DECISION OF THE NATIONAL COMMISSION ON SECURITIES AND STOCK MARKET OF UKRAINE

of March 25, 2014 No. 343

About modification of the decision of the National commission on securities and the stock market of January 15, 2013 No. 37 and regulatory legal acts of rather prudential standard rates of professional activity in the stock market

According to part two Item 37-5 of Article 7, of Items 2, "About state regulation of the security market in Ukraine" and in connection with adoption of law of Ukraine "About depositary system of Ukraine" the National commission on securities and the stock market SOLVED 13 parts one of article 8 of the Law of Ukraine:

1. Bring in the decision of the National commission on securities and the stock market of January 15, 2013 No. 37 "About approval of the Provision of rather prudential standard rates of professional activity in the stock market - depository activity and requirements to risk management system", registered in the Ministry of Justice of Ukraine on February 5, 2013 at No. 216/22748, the following changes:

Heading to state 1) in the following edition:

"About approval of the Provision of rather prudential standard rates of professional activity in the stock market - depository activity and clearing activities and requirements to risk management system";

Item 1 to state 2) in the following edition:

"1. Approve the Provision of rather prudential standard rates of professional activity in the stock market - depository activity and clearing activities and requirements to risk management system (further - the Provision) which is applied.".

2. Approve Changes in the Provision of rather prudential standard rates of professional activity in the stock market - depository activity and requirements to risk management system, No. approved by the decision of the National commission on securities and the stock market of January 15, 2013 37, No. 216/22748, registered in the Ministry of Justice of Ukraine on February 5, 2013 which are applied.

3. Add Item 6 of Chapter 2 of the Section II of Provisions of rather prudential standard rates of professional activity in the stock market - activities for the securities trading, No. approved by the decision of the National commission on securities and the stock market of December 25, 2012 1900, registered in the Ministry of Justice of Ukraine on January 21, 2013 at No. 139/22671 (with changes), the new paragraph of the following content:

"The minimum size of the regulatory capital of the dealer in securities (except bank) which combines activities with depository activity of depository institution, shall constitute at least minimum size of the authorized capital established by the legislation for professional activity in the stock market - depository activity of depository institution (the requirement is not applied within the first year from the date of creation of society).".

4. To provide to management of the prudential and consolidated supervision (T. Tisminetsk) submission of this decision on state registration in the Ministry of Justice of Ukraine.

5. To provide to management of information technologies, external and internal communications (A.Zaik) publication of this decision in the official printing publication of the National commission on securities and the stock market and promulgation on the official website of the National commission on securities and the stock market.

6. This decision becomes effective since July 1, 2014.

7. Control over the implementation of this decision to assign to the member of the National commission on securities and the stock market M. Nazarchuk.

 

It is approved: Chairman of the National Bank of Ukraine

S.I.Kubov

 

The minutes of the Commission of March 25, 2014 No. 14

Approved by the Decision of the National commission on securities and the stock market of March 25, 2014 No. 343

Changes in the Provision of rather prudential standard rates of professional activity in the stock market - depository activity and requirements to risk management system

1. State heading in the following edition:

"Provision of rather prudential standard rates of professional activity in the stock market - depository activity and clearing activities and requirements to risk management system".

2. In the Section I:

in Item 1 after words "prudential supervision for depositary and" words "settlement and clearing" to replace with the word "clearing", after the words "determines the main risks" the word "specified" shall be replaced with words "the specified types", after the words "performing depositary" to add with the words "and clearing";

state Item 2 in the following edition:

"2. Action of this Provision extends to Central Securities Depository (further - the Central depositary), to the professional participants of the stock market performing the following types of activity:

depository activity of depository institution;

clearing activities.

Action of this Provision does not extend to the banks performing professional activity in the stock market except settlement center on servicing of agreements in the financial markets (further - Settlement center) regarding observance of requirements of the Section III concerning coverage ratio of obligations of participants of clearing, and also Sections V and VI of this provision.";

in Item 3:

the fourth to state the paragraph in the following edition:

"Organization - the Central depositary, the professional participant of the stock market performing depository activity by its separate types clearing activities or combines it with other types of activity according to the legislation on securities and the stock market.";

the fifth after words "the Law of Ukraine "On state regulation of the security market in Ukraine" to add the paragraph with words ", the Law of Ukraine "About depositary system of Ukraine".

3. In the Section II:

in the name of the Section after words "depositary and" "settlement and clearing" to replace words with the word "clearing";

the paragraph one of Item 1 to state in the following edition:

"1. Their following types belong to risks which can arise when implementing depository activity by the Central depositary, depository institution and in case of production of clearing activities:";

in Item 2 after the word "implementation" of the word "clearing depositary settlement and clearing" shall be replaced with words "organization clearing".

4. In the Section III:

1) in Chapter 1:

to add Item 1 after words of "financial risks" with the word "Central";

in Item 2:

in paragraph one after words of "financial risks" "the keeper (except bank)" shall be replaced with words words "depository institution";

subitem 2.1 in paragraph one after the words "risks assessments" of the word "the keeper, combining activities with activities of the registrar" shall be replaced with words "depository institution, performing exclusively depository activity in the stock market";

in subitem 2.2 after the words "risks assessments" of the word "" shall be replaced with words the keeper (or the keeper who combines activities with activities of the registrar) "depository institution", after words of "securities trading" of the word" (except bank)" to exclude;

state Item 3 in the following edition:

"3. For quantitative measurement and assessment of financial risks of person making clearing activities (except Settlement center), the following indicators are used:

3.1. The minimum size of the regulatory capital which is calculated according to Item 1 of Chapter 2 of this Section.

3.2. Coverage ratio of obligations of participants of clearing which is calculated according to item 4 of Chapter 2 of this Section.";

add Chapter with new Items 4, 5 following contents:

"4. For quantitative measurement and risks assessment of person which makes clearing activities and performs functions of the central partner (except Settlement center) in addition to indicators, determined by Item 3 of this Chapter, indicators for assessment of financial condition of organization which are calculated according to Item 3 of Chapter 2 of this Section are used and include:

solvency ratio (financial stability);

coefficient of overall liquidity;

absolute liquidity index.

5. For quantitative measurement and risks assessment of Settlement center as persons which makes clearing activities (or persons which makes clearing activities and performs functions of the central partner), the coverage ratio of obligations of participants of clearing which is calculated according to item 4 of Chapter 2 of this Section is used.";

2) in Chapter 2:

in Item 1:

in subitem 1.1:

in the paragraph the twelfth ambassador of words of "investments in the capital" shall be replaced with words words of "legal entities" "joint-stock companies";

the thirteenth to state the paragraph in the following edition:

"Book value of securities which are not in circulation at least on one of stock exchanges (including trade in which on the stock exchanges is prohibited by the legislation of Ukraine), except shares of the private joint-stock companies, securities emitted or issued by the central executive bodies, local executive bodies, the National Bank of Ukraine and the Public mortgage institution and securities of other financial institutions;";

the fifteenth to state the paragraph in the following edition:

"The bills of exchange acquired and received from the drawer whose securities are in the exchange register at least of one of stock exchanges;";

in subitem 1.3 after the word of "papers" "not diversified" to replace the word with the word of "venture";

item 4 in paragraph four after words "to which is exposed" the words "clearing depositary, which" shall be replaced with words "person performing clearing activities";

3) in Chapter 3:

in Item 1:

the paragraph one after words of "financial risks" to add with the word "Central";

subitems 1. 1.2 after words of "regulatory capital" to add 1, with the word "Central";

in Item 2:

in paragraph one after words of "financial risks" shall be replaced with words words of "the keeper who combines activities with activities of the registrar (except bank)" "depository institution, performing exclusively depository activity in the stock market";

state subitem 2.1 in the following edition:

