The NBU and Ministry of Finance of Ukraine (MoF) have approved amendments to the Regulation On Procedure for the Conduct of Transactions Related to the Placement of Domestic Government Bonds. The amendments allow for holding auctions on international trading platforms.
The amendments mentioned above have also expanded the list of participants of auctions to sell domestic government bonds (DGBs). The new list includes, in particular, primary dealers that are not depository institutions.
When the MoF approves the transition to the international trading platform, the NBU’s DGB-online software that is used today for primary DGB placement will continue to operate as a backup platform.
The NBU and MoF are planning to focus on modern IT platforms that will enable the quick and convenient conduct of DGB transactions. In future, these platforms will expand the list of primary dealers by attracting foreign players. The transition will also simplify the DGB placement process by reducing document flow between the NBU and MoF.
“Thanks to amendments introduced to the NBU’s Regulation, the MoF will be able to trade DGBs at international e-platforms, which will bring primary market auctions closer to international standards and simplify access to the primary market for big international market players,” said Vasyl Shkurakov, Deputy Minister of Finance of Ukraine.
“The transition of primary DGBs placements to international trading platforms is a very important step in improving the market for domestic public borrowings. The NBU is also planning to contribute to the development of the secondary market for DGBs at international trading platforms, which will improve the transparency and attractiveness of this market to a vast number of investors,” said Oleg Churiy, NBU Deputy Governor.
The amendments have been approved by NBU Resolution №114 dated 10 September 2019.