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

of November 24, 2021 No. 1149

About approval of the Procedure for authorization of legal entities who intend to perform activities of trade repository in the capital markets and the organized goods markets, and conditions of implementation of such activities

According to Item 13 parts one of article 8 of the Law of Ukraine "About state regulation of the capital markets and the organized goods markets", to the Law of Ukraine "About the capital markets and the organized goods markets" the National commission on securities and the stock market RESHILA:

1. Approve the Procedure for authorization of legal entities who intend to perform activities of trade repository in the capital markets and the organized goods markets, and conditions of implementation of such activities which is applied.

2. To department of methodology of regulation of professional participants of the security market () provide Kurochkin I.:

submission of this decision on state registration in the Ministry of Justice of Ukraine;

promulgation of this decision on the official website of the National commission on securities and the stock market.

3. This decision becomes effective from the date of its official publication.

4. Control over the implementation of this decision to assign to the member of the National commission on securities and the stock market Baramiya I.

Approved by the Decision of the National commission on securities and the stock market of Ukraine of November 24, 2021, No. 1149

Procedure for authorization of legal entities who intend to perform activities of trade repository in the capital markets and the organized goods markets, and conditions of implementation of such activities

I. General provisions

1. This Procedure establishes procedure for authorization of NKTsBFR of legal entities which intend to perform activities of trade repository, requirements to persons which intend perform/perform activities of trade repository, condition of implementation of such activities by them, procedure for maintaining the register of persons, representatives to perform activities of trade repository in the capital markets and the organized goods markets (further - the Register), and promulgation of information from it.

This Procedure does not extend to the National Bank of Ukraine in case of implementation of activities of trade repository by it.

2. In this Procedure terms are used in such values:

outsourcing - attraction by trade repository based on the relevant agreement of other person (service provider) to implementation of processes, the provision of services, performance of works constituting part of production by such trade repository of activities of trade repository;

The database - the ordered set of logically connected data consisting of stored information on the signed derivative contracts which moves to trade repository, and also information on the unique identifier of product (Unique Product Identifier, the UPI code) or international security identification number (ISIN code) and unique transaction ID (Unique Transaction Identifier, the UTI code) of the derivative contract;

continuous rendering services - provision of services without variation from requirements to rendering the services determined by internal documents of trade repository and/or its contracts with clients of trade repository;

the separate division of the applicant / trade repository - branch, other division of the legal entity who is located out of its location and performs everything or part of its functions (processes) on implementation of activities of trade repository, except specialized structural division;

the service provision agreement trade repository (further - the Agreement) - the prisoner between trade repository and the client of trade repository the agreement which governs the relations between them concerning submission of information on derivative contracts;

the applicant - the legal entity created by the legislation of Ukraine which intends to perform activities of trade repository also submits to NKTsBFR the application and documents provided by this Procedure for inclusion in the Register;

information and technological incident (IT incident) - any phenomenon which is beyond full-time job of PTK and directly indirectly or potentially conducts to stop of processes of system or negatively affects quality of its functioning;

the leading officials are persons performing executive functions, and the faces performing supervising functions;

the client of trade repository (further - the client) - the physical person or legal entity using services of trade repository based on the Agreement;

the key participant in structure of property of the legal entity or applicant / trade repository (further - the key participant) - any physical person owning share in the authorized capital (shares) of such legal entity, the legal entity who owns share (block of shares) in the amount of 2 and more percent in the authorized capital of such legal entity, and at the same time:

if the legal entity has more than 20 participants - physical persons, then 20 participants - physical persons which shares are the greatest are considered as key members of the legal entity;

if identical by the size of share (blocks of shares) in the authorized capital of the legal entity belong to more than 20 participants - physical persons, then all physical persons which own shares (block of shares) in the amount of 2 and more percent in the authorized capital of such legal entity are considered as key members of the legal entity;

it is considered that the public company has no key participants;

the mediated essential participation - ownership in the applicant / trade repository which comes if person or group of persons directly or indirectly owns share (shares) in the authorized capital of one or several legal entities in structure of property of the legal entity of the applicant / trade repository, in such size which provides opportunity to control through this person (these persons) of 10 and more percent of the authorized capital of the applicant / trade repository;

persons performing supervising functions - the chairman and members of the supervisory board (or other body responsible for implementation of supervision of the legal entity according to internal documents of trade repository), other persons who have powers on determination of strategy, the purposes and general activity of the legal entity watch process of acceptance of management decisions and control this process;

officials of internal control system - the division managers performing functions on risk managements, internal audit and komplayens and/or individuals who perform functions of the risk manager, komplayens-manager and internal auditor;

services of trade repository - the services provided by trade repository according to the Agreement and the legislation of Ukraine;

the software and hardware complex (further - PTK) is complex structure which unites all information technologies and resources used by the applicant / trade repository. PTK turns on all computers, the established software, communication systems, information centers, networks and Databases;

the room - the part of unobstructed capacity of the building limited to construction elements with possibility of entrance and exit which the applicant / trade repository during implementation of activities of trade repository, except for uses rooms public;

the public company is:

public joint stock company;

the foreign legal entity who is the issuer of the shares admitted to trading on at least one of the following controlled markets:

New York Stock Exchange (NYSE);

Hong Kong Exchanges and Clearing;

London Stock Exchange (LSE);

Japan Exchange Group;

the controlled markets entering into Nasdaq, Inc.;

the controlled markets of the country entering the European Union and Switzerland;

The register - the list of information on trade repositories which is created and kept by NKTsBFR according to requirements of this Procedure and represents system of collection, accumulating and accounting of data on trade repositories which underwent the procedure of authorization, were included in the Register and received certificates on inclusion in the Register;

the specialized structural division - department, management, department, the sector which is integral part of internal organizational structure of the applicant / trade repository or its separate division and has other location, than trade repository or its separate division;

length of service on executive positions - length of service as the leading official and/or as and/or as the head and/or the deputy manager of separate, specialized and/or functional structural division of the professional participant of the capital markets and the organized goods markets, and/or the legal entity providing the services connected with the capital markets and/or to positions of public service categories B in State commission on securities and the stock market and/or NKTsBFR or to positions of the Chairman or member of such commission are not lower than the deputy of the leading official;

length of service in the capital markets and the organized goods markets is general length of service of physical person:

on the leading positions / as specialist of the subject of the managing performing professional activity in the capital markets and the organized goods markets and/or providing the services connected with the capital markets;

and/or on the leading positions / as specialist in associations (associations) of persons which perform professional activity in the capital markets and/or the organized goods markets;

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