1. Essence of the Law:
The NBU Resolution introduces changes to the procedure for placing domestic government bonds (OVDP), adding a new mechanism – bond exchange auctions. This allows for the exchange of previously issued OVDPs for new issues with different parameters. The document comprehensively regulates the procedure for conducting such auctions, the order of submitting applications, settlements, and participants’ responsibilities.
2. Structure and Main Provisions:
– A new section is introduced on the mechanism for conducting OVDP exchange auctions
– The procedure for submitting exchange participants’ applications through electronic trading systems is defined
– Rules for settlements during bond exchange are established
– Participants’ responsibility for violating exchange conditions is regulated
– New document forms for servicing exchange operations are added
3. Key Provisions for Use:
– Only primary dealer-depository institutions can participate in exchange auctions
– Exchange is carried out through electronic trading systems in one stage
– The possibility of additional OVDP placement during the exchange auction is provided
– Clear terms and procedures for settlements during exchange are established
– Sanctions for violating exchange conditions are defined (fines, penalties, disqualification from participation)
– The National Bank controls the correctness of settlements and the availability of OVDPs for exchange
The Resolution creates a new tool for managing public debt through the OVDP exchange mechanism, expanding opportunities for optimizing the state’s debt portfolio.
