Starting from June 30, depository institutions will carry out accounting operations under contracts of purchase and sale of domestic government loan bonds denominated in foreign currency, exclusively on the basis of orders or notifications of the National Bank of Ukraine. About this informs National Securities and Stock Market Commission.
According to the draft decision, under the conditions of martial law, it is established that the conclusion of purchase and sale agreements for foreign currency bonds is possible only under the condition of applying the settlement mechanism based on the principle of “delivery of securities against payment”, with the mandatory participation of the entity that performs the clearing activities of the central counterparty. Currently, this function is performed by the “Settlement Center”, which is under the control of the NBU.
In addition, from the moment this decision enters into force, investment firms will be prohibited from concluding or executing agreements on the purchase and sale of OVDP bonds in foreign currency without observing the specified settlement mechanism.
“Investment firms, based on completed and unexecuted transactions related to the purchase and sale of OVDPs denominated in foreign currency (including under repurchase agreements), must take measures to make changes to them, taking into account the requirements provided for in the subsections of this decision, before carrying out settlements for these transactions.” – the document says.
The Memorandum with the IMF, updated following the seventh review at the end of March, emphasized the need to bring OTC transactions with foreign currency bonds into line with the rules applicable to the banking sector. The goal is to comply with current currency restrictions and prevent unproductive capital outflow. It was also envisaged to strengthen control over operations on securities accounts.
