09.06.22
12:08

Operating results of the Central Securities Depository based on 2021 performance

The annual report on the results of activities of the Central Securities Depository JSC (the Central Securities Depository or KCSD) in 2021 was adopted at the annual general meeting of shareholders held on May 30, 2022.

The annual report provides information on the main achievements of the Central Securities Depository, as well as on the adopted and developed strategic documents that determine the development vector of the Central Securities Depository for 2022–2024.

In 2021, KCSD focused on the transformation of its IT architecture, business processes, services as well as client interaction approaches and channels. These produced new results:

- a license for transfer operations and cashless foreign exchange transactions was obtained;

- a set of technical activities was carried out to implement the aggregate accounting of financial instruments (omnibus account) and assign unique codes to clients;

- new services to accept and collect data from the nominal holding system were developed;

- pledge and encumbrance registration processes were automated;

- additional procedures to verify incoming and outgoing inquiries were introduced.

It should be noted that the depository services showed a steady growth trend in key indicators last year. The volume of assets in nominal holding accepted for servicing by the Central Securities Depository increased by almost a quarter to 105.1 trillion tenge (+28% in 2020), the number of open subaccounts increased by 62% to 221 thousand (+13% in 2020), the number of securities issues increased by 142 to 1,316 items (+13 in 2020), the number of processed transactions increased by 84% to 654 thousand transactions (+46% in 2020).

In addition, as part of the work aimed at improving the compliance system of the Central Securities Depository, introduction of Anti-money laundering (AML) system began in 2021, that designed to identify transactions subject to financial monitoring in accordance with the requirements of national and international AML/CFT laws.

As part of the Development Strategy for 2022–2024 adopted with the aim of creating a flexible infrastructure on the stock market on the basis of the Central Securities Depository, the following six key areas for further growth have been identified:

- depository activities;

- maintaining the system of registers of securities and other financial instruments holders;

- certain types of banking operations;

- arranging trading in the over-the-counter securities market;

- corporate action hub;

— development of the service eco-system.

With due regard to the needs of the Kazakhstan stock market players and to attract more retail investors and non-resident investors within the developed Digitalization Strategy of the Central Securities Depository, the following key initiatives have been identified: refactoring and finalization of the depository and registrar system, reforming and implementation of the corporate action system, development of a marketplace for depository services, rendering Know Your Client (KYC) services for market intermediaries, and integration with the Kazakhstan National Bank’s data storage.

KCSD keeps on focusing on risk management, business continuity and information security.

The annual report is available at KCSD’s website https://www.kacd.kz/download/annual_reports/kcsd_annual_report_2021_en.pdf

For more information: +7 (727)262–08–46 (ext.397), pr@kacd.kz