Ukrainian capital markets switch to EU rules: the Commission set new requirements for issuers and analysts

The National Securities and Stock Market Commission approved two key regulations that change the rules of the game for companies, banks, and investment analysts. The main goal is to make the market transparent and protect the investors from manipulation.

The new rules are based on the implementation of the requirements of the EU Market Abuse Regulation. For businesses and financial institutions, this means a transition to clear standards that have been in force in EU countries for years.

Share buybacks and stabilization: legal tools that avoid the risk of manipulation accusations

The regulator’s first Resolution sets transparent and clear conditions for conducting share buyback programs (in which companies repurchase their own shares) and measures to stabilize securities prices. From now on, companies will know exactly how to carry out such transactions legally and without the risk of being accused of insider trading or market manipulation.

To take advantage of this opportunity, issuers have to disclose full information about the buyback program in advance, comply with the established limits on price and volume, and promptly report each transaction to the regulator and the market.

The end of “rigged” investment advice: high standards for analytics

The second Regulations apply to anyone who produces or disseminates investment recommendations, reviews, and strategies. The new rules will apply to banks, investment firms, independent analysts, and experts.

These changes are based on complete objectivity and the absence of hidden interests. From now on, analysts are required to openly disclose any conflicts of interest regarding the securities or issuers they write about. For example, if an analyst or their firm owns these assets or has a financial interest in them, this must be clearly stated in the publication. In addition, investment firms and banks will be required to publish this information on their websites.

When are the changes due?

The approved decisions went through the public comment period without any comments from market participants, which indicates that the community is ready for the new rules. The documents are now submitted for state registration.

The new rules will take effect immediately upon official publication, but will be fully implemented starting on 01 January 2027. The Commission is deliberately allowing the market a sufficient transition period so that companies, banks, and think tanks can adapt their internal procedures to European requirements without rushing.