IMPLEMENTATION OF COLLATERAL MANAGEMENT IN THE FINANCIAL MARKET OF UKRAINE
Abstract
This article investigates the current state of collateral management in Ukraine's legal environment and suggests legislative changes to improve the derivatives market infrastructure. The study aims to assess the legal framework and National Bank of Ukraine regulations to establish collateral management mechanisms in Ukrainian legislation, making the market safer and more accessible. As Ukraine integrates into global financial markets, a transparent legal framework for collateral management is crucial for market stability. This study analyzes Ukraine's collateral management, exploring recent legislative changes and initiatives to improve market transparency and stability. Based on international standards, the article proposes legislative changes to strengthen the legal infrastructure for collateral management in the derivatives market. Implementing a reliable legal framework and mechanisms like margin requirements and central clearing is essential to enhance market transparency, reduce systemic risks, and boost investor confidence. The article highlights the importance of adopting international best practices for a sustainable collateral management system in Ukraine, citing research Available at: experts in financial markets, collateral management, and legal regulation. Analyzing scientific literature reveals problems and shortcomings in collateral management in Ukraine and globally, assessing their impact on financial market stability and transparency. This study emphasizes the potential benefits of introducing a central clearinghouse (central counterparty, central clearing, CCP) for derivatives operations in Ukraine. The central counterparty would serve as an intermediary in derivatives transactions, requiring parties to post collateral to minimize individual counterparty risk and enhance market stability. In conclusion, implementing collateral management mechanisms in Ukraine is essential for developing a mature financial market. Therefore, this study recommends legislative changes and incorporating collateral management mechanisms in Ukrainian legislation to achieve these objectives, aligning Ukraine's financial market with European standards and securing its financial sector's future.
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