Primary Dealers

According to the Regulation of the Cabinet of Ministers of Ukraine from April 14, 2009 № 363 “About the Input of Institute of Primary Dealers at the Market of State Securities” and the Procedure for Selection and Functioning of Primary Dealers approved by the Order of the Ministry of Finance from June 10, 2009 № 757 and registered by the Minisіtry of Justice of Ukraine on July 3, 2009 by № 556/16612,

Primary dealers are selected by the Ministry of Finance banks that assume an obligation to cooperate with the MinFin with respect to the development of domestic government securities market in return for absolute title of participating in placing government bonds and superior right to participate in other operations conducted by the MinFin with such bonds.

Primary dealers may be banks, which respond to the following requirements:
1) license to conduct professional activity at the stock market (securities trading activities) is obtained;
2) share capital equivalent of not less than 10 million euros is prepaid;
3) practical experience of work at the bonds market is gained (overall volume of trade of securities shall not be less than UAH 1 billion).

The Ministry of Finance enters into contracts with primary dealers that specify the following obligations of primary
dealers:
1) to participate in placement of bonds by submitting of competitive and non-competitive applications for the purchase of domestic sovereign bonds;
2) to provide the purchase of at least 3 percent of the total volume of bonds issue during each half of a year;
3) to serve as a market-maker for domestic government bonds and to maintain liquidity of domestic government bonds at the market through their purchase and sale of the bonds in the amount of at least 3% of the total turnover during each half of a year;
4) to provide advice to the Ministry of Finance regarding the needs for placement of bonds and their volumes, maturity, calendars of placement based on their own market valuation.

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