№ 9/2021

Fìnansi Ukr. 2021 (9): 70–98https://doi.org/10.33763/finukr2021.09.070

MARKET OF FINANCIAL SERVICES

SHELUDKO Natalia ¹, SHISHKOV Stanislav ²

¹Institute for Economics and Forecasting of NAS of Ukraine
OrcID ID : https://orcid.org/0000-0001-6936-3158
²Perspektiva Stock Exchange PJSC
OrcID ID : https://orcid.org/0000-0003-4440-9572

Financial market infrastructure in Ukraine: consequences of legislative update

The defining principle of the effective functioning of the infrastructure of financial markets is a proper legal basis. It is emphasized that the general principles of infrastructure construction in the context of globalization should provide predictability, clarity and familiarity for international investors. This is most important for immature markets, where legal uncertainty, along with other objective difficulties in the functioning of the infrastructure, hinders the development and attraction of investment. The article notes the slow pace of modernization of the financial market infrastructure in Ukraine and the lack of significant progress in the implementation of international recommendations and proposals of foreign experts. In the course of the study of the updated Ukrainian legislation in the field of capital markets, its inconsistency with the legislation on payment systems and money transfers, inconsistency of terminology, lack of legal certainty, attribution of most fundamental issues to the regulator's discretion were substantiated. Legislative “innovations” of Law № 738-IX of 19.06.2020 are extremely destructive, and their practical implementation poses a threat to the integrity and operational landscape of the infrastructure of financial markets in Ukraine. It has been found that since the middle of 2021 a rather dubious form of cash settlements has been implemented, which revives the outdated inconvenient payment scheme and until 2023 preserves the monopolistic nature of clearing and settlement services, exposes stock market participants to legal and operational risks. It is stated that the Law does not follow the principles and recommendations developed in detail by international experts. The existence of preconditions in Ukraine for building a modern infrastructure of financial markets is substantiated, which requires a proper legal basis, which should be created taking into account the interests of market participants, active involvement of experts, quality implementation of European legal framework and international practices.

Keywords:financial market infrastructure, stock market, stock exchange, securities, Central securities depository (CSD), Central counterparty (CCP), clearing, payment system

JEL: G21, G28, G32, K22

SHELUDKO N. . Financial market infrastructure in Ukraine: consequences of legislative update / N. . SHELUDKO, S. Shishkov // Фінанси України. - 2021. - № 9. - C. 70-98.

Article original in Ukrainian (pp. 70 - 98)

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