"2.1. The minimum size of the regulatory capital of depository institution shall constitute at least minimum size of the authorized capital established by the legislation for the specified type of professional activity in the stock market (the requirement is not applied within the first year from the date of creation of society).";

in subitem 2.2 after words "solvency ratio (financial stability) for" the word "of the keeper, combining activities with activities of the registrar (except bank)," shall be replaced with words "depository institution";

in subitem 2.3 after words "coefficient of financing (debt) for" the word "of the keeper, combining activities with activities of the registrar (except bank)," shall be replaced with words "depository institution";

state Item 3 in the following edition:

"3. Normative measure values, used for quantitative measurement and assessment of financial risks of person making clearing activities (except Settlement center):

3.1. The minimum size of the regulatory capital of person making clearing activities shall constitute at least minimum size of the authorized capital established by the legislation for person who obtained the license for implementation of clearing activities.

3.2. Normative value of coverage ratio of obligations of participants of clearing shall be no more than 1";

add Chapter with new Items of the following content:

"4. Normative measure values, used for quantitative measurement and assessment of financial risks of person which makes clearing activities and performs functions of the central partner (except Settlement center):

4.1. The minimum size of the regulatory capital of person which makes clearing activities and performs functions of the central partner shall constitute at least minimum size of the authorized capital established by the legislation for person who obtained the license for implementation of clearing activities.

4.2. Normative value of solvency ratio (financial stability) for person which makes clearing activities and performs functions of the central partner shall be at least 0,5. The tendency of increase in measure value to 1 is positive.

4.3. Normative value of coefficient of overall liquidity for person which makes clearing activities and performs functions of the central partner shall be at least 1. The tendency to increase in measure value is positive.

4.4. Normative value of absolute liquidity index for person which makes clearing activities and performs functions of the central partner shall be at least 0,2. The tendency to increase in measure value is positive.

4.5. Normative value of coverage ratio of obligations of participants of clearing shall be no more than 1.

5. Normative value of coverage ratio of obligations of participants of clearing for Settlement center shall be no more than 1".

5. In the Section IV:

1) in Chapter 1:

"the supreme body of management" to add Item 3 paragraph two after words with the words "or the supervisory board (in case of its creation)";

in item 4:

in paragraph one after the words "shall create" of the word "structural division or to designate the certain official for carrying out" to replace with the word "service";

in the paragraph the second ambassador of the words "To Powers" of the word of "such structural division or the official" shall be replaced with words "services of internal audit (control)";

in Item 5:

in paragraph one after the word "establishes" the word "effective" to exclude;

state paragraph two in the following edition:

"The corporate management system of organization shall determine rules and procedures of decision making concerning activities of organization and control, and also distribution of the rights and obligations between bodies of organization and its participants by management of organization.";

Paragraph two of subitem 6.1 of Item 6 of Chapter 2 after the words "obligatory absolute" to add 2) with the word "previous".

6. In the Section V:

in subitem 1.1 of Item 1 after the words "calculation of prudential standard rates" of the word "each working day" shall be replaced with words "as of the end of the last day of every month (except calculation of coverage ratio of obligations of participants of clearing which is calculated each working day)";

add Item 2 with the new paragraph of the following content:

"If securities of issuers concerning which the liquidation procedure is carried out are the reason of non-compliance with normative value of prudential indicator of the minimum size of the regulatory capital of organization, the address or concerning which restrictions of transactions in system of depositary accounting based on decisions of the Commission are set, then term of reduction of value of the specified prudential indicator to compliance to normative value is stopped proceeds before decision making of the Commission about cancellation of registration of release, recovery of securities of this issuer or removal of the corresponding restriction.".

7. In the Section VI:

in the name of the Section after words "depositary and" "settlement and clearing" to replace words with the word "clearing";

in Items 1, 2 after words "depositary and" "settlement and clearing" to replace words with the word "clearing".

8. In the text of the Provision of the word "clearing depositary" in all cases shall be replaced with words "person performing clearing activities" in the corresponding cases.

 

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