NSSMC and EBRD work on an exchange holding company with the involvement of a strategic investor

On 16 March, a working meeting was held between representatives of the National Securities and Stock Market Commission and the European Bank for Reconstruction and Development, during which the sides discussed next steps toward establishing a stock exchange holding company in Ukraine and developing capital market infrastructure.

During the meeting, participants discussed a target model for the future market structure, which envisages the creation of a holding company that will bring together the key elements of the exchange infrastructure — the stock exchange, the depository system, and the settlement infrastructure. This approach is intended to enhance the efficiency of capital markets, address specific structural issues — particularly those related to liquidity — and establish a modern capital market infrastructure in line with European Union standards.

The proposed model calls for the creation of a holding company involving a strategic investor and the state. It is expected that this company will become the owner of a new stock exchange, the majority shareholder of the Settlement Center, and a shareholder of the National Depository of Ukraine. Creating an integrated structure will make it possible to modernize the capital markets infrastructure, implement modern technologies and international management standards, and create conditions for the further development of Ukraine’s capital markets.

The sides gave special attention to the issue of attracting a strategic investor. It is anticipated that, following the adoption of the relevant legislation, an open international tender will be held with specific prequalification criteria for participants. Based on the selection results, the winning bidder will establish a holding company and begin developing a new exchange infrastructure.

During the meeting, participants also discussed issues related to future regulatory oversight of the holding structure. Commission representatives noted that the relevant regulatory framework would be developed in line with EU legislation and practices governing financial groups, particularly with regard to corporate governance and oversight of group structures.

In addition, the meeting participants discussed opportunities for developing capital markets in the context of privatization processes, the launch of new financial instruments — including municipal bonds — as well as further cooperation on harmonizing Ukrainian legislation with EU standards.

Following the meeting, the sides confirmed their readiness to continue cooperation and technical consultations on the implementation of projects aimed at developing the capital market infrastructure of Ukraine.