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Trade government bonds in Ukraine: the securities Commission has changed the rules

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As well As the securities Commission changed some of the requirements for the inclusion of securities in exchange register

NSSMC has changed the approach to the calculation of the current prices of government bonds on the stock exchange for more common in capital markets. The current price will be calculated on the “net” price of bonds, which were concluded exchange contracts. The “net” price of bonds will include accrued interest and will be expressed in percentage of its nominal value. About it reports a press-service of the Commission.

The document includes requirements for a market maker of government bonds. In particular, he must fulfil commitments to support the liquidity of government bonds of Ukraine, among which:

  • support two-way quotations by at least 75% of the time from 11:00 to 15:00 trading day;
  • the difference between the clean price of a bond purchase and “clean” price of bonds for sale should not be more than 5 percentage points;
  • support one way quotes during the trading day just after the conclusion of the exchange contract (agreement) on the basis of bilateral quotations during the day for a total amount not less than UAH 10 million (for each release).

“The effective introduction of the Institute of market makers of government bonds and the change in the approach to pricing will give government bonds liquidity would provide more stable and predictable income, and most importantly, will make this financial instrument more understandable and transparent to institutional investors and individuals who are increasingly investing in his own funds. In turn, the NBU and the Finance Ministry with these changes, will be able to get better information about market prices and value of money in the market”, – reason files.

In addition, modified some of the requirements for the inclusion of securities in the second level of listing (exchange register) to create additional opportunities for joint-stock companies in case of their interest in trading their securities.

In particular:

  • proposed new requirements for concentration free float (share of free float) – the minimum free float of the Issuer must be at least 10% or in monetary terms, its value must be at least 75 million UAH. And two investors in the aggregate may not be more than 50%;
  • reduced requirement to equity of the Issuer of the shares and the annual net income of the Issuer for the last year (except for banks) from 400 to 300 million UAH;
  • reduced the requirement to a quantitative composition of the Issuer”s shareholders from 200 to 150 shareholders.
  • additional requirements for corporate governance of issuers is now able to establish a stock exchange in its rules.

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