RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of August 18, 2020 No. 119

About approval of Changes in Regulations on implementation of depository and clearing activity and ensuring implementation of agreement settlements concerning securities the National Bank of Ukraine

According to Articles 7, of 15, 56 Laws of Ukraine "About the National Bank of Ukraine", to Articles 13, of 17, 20 Laws of Ukraine "About depositary system of Ukraine", for the purpose of ensuring implementation by the National Bank of Ukraine of depository activity, clearing activities and agreement settlements concerning securities according to the powers determined by the legislation of Ukraine, and settlement of the relations by interaction between the National Bank of Ukraine as securities depository and its clients the Board of the National Bank of Ukraine DECIDES:

1. Approve Changes in the Regulations on implementation of depository and clearing activity and ensuring implementation of agreement settlements concerning securities the National Bank of Ukraine approved by the resolution of Board of the National Bank of Ukraine of December 21, 2017 No. 140 (with changes) (further - Changes in the Provision) which are applied.

2. To management of depository activity of the National Bank of Ukraine (Andrey Suprun) after official publication to inform clients of depositary of the National Bank of Ukraine information on adoption of this resolution.

3. To impose control over the implementation of this resolution on the vice-chairman of the National Bank of Ukraine Yury Geletiya.

4. The resolution becomes effective from the date of, its official publication following behind day, except:

1) paragraphs of the twenty second - the twenty fourth subitem 5 of Item 1 of Changes to the Provision which become effective in 10 days from the date of its official publication;

2) the paragraph of the eighth subitem 3, paragraphs of the eleventh - the sixteenth subitem 4, paragraphs of the fifteenth, sixteenth, eighteenth, nineteenth subitem 5 of Item 1, paragraphs of the fourth - the thirteenth subitem 2 Items 2, paragraphs of third - the thirteenth subitem 2, paragraphs of the fourth, fifth subitem 3 of Item 3 of Changes to the Provision which become effective in 30 days from the date of its official publication - since September 17, 2020;

3) paragraphs of the fifteenth - the twenty first subitem 2 of Item 3 of Changes to the Provision which become effective in 60 days from the date of its official publication.

Approved by the Resolution of Board of the National Bank of Ukraine of August 18, 2020 No. 119

Changes in Regulations on implementation of depository and clearing activity and ensuring implementation of agreement settlements concerning securities the National Bank of Ukraine

1. In the Section I:

1) in Item 2 of Chapter 1:

in subitem 4:

the third offer after words of "securities" to add with words and letters "[except bonds of external state loans (further - the OVDP) and the state derivatives]";

add the subitem with the new offer of the following content: "For the OVDP and the state derivatives date of accounting is established according to the procedure, determined by internal documents of foreign depositary";

to add Item after subitem 10 with new subitem 10-1 of the following content:

"10-1) managing the account in securities (further - managing the account) - the status which in depositary of National Bank acquires the legal entity to whom the issuer confers powers on management of its account in securities or depository institution where the foreign depositary confers powers on management of its account in securities, the amount of powers managing the account is established by the relevant agreement or acts of the civil legislation;";

the subitem 15 after the word to "depositors" to add with words to "nominee holders";

in subitem 21:

the first offer to state in the following edition:

"21) the segregated account - compound the account and provides the isolated accounting of the Central Bank in securities of depository institution which is opened at the level of depositary of National Bank, belonging to certain depositor of depositary organization / to clients of certain nominee holder and/or clients of clients of this nominee holder, separately from the Central Bank of other depositors of such depository institution, the Central Bank on accounts of other nominee holders and own the Central Bank of depository institution.";

the second offer after the word of "depositor" to add with words ", the nominee holder";

The subitem 2 of Item 3 of Chapter 2 to state 2) in the following edition:

"2) OVDP and state derivatives;";

3) in Chapter 3:

state Item 9 in the following edition:

"9. Structural division of National Bank which main objective is implementation of depository activity (further - Responsible division) implementation of activities of depositary of National Bank and depository activity of depository institution provides in National Bank.

