23.06.22
16:17

Number of issues of securities served in KCSD grew almost by 50% since the beginning of the year

As of the end of May 2022, the issues of securities accepted by KCSD for custody service amounted to 1,954 items, i.e. has gone up by almost half (48.5%) since the beginning of the year. In comparison, the number grew by 12.1% up to 1,316 issues over the past year. In total, 44 issues of securities have been repaid since the beginning of 2022.

The growth mainly results from increased issues of international securities held in custody by KCSD. This May, the number of international bonds amounted to 311, having almost doubled since the beginning of the year (a 90.8% increase). The issues of non-resident mutual funds have increased 9 times from 14 funds early in the year up to 126 funds as at the end of May. At the same time, the issues of resident mutual funds have not changed since the beginning of the year and amount to 30 issues. The issues of non-resident shares demonstrate a significant growth as well: from 143 issues early in the year up to 537 issues in May.

More than half (55.1%) of the new issues of foreign securities are non-resident shares. They are followed by international bonds (31.9%). The remaining 13% are the securities of non-resident mutual funds.

The growth in foreign securities accepted by KCSD for servicing contributes to expansion of the KCSD’s activities and the exchange trading geography of KCSD’s clients. The clients may engage in transactions to purchase and sale those securities not only on the international capital markets but on the Kazakh stock market as well by making settlements in KCSD.

"We still attribute the reported growth to the relocation of foreign securities by our depositors to KCSD for servicing following the imposition of sanctions on Russian and related financial structures. KCSD promptly responds to the introduction of new restrictions on operations with depositary and bank accounts, while strictly observing the sanction regimes when interacting with market intermediaries, including other recordkeeping organizations, both domestically and internationally, " explains Yedil Medeu, Deputy Chairman of KCSD’s Management Board.

A wide range of services, including custody services, banking services, registration of over-the-counter transactions, as well as the options for settlements in tenge, US dollars, euros, Russian rubles and Chinese yuan, create favorable conditions for the KCSD infrastructure to become a regional settlement hub.