NBU to keep account of central counterparty in hryvnia – NBU governor

The National Bank of Ukraine (NBU) will do what is necessary within its mandate to develop commodity exchange spot and futures markets and is now implementing a model according to which the NBU will keep an account of the central counterparty in hryvnia through which settlements will be made, NBU Governor Kyrylo Shevchenko has said.

"This model of settlements, which in international practice is called 'settlements in central bank money,' is used all over the world and is considered an example of the application of best practices," he said in an exclusive interview with Interfax-Ukraine.

Commenting on the recent change in the composition of the second financial regulator in the market – the National Securities and Stock Market Commission, the NBU governor announced work on joint projects both within the framework of the general strategy for the development of the financial sector until 2025 and in the direction of new initiatives.

"We intend to demonstrate a high level of such interaction and, in synergy, achieve visible results in the development of capital markets. This applies to infrastructure, and the introduction of new and improvement of existing products and services, as well as attracting a wide range of investors to capital markets," Shevchenko said.

He added that these components are equally important and do not work separately, as all projects must be coordinated with each other.

As reported, in October 2013, a new law on the depository system came into force, which provides for the separation of the settlement and clearing function and depository accounting, previously combined by a commercial depository – All-Ukrainian Securities Depository – and its competitor, state-controlled National Depository of Ukraine. The law provided for the creation of a single Central Securities Depository based on the National Depository of Ukraine, while the Settlement Center was created on the basis of the All-Ukrainian Securities Depository. The NBU share in the Settlement Center is 77.7897%, and in the National Depository of Ukraine – 25% of the shares.

Source: www.en.interfax.com.ua