The National Bank of Ukraine consolidated the rules governing the recording of certificates of deposit and the execution of all the operations with these instruments into a single document. On 3 December 2015,  NBU Board Resolution No. 859 On Approval of the Regulation on the Rules Governing the Recording and the Execution by the National Bank of Ukraine and Ukrainian Banks of Operations with NBU Certificates of Deposit.  Additionally, the resolution set out the procedures governing the conclusion of settlement agreements under operations with stock exchanges and described the operating procedures of the SERTIF System. This document regulates relations between the NBU and banks arising from the purchase and sale of deposit certificates on the primary and secondary markets and the provision of loans secured by these instruments to banks.

At the same time, by this resolution, the regulator introduced two new types of secondary market operations with certificates of deposit at the request of businesses. Henceforth, banks shall carry out stock exchange repo operations involving the transfer of ownership on certificates of deposit and settle transactions on a “delivery versus payment” basis. Until now, repo operations with instruments were not carried out. Additionally, this resolution allows banks to purchase and sell certificates of deposit on the over-the-counter market and settle transactions using not only a free-of-payment settlement mechanism, but also a delivery-versus-payment method. This will make settlements between banks on the over-the-counter market more reliable. 

Overall, this resolution makes operations with certificates of deposit more transparent and enables the regulator to use these instruments more efficiently to regulate the money market and banks’ liquidity. Additionally, the expansion of the list of operations will give banks broader options to use certificates of deposit to manage their liquidity.