PROBLEMS OF LEGAL SUPPORT FOR THE CIRCULATION OF DERIVATIVE FINANCIAL INSTRUMENTS IN UKRAINE

Тheoretical and practical issues of development of the law system of Ukraine

Abstract

Derivatives are effective instruments of hedging the risks of business entities. The experience of foreign countries testifies to the need to ensure their circulation through legislative regulation of institutional issues and protection of the interests of market participants, on which they (PFIs) are rotated. Taking into account the recent integration processes in Ukraine and the necessity to implement European legislation in connection with the signing of the Association Agreement, the country is actively working in this direction. In particular, the bills considered by the Verkhovna Rada: the draft Law on Capital Markets and Regulated Markets No. 7055 dated 01.09.2017, the Draft Law on Protection of Investors Against Abuse of Capital Markets No. 6303 dated April 6, 2017 and the Draft Law of Ukraine "On Amendments to Some legislative acts of Ukraine on simplification of attraction of investments and introduction of new financial instruments" (the registration number 9035 dated September 3, 2018) partly take into account the latest legislative changes of the European Union, namely: recommendations of the International Association of Swaps and Derivatives Association (ISDA), European Parliament and Council Directive 2014/65 / EC of 15.05.2014 on the Financial Instrument Markets (MiFID II) and Regulation (EC) No. 600/2014 of the European Parliament and of the Council of 15 May 2014 on MiFIRs , as well as Regulation (EC) No. 648/2012 of the European Parliament and of the Council of 4 July 2014 on OTC derivatives, central counterparties and trade repositories (EMIRs). Meanwhile, issues of the functioning of multilateral trading systems (MTF) and organized trading systems (OTFs) remain unimplemented in domestic legislation; clearing and settlement systems, as well as increasing the operational efficiency of the OTF market.

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