The National Bank of Ukraine (NBU) pointed out significant and unwilling fragmentation of liquidity in government domestic loan bonds and the central bank is interested in trading to focus on the international trading platform, Deputy NBU Governor Oleh Churiy has said.
“Unfortunately, our market for government bonds is very fragmented and, accordingly, opaque and incomprehensible for large investors. After the opening of the link with Clearstream, the situation may worsen,” he said at the ninth CFA Society Ukraine investment conference in Kyiv on Friday.
The deputy NBU governor said that these are platforms such as Bloomberg and Reuters, trading in which is currently limited by the need to support all transactions with documentary agreements.
“The Ministry of Finance also has a similar opinion [regarding the need for concentration of government bond trading], and our task is to convince the National Commission for Securities and the Stock Market to allow market players to trade on these platforms,” Churiy said.
He added that the relevant joint letter will be sent to the National Commission for Securities and the Stock Market in the near future.
As reported, the Clearstream international securities depository and the NBU on March 13 signed an agreement on correspondent relations to further open a securities account at the central bank’s depository.
