| The Ukrainian Exchange | |
|---|---|
| Type | Stock exchange |
| Location | Kiev, Ukraine |
| Founded | May 15, 2008 |
| Owner | Russian Trading System (49%, largest shareholder) |
| Key people | Igor Mazepa (Chairman) Oleg Tkachenko (CEO) |
| Currency | Ukrainian hryvnia (UAH) |
| No. of listings | 181 (May 2011) |
| MarketCap | US$40 billion (May 2011) |
| Volume | US$39 million (May 2011) |
| Indexes | UX Index |
| Website | www.ux.ua |
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.[1]
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[2] and St Mikhail Cathedral.
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In May 2008 the largest participants of the Ukrainian securities market signed the Memorandum of Understanding with the RTS 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.[3] 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.[4]
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 markets 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.[5]
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.[6]
On May 14, 2009, the Ukrainian Exchange launched its repo market[7] using an RTS Plaza system [1].
On September 16, 2009, the Central Counterparty (CCP) technology was introduced to provide investors with anonymity in settlement.[8]
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.[9]
As of October, 2010, 160 professional brokerage companies were registered by the exchange. 23 of them provide direct market access to the exchange for their clients.[10]
On April 26, 2011 the Ukrainian Exchange launched trading in options contracts.[11]
The Ukrainian Exchange has implemented the following technologies: order-driven market, quote-driven market, and repo market solutions.
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 value. 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.
The derivatives market on the Ukrainian Exchange was launched on May 27, 2010. It operates on the trading platform provided by Russian Trading System 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.
The Ukrainian Exchange holds trading in block of stocks of open joint stock companies in a form of a privatization 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.
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