KASE, the Kazakhstan Stock Exchange, will implement a full pre-payment settlement system by May, according to a newsflash from UniCredit Group.
A full pre-payment settlement system allows trades to be done only if cash and securities are blocked on trading accounts before the buy/sell order is sent to the trading system. In case of lack of cash or securities on the trading account, the trading system will not allow for a trader to send buy/sell order.
As previously, custodians will approve trades, UniCredit says. Approval time is reduced to 90 minutes; if a trade is not approved or canceled before the approval time ends it will be rejected by the trading system.
Trades will be sent to CSD for settlement only after custodians approved them. Settlement cycle will be still T+0.