On September 24, 2024, the Sixth Administrative Court of Appeals upheld the appeal of JSC Ukrainian Exchange and suspended the resolution of the National Commission for Securities and Stock Market (Securities Commission) on the cancellation of the license issued due to the presence of sanctioned persons in the ownership structure of the exchange.
This is stated in the message of the commission, Ukrainian News Agency reports.
The commission is concerned that against the background of the war and the introduction of the state sanctions policy, the court's decision actually opposed the enforcement of sanctions.
Previously, the National Security and Defense Council (NSDC) included the owners of a significant stake in Ukrainian Exchange in the sanctions list.
On the basis of this decision, the Commission adopted a resolution on the cancellation of the license of JSC Ukrainian Exchange to carry out activities on capital markets and organized commodity markets due to violations of relevant legislation.
This resolution entered into force in July.
Subsequently, JSC Ukrainian Exchange appealed to the Kyiv District Administrative Court with a claim to declare the decision of the Securities Commission illegal and annul it.
The court refused to enforce the claim, and later the exchange filed a statement to leave its claim without consideration.
However, despite the absence of proceedings on the former claim and the absence of a new claim, the appellate court decided to allow the exchange's appeal, reversed the decision of the first instance and suspended the cancellation of the license.
The Commission will continue to adhere to the sanctions policy of the state and will carefully monitor the activities of professional capital market participants within the limits of its powers and current legislation.
Due to the presence in the ownership structure of JSC Ukrainian Exchange of a sub-sanctioned entity, which is the ultimate beneficial owner, investment firms and counterparties are obliged to establish a high risk of business relations in accordance with the requirements of the legislation on financial monitoring.
As Ukrainian News Agency earlier reported, Ukrainian Exchange was founded on May 15, 2008 by leading participants of the Ukrainian securities market together with the russian Stock Exchange RTS, which later merged with Moscow Exchange.
Ukrainian Exchange was the first to launch the application market, internet trading, the repo market, settlements through the central counterparty and the futures market.
At the beginning of July 2024, Ukrainian Exchange stopped working due to cancellation of licenses.
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