International practice involves the separation of legal and technological aspects of the securities market
National Depository of Ukraine (NDU) enters into the practice of reform the world’s standards. Stock market participants NDU along with form new rules that will expand opportunities for the development of their business. About it reports a press-service of the NDU.
International practice involves the separation of legal and technological aspects of the securities market. Technological changes Usually occur at the level of the software and are not regulated by law. The technology should be based on legal principles adopted in the market. The flexibility of this model allows you to quickly and promptly make changes to create more comfortable conditions for all market participants. Such approaches NDU initiates in Ukraine.
“Before the intensification of the Ukrainian stock market we need to invest in its infrastructure, – said Mindaugas Bakas, Chairman of the Board of the National Depository of Ukraine (NDU). Business processes must comply with effective models adopted in European practice. This is one of the main goals of introducing a new. As a result, we get not just a new IT platform. It will be a new Central Depository, integrated with the global financial space.”
For Depository institutions, the NDU offers 3 new technological cooperation with the CSD:
- Depository institution (DU) maintains the securities accounts of their customers using their software (the software). At the level of the Central securities Depository (TSD) is stored and included securities do, the rights and the rights on which belong to the owners of securities of such control, and accounting of securities belonging to the most do.
- Do use its software, but there are clients who would like to have individual account owner(Individual segregated) at the level of TSD, which is a usual European practice. In this case, the owner is not a client of the NDU. The information is duplicated in NDU.
- Do to service their customers AT the TSD uses, opening such accounts in the system of the NDU. The management of such accounts (the operation) is carried out by the Depositary institution, using all the available functionality IN the CSD.
Regardless of the model chosen work, by the Depositary institution:
- confirms ownership of the securities
- owner (client) has access to the account in securities only through Depositary institution
- individual account owner (depositor) within the accounts of a Depository institution that is open in the TSD (Individual segregated) – is an additional guarantee of preservation of property rights
The options of interaction with the CSD may vary depending on the selected Depository institution of business model.