The Exchange Infrastructure Development: the NSSMC issued a commodity license to UICE

At its regular meeting, the NSSMC (National Securities and Stock Market Commission) decided to issue a license to the UICE (Ukrainian Interbank Currency Exchange) for the organizing commodity trading on the commodity exchanges.

“More trading platforms, which are responsible for transparent trading of standardized goods have appeared on the organized commodity market. But we have already witnessed the high performance of such commodity exchanges, which in four months brought 1.1 billion additional revenues to the budget of our country. But I emphasize that not the number of exchanges is important for the development of the spot market, but the quality of its work, the best conditions for all participants in the process. We as the Regulator will continue to pay attention to the capital requirements for those who want to work in the commodity market, to work on licensing conditions and its compliance with the international rules and standards,” said Ruslan Magomedov, the Chairman of the NSSMC.

In order to obtain a license, “UMVB” PJSC went through the process of transforming its structure, changing many internal management documents, etc. Therefore, the NSSMC registered the new rules of the exchange that meet the requirements of the current legislation. Now, among other things, the exchange has the right to: develop and approve the rules of the commodity exchange; form subdivisions, committees, commissions, exchange sections, etc. and approve the provisions on them; develop the standard terms of exchange agreements; stop for a while or suspend exchange trading of certain exchange commodities, etc.

 Currently, the NSSMC has issued three commodity licenses:

– Ukrainian Energy Exchange LLC,

– Ukrainian Universal Exchange LLC,

– Ukrainian Interbank Currency Exchange PJSC.

Recall that in accordance with the requirements of the Law of Ukraine On Amendments To Certain Legislative Acts Of Ukraine On the Simplifying Investment Attraction And Introduction Of New Financial Instruments, dated 19.06.2020 №738-IX, the commodity exchanges must undergo the licensing procedure in the NSSMC from 01.07.2021.