Clearstream to expand its existing link to Ukrainian capital market
- Expanded presence planned to enable cross-border investments and improve liquidity
- Access to new asset classes aims to support the reconstruction of Ukraine
Clearstream, the international central securities depository (ICSD) of Deutsche Börse Group, plans to expand its existing link to the Ukrainian capital market with additional asset classes. This step aims to enable cross-border investments and thereby improve liquidity in the domestic capital market. By expanding its presence in the market and intensifying ties with Ukrainian market players and authorities, Clearstream’s goal is to support the Ukrainian capital market and the reconstruction of the country’s infrastructure and economy.
In order to achieve this, Clearstream will open an account at the National Bank of Ukraine (NBU) to connect to the National Depository of Ukraine (NDU) with the support of the Ministry of Finance of Ukraine. Clearstream initiated its link to the Ukrainian capital market for Ukrainian debt securities in 2019 and is the only ICSD and global custodian providing access to the local UAH-denominated government bond market. Now it intends to expand the link to reconstruction-related instruments.
Jan Willems, Head of Global Markets at Clearstream, commented: “As a provider of trusted, transparent and efficient infrastructure, we operate our link to Ukraine with the aim of enabling further international investment opportunities. This decision emphasises our commitment to the Ukrainian market and our excellent local partners and, most importantly, our aim to actively support the reconstruction of the country.”
Andriy Pyshnyy, Governor of the National Bank of Ukraine, said: “Almost 4 years of successful NBU-Clearstream link operation have proven the investors’ interest in the Ukrainian market. In view of anticipated Ukraine’s recovery plans, NBU is happy to provide a reliable and ready-made solution aimed at further expansion of the link and opening access to post-war financial instruments to Clearstream’s customers. Development of cooperation with Clearstream will contribute to widening the range of investors and might become one of the driving forces in facilitating Ukraine’s infrastructure rebuilding.”
Yuriy Butsa, Government Commissioner for Public Debt Management in Ukraine, added: “We welcome the expansion of the Clearstream link to the new assets in Ukraine and thank our partners at Clearstream for making it happen at such a challenging time for our country. The initial opening of the link to Ukrainian market back in 2019 proved to be a game changer for our local government bond market and significantly contributed to its development. We believe that the simplified access to diverse Ukrainian investment products for international asset managers will not only help bringing foreign private capital to participate in the reconstruction of Ukraine, but also boost the development of Ukrainian capital market.”
As an international central securities depository (ICSD), headquartered in Luxembourg, Clearstream, which is part of Deutsche Börse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 59 domestic markets worldwide. With 16 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.
NBU is the Central Bank of Ukraine. Along with the core Central Bank’s functions, NBU also exercises function of the CSD for domestic government bonds. NBU CSD provides notary, central maintenance and settlement services for government securities. NBU in its role of the CSD interacts with issuers, custodians, clearing institutions, regulated market operators and foreign (I)CSDs. In certain circumstances, NBU also performs functions of the custodian and cooperates with the National Depository of Ukraine.