Improving capital market infrastructure: Commission supported bringing in a strategic investor

The National Securities and Stock Market Commission approved, with comments, the draft Law of Ukraine “On Amendments to Certain Legislative Acts Regarding the Attraction of Strategic Foreign Investors to the Infrastructure of Ukraine’s Capital Markets.”

The document provides for the creation of a holding infrastructure company in Ukraine that will combine key elements of capital market infrastructure. In particular, it will control an operator of an organized capital market (which it must create independently) and the central counterparty, as well as will hold a stake in the Central Securities Depository.

It is planned to attract investments from a strategic foreign investor to the capital of this company, which will be selected through an open competition. The state will be one of the shareholders of the holding company. International financial organizations and other investors may also acquire a stake in the company.

The Commission supported the draft law and offered suggestions for clarifying certain provisions, including requirements for strategic investors, the selection procedure, and the corporate structure of the future holding company.

The introduction of this model is expected to consolidate key elements of capital market infrastructure, attract international expertise and investment, and accelerate their development in Ukraine.