The Ukraine National Commission on Securities and Stock Market (NSSMC) approved for publication a draft regulatory act that would change the settlement mechanism for over-the-counter transactions in foreign-currency-denominated government bonds, in line with commitments under the Memorandum between Ukraine and the International Monetary Fund. The draft reflects a National Bank of Ukraine (NBU) initiative aimed at strengthening control over foreign exchange transactions. Under the NBU proposal referenced by the NSSMC, non-bank financial institutions would be required to execute transactions in foreign-currency government bonds exclusively on a delivery of securities against payment (DVP) basis through the Settlement Center. The NSSMC cautioned that, given current NBU regulation and the Commission’s related norms, the framework would make it impossible for legal entities that already hold such bonds to sell them, and it has asked the NBU to resolve this issue. The NSSMC will accept proposals from market participants and stakeholders for 10 working days, until 06.06.2025 (inclusive).
Ukraine National Commission on Securities and Stock Market 2025-05-28
Ukraine National Commission on Securities and Stock Market consults on DVP-only settlement via the Settlement Center for OTC foreign-currency government bond trades
The Ukraine National Commission on Securities and Stock Market approved a draft regulatory act to amend the settlement mechanism for over-the-counter transactions in foreign-currency-denominated government bonds, aligning with IMF commitments. The proposal mandates non-bank financial institutions to conduct these transactions on a delivery versus payment basis through the Settlement Center. The NSSMC highlighted potential issues with current regulations that could prevent legal entities from selling existing bonds and has requested the National Bank of Ukraine to address this.