Investment opportunities of the US financial market are now available to Kazakhstanis

Photo by: Matteo Colombo/Getty Images

From Almaty to New York: the Central Securities Depository has provided direct access to the US market for Kazakhstan people, reports.

The Central Securities Depository has opened an account in Bank of New York Mellon. Now KCSD participants have the opportunity to get direct access to the US market.

The Bank of New York Mellon is one of the world's oldest financial institutions, which history of development began in the XVIII century. This institution provides various financial services for its customers, including custodial services.

As of September 2023, BNYM has business relations with 35 countries and the amount of assets in safekeeping and/or under management is equal to USD 45.7 trillion, and the assets for the amount of USD 1.8 trillion are under management.

KCSD has already established correspondence relations (interdepository links) with two of three largest custodians – Clearstream Banking and Euroclear Bank, and on November 13, 2023, the Central Securities Depository completed all required procedures for establishment of correspondence relations with BNYM.

Furthermore, KCSD has established correspondence relations with National Settlement Depository of the Russian Federation, central securities depositories of the Republic of Belarus, the Kyrgyz Republic and the Republic of Armenia.

"Commencement of cooperation with BNYM is a great opportunity for our clients to extend horizons in the choice of investment instruments. We are sure that our new service will have positive impact on businesses of our clients and satisfy need of Kazakhstan investors in new financial instruments" Adil Mukhamejanov, Chairman of the KCSD Management Board

The opening of the account in BNYM was conducted in the framework of implementation of KCSD’s Development Strategy in part of extension of CSD-to-CSD and correspondence relations with international depositories and global custodians.

The account in BNYM will allow KCSD clients, participants from Kazakhstan, to transfer participants' assets to BNYM, and this allows to reduce costs of market intermediaries for safekeeping of assets and execution of transactions.

The participants from Kazakhstan will have access to wider range of securities of US issuers, the access to which has not been previously provided by such higher-level recordkeeping organizations as Euroclear and Clearstream. This account will open access to new foreign markets, for example, markets of Hong Kong and Mainland China, and this extends choice range for KCSD clients.

The Central Securities Depository is a key infrastructural organization of financial market of the Republic of Kazakhstan in the field of post-trade services, providing services for its clients for 25 years.

The Central Securities Depository offers its clients depository, registrar and information services, as well as bank account maintenance and payment agent services. The Central Securities Depository is the authorized depository of the National Bank, Ministry of Finance and local executive bodies of the Republic of Kazakhstan.

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