The responsible division in case of accomplishment of the functions interacts with other divisions of National Bank within their competences determined by this Provision, other normative and legal and administrative acts of National Bank.";

to add the subitem 6 of Item 11 with words and the letters "or based on information on obligations of the issuer on the OVDP and the state derivatives received from foreign depositary";

Item 13 in paragraph ten:

to "the GERMAN-UKRAINIAN FUND" shall be replaced with words words to "FUND of DEVELOPMENT of the ENTREPRENEURSHIP";

letters of Central Bank shall be replaced with words "securities";

in the paragraph the second Item 14 the word is "used" to be replaced with the word "are used";

to add Chapter after Item 17 with new Item 17-1 of the following content:

"17-1. Agreements which the National Bank signs with clients depositaries/depositors shall conform to the requirements established by this Provision.

The National Bank signs with clients depositaries/depositors the agreements specified in Items 15, of the 17th Chapter 3 of the Section I of this provision in the form of the paper or electronic document.

The National Bank has the right to sign the contract with the client the depositary/depositor by joining of the client of the depositary/depositor to the agreement offered by National Bank in general according to the Civil code of Ukraine and the Economic code of Ukraine. The National Bank if the conclusion of the agreement happens by joining of the client of the depositary/depositor to the agreement offered by National Bank, will promulgate the text of such agreement and change in it on the page of official Internet representative office of National Bank.

Agreements which the National Bank signs with depositors shall contain surely the right of National Bank to perform depository operations according to the order of the pawnbroker in case of the address of collection on the securities which are pledge subject for benefit of National Bank, extrajudicially.

The rights and obligations of the Parties under the agreements signed between National Bank and clients depositaries/depositors shall conform to the requirements established by this Provision.

National Bank depending on the agreement type concluded between National Bank and the client of depositary, having the right to establish the rights and obligations of the Parties according to the list of the rights and obligations of the Parties under the agreements signed between National Bank and clients of depositary determined in appendix 1 to this Provision. Other rights and obligations of depositary of National bank / client of depositary can be determined by the contract between National Bank and the client of depositary, that are specified in appendix 1 to this Provision.

The rights and obligations of the Parties of the agreement signed between National Bank and the depositor are determined taking into account the requirements to such agreements established by the National commission on securities and the stock market taking into account the features established by this Provision and the regulatory legal act of National Bank which settles questions of depository activity of depository institution.";

in Item 18:

in the first offer of the word "with Legal department and Department of financial controlling" shall be replaced with words "with structural division of National Bank which provides legal maintenance,";

in the third offer of the word "and in particular" to exclude;

4) in Chapter 4:

in paragraph one of Item 23 of the word and figures" (appendix 1)", "(2)" to replace appendix respectively with words and figures "(appendix 2)", "(appendix 3)";

in Item 25:

state subitem 1 in the following edition:

"1) accounting of the Central Bank, the rights to the Central Bank on accounts in securities of depositors, nominee holders in depository institutions;";

add subitem 4 with words ", to clients and clients of clients of nominee holders";

in Item 26:

"owner" to add the first offer after the word with words ", the nominee holder";

the second offer after the word of "depositor" to add with words ", the nominee holder";

add Item 27 with the new offer of such content: "The depository institution has the right to open for nominee holders exclusively segregated accounts within their account in securities.";

 state Item 29 in the following edition:

"29. The depository institution uses exclusively segregated accounts in securities for accounting own the Central Bank, and also for the Central Bank, the rights to which are considered on accounts in securities:

1) legal entities - nonresidents;

2) physical persons - nonresidents;

3) banks which are not depository institutions;

4) nominee holders;

5) territorial communities.

