Ukrainian Exchange
Encyclopedia
The Ukrainian Exchange is a trading venue for local securities in Ukraine
. The exchange is located in Kiev
and accounts for roughly three-quarters of Ukraine's total equity trading volume.
The Exchange was founded in 2008 and its current premises are situated in Horizon Office Tower close to Delegation of the European Union
in Ukraine and St Mikhail Cathedral.
Stock Exchange to create a new exchange in the form of open joint-stock company in Kiev
. Such form of ownership was chosen to maintain the maximum transparency of a corporate governance from the very first days.
The General Meeting of the shareholders, which was held in September 2008, confirmed the results of the stock placing. 51 % of these stocks were bought by the Ukrainian broker/dealers.
The 2nd of October 2008 is considered to be the birthday of the exchange. On that day the Ukrainian Exchange was registered as a legal entity.
During December 2008 the State Commission of Ukraine, which is the state regulator for Securities and the Stock Market
, granted the Ukrainian Exchange a license authorizing it to act as the organizer of exchange trading
.
The mission of the Ukrainian Exchange is to increase the competitiveness of Ukrainian financial markets and to attract not only foreign, but also the domestic capital to the national economy.
To achieve this goal it is essential to build and develop a reliable state-of-the-art securities and derivatives markets, which will meet the best international practices, and will be affordable and accessible for all types of Ukrainian investors – from individual to institutional.
The next step will be development of a derivatives market for a wide spectrum of the Ukrainian financial instruments.
The mission of the Ukrainian Exchange is to increase the competitiveness of the Ukrainian financial market
s and to attract foreign and domestic capital to the national economy.
On January 20, 2009, trading on the order-driven market was launched in testing mode. This was a unique technology for the Ukrainian market as there were no fully fledged Internet trading opportunities in Ukraine. The Ukrainian Exchange plans to further develop these initiatives and win more than 50% of the market by the end of 2010.
Trading was opened on March 26, 2009, and over 80 of the most liquid stocks of Ukrainian issuers were admitted for trading.
On April, 27 2009 the Ukrainian stock index (UX) was launched as the first on-line index in Ukraine. The first value as of 26, March 2009 was 500 and the initial basket consisted of 10 most liquid blue chips. Now UX index is calculated on base of 15 stocks.
On May 14, 2009, the Ukrainian Exchange launched its repo market
using an RTS Plaza system http://webcache.googleusercontent.com/search?q=cache:P4uIWUwEHGIJ:fs.rts.ru/files/2360/+RTS+plaza&cd=1&hl=en&ct=clnk&gl=uk&client=firefox-a.
On September 16, 2009, the Central Counterparty (CCP) technology was introduced to provide investors with anonymity in settlement.
On May, 27 2010 the Ukrainian Exchange opened the first ever derivatives market in Ukraine. The first traded instrument was a futures contract on the UX Index.
As of October, 2010, 160 professional brokerage companies were registered by the exchange. 23 of them provide Direct Market Access
(DMA) to the exchange for their clients.
On April 26, 2011 the Ukrainian Exchange launched trading in options contracts.
. All orders submitted to the order book are binding offers. When a trade is executed its value includes the accrued interest calculated for the specified final settlement date. Minimum lot – UAH 10,000. In order to be admitted to trading on the government bonds market exchange members must register at least one customer code or proprietary trading code linked to an account in the depository National Bank of Ukraine
.
with its proven collateral system and Central Counterparty guarantees, which has been operating successfully in Russia
and demonstrated its capability during more than one crisis. Currently the Ukrainian Exchange holds trading in futures contracts on the UX Index of local shares and options on UX Index futures contracts, with an aspiration to introduce futures on various underliers (securities, currency, commodities, etc.).
By way of promotion the Ukrainian Exchange offers mock trading in the futures and options markets.
auctions in accordance with "Provisions on the order for sale on the exchange stocks of the open joint stock companies owned by the state" and Trading Rules on The Ukrainian Exchange. The State Property Fund of Ukraine acts at the auctions as a Seller, and both legal entities and individuals who in accordance with the current legislation of Ukraine
have a right for acquisition of property in the process of privatization can act as Buyers.
In order to become a buyer at the privatization auction on The Ukrainian Exchange, residents need to fill in the documents, given below. Non-residents can contact one of members of exchange.
Privatization auctions on The Ukrainian Exchange take place every Tuesday. The Exchange informs of the date and time of an auction on its website well in advance.
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
. The exchange is located in Kiev
Kiev
Kiev or Kyiv is the capital and the largest city of Ukraine, located in the north central part of the country on the Dnieper River. The population as of the 2001 census was 2,611,300. However, higher numbers have been cited in the press....
and accounts for roughly three-quarters of Ukraine's total equity trading volume.
The Exchange was founded in 2008 and its current premises are situated in Horizon Office Tower close to Delegation of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
in Ukraine and St Mikhail Cathedral.
History
In May 2008 the largest participants of the Ukrainian securities market signed the Memorandum of Understanding with the RTSRTS
RTS is a three-letter abbreviation that may refer to:* Real-time strategy, a gaming genre* Reclaim the Streets, an organization* Reformed Theological Seminary, a theological seminary in the United States* Return to Sender...
Stock Exchange to create a new exchange in the form of open joint-stock company in Kiev
Kiev
Kiev or Kyiv is the capital and the largest city of Ukraine, located in the north central part of the country on the Dnieper River. The population as of the 2001 census was 2,611,300. However, higher numbers have been cited in the press....
. Such form of ownership was chosen to maintain the maximum transparency of a corporate governance from the very first days.
The General Meeting of the shareholders, which was held in September 2008, confirmed the results of the stock placing. 51 % of these stocks were bought by the Ukrainian broker/dealers.
The 2nd of October 2008 is considered to be the birthday of the exchange. On that day the Ukrainian Exchange was registered as a legal entity.
During December 2008 the State Commission of Ukraine, which is the state regulator for Securities and the Stock Market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
, granted the Ukrainian Exchange a license authorizing it to act as the organizer of exchange trading
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
.
The mission of the Ukrainian Exchange is to increase the competitiveness of Ukrainian financial markets and to attract not only foreign, but also the domestic capital to the national economy.
To achieve this goal it is essential to build and develop a reliable state-of-the-art securities and derivatives markets, which will meet the best international practices, and will be affordable and accessible for all types of Ukrainian investors – from individual to institutional.
The next step will be development of a derivatives market for a wide spectrum of the Ukrainian financial instruments.
The mission of the Ukrainian Exchange is to increase the competitiveness of the Ukrainian financial market
Financial market
In economics, a financial market is a mechanism that allows people and entities to buy and sell financial securities , commodities , and other fungible items of value at low transaction costs and at prices that reflect supply and demand.Both general markets and...
s and to attract foreign and domestic capital to the national economy.
On January 20, 2009, trading on the order-driven market was launched in testing mode. This was a unique technology for the Ukrainian market as there were no fully fledged Internet trading opportunities in Ukraine. The Ukrainian Exchange plans to further develop these initiatives and win more than 50% of the market by the end of 2010.
Trading was opened on March 26, 2009, and over 80 of the most liquid stocks of Ukrainian issuers were admitted for trading.
On April, 27 2009 the Ukrainian stock index (UX) was launched as the first on-line index in Ukraine. The first value as of 26, March 2009 was 500 and the initial basket consisted of 10 most liquid blue chips. Now UX index is calculated on base of 15 stocks.
On May 14, 2009, the Ukrainian Exchange launched its repo market
Repurchase agreement
A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is the sale of securities together with an agreement for the seller to buy back the securities at a later date. The repurchase price should be greater than the original sale price, the difference effectively...
using an RTS Plaza system http://webcache.googleusercontent.com/search?q=cache:P4uIWUwEHGIJ:fs.rts.ru/files/2360/+RTS+plaza&cd=1&hl=en&ct=clnk&gl=uk&client=firefox-a.
On September 16, 2009, the Central Counterparty (CCP) technology was introduced to provide investors with anonymity in settlement.
On May, 27 2010 the Ukrainian Exchange opened the first ever derivatives market in Ukraine. The first traded instrument was a futures contract on the UX Index.
As of October, 2010, 160 professional brokerage companies were registered by the exchange. 23 of them provide Direct Market Access
Direct Market Access
Direct market access ' is a term used in financial markets to describe electronic trading facilities that give investors wishing to trade in financial instruments a way to interact with the order book of an exchange. Normally, trading on the order book is restricted to broker-dealers and market...
(DMA) to the exchange for their clients.
On April 26, 2011 the Ukrainian Exchange launched trading in options contracts.
Stock market
The Ukrainian Exchange has implemented the following technologies: order-driven market, quote-driven market, and repo market solutions.Government Bonds Market
In a bid to improve the technological capabilities and to expand its list of trade instruments, the Ukrainian Exchange offers access to the market of internal government loan bonds (government bonds). Order prices are quoted as a percentage of the bonds’ face valueValue
Value or values may refer to:Concepts of worth:* Value theory – overview of approaches in various disciplines* Value ** Value * Value ** Theory of value ** Value investing...
. All orders submitted to the order book are binding offers. When a trade is executed its value includes the accrued interest calculated for the specified final settlement date. Minimum lot – UAH 10,000. In order to be admitted to trading on the government bonds market exchange members must register at least one customer code or proprietary trading code linked to an account in the depository National Bank of Ukraine
National Bank of Ukraine
National Bank of Ukraine is the central bank of Ukraine. Its headquarters building, constructed between 1902 and 1934, is located at no. 9 Institutska St., in Kiev-History:...
.
Derivatives market
The derivatives market on the Ukrainian Exchange was launched on May 27, 2010. It operates on the trading platform provided by Russian Trading SystemRussian Trading System
The Russian Trading System is a stock market established in 1995 in Moscow, consolidating various regional trading floors into one exchange. Originally RTS was modelled on NASDAQ's trading and settlement software; in 1998 the exchange went on line with its own in-house system...
with its proven collateral system and Central Counterparty guarantees, which has been operating successfully in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and demonstrated its capability during more than one crisis. Currently the Ukrainian Exchange holds trading in futures contracts on the UX Index of local shares and options on UX Index futures contracts, with an aspiration to introduce futures on various underliers (securities, currency, commodities, etc.).
By way of promotion the Ukrainian Exchange offers mock trading in the futures and options markets.
Privatization auctions
The Ukrainian Exchange holds trading in block of stocks of open joint stock companies in a form of a privatizationPrivatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
auctions in accordance with "Provisions on the order for sale on the exchange stocks of the open joint stock companies owned by the state" and Trading Rules on The Ukrainian Exchange. The State Property Fund of Ukraine acts at the auctions as a Seller, and both legal entities and individuals who in accordance with the current legislation of Ukraine
Ukraine
Ukraine is a country in Eastern Europe. It has an area of 603,628 km², making it the second largest contiguous country on the European continent, after Russia...
have a right for acquisition of property in the process of privatization can act as Buyers.
In order to become a buyer at the privatization auction on The Ukrainian Exchange, residents need to fill in the documents, given below. Non-residents can contact one of members of exchange.
Privatization auctions on The Ukrainian Exchange take place every Tuesday. The Exchange informs of the date and time of an auction on its website well in advance.