New financial instruments

Conditions for introduction of new types of securities to the capital market have been established in the RFCA. Circulation of new types of securities will help diversify risks at the organized securities market and will promote to the increase in the market liquidity and active attraction of retail investors.

Within the frames of the Strategic Plan for 2009-2011 the Agency is committed to introduction of new financial instruments. For this purpose, the Agency has worked out the new listing requirements taking effect in June of this year. In compliance with the new listing requirements, the range of listed non-state securities is divided into two main groups such as shares and debt securities. Besides, the line of offered financial instruments (units of mutual funds, index funds, derivative securities, debt securities including securitized bonds, depositary receipts) has been extended. Greater investments opportunities have been provided to domestic and foreign investors.

Circulation of new types of securities will also help investors to hedge the risks connected with transactions in the securities market. For example, in order to attract foreign investors to the Central Asia Region and establishment of index funds, derivative market, the new index Renaissance Capital Central Asia Equity Index (RENCASIA, www.centralasia.rencap.com) has been introduced. This index includes shares of the companies of the Central Asia Region.

It is worth mentioning that the Russian market of derivatives is recognized as one of the most fast-growing markets in the world. The growth in volume of RTS index futures trading was 20.6 mln. contracts in the first quarter. It exceeds the analogous indicator of the last year by 511%.

Besides, in the result of the measures for introduction of new financial instruments at the domestic stock market taken by the Agency, for the first time, the Real Estate Investment Trust (REIT) was introduced. JSC REIT Great Wall placed 12.266 ordinary shares to the amount of KZT 1.472 bln.

At the same time, in order to create conditions for introduction of Islamic financing, the Agency made the proposal on amendments to the current banking laws (in the part of operating and regulation of Islamic banks), tax laws (with the purpose of reduction of the tax burden and establishment of the fair competitive environment for Islamic banks) as well as general provisions of the Civil Code of the Republic of Kazakhstan.

In addition, with the purpose of intensification of the commodities trading (grain, cotton, meat, etc.), the commodities exchange on the basis of the RFCA is being organized. The Agency works on establishment of the commodities exchange to trade grain futures and to promote the market of precious metals. 

Now it is planned to work out and launch new financial instruments such as securitized assets (SPV), futures, options which will be available to a wide range of investors (both institutional investors and natural persons).