Preparing for the launch of the trade repository: the NSSMC has developed a Procedure for data submission on the derivative contracts

At the regular meeting, the NSSMC (National Securities and Stock Market Commission) approved the Procedure for submission of information on the derivative contracts to the trade repository and disclosure of information on the derivative contracts.

Therefore, according to the current legislation, the NSSMC establishes the content of information, the procedure and term for its submission to the trade repository. As for the information on derivative contracts of the currency market, the NSSMC agrees such moments with the National Bank of Ukraine.

“The development of financial instruments and the creation of quality infrastructure for them is a priority in the work of the NSSMC. At this moment the trade repository has not been created, but we are working on setting up all the procedural points before its launch. It is important for us that any new mechanism should be clear and convenient for all its participants,” said Iraklii Baramiia, the Commissioner of the NSSMC.

According to the document, the information on derivative contracts is submitted to the trade repository in electronic form on behalf of each party to the contract separately in the following cases:

– the conclusion of a derivative contract;

– the changes of derivative contract conditions, in particular, changes in the identification data of responsible persons, changes of the party, etc.;

– the termination of a derivative contract.

The NSSMC establishes the requirements for the trade repository, in particular with respect to the mechanisms for receiving reports on derivative contracts, comparing the information received, maintaining the database and publishing information from it, etc.

As to other specifics of the document, the derivative contract, which is admitted to the trading on the organized market and which is assigned an International Securities Identification Number (ISIN code) is identified by such code. The trade repository assigns a Unique Product Identifier (UPI code) to other derivative contracts. The trade repository also assigns a Unique Transaction Identifier (UTI code) to the derivative contract for its  identification.

The NSSMC has developed a Procedure for implementation of the Law of Ukraine On State Regulation Of Capital Markets and Organized Commodity Markets and the Law of Ukraine On Capital Markets and Organized Commodity Markets. In the near future it will be submitted for state registration to the Ministry of Justice of Ukraine.