The National Bank of Ukraine together with the EBRD, the Ministry of Finance, the Ministry of Economy and the National Commission for Securities and Stock Market have started to implement a memorandum of cooperation aimed at creating a new stock exchange in Ukraine. This was reported by press service of the NBU, as Dengi.ua .
The document deals with the formation of a vertically integrated infrastructure of capital markets, which will combine trading, clearing, settlement and depository accounting.
The memorandum was signed as part of the fulfillment of Ukraine's obligations under the eighth review of the IMF Extended Fund Facility program. It was preceded by the Financial Stability Board's endorsement of a plan to establish a capital markets infrastructure target model.
Key milestones:
- Governance reform: the ownership structure of the National Depository of Ukraine and the Settlement Center will change, and corporate rights management will come under state control.
- Holding company: a holding company will be created with the participation of an international strategic investor, financial organizations and the state.
- New stock exchange: the holding company will become the founder of the new stock exchange and will be the majority owner of the Settlement Center.
- Consolidation of depository services: accounting and servicing of government bonds will be transferred from the NBU to the National Depository, which will perform the functions of a single central depository.
It is expected that the new infrastructure will become the basis for the development of Ukrainian capital markets, facilitate investment attraction, facilitate access for international participants, increase liquidity and strengthen regulatory oversight.
The Financial Development Committee of the Financial Stability Board will monitor the implementation of the project, and reports will be submitted on a quarterly basis.