13:09 31.01.2014

PFTS exchange wants to launch trading with eurobonds

3 min read

Kyiv, January 31 (Interfax-Ukraine) – The PFTS Stock Exchange (Kyiv) is studying the possibility of launching trading with Ukrainian eurobonds, a member of the PFTS board Serhiy Danov said at a press conference at Interfax-Ukraine on Thursday.

"We're working with key traders with securities under the project. The idea is that eurobonds are brought to Ukraine and traded using hryvnias. All stock market players will have access to them," he said.

Danov said that the project is similar to the dual listing of shares.

Stock Exchange Board Chairman Ihor Seletsky said that eurobonds would be brought by one of the largest traders with government domestic loan bonds.

He also said that in comparison to dual listing of shares the situation with eurobonds is slightly easier.

"First deals with eurobonds were registered in 2009, and there is certain practice. In addition, the currency regulation is simplified. It's likely that it will be organization and instructive work," Seletsky said.

Danov said that sovereign eurobonds worth around $17 billion with the largest term of circulation until 2023 are circulating now.

"This is a large market which will work for a long period of time. Despite the fact that rates for such securities are lower than for currency-pegged government domestic loan bonds, they have the important specifics – they are subordinated to foreign legislation. Investors could prefer buying such securities to cut the insurance risk," he said.

The exchange representatives did not disclose the date of the possible launch of trading with eurobonds.

Along with eurobonds, PFTS this year plans to realize some other projects linked to bonds, shares and other financial instruments, which will help achieving the profit target for this year – around UAH 5 million.

Danov said that mainly these are projects linked with the government domestic loan bonds market as the largest market in trading at the stock exchange.

"These are projects linked to trading with government domestic loan bonds… the formation of transparent stock exchange rates, at least for the most liquid securities. There will be projects linked to the provision of services on the signing of the repo deals with government domestic loan bonds," the top manager said.

The exchange plans to continue developing corporate bond and share segments.

Danov said that the exchange would focus on retaining and increasing the number of issuers in the listing of the PFTS in the share segment.

"There are plans to develop the futures market, but they will depend on the corporate actions on the consolidation of the PFTS with the Ukrainian Exchange. Nevertheless, if we successfully realize a project on trading with government domestic loan bonds, maybe we'll be able to make some derivative instruments for bonds," Danov added.

The PFTS Stock Exchange was founded in 1997. The exchange is one of the largest exchanges in turnover in Ukraine. Its turnover in 2013 came to UAH 112.975 billion.

At present, the Moscow Exchange that holds 50.02% in PFTS is mulling its consolidation with the Ukrainian Exchange, where the Moscow Exchange holds 43.08%.

Shareholders in the Ukrainian Exchange on January 21, 2014 approved an action plan on joining to the PFTS.

AD
AD
AD
AD