In 2024, the NBU conducted a comprehensive assessment of the central counterparty, Settlement Center for Servicing Contracts in Financial Markets Public Joint-Stock Company (hereinafter referred to as the “Settlement Center”) for compliance with oversight standards, the Principles for Financial Market Infrastructures (PFMI).
The working group conducting the comprehensive assessment included representatives from the NBU and the National Securities and Stock Market Commission (NSSMC), which was assigned to regulate and supervise the Settlement Center’s operation on the capital market.
During the assessment, the working group followed the Instruction on Assessment for Compliance with the International Standards of Oversight of Entities that Perform the Functions of a Central Securities Depository, a Central Counterparty, a Trade Repository, and a Securities Settlement System in Ukraine approved by the NBU Board Resolution No. 38 dated 5 April 2024.
The comprehensive assessment of the Settlement Center was conducted for the period of its operation from 2021 through 2024 and covered the principles that, in accordance with international oversight standards, apply to entities that perform the functions of a central counterparty.
The members of the working group analyzed Ukrainian laws and regulations on a central counterparty’s clearing activities and internal documents of the Settlement Center regulating its operations, as well as the application and implementation of the legislative provisions and its own internal documents by the Settlement Center in the course of its operation.
The assessment took into account the findings of the previous comprehensive assessment of the Settlement Center conducted by the NBU in 2020, the analysis of the implementation status of the recommendations provided during the previous comprehensive assessment, and the regular monitoring conducted by the NBU in 2024.
According to the results of the comprehensive assessment, the Settlement Center has taken measures to improve its operations and has increased the degree of compliance with the international oversight standards compared to the previous comprehensive assessment.
At the same time, as national laws are constantly being revised and the Settlement Center continues to develop and introduce new services, there are some points to be clarified with regard to its operations.
The NBU has prepared recommendations for improving operations of the Settlement Center and enhancing its compliance with the international oversight standards.
Pursuant to indent six part two of Article 1421 of the Law of Ukraine On Capital Markets and Organized Commodity Markets, the report on the findings of the comprehensive assessment was sent to the Settlement Center and the National Securities and Stock Market Commission.
The comprehensive assessment of the central counterparty contributes to implementing the goals of the interagency strategic document Strategy of Ukrainian Financial Sector Development (Section III of the Roadmap, strategic measure 3.3.2. Implementation of the IOSCO Principles for the Functioning of Financial Infrastructure (PFMI)).