Regulators pull licence from Russian-owned Ukrainian Exchange

By bne IntelliNews November 18, 2015

Ukraine's national commission on securities and capital market has cancelled the licence of the country's leading stock exchange, only hours after a takeover bid by two local brokerages was announced. The move follows the cancellation of the licence of the second major securities trading platform PFTS in October.

The decision marks an end to Ukraine's leading platforms for securities trading for over a decade, where many fortunes were made during the credit bubble leading up to the 2008 global financial crisis. In the wake of the crisis, both exchanges were acquired by Russia's leading stock exchange Moscow Exchange.

Ukrainian regulators pulled Ukrainian Exchange's licence on November 17, due to ownership of a 43% stake in the exchange by Moscow Exchange. Ukrainian laws prohibit licences being held by Russian companies, citing Russian aggression against Ukraine in Crimea and in eastern Ukraine.

The decision came after an announcement earlier in the day by local Ukrainian brokerages Univer and Dragon Capital that they had reached an agreement to acquire the stake from Moscow Exchange.

Dragon Capital and Univer announced the bid in the morning of November 17, but Dragon pulled out the same afternoon, citing distorted coverage of the deal in the press.

In the evening, the national securities commission announced it would cancel Ukrainian Exchange's licence. However, Univer announced it would not withdraw its bid to acquire 23% of Ukrainian Exchange from Moscow Exchange, in the hope that the regulators would change their decision.

50% plus one share of Ukrainian Exchange belongs to Ukraine's PFTS exchange, the main platform for trading state bonds. However, regulators pulled PFTS licence on October 7, due to majority ownership by Moscow Exchange. PFTS is disputing the decision in court and continues to operate. Prior to the cancellation of the licence, brokerages ICU and Favorit had put in a bid to acquire the exchange.

In a statement on November 17, the national securities commission said it had waited several weeks to receive all the paperwork for the Ukrainian Exchange deal, before taking the decision to pull the licence. 

Ukrainian government officials have spoken previously of plans to set up a national stock exchange holding company.

Related Articles

RBI doubles net profit y/y in Q1 as Russian business recovers

Raiffeisen Bank International (RBI), the second largest bank operating across Central and Eastern Europe by assets, reported that net profit almost doubled year-on-year to €220mn in the first ... more

Russia’s biggest bank fraud lands ex-CEO in jail for nine years

The former CEO of Russia’s Vneshprombank Larisa Markus has been sentenced to nine years in jail by a Moscow court for extracting about RUB113.5bn (EUR1.83bn), in what has become the ... more

Moody’s upgrades outlook on Moscow-based International Investment Bank (IIB) to positive

Moody’s Investors Service upgraded the outlook on the Baa1 issuer and debt rating of the International Investment Bank (IIB) from stable to positive, the bank said in a press-release on May 10. ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss