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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of April 5, 2024 No. 38

About approval of the Instruction for estimation on compliance to international standards of oversight of the subjects performing functions of Central Securities Depository, the central partner, trade repository and settlement system in securities in Ukraine

According to Articles 7, of 15, 56 Laws of Ukraine "About the National Bank of Ukraine", article 142-1 of the Law of Ukraine "About the capital markets and the organized goods markets", the subitem 1 of Item 30 of the Section VII of the Law of Ukraine "About financial services and finance companies", for the purpose of determination of general approaches on implementation of estimation of the subjects performing functions of Central Securities Depository, settlement system in securities, the central partner and trade repository, decide Boards of the National Bank of Ukraine:

1. Approve the Instruction for estimation on compliance to international standards of oversight of the subjects performing functions of Central Securities Depository, the central partner, trade repository and settlement system in securities in Ukraine which is applied.

2. To department of payment systems and innovative development (Andrey Podderegin) after official publication to inform the subjects performing functions of Central Securities Depository, the central partner, trade repository and settlement system in securities in 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 Alexey Shaban.

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

Approved by the Resolution of Board of the National Bank of Ukraine of April 5, 2024 No. 38

The instruction for estimation on compliance to international standards of oversight of the subjects performing functions of Central Securities Depository, the central partner, trade repository and settlement system in securities in Ukraine

I. General provisions

1. This Instruction determines methodology and criteria for implementation of estimation by the National Bank of Ukraine (further - National Bank) on compliance to international standards of oversight of the subjects performing functions:

1) Central Securities Depository (dalee-SD);

2) settlement systems in securities (dalee-SRTsP);

3) the central partner (further - group of companies);

4) trade repository (further - TR).

2. This Instruction is developed taking into account requirements of the international standards of oversight of infrastructure of the financial market accepted by International settlements bank and International Organization of Securities Commissions namely:

1) the Principles for infrastructure of the financial market (further - the Principles) establishing international standards of oversight;

2) Structures of disclosure of information and methodology of estimation which establishes approximate technique of implementation of estimation of oversight objects by Central Banks on compliance to international standards of oversight and their self-assessment;

3) Application guides of the Principles which contains instructions for application of international standards of oversight to subjects of infrastructure of the financial market which own or operate Central Banks;

4) the Management on cyberstability for subjects of infrastructure of the financial market which contains recommendations about enhancement of their cyberstability.

3. Terms in this Instruction are used in the following values:

1) the multi-level structure of participation structure of participation providing access to services of object of oversight to her participants and indirect participants;

2) variation margin providing which gathers and paid for covering of the current risks as a result of the actual changes of market prices;

3) interdependence interrelation, the cross liability arising during activities of object of oversight with participants of object of oversight, clearing banks, subjects of infrastructure of the financial market;

4) postponed net calculations of calculations, providing accomplishment of obligations of participants by results of clearing with certain frequency;

5) depositary risk risk of loss of assets in case of insolvency, negligence, frauds, bad administration or inadequate accounting by organization in which there are stored these assets;

6) general commercial risk - risk of deterioration in financial condition of object of oversight as a result of decrease in its income or increase in expenses owing to which expenses exceed the income and are led to losses which covering is performed at the expense of the capital. The risks connected with non-execution of obligations by the participant of object of oversight or other person having financial liabilities before oversight object do not belong to general commercial risk;

7) the investment risk risk of loss or unavailability of financial assets of object of oversight and its participants arising owing to their investment;

8) essential incident of violation of continuity of activities inability of object of oversight timely and effectively to carry out/provide critical transactions / services in the normal mode of activities and in case of emergency situation within two hours or longer time;

9) cyberthreat - the available and potentially possible phenomena and factors, defiant or can entail risk of violation of confidentiality, integrity, availability of information resources and/or observabilities and controllability of information infrastructure;

10) cyberincident - the event or set of unfavorable events of inadvertent nature or having signs of possible cyber attack which pose safety hazard of information infrastructure, create probability of violation of the normal mode of its functioning, and also threaten security of information resources;

11) cyberrisk risk of realization of cyberthreats concerning information resources and/or information infrastructure, and also effect of such events. The cyberrisk is component of operational risk;

12) cyberstability of object of oversight capability of object of oversight to prevent, resist, constrain and to be recovered quickly after the cyberincidents and cyber attacks;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info