of the stock exchange
denominated in foreign currency
• Settlements:
Using bank accounts opened with the Central Securities
Depository
• Conditions for concluding transactions:
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