LLC Ukrainian Energy Exchange becomes first licensed commodity exchange in Ukraine

On 1 July 2021, the law on commodity exchanges^[1] introducing rules to regulate activities of the exchange market and establishing the basic requirements for such activities entered into force in Ukraine, replacing an outdated law from 1991.  Based on this law, the National Securities and Stock Market Commission, the regulator in charge of exchange trading, issued the first license for the organization of commodity products trading and clearing activities to LLC Ukrainian Energy Exchange.

Director Janez Kopač said: “This is an important milestone in the development of exchange traded markets, which will allow Ukraine to setup stable, transparent and reliable price indexes, establish clearing mechanisms and follow best European practices. The Secretariat will continue to work together with LLC Ukrainian Energy Exchange to create liberalized energy markets in Ukraine.”

The Secretariat supported the establishment of a natural gas exchange under a Memorandum of Understanding concluded with the Ministry of Energy of Ukraine, the European Bank for Reconstruction and Development and the LLC Ukrainian Energy Exchange in July 2020.

^[1] Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine to Facilitate Investment and Introduction of New Financial Instruments" June 19, 2020 №738-IX.