Ukrainian Exchange operating as usual, despite regulator's decision to annul license

MOSCOW. June 13 (Interfax) - The Ukrainian Exchange said it is operating normally, despite the National Securities and Stock Market Commission's (NSSMC) decision to annul its license.

"The resolution to impose sanctions in the form of annulling the license goes into effect 30 calendar days after it was made. The NSSMC decision to annul the license is groundless and illegal," Ukrainian media reported the exchange as saying in a press release.

The exchange said it is already taking steps to challenge the decision in court. The exchange is operating normally, the situation is under control and is not having any impact on the quality of services and the continuity of its business, it said.

The regulator wrote up the Ukrainian Exchange for violations on April 26 and then resolved to annul its license.

Under current practice, the NSSMC decision can be suspended by a court as an injunctive measure if it finds the arguments of the professional market participant disputing it to be sufficient. In addition, it was previously expected that the annulment of the license of the Ukrainian Exchange and another stock exchange, the PFTS, might be considered by the Financial Stability Council.

The NSSMC warned market participants at the end of March that two of Ukraine's three stock exchanges, the Ukrainian Exchange and PFTS, might lose their licenses due to violations of license conditions and proposed to consider possible solutions, including the creation of a new exchange, as well as the voluntary surrender of the exchange licenses.