Commentary of NSSMC on the situation with the licence of the Ukrainian Exchange

On 24 September 2024, the Sixth Administrative Court of Appeal upheld the appeal of JSC «UKRAINIAN EXCHANGE» and suspended the NSSMC Resolution to revoke the licence issued due to the presence of sanctioned persons in the ownership structure of the exchange.

NSSMC is concerned that amid the war and the introduction of the state sanctions policy, the court’s decision actually opposed compliance with the sanctions.

Earlier, the National Security and Defence Council (NSDC) included the owners of UX’s substantial shareholding in the sanctions list. Based on this Resolurion, NSSMC issued a Resolution to revoke the licence of JSC «UKRAINIAN EXCHANGE» to operate in the capital markets and organised commodity markets due to violations of the relevant legislation. The Resolution came into force in July.

Subsequently, JSC «UKRAINIAN EXCHANGE» filed a lawsuit with the Kyiv District Administrative Court seeking to invalidate and cancel the NSSMC Resolution. The court refused to grant interim relief, and later the exchange filed a motion to dismiss its claim.

However, despite the absence of proceedings on the former claim and the absence of a new claim, the Court of Appeal decided to satisfy the exchange’s appeal, cancelled the first instance Resolution and suspended the revocation of the licence.

NSSMC will continue to adhere to the state’s sanctions policy and closely monitor the activities of professional capital market participants within its powers and applicable law.

Please note that due to the presence of a sanctioned person in the ownership structure of JSC «UKRAINIAN EXCHANGE», which is the ultimate beneficial owner, investment firms and counterparties are obliged to establish a high risk of business relations in accordance with the requirements of the financial monitoring legislation.