Kazakstan is, after the Russia Federation, the second largest republic of the former Soviet Union. Located in Central Asia, it has a land area of 2,717,300 square kilometers, which is slightly less than 4 times the size of Texas, and a population of approximately 16.5 million . Central Asia, a desert, steppe, and mountainous area to the north and east of the Caspian Sea is shared by the former Soviet republics of Kazakstan, Turkmenistan, Uzbekistan, Tajikistan, and Kyrgyzstan.

Modern banking history in Kazakstan is only as old as the country, 4 1/2 years. Approximately 250 commercial banks are operating, although less than 30 have general licenses to conduct foreign exchange transactions. CASE, the Central Asian Exchange, is a private joint venture company located in Almaty with a capitalization of 4 million tenge. Although it carries a grandiloquent name, CASE trades only Kazak listed securities, and no discussions are underway with either the Kyrgyzstan exchange or the soon to be launched Uzbekistan exchange. For equities, clearing and settlement occur on the trade date plus five days (T+5). Purchasing brokers must deliver all funds to the clearing and settlement department of CASE on T+4. The debt market is expected to gain popularity with foreign investors more quickly than the equities market. Bonds currently yield around 45% , and have an excellent payment record, without the infrastructure and counterparty risk associated with equities trading.

The complete article - securities trading, clearing and settlement, tax environment, recent developments and more - is available to Yearbook subscribers at Kazakstan.