RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of July 15, 2013 No. 277

About approval of the Procedure for creation and use of guarantee fund in the form of means for ensuring accomplishment of obligations according to transactions concerning securities and other financial instruments

According to article 15 of the Law of Ukraine "About the National Bank of Ukraine", part two of article 19-4 of the Law of Ukraine "About securities and the stock market", the Law of Ukraine "About depositary system of Ukraine", for the purpose of determination of the general organizational principles of creation and functioning of guarantee fund in the form of means for ensuring accomplishment of obligations according to transactions concerning securities and other financial instruments as one of mechanisms of decrease in risks of participants of clearing and their clients concerning failure to carry out or inadequate accomplishment of obligations according to transactions concerning securities and other financial instruments the Board of the National Bank of Ukraine DECIDES:

1. Approve the Procedure for creation and use of guarantee fund in the form of means for ensuring accomplishment of obligations according to transactions concerning securities and other financial instruments which is applied.

2. To general department of monetary policy (Scherbakova O. A.) after state registration in the Ministry of Justice of Ukraine to bring contents of this resolution to permission of General department of information technologies and payment systems, Legal department and PAT "Settlement center on servicing of agreements in the financial markets" for use in work.

3. To impose control over the implementation of this resolution on the First Deputy Chairman of the National Bank of Ukraine Prikhodko B. V.

4. The resolution becomes effective from the date of its official publication.

Approved by the Resolution of Board of the National Bank of Ukraine of July 15, 2013, No. 277

Procedure for creation and use of guarantee fund in the form of means for ensuring accomplishment of obligations according to transactions concerning securities and other financial instruments

1. This Procedure is developed according to article 15 of the Law of Ukraine "About the National Bank of Ukraine", the Laws of Ukraine "About securities and the stock market" and "About depositary system of Ukraine".

2. This Procedure determines the general organizational principles of creation and functioning of guarantee fund in the form of means for ensuring accomplishment of obligations by transactions concerning securities and other financial instruments (further - guarantee fund) as one of mechanisms of decrease in risks of participants of clearing and their clients concerning failure to carry out or inadequate accomplishment of obligations according to transactions concerning securities and other financial instruments.

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

guarantee fund - insurance fund of money which is created for the purpose of decrease in risks of failure to carry out or inadequate accomplishment of obligations, increase in performance guarantees of obligations of participants of clearing and their clients according to transactions concerning securities and other financial instruments;

the obligation of participants/participants of clearing - the obligation of participants/participants of clearing and their clients in the form of means according to transactions concerning securities and other financial instruments;

individual warranty providing - providing in the form of money and securities or other financial instruments which is created by participants of clearing on daily basis for accomplishment by them of the obligations and obligations of the clients under the agreements signed on the stock exchange;

person who carries out clearing activities, - clearing organization, Settlement center on servicing of agreements in the financial markets, Central Securities Depository, the National Bank of Ukraine;

the potential participant of clearing - person who concluded with person who carries out clearing activities, the agreement on clearing servicing, but did not pay initial fee yet;

the participant of clearing - person who signed with person who carries out clearing activities, the agreement on clearing servicing for implementation of clearing of obligations according to transactions concerning securities (other financial instruments) made to own advantage and for the benefit of the clients and brought initial fee in insurance fund.

Other terms and concepts are used in the values determined by the legislation of Ukraine.

4. The guarantee fund is created by person who carries out clearing activities, on the terms of renewal and return and is used for full or partial implementation of obligations of participants of clearing in case of lack of money of participants of clearing as a result of excess of its obligations over amount of its individual warranty providing.

5. The right to dispose of means of guarantee fund belongs to person who carries out clearing activities.

6. Means of guarantee fund are depersonalized and can be used for covering of obligations of any participant of clearing and its client.

7. Means of guarantee fund can be used only for the purpose of, determined in item 4 of this Procedure.

8. The guarantee fund can be created of two parts, one of which is created at the expense of initial fees of participants of clearing and the second is obligatory, - in case of adoption of the relevant decision by person who carries out clearing activities, at the expense of its own means. The size and frequency of contributions to part of the guarantee fund created at the expense of own means of person who carries out clearing activities is established according to its internal documents.

9. Means of the guarantee fund created at the expense of initial fees of participants of clearing are not part of own assets of person who carries out clearing activities.

10. The size of initial fee of the potential participant of clearing is established by person who carries out clearing activities, and depends from:

financial condition of the participant of clearing;

risk assessments of failure to carry out by the participant of clearing of obligations (that is risk that accomplishment will be carried out with excess of the terms provided by terms of the contract or in amounts it is, less, than it is provided by the agreement, or it will not be carried out at all and so forth);

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info