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TRADING IN FINANCIAL INSTRUMENTS / SECURITIES TRADING
Description
BMG has 10 years of experience in providing services for the creation, registration, licensing services for trading in financial instruments / licensing of securities trading in Ukraine. BMG has successfully implemented more than 1,000 projects, opened more than 100 financial institutions and received more than 300 licenses for financial activities, including license to trade in financial instruments / license to trade in securities.
BMG securities trader registration services:
- Term of registration of a trader in financial instruments / registration of a trader of securities: 2-5 months
- Type of service: registration of a trader in financial instruments / registration of a trader in securities “turnkey”
- Guarantee: we guarantee the registration of a trader in financial instruments / registration of a trader in securities
- Method of payment: according to the contract
- Cost of services: on request
- Experience since 2008
Already working with us:
Financial instruments
Financial instruments are:
- Securities, including securities of collective investment institutions.
- Money market tools.
- Options, futures, swaps, future interest rate contracts and any other derivative contracts the underlying asset of which is securities, currency or other derivative contracts based on interest rates, yields, indices or exchange rates, and which may be performed in the form of physical delivery (derivative contracts) or settlements (settlement derivative contracts).
- Options, futures, swaps, forwards and other derivative contracts, the underlying asset of which are products that have or may be executed in the form of settlements at the option of one of the parties (mixed derivative contracts), except in cases of insolvency or other termination.
- Options, futures, swaps and other derivative contