The summer of the outgoing year was notable for a number of legislative initiatives such as amendments to the Customs Code in terms of the duty-free limit for cross-border goods movement, changes in accounting and financial reporting, introduction of a new model of healthcare financing. In addition, the President has signed the disputable Law On the Constitutional Court of Ukraine, which was approved by Parliament at the third attempt. We also ask for hands on comments on the new rules for the development of oil and gas fields in Ukraine and NBU and NSSMC Memorandum of Understanding on development of the capital markets infrastructure.
The National Bank of Ukraine and the National Securities and Stock Market Commission signed a Memorandum of understanding on development of capital markets infrastructure in Ukraine. What goals did regulators set? How does the signing of this memorandum contribute to the development of the capital market infrastructure in general?
The Memorandum of understanding on development of capital markets infrastructure recently signed between the National Bank of Ukraine and the Securities Commission in general terms sets out an ambitious framework for future cooperation between regulators. If properly implemented, the goals set in the Memorandum should indeed upgrade the market infrastructure, bringing it closer to those that exist in developed jurisdictions.
According to the Memorandum, the regulators intend to modify the core of the capital markets settlement system by, in particular, upgrading the technology of the National Depository of Ukraine (NDU) and inviting a strategic investor into the NDU and the Settlement Center. This should increase basic trust in Ukrainian capital markets, which, in turn, should attract new money. Technology upgrading has become especially important in the context of the recent cyber attack resulting in trading being suspended for two days.
Other important goals set out in the Memorandum include: (i) consolidation of the Depository of the National Bank of Ukraine with the NDU, (ii) establishment of a "light" central counterparty in Ukraine, and (iii) establishment of fully functional relations with foreign capital market institutions (e.g., international central securities depositories, international central counterparties and global custodians)."
Publication "The Ukrainian Journal of Business Law". Legal Digest (Commentary)
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