The Ukraine National Commission on Securities and Stock Market held a working meeting with the European Bank for Reconstruction and Development to discuss next steps for creating an exchange holding company in Ukraine and developing capital markets infrastructure. The target market-structure model would establish a holding company to integrate key elements of exchange infrastructure, including a stock exchange, the depository system, and clearing and settlement infrastructure. The model envisages participation by a strategic investor alongside the state, with the holding company expected to own a new exchange, become the majority shareholder of the Settlement Center, and hold a stake in the National Depository of Ukraine. The discussion also covered the future regulatory oversight of the holding structure, with the Commission indicating that the relevant regulatory framework would be developed with reference to European Union legislation and practices for regulating financial groups, including corporate governance and group supervision. After the adoption of relevant legislation, the parties anticipate an open international tender with defined pre-qualification criteria to select the strategic investor; the winning bidder would establish the holding company and begin forming the new exchange infrastructure. The Commission and EBRD also discussed capital market development linked to privatisation, new instruments including municipal bonds, and continued cooperation and technical consultations on harmonising Ukrainian legislation with European standards.

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