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NBU Updates Standards and Technologies in Ukrainian Capital Markets

NBU Updates Standards and Technologies in Ukrainian Capital Markets

In order to align the procedure for settlement of DVP securities transactions and NBU certificates of deposit with the updated SEP-4.0, the NBU has amended regulations that establish the relevant settlement procedure. Settlement of DVP transactions with domestic government debt securities in SEP-4.0 is based on the latest ISO20022 standard, which is the first successful step in the transition of Ukraine's capital markets transactions to this highest standard in the global financial markets.

In addition, the NBU has introduced separate rules aimed at improving the compliance of the NBU's Depository with the Principles for Financial Market Infrastructures (PFMI). This was done to implement the recommendations provided to the NBU Depository based on the results of a comprehensive assessment of NBU Depository’s compliance with the PFMI in 2021. The said rules specifically provide for:

  • regulating the procedure and terms for reviewing the measures taken by the NBU Depository if its clients cease their professional activities, as well as the procedure for testing such measures
  • detailing the basic principles of the NBU's clearing activities to determine liabilities.

The NBU has also clarified the regular working hours of the NBU Depository due to transition of the SEP-4.0 to 24/7 operation mode.

The mentioned provisions were approved by NBU Board Resolution No. 69 On Amendments to Certain Regulations of the National Bank of Ukraine dated 23 May 2023, which comes into effect on 24 May 2023.

For reference

As of 1 April 2023, the new generation of the System of Electronic Payments of the National Bank of Ukraine (SEP) was launched. SEP is currently operating based on ISO 20022 and is accessible for interbank payments 24 hours seven days a week. 

Upon settlement of DVP transactions with securities and certificates of deposit, the NBU ensures that cash and securities or certificates of deposit are exchanged interconnectedly. SEP based on the new international standard will increase the speed, security, and efficiency of such settlements.

 

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