Central Securities Depository (KCSD)

KCSD took part in the AECSD & AMEDA - Africa and Middle East Depositories Association Istanbul Summit, titled “Building the Future of Capital Markets in Eurasia, Africa, and the Middle East: The Role of CSDs,” held from October 2-4, 2024. The Summit addressed critical areas such as capital market operations, financial technologies and business development, as well as information security and risk management. These discussions aimed to explore new strategies and innovative solutions for the sustainable growth of the industry. KCSD extends its heartfelt congratulations to Association of Eurasian Central Securities Depositories (AECSD) on its 20th anniversary since the adoption of the resolution on establishment of the association. This milestone reflects two decades of commitment and collaboration, and KCSD looks forward to continuing joint efforts in advancing capital markets. KCSD also expresses its gratitude to Merkezi Kayıt Kuruluşu A.Ş. (MKK) for hosting this impactful event, creating an excellent platform for dialogue.

During AECSD and AMEDA Summit in Istanbul I participated on executive panel discussion on the role of CSDs in bridging capital markets. CSDs play a vital role in connecting local and global capital markets, ensuring efficient, safe, and transparent processes. By standardizing practices and building interoperable systems, CSDs facilitate cross-border investments and enable seamless capital flows—essential for economic growth. Kazakhstan, through KCSD, has made significant strides in this area. We’ve modernized our infrastructure, aligned with international standards, and established direct links with global players. As a regional depository hub, we’re committed to fostering cross-border financial integration and promoting collaboration between markets. As the Chair of the Board of World Forum of CSDs, I look forward to continuing this dialogue and enhancing capital market connectivity at next year’s forum in Almaty. #KCSD #AECSD #AMEDA #WFC2025 #Kazakhstan

The number of brokerage accounts in Kazakhstan exceeded 3 million for the first time   Total number of brokerage accounts in KCSD’s nominee holding system reached 3,086,673 as of September 01, 2024, including 683,205 accounts that belong to subaccounts of holders and 2,403,468 for brokerage accounts of holders recorded through omnibus accounts* in KCSD.   In August 2024, total number of accounts in KCSD’s nominee holding system increased by 102,085. Meanwhile, brokerage accounts of holders, recorded through omnibus accounts, increased by 100, 866, or 4.4 %, over the specified period. In contrast, subaccounts of holders increased by 1,219 or 0.2 %.   “Over the past two years, the number of brokerage accounts in KCSD’s nominee holding system has increased by 2,661,673 accounts or 6 times. The rapid growth in the number of investors in Kazakhstan acts as a catalyst for the development of the domestic stock market, creating a solid foundation for increasing demand for investment-attractive financial instruments,” said Chairman of KCSD’s Management Board Adil Mukhamejanov.   * omnibus account – a special type of account that allows to keep aggregated records of clients’ assets. Information about investors, whose financial instruments are recorded in omnibus accounts, cannot be disclosed in accordance with the requirements of legislation of the Republic of Kazakhstan. #KCSD #investorportrait

KCSD, in its role as the WFC Secretariat, chaired by Yedil Medeu, WFC Chairman and KCSD Deputy Chairman, held WFC Board Meeting on October 2, 2024. The meeting was held both in offline and online formats. WFC Board reviewed the preparation progress for WFC2025, focusing on program development and other related issues, as well as WFC Task Forces updates. Moreover, WFC Secretariat was honored to have Mr. Colin Parry, ISSA CEO, as a guest speaker. He shared updated information about the association, providing significant findings that stimulated engaging conversations among WFC Board members. WFC Secretariat expresses gratitude to all participants for their contributions and continued dedication Yedil Medeu Dr. Ekrem ARIKAN Bruce Butterill Colin Parry Arman Melkumyan Abdulla Abdin Riham Gamal Khedr #WFCBoardMeeting #KCSD

Over 200 foreign experts participated in the 26th Annual General Meeting of Asia-Pacific CSD Group (ACG). Taking place in Almaty from September 9 to 12, 2024, the event gathered representatives of more than 40 depositories, exchange and clearing organizations from around the world. The organizer was the Kazakhstan Central Securities Depository (KCSD). The ACG participants discussed current issues of the modern development of global financial markets, including international cooperation, the transition to the T 1 regime, industry digitalization, and many others. The KCSD Chairman Adil Mukhamejanov noted that it was a great honor to hold such an important event in Kazakhstan. Former ACG Chairman Dr. Wenhua Dai thanked all the guests and organizers of the conference for participating in the event and their great contribution to its work. According to his words, Kazakhstan plays a significant role in the global governance of financial infrastructure. KCSD expresses its special gratitude to the ACG26 speakers and moderators Suleimenov Timur, Aliya Moldabekova, Madina Abylkassymova, Wenhua DAI, Bo Li, Bernard Ferran, Mark Gem, Colin Parry, Cornelia (Nellie) Dagdag, Richard Shum, Lu Wendao, Julie Wang, Chen Jiazan, Samsul Hidayat, Jim Micklethwaite, Marcus van Abbé, Alina Aldambergen, Olivier Gueris, Mikhail Novoselov, Yedil Medeu, Mikhail Grishko for their valuable contribution to the event. KCSD thanks the event sponsors, including Visit Almaty, Freedom Holding Corp., ELIDI Securities Ltd (ex. UGM Securities Ltd), Kazakhstan Stock Exchange, Tengri Partners Investment Banking, Qanat Invest, Montran, Eurasian Development Bank, and Wanli Stone. We express special gratitude to ACG’s media partners represented by the publications “Business Kazakhstan”, BES.media, "Kapital.kz”, “LS.kz”, “CMN.kz”. #ACG26 #FMI #KCSD

New Chairman of Asia-Pacific CSD Group (ACG) was elected at a meeting in Almaty on September 11, 2024. Badiuddin Akber, Chief Executive Officer of Central Depository Company of Pakistan Limited, became the new Chairman of the ACG. Mohammad Baghestani, Chairman of Central Securities Depository of Iran, was also elected as the new Vice Chairman of the ACG. Former Chairman of the ACG Dr. Wenhua DAI thanked all the guests and organizers of the conference for participating in the event and their great contribution to its work. KCSD congratulates elected Chairman and Vice Chairman of ACG and wishes them all the best in endeavors. #newACGChairman #newACGViceChairman #ACG #ACG26

Bernard Ferran, Chief Commercial Officer at Euroclear commented on the growth in Asia and how important Asia and Central Asia are for Euroclear overall. He mentioned that we started seeing much more intra-Asian flows which will require new market links to be set up to allow foreign investors to efficiently access these new frontier and emerging markets. He also noted that innovation and embracing new technologies will be at the forefront on how CSDs should conduct their business, whilst keeping in mind international standards and resilience. KCSD extends gratitude to Bernard Ferran for shared information that greatly enriched discussion and added significant value to the event. KCSD looks forward to future opportunities to collaborate with you. #ACG26 #KCSD2024

Technologies disrupting the quality of services in the market have been assessed by international experts  The panel session "Digital Transformation and Improving The Quality of Services in the Securities Market" at the 26th Annual General Meeting of Asia-Pacific CSD Group (ACG) became a platform for discussing advanced solutions in the financial market. Moderator of the second panel session, Deputy Chairman of KCSD Mikhail Grishko noted that many organizations in this area are currently undergoing various transformations. They are introducing new technologies to help their clients. The exchange of ideas and experiences of the ACG is critical for all its participants to operate successfully. Chief Executive Officer of ISSA - Intl Securities Services Association Colin Parry noted the need for sustainability and efficiency of markets. According to him, the development of digitalization is in the hands of the organizations. This is particularly relevant now in a world, where consumers can buy a product online instantly, regardless their location. The speaker highlighted several types of digitalization, including AI and language models. There is great potential in digitalizing the market, with many tests conducted over the years. In the payment sphere, we see opportunities for various currencies. In the UK, we started the "Network Responsibility" project, where a bank transfers funds to deposits. For instance, the Italian banking association consolidated 94 banks into one network for transfers, synchronizing payments and reducing costs and operation time,” noted Marcus van Abbé, Head of Digital Market Infrastructure at R3. Samsul Hidayat, President of Kustodian Sentral Efek Indonesia (KSEI), spoke about the development of the stock market in Indonesia. More than 13.3 million investors are registered with the country's central depository. “Taiwan Depository & Clearing Corporation (TDCC) also uses artificial intelligence, for instance, for translation, coding, encryption, and other solutions. However,” noted Julie Wang Senior Vice President of Corporate Strategy and Public Affairs at TDCC, “not every task is suitable for artificial intelligence. For example, highly confidential information should not be provided to AI. In addition, AI does not work very effectively with restricted data. But since TDCC works mainly with accurate data, AI can be used to predict and aggregate it.”   Kazakhstan not only keeps up with global trends in technology, but also surpasses them, according to Mikhail Novoselov, Executive Advisor at Freedom Broker. For instance, the country introduced a biometric database of all residents, and it takes several minutes to open an account instead of 15 minutes, as was previously. Jim Micklethwaite, Director and Head of Operations at Thomas Murray, noted that the introduction of new technologies brings many benefits to organizations, paying off their investment in them in the long term. #ACG26 #ACG #FMI #KCSD

"Cooperation between financial institutions is increasingly crucial in today’s changing world" stated the moderator of the first panel session "A new era of strengthening securities market connectivity for economic growth" of the 26th AGM of Asia-Pacific CSD Group (ACG), Senior Vice President of Hong Kong Exchanges and Clearing Limited (HKEX) Richard Shum.  According to him, the financial infrastructure provided by HKEX is the basis for the country's economic stability and growth. Therefore, discussions of the ACG provide an opportunity to share important insights and innovative strategies for overcoming the difficulties of the present time. Alina Aldambergen, Chairperson of Kazakhstan Stock Exchange emphasized the importance of creating conditions in foreign markets for the issuance of bonds by domestic companies. She noted that KASE actively cooperates with exchanges both in the region and abroad. At the same time, a high level of capitalization of the Kazakh bond market attracts both local and international investors. Bernard Ferran, Chief Commercial Officer at Euroclear commented on the growth in Asia and how important Asia and Central Asia are for Euroclear. He mentioned that started seeing much more intra-Asian flows which will require new market links to be set up to allow foreign investors to efficiently access these new frontier and emerging markets. Speaking at the panel session, Mark Gem, Chairman of the Risk Committee of Clearstream, shared his view on the main reasons for fragmentation include the lack of a large number of clearing organizations or central depositories. “The main reason is the use of different models, registration methods, concepts of property rights, especially definition of a shareholder, registration process, etc. So the main difficulty comes from various practices and legislation. There must be a single structure capable of ensuring an effective result. It is very important to convey this to all central depositories," - noted Mark Gem. Cornelia (Nellie) Dagdag, a representative of The Depository Trust & Clearing Corporation (DTCC), told how the transition to the T 1 trading mode took place in USA. First of all, there is a need for cooperation, including with the regulator, and discussion of important issues with market participants, including investors. The speaker stressed the importance of regional coordination of efforts for the benefit of investors, issuers, financial companies and other stakeholders. Jiazan Chen, Director of Planning and Development Department China Securities Depository and Clearing Corporation shared the experience of implementing the T 1 settlement system, as well as the overall operation of the China’s stock market with international investors. Olivier Gueris, Chief Operating Officer at the AIFC (Astana International Financial Centre), explained that it is necessary to be flexible and adapt to the different models while switching to a new settlement system. #ACG26 #KCSD

International Monetary Fund Deputy Managing Director Bo Li assessed the development of the economies of the Caucasus and Central Asia, showing resilience despite various economic shocks. Bo Li noted that stable growth is expected among oil importers amid domestic demand, as well as further expansion of carbon industry and oil exports. IMF Deputy Managing Director Bo Li said that well-designed reforms could lead to 5-7% growth in countries over the next 4-6 years. He stated this during the 26th Annual General Meeting of the Asia-Pacific CSD Group (ACG). New technologies, including digital, also have a major impact on many sectors - from manufacturing to healthcare and financial services. As an example, he cited an IMF study, whereby artificial intelligence could affect 40% of jobs globally and 60% of jobs in advanced economies. Therefore, investments in digital skills and social insurance will be crucial to support the development of artificial intelligence, improving productivity, and mitigating socio-economic risks. The IMF is committed to help countries in implementing successful product policies and promote global cooperation, including strengthening the integration of financial infrastructure between Asia-Pacific and Central Asian countries, - Bo Li added. #ACG26 #ACG #FMI #KazakhstanCentralSecuritiesDepository #KCSD