The National Securities and Stock Market Commission approved the admission to trading in Ukraine of securities issued by five foreign investment funds \u2014 exchange-traded funds (ETFs)* \u2014 registered in Germany and Ireland. This means that licensed Ukrainian depository institutions and securities traders are now granted the legal basis to record these securities in the depository accounting system and offer them to Ukrainian investors in accordance with the legal requirements.<\/p>\n
Applications for admission of all five funds were submitted by the depositary institution Altera Finance PrJSC, which operates under a license issued by the Commission to conduct depositary activities. Currently, none of the admitted issues (ETFs) is registered in the system of the Central Securities Depository of Ukraine. However, all of them may be registered in an account of the National Depository of Ukraine opened with the international depository and clearing institution Clearstream Banking Luxembourg, with which correspondent relations are established.<\/p>\n
The NSSMC Financial Monitoring Department confirmed that none of the five issuers is listed in the state sanctions registry. The decision to admit the securities was made in accordance with the Regulations on the admission of securities of foreign issuers to trading in the territory of Ukraine, approved by the Commission in 2021.<\/p>\n
All five instruments fall under the category of UCITS ETFs \u2014 exchange-traded funds that operate under uniform European rules for collective investment. This structure entails a number of requirements that directly protect investors: the share of securities from a single issuer in the fund\u2019s portfolio cannot exceed 10% (20% for index funds) of total assets, and the fund itself is required to ensure that investors can exit their investment at any time. In addition, the fund\u2019s assets are kept in a separate custodian bank, independent of the management company, which protects them in the event of the manager\u2019s bankruptcy.<\/p>\n
At the same time, purchasing such ETFs is an investment that carries market risk, not a guaranteed return. Under the two-tier UCITS ETF model, retail investors buy and sell fund shares on the secondary market\u2014through a broker and an exchange. The return on the investment depends on market fluctuations, and the final result is reduced by brokerage commissions and fund expenses.<\/p>\n
Although all five funds are not offered to U.S. residents in accordance with the U.S. Securities Act of 1933, this restriction applies only to the distribution of securities in the United States and in no way prevents their trading in Ukraine.<\/p>\n
Expanding the list of market-admitted foreign securities provides Ukrainian licensed securities dealers with a legal basis to offer their clients a more diversified set of instruments for long-term investments focused on dividend income. For Ukraine\u2019s emerging capital market, this is one of the practical steps toward gradual integration with the EU financial infrastructure.<\/p>\n
An ETF (Exchange-Traded Fund) is a portfolio of various securities (stocks, bonds, gold, or other assets) whose units can be freely bought and sold on a stock exchange, just like ordinary shares.<\/em><\/p>","protected":false},"excerpt":{"rendered":" The National Securities and Stock Market Commission approved the admission to trading in Ukraine of securities issued by five foreign investment funds \u2014 exchange-traded funds (ETFs)* \u2014 registered in Germany…<\/p>\n","protected":false},"author":367,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4,8,12],"tags":[],"class_list":["post-1184034","post","type-post","status-publish","format-standard","hentry","category-golovn-novini","category-news","category-rozvitok-fnansovogo-rinka","category-tsnn-paperi"],"_links":{"self":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1184034","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/users\/367"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/comments?post=1184034"}],"version-history":[{"count":2,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1184034\/revisions"}],"predecessor-version":[{"id":1184043,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/posts\/1184034\/revisions\/1184043"}],"wp:attachment":[{"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/media?parent=1184034"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/categories?post=1184034"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nssmc.gov.ua\/en\/wp-json\/wp\/v2\/tags?post=1184034"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}