The bill (Reg. No.6376) sets the legal basis for the functioning of the derivative market in Ukraine to provide the securities market participants (esp. investors) with a wider circle of the financial services aimed at the further development of the securities market.
The People´s Deputies focused on the fact that the principal difference of the bill under scrutiny from a similar previously submitted bill is a new set of ‘alternative´ financial tools.
The Committee members emphasised that the EU legislation did not differentiate between the alternative and non-alternative tools.
The alternative financial tools suggested by the bill "have not been fully determined, their state regulation is planned to be performed separately from the regulation of other derivative financial instruments." Thus, the bill suggests a special licensing procedure for the derivative traders "that may cause the risk of extra bureaucratic obstacles on the way of business activity."
Furthermore, the People´s Deputies emphasised that the Central Scientific Expert Office of the Verkhovna Rada of Ukraine Secretariate expressed a great number of remarks and proposals regarding these alternative financial tools.
Having analyzed the provisions of the bill, the People´s Deputies also stressed that the forward contracts are defined only as the delivery contracts, which contradicts the general definition of these derivatives in general practice.
The parliamentarians also discussed the letter of the Cabinet of Ministers which gives preference to the stock market development instead of arrangement of favorable conditions for the over-the-counter market. The Cabinet of Ministers also points out the non-compliance of the provisions of the bill with the Civil Code of Ukraine and the necessity of its adjustment in part of the authorities distribution.