The depository institution for opening of the segregated account on the order of the depositor, the nominee holder enters information on him and its account into the system of depositary accounting of depositary of National Bank means of system of automation of depositary of National Bank. In case of introduction of information concerning nonresident depositors or nominee holders the depository institution uses registration code of such nonresident, nominee holder in the country of its registration. In case of introduction of information concerning the nonresident depositors which are physical persons, the depository institution has the right to use registration number of accounting card of the taxpayer of such physical person (in the presence).";

add Item 33 with the new offer of such content: "The number of managers of the account in securities cannot be less than two people during the whole time of existence of such account.";

the first offer of Item 34 after the word of "depositors" to add with words of "nominee holders";

5) in Chapter 5:

to add Chapter after Item 43 with new Item 43-1 of the following content:

"43-1. According to the procedure, the terms and amounts established by this Provision in depositary of National Bank information on all transactions on accounts in securities of depositors and nominee holders of each depository institution is displayed.";

in Item 44:

in paragraph one:

to add the paragraph after the word of "clients" with words "depositary / managing accounts";

add the paragraph with the new offer of the following content: "In case of provision of orders by system of automation of depositary of National Bank clients of depositary / managing accounts shall choose the corresponding transaction type which corresponds to agreement essence.";

in the paragraph the second:

after words "Depository institutions" to add with the words "depository institutions of functions during execution of them the foreign depositary managing the account";

exclude the word "digital";

third after the word "issuers" to add the paragraph with words "/the managing accounts";

the fifth to state the paragraph in the following edition:

"In case of the appointment as foreign depositary managing the account for interaction between depositary of National Bank and the managing account means of system of automation of depositary of National Bank can be used.";

in Item 49:

 in paragraph five:

shall be replaced with words words of "securities" also the letters "The Central Bank (except the OVDP and the State Derivatives)";

add the paragraph with words "/the client, the client of the client of the nominee holder.";

 to state the paragraph of the sixth in the following edition:

"The depositary of National Bank in cases when agreement party concerning securities (except the OVDP and the state derivatives) is the nonresident/client, the client of the client of the nominee holder, performs servicing of payment under such contracts only with use of the principle "delivery of securities against payment" and is exclusive in case of their conclusion on the stock exchange. Exception agreement settlements concerning the Central Bank, the state body authorized by the law connected with execution of judgments or decisions or its official, to gift agreements, inheritance and legal succession constitute, entering of the Central Bank into the authorized (share) capital of legal entities, return of the contribution made in the authorized capital in the form of securities in natural form, and also accomplishment of other unconditional transactions on the Central Bank.";

in Item 50 the word and figure "appendix 2" to replace with the word and figure "appendix 3";

in Item 53:

in the first offer of paragraph one of figure "21.00" to replace with figures "19.30";

in subitem 2:

replace figures "21.00" with figures "19.30";

words and figures "subitems 2-1 and" to replace with the word "subitem";

state subitem 2-1 in the following edition:

"2-1) under agreements concerning the Central Bank which are carried out with respect for the principle "delivery of securities without payment" in case of implementation of account transactions of depositary of National Bank in foreign depositary the depositary of National Bank accepts orders from clients of depositary from 9:00 till 19:30. The depositary of National Bank in case of receipt of the order from depository institution provides till 13:00 to foreign depositary the corresponding order on carrying out depository operation on the same day, otherwise the depositary of National Bank provides to foreign depositary the corresponding order on carrying out depository operation the next working day;";

in the subitem 3 of figure "18.55", "19.30", "19.00" to replace respectively with figures "17.30", "17.55", "18.00";

in the subitem 4 of figure "21.00" to replace with figures "19.30";

in the paragraph the second Item 54:

in the first offer of the letter "DIT" shall be replaced with words "Structural division of National Bank which performs support of information systems";

in the second offer to exclude the word "digital";

to "depositor" to add Item 59 after the word with words ", to the nominee holder";

in Item 60:

the first offer to add with the words "and/or nominee holders";

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