Clearing & Settlement

Clearing & Settlement

Clearing & Settlement

The Astana International Exchange

The post-trade infrastructure:

OVERALL ORGANISATION

For post-trade activities, AIX has set up two separate legal entities:

  • Astana International Exchange Central Securities Depository Limited (AIX CSD) is a private company incorporated under the Acting law of the AIFC responsible for daily cash and securities settlement and depositary activities. AIX CSD holds a commercial license from the Registrar of Companies of the Astana Financial Services Authority (AFSA). AFSA, where AIX CSD is incorporated, also acts as the AIX CSD’s Regulator. AIX CSD is solely owned by AIX.
  • Astana International Exchange Registrar Limited (AIX Registrar) is incorporated as a private company under Astana International Financial Centre (AIFC) law at and holds commercial license from the Registrar of Companies of the Astana Financial Services Authority (AFSA. The AIX Registry forms, stores and maintains the central registry of shareholders.
  • All day-to-day post-trade operational duties are performed by the Clearing & Settlement Department of AIX based on an Infrastructure, Resources & Services Agreement between AIX and AIX CSD.

OPERATIONAL MODEL

Depending on the asset class, AIX offers different types of settlement and depositary models. In all cases, settlement of on-exchange trades is conducted on a T+2 basis and can be done in a variety of different currencies.

  • All AIX trades are settled directly at the AIX CSD.
  • For international securities, the custody service for the AIX CSD is provided by PJSC Rosbank, allowing investors to receive these securities into the AIX CSD or to settle off-Exchange transactions at an International CSD.
  • For domestic Kazakh securities, the custody service for the AIX CSD is also provided by PJSC Rosbank, allowing investors to receive securities into the AIX CSD from the KACD in Almaty until a recently opened AIX CSD nominee account is activated at the KACD by AIX.
  • For Kazakhstan sovereign bonds issued in local currency under AIFC legislation, a direct I-Link is being established with Euroclear Bank which is scheduled to go live in 2019. These securities will be registered at the AIX Registrar and will settle at Euroclear Bank.
  • For large IPOs of government-owned companies, AIX has signed a CCP-clearing and CSD partnership with Hungary-based KELER CCP and CSD which operates under a EU legal framework. Trades done on AIX will clear and settle in the EU and the resulting positions will be mirrored in investors’ accounts at the AIX CSD.
  • Private placements and pre-IPO securities are LISTED at the AIX Registrar.

PARTNER BANKS

AIX partners with a number of commercial banks where cash-settlement accounts are held. Information on cash-settlement banks is provided by the AIX CSD to new Participants. AIX will seek to expand the number of partner banks to ensure faster transfer processing for market participants operating outside of Kazakhstan.

TECHNOLOGY

Both AIX CSD and AIX Registrar systems and front-ends are powered by Avenir Technology, a global provider of post-trade infrastructure and applications.

For more information on Avenir Technology, please visit: http://www.avenir-technology.com/

The AIX CSD also utilizes the SWIFT network for post-trade messaging with its participants.

CSD Rules pdf
CSD Procedures pdf
AIX CSD Forms pdf