Home Newsroom Important The National Depository of Ukraine goes live with a new IT system
The National Depository of Ukraine goes live with a new IT system Print
Monday, 30 September 2019 08:28

 

On September 30, the Central Depository launched DEPEND Q, the new IT platform. The platform will contribute to qualitative changes of the depository record-keeping system on the Ukrainian securities market. The data on 3 million accounts worth a total nominal value of UAH 1.7 trillion was transferred to the new system. Thanks to the new platform, depository institutions can independently choose an alternative software for servicing their clients.

 

 

The National Depository of Ukraine goes live with a new IT system

 

With the introduction of the new technology platform, the possibility for depository institutions to use an alternative software has appeared for the first time in 20 years of activity of the Central Depository of Ukraine. The model of work which the depository institution selects can also be modified within the IT platform through the flexible architecture of the system.

“The need to have a modern IT depository record-keeping platform for Ukraine's integration into the European securities market is undisputable. And now we implemented such system”, says Mindaugas Bakas, CEO of the National Depository of Ukraine. “This is a new important stage in the Ukrainian stock market development. The new software works according to the international standards of post-trading, which we have systematically put into practice over the last three years. Currently, an alternative software has been chosen by 61 depository institutions, while 122 uses a system module provided by NDU. This allows to provide sustainable and efficient market operation.”

For all market participants, the new technological platform provides a much higher level of security. Communication between the Central Depository and depository institutions shall take place in accordance with the ISO standard, generally accepted and understood in the developed markets around the world. New features and facilities available to the depository system will improve the quality of services to be rendered to both national players and non-residents. Thanks to the new platform depository institutions can independently choose an alternative software for servicing their clients.

The stages of implementation of the new depository record-keeping software were as follows:

  1. Bidding among leading software developers from the US, UK, Western Europe — 2017
  2. Selection of Percival Software Limited (UK, London) software vendor and signing the contract for preparatory works — end of 2017
  3. Signing the contract with Percival Software Limited for the development of the new software for the stock market depository system — May 2018
  4. Delivery of the system with core functionality — November 2018
  5. Delivery of the final functional software — April 2019
  6. For the first time in the history of the stock market, during the introduction of the new IT platform for the depository system, open discussions were held with participation of key players of the market, their feedback and comments were taken into account. Introduction of the new software's functionality to representatives of depository institutions began in February 2019
  7. Conducting training seminars/sessions for representatives of depository institutions — April-May 2019
  8. Software testing by the Ukrainian stock market participants — June-September 2019

Introduction of the new IT platform is another step in employment of advanced technologies in the depository system of Ukraine. NDU will continue its consistent work aimed at ensuring the high-quality market infrastructure and integration into the international capital markets.

It should be noted that despite constant reminders to market participants about the importance of the migration period and its timely completion through various information channels, not all have managed to accomplish it. However, we are doing our best to help them go through the migration process as soon as possible.

“For many years, the attitude to the development of the financial infrastructure in our country has been formed as residual, but in recent years, this has changed. Infrastructure is the foundation of the market. The market cannot be built on an unstable foundation. The CSD is an important element of the financial infrastructure. Over the last three years, the National Depository team has done a great job to put the best global practices and standards as well as modern technologies into practice. Today, another step towards technological integration of Ukraine into the world record-keeping system is made – NDU has completely switched to the new modern IT platform DEPEND Q. This new platform provides new functionality for the whole market, new services for both companies and securities owners, provides a high level of protection of their rights’’, said Timur Khromaev, Chairman of the National Securities and Stock Market Commission.

 

Contact person for press inquiries:

Olena Kuryachaya, press officer of NDU,

050 761 30 40, kuryachaya.lena@gmail.com

 

Notes to editors

The National Depository of Ukraine was established in accordance with the Law of Ukraine “On the National Depository System and Peculiarities of Electronic Circulation of Securities in Ukraine” to ensure the functioning of a single depository record-keeping system. The Securities and Stock Market State Commission and the National Bank of Ukraine signed an Agreement on Establishing the National Depository of Ukraine. NDU registration with the State took place on May 17, 1999. NDU PJSC ownership structure (as of Q2 2017): the state owns 25% of shares (managed by the Securities and Stock Market State Commission), 25% belongs to the National Bank of Ukraine, 24.99% belongs to the OschadBank, almost 11% belongs to the Corporate Non-State Pension Fund of the National Bank of Ukraine, 9.99% belongs to the Ukreximbank, less than 5% of shares belongs to other owners.

On October 12, 2013, the Law of Ukraine “On the Depository System of Ukraine” (hereinafter — the Law) entered into force, according to which NDU PJSC acquires the status of the Central Depository from the date of registration by the SSMSC following the established procedure in the Rules of the Central Depository (decision of the Securities and Stock Market State Commission of 01.10.2013 No.2092).

The Central Depository keeps depositary records of all eligible securities, except for those, records of which are kept by the National Bank of Ukraine within the terms of reference defined by this Law.