Implementation Launched of Memorandum in Respect of Cooperation in Support of an Integrated Capital Markets Infrastructure in Ukraine

The National Bank of Ukraine, the European Bank for Reconstruction and Development, the Ministry of Finance of Ukraine, the Ministry of Economy, Environment, and Agriculture of Ukraine, and the National Securities and Stock Market Commission have started implementing the Memorandum in Respect of Cooperation in Support of an Integrated Capital Markets Infrastructure in Ukraine (hereinafter referred to as the “Memorandum”). Specifically, the parties are working on the necessary legislative amendments to carry out the priority stages of implementing the capital markets infrastructure model.

The Memorandum was signed, in particular, within the framework of the fulfillment of Ukraine’s obligations under the 8th review of the International Monetary Fund’s Extended Fund Facility program. The signing of the Memorandum was preceded by the approval by the Financial Stability Council on 26 June 2025 of a Plan of Practical Implementation of the Target Model of the Capital Markets Infrastructure.

First and foremost, the Memorandum declares the signatories’ intentions to implement the agreed optimal target operating model for Ukraine’s capital markets infrastructure. The model has been developed based on international best practices and taking into account the Ukrainian context. The Memorandum stipulates the establishment of a vertically integrated capital markets infrastructure that will include trading, clearing, settlement, and depositary recordkeeping.

The main stages of implementing the target capital markets infrastructure model include:

• optimizing the ownership and governance structure of National Depository of Ukraine PJSC (hereinafter referred to as the “National Depository”), including by transferring the state’s corporate rights to the NBU to manage, and of Settlement Center PJSC (hereinafter referred to as the “Settlement Center”)
• establishing a holding company with participation of a reputable international strategic investor (operator of trading and post-trading infrastructures) selected via a public tender process, international financial organizations, local market participants, as well as the state / state-owned banks
• establishing by a holding company of a new stock exchange in Ukraine and designating it the status of a majority owner in the Settlement Center.

The final stage will be consolidation of depository services under the National Depository (intended to operate as a single central securities depository) by transferring to it from the NBU the recordkeeping and servicing of government bonds circulation. The holding company will own a minority stake in the consolidated central securities depository, and the NBU will own a majority stake.

Establishing a vertically integrated capital markets infrastructure in Ukraine will contribute to:

• the long-term sustainability and development of Ukraine’s capital markets by attracting strategic investments
• facilitating market access, especially for international participants
• stimulating the attraction of retail investors and the inflow of domestic investments
• strengthening and streamlining supervision
• lowering time-to-market for new products and services
• supporting liquidity and price transparency with the aim of motivating expanded investment into debt and equity instruments in Ukraine.

The Financial Stability Council’s Financial Development Committee will monitor, on a quarterly basis, the progress of the action plan to implement the target model of the vertically integrated capital markets infrastructure.