USAID project and Sayenko Kharenko assist the NSSMC in developing new regulations for commodity exchanges
The USAID Financial Sector Transformation Project and Sayenko Kharenko law firm have assisted the National Securities and Stock Market Commission (the “NSSMC”) in developing regulations for the organised commodity market. The work started after the adoption of Law #738.
The Law # 738, which sets out the new versions of the Laws “On Capital Markets and Organised Commodity Markets” and “On Commodity Exchanges”, introduced absolutely new regulation of commodity exchanges. Its effective date was 1 July 2021. Under the previous legislation that had been in effect since 1991, commodity exchanges were essentially unregulated and functioned more like auctions than exchanges with organised trading.
To implement the Law on the basis of the international standards of exchange trading, the following regulations were drafted:
- Licensing requirements for carrying out professional activities in organised commodity markets – the activity of organising trading in products on commodity exchanges,
- Procedure for issuing, suspending, and cancelling a license to carry out professional activities in organised commodity markets – the activity of organising trading in products on commodity exchanges, and
- Regulation on organising trading in products on commodity exchanges.
Yulia Vitka, Deputy Chief of the USAID Financial Sector Transformation Project, said, “Ukraine has a great potential for the development of the commodity market, in particular in agriculture and energy. We are pleased to support the NSSMC in its efforts to develop new rules that will benefit all market participants – from the producer to the trader to the end consumer.”
Sayenko Kharenko provided legal support for drafting regulations and their public discussion.
Olexander Olshansky, Sayenko Kharenko Counsel, noted, “Developing efficient and effective regulatory instruments that embody the NSSMC’s functions is impossible without involving all stakeholders in the discussion. The high professional level and experience of all project participants, as well as the approach of full transparency and cooperation with market participants at all stages of the development of regulations, were key to the success of this project.”
Collaboration between the teams of the NSSMC, the USAID Financial Sector Transformation Project, and Sayenko Kharenko made it possible to discuss draft regulations with a wide range of stakeholders and develop new rules quickly.
USAID has partnered with Ukraine since 1992 and over this time USAID has provided $3 billion worth of assistance. USAID’s current strategic priorities include strengthening democracy and good governance, promoting economic development and energy security, improving health care systems, and mitigating the effects of the conflict in the east. For additional information about USAID in Ukraine, please visit its website: http://www.usaid.gov/ukraine or its Facebook page at https://www.facebook.com/USAIDUkraine.
About the USAID Financial Sector Transformation Project
The USAID Financial Sector Transformation Project supports financial sector reform in Ukraine and provides assistance in the following focus areas: consumer lending, legal and regulatory reform, increasing access to finance in the non-bank financial sector; expanding digital finance solutions; and promoting better involvement of the people in financial markets and financial consumer protection. For more information about the USAID Financial Sector Transformation Project and its activities, please visit FST’s information page at: http://www.fst-ua.info/en/ and its Facebook page at: https://www.facebook.com/FSTProject.