The Kyiv-based Ukrainian Exchange, which was created by Ukrainian brokers and dealers jointly with the Russian RTS stock exchange, on May 14, 2009 officially launched the repo market, which would promote the increase in the markets liquidity and would give additional opportunities to operate an efficient business to its participants, reads a press release of the exchange.
“Today, the Ukrainian Exchange launched a new technical opportunity – the repo information quotation system. This was a logical step in the expansion of the range of services provided by the exchange,” reads the release, citing its board chairman, Oleh Tkachenko.
He said that similar transactions are a convenient form of quick crediting with funds using securities as collateral and crediting with securities using funds as collateral.
The press release says that the development of the repo market was hindered by the absence of a full-value stock market with well-established cooperation and with an accounting and clearing system that would allow the signing of deals in real time.
As reported, OJSC Ukrainian Exchange was established on May 15, 2008 with the statutory capital of UAH 12 million, after talks between Russia’s RTS and Ukrainian investment companies that were not satisfied with the quality of the PFTS’ services. RTS received a 49% stake in the exchange and 51% was distributed among 21 Ukrainian companies.
On March 26, 2009, OJSC Ukrainian Exchange officially launched trading with shares of Ukrainian issues on an anonymous bidding market with the possibility of connect broker systems and conducting online trading.
The exchange uses the RTS Plaza system to conduct trading, which allows market players to trade using bidding-market technology and sign sale and repurchase agreements on shares and bonds on a real-time basis. The capacity of the system is 1,400 bids per second. The exchange has created gateways for connecting broker systems, and at present exchange participants use the QUIK and SmartTrade systems.
At present, the Ukrainian Exchange provides the possibility to trade the 70 most liquid shares of Ukrainian issuers.
