On May 4, 2026, the primary dealer system began operating in Kazakhstan’s government securities market. Five of the country’s largest banks became primary dealers: Bank CenterCredit, Eurasian Bank, Kaspi Bank, ForteBank, and Halyk Bank of Kazakhstan. The National Bank and the Ministry of Finance of the Republic of Kazakhstan reported this.
What happened
The new system began working after a monitoring period during which regulators selected five banks for the role of primary dealers. These banks will ensure stable demand for government securities and maintain two-way quotes for specific instruments in the secondary market.
Full access to government securities operations in the secondary market remains for all other market participants. The changes only affect the mechanism for maintaining liquidity and pricing.
Country and market
The primary dealer system is a standard practice in developed capital markets. In Kazakhstan, its implementation is aimed at increasing the liquidity of the government securities market and attracting a wider range of investors.
The system should ensure more transparent pricing, narrower spreads, and the constant availability of quotes. This will simplify operations with government bonds and increase trading predictability.
Why it matters
The development of the primary dealer system may increase the international attractiveness of Kazakhstani government securities and create conditions for their inclusion in global indices, including the JPMorgan GBI-EM index. This will potentially lower borrowing costs for the state.
The main signal here is an attempt to professionalize the government securities market and prepare it for a larger influx of international investors. The system may work if primary dealers genuinely and actively support liquidity, rather than simply receiving a privileged status.
What’s next
Regulators plan to continue measures to develop the domestic debt market. The effectiveness of the new system will become clear after several months of operation—based on liquidity indicators, trading volumes, and spread dynamics.
The key test will be market behavior during periods of volatility, when primary dealers will have to maintain quotes even under unfavorable conditions.