KASE joins Tabadul Digital Exchange Hub from the UAE
The Kazakhstan Stock Exchange (KASE) and its subsidiary, KASE Clearing Center, have officially joined Tabadul Digital Exchange Hub. From now on Kazakhstani companies are able to raise funds from the UAE and other Gulf countries via Tabadul, a digital platform launched by the Abu Dhabi Securities Exchange (ADX) in July 2022. KASE is now the sixth member of the digital exchange hub.
Tabadul allows Arab and Kazakhstani enterprises bilateral cross-trading to strengthen the strategic partnership between the two exchanges. KASE and ADX cooperation includes optimizing trade mechanisms by making both parties’ securities available for cross trading. As a result, foreign investors are expected to gain access to Kazakhstani assets and vice versa.
«Investors from Kazakhstan will obtain access to foreign securities trading on the stock exchanges connected to Tabadul Hub, including the ADX, the Bahrain Bourse (BHB) and the Muscat Stock Exchange (MSX). The connection of several more international stock exchanges is in progress. Settlements of transactions for the members of KASE will be carried out in Kazakhstani tenge through the Clearing Center,» said Chair of KASE Alina Aldambergen.
In turn, Abdulla Salem Al Nuaimi, the CEO of ADX, noted that this cooperation opens new opportunities not only to Kazakhstan but to the UAE as well. He believes it will encourage Arab investors to invest in Kazakhstan more actively, increase the liquidity of the ADX and boost momentum trading. (This type of trading is defined by the traders’ focus on the most active instruments with strong volume movement potential.)
The technical connection of KASE to Tabadul Hub is set to be completed before the year ends, though Kazakhstani brokers Freedom Finance Global and Halyk Finance already have access to the platform, while for several more local brokers this process is still in progress. The list of future members of Tabadul is not defined, though. The platform will be available for the investors registered at the local brokers if they meet the standards established by the receiving stock exchange.
Tabadul Digital Exchange Hub was launched in July 2022. Its purpose is to create a network of platforms with remote access for brokers so the local investors could trade on the international stock exchanges. Over a million investors have access to the securities from various economic branches with Tabadul. The Astana International Exchange (AIX) joined the Tabadul Hub in April.
ADX is the second biggest stock exchange in the Arab region. It trades shares issued by the state joint stock companies, bonds issued by governments or corporations, exchange-traded funds and other financial instruments approved by the UAE Securities and Commodities Authority (SCA). On Tabadul, securities are traded in the currency of the designated stock exchange, so when trading on the Kazakhstani stock exchange, the transactions are carried out in Kazakhstani tenge.
