Secretary General of the International Organization of Securities Commissions (IOSCO) David Wright has said that the top priority for building a capital market in Ukraine is the development of strong power institutions, in particular, the National Commission for Securities and the Stock Market of Ukraine.

Ukraine should establish strong power institutions, a strong legislative system, and strong regulators who can regulate in the interests of society, he said. If the reforms are conducted in the right way, the regulators will become strong, laws will be observed, corporate management will be built up and technologies could be quickly integrated in the country, Wright said.

He gave Luxembourg and Ireland as an example. These countries have had experience of due diligence in finances for several years, attracted many global investment funds, and introduced other elements of the financial markets only because strong institutions trusted by people and companies were built.

He said that the creation of strong power institutions includes some financial expenses, in particular, the involvement of best specialists. He said that these expenses are a good investment of the state from the point of view of cutting losses in case of any shocks.

The loss after the global financial crisis started in 2007 is assessed at around 15% of global GDP. As for Ukraine, the country is losing many economic opportunities due to the absence of normal regulation, he said.

Wright positively assessed the expansion of powers of the National Commission for Securities and the Stock Market required for becoming a full member of the IOSCO. He found it difficult to say how quickly the Ukrainian regulator will join the Multilateral Memorandum of Understanding (MMoU IOSCO).

He said that the IOSCO should study the final law and its details and make sure that the requirements of the law are enough for the Ukrainian regulator to become an IOSCO member.

"I'm optimistic that we'll do everything quickly," Wright said.