Government Bonds Market
In a bid to improve the technological capabilities and to expand its list of traded instruments, the Ukrainian Exchange offers access to the market of internal government loan bonds (government bonds).
Benefits of the government bonds market:
- Firm quotes. Fair price formation;
- System for management of bilateral limits;
- Speedier settlement. This is possible because the depository of the NBU (National Bank of Ukraine) settles trades based on instructions given by the exchange, and there is no need to employ custodians;
- Electronic documents;
- Opportunity to enter repo quotes.
Order prices are quoted as a percentage of the bonds’ face value. All orders submitted to the order book are binding offers. When a trade is executed its value includes the accrued interest calculated for the specified final settlement date. Minimum lot – UAH10,000.
On the government bonds market trades are made on the basis of:
- Non-anonymous indirect orders with settlement dates from T+0 to T+10 (execution by a click on the quote);
- Direct orders with settlement dates from of T+0 to T+30.
On all markets of the Ukrainian Exchange including the government bonds market the same legal model for execution of electronic sale and purchase agreements with the use of the handwritten signature analogue is implemented. The primary accounting document is a trades registry statement.
The main advantages of the settlement technology implemented on the government bonds market are:
- Bonds are to be deposited by the seller before the settlement day;
- The seller may change the settlement day for an earlier date agreed by the parties involved in the trade.
- Payment instructions can be sent to an account which has not been specified in the depository services agreement;
- Settlement on DVP terms.
In order to be admitted to trading on the government bonds market exchange members must register at least one customer code or proprietary trading code linked to an account in the depository NBU.
Trading schedule
| Time |
Process |
| 10.00 am* |
Start of the pre-trading session
Market participants may post quotes, execute negotiated trades and withdraw assets |
| 10.30 am |
Opening of the trading session
Market participants can execute trades by clicking on the quote |
| 5.00 pm |
End of the trading session
Market participants can no longer execute trades or withdraw assets. |
| 6.00 pm |
Automatic removal of quotes flagged as Day
|
* quotes can be posted from 8.00 am to 11.00 pm.
