Ukraine developing model for exchange trading on capital markets

The Cabinet of Ministers has adopted a resolution on establishing a working group to create a national mechanism for exchange trading on capital and organized commodity markets in Ukraine.

Ukrinform reports this with a reference to the Economy Ministry’s press service.

“On September 1, the government adopted a resolution on establishing a working group to implement the Memorandum of Understanding between the government of Ukraine, the European Bank for Reconstruction and Development (EBRD), the United States Agency for International Development (USAID) and the American Chamber of Commerce in Ukraine, as well as to approve its staff and regulations,” reads the report.

The aim of the working group is to create in Ukraine a national mechanism of for trading on capital and organized commodity markets in Ukraine, called NEXT-UA, which will include trade, clearing and settlement functionality. In particular, this concerns trade in various assets, including securities (both government and corporate) and commodity derivatives (energy and agricultural products).

“Among financial instruments in 2020, Ukrainian government bonds were in the greatest demand on the Ukrainian stock market. Their trading volumes amounted to UAH 329.8 billion, which is 98.3% of trading volumes on the organized securities market. Whereas the trading volume of shares amounted to only UAH 0.6 billion, corporate bonds - UAH 0.9 billion. The creation of a national exchange trade mechanism NEXT-UA will be the main task of the working group, which will help strengthen the infrastructure of capital and organized commodity markets,” said Deputy Minister of Economy Volodymyr Hryniuk.

As reported, the government of Ukraine, the EBRD, the American Chamber of Commerce and USAID signed a Memorandum of Understanding in the field of national stock exchange capital trade and organized commodity markets. According to the agreements, Ukraine plans to set up integrated capital and commodity markets within the next three years - the National Exchange Trading in Capital and Organized Commodity Markets (NEXT).

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