The National Bank of Ukraine is modernizing the system of depository and clearing services for government securities trading. The updated rules are designed to expand the functionality of market participants, make settlements more efficient, and bring them into line with international standards.

One of the key innovations is the introduction of a new type of settlement for domestic government bond (OGB) transactions – the principle of “delivery of securities against delivery of securities”. This will allow for auctions to exchange OGBs of various issues that are already in circulation. Such mechanisms were provided for by the Resolution of the Cabinet of Ministers of Ukraine dated September 13, 2024 No. 1053. They will contribute to more flexible management of domestic government debt, providing the Ministry of Finance with new tools to optimize debt policy.

Another important update concerns cross-border settlements for government bond transactions. Thanks to the integration of the NBU depository with the international Clearstream Banking Luxembourg system, market participants receive additional settlement options. Previously, only transactions were carried out on the principle of "delivery of securities without payment", but now the "delivery of securities against payment" model has been introduced. This means that cash settlements will be carried out simultaneously with the transfer of government bonds through the NBU electronic payment system.

Such changes comply with international standards that require settlements to be made in "central bank money". The introduction of this mechanism is aimed at increasing the level of security and risk management for government securities market participants. The new format of interaction with Clearstream will help attract international investors and improve their work with the local financial infrastructure.

In addition to improving the mechanisms for trading in government bonds, the NBU also clarified the procedure for conducting transactions with foreign government bonds. The changes are aimed at increasing legal certainty regarding corporate transactions and other aspects of interaction between market participants.

Overall, the modernization of the National Bank's depository system will make trading in government securities more transparent, efficient, and secure. This is an important step in strengthening the country's financial stability and increasing investor confidence in the Ukrainian government debt market.