The Kyiv Post welcomes feedback about our new website and we stand ready to fix any problems users might encounter in our test phase. Contact us at: or +38-044-591-3344. Thank you!

Share Tweet Pocket Add to Bookmarks
You're reading: Experts: Depository bill could do lasting damage to stock market
on social media

The very fabric of the nation’s financial system – its independence and trust in the eyes of investors – is being challenged by legislative changes that would give Ukraine’s government a majority stake, and likely inside view, at an agency responsible for clearing and documenting all securities transactions.
Adopted by President Viktor Yanukovych’s ruling majority in parliament this summer, the relevant legislation was passed on to the president on Sept. 7, who now has 15 days to sign it. If he does, analysts say the “depository system law” would do lasting damage to Ukraine’s already embattled investment climate, and struggling securities market.

While traders, brokers and investors rarely give a moment’s thought to the infrastructure supporting the millions of daily transactions, a depository is, in fact, crucial to the functioning of a financial system. It is a nervous system of a market. Flowing through it is a treasure propriety information that can be used by the wrong hands for abuse.

“The depository assures that securities move between buyers and sellers as intended, once the transaction payments are processed and ownership of securities is never in doubt,” explained Marius Vismantas, an expert on financial legislation at the World Bank, which for years assisted the Ukrainian government in setting up the country’s financial infrastructure.

Exclusive article

Select your subscription plan now and gain access to all exclusive content on

See All Plans
per month

Gain access to all exclusive Kyiv Post stories and opinions online.

per month

Weekly delivery of the newspaper, unlimited access to all exclusive content on


Add comment

Sorry, you must be logged in to post a comment.
More in this section

Add a picture
Choose file
Add a quote

Are you sure you want to delete your comment?


Are you sure you want to delete all user's comments?


Are you sure you want to unapprove user's comment?


Are you sure you want to move to spam user's comment?


Are you sure you want to move to trash user's comment?

Spelling error report

The following text will be sent to our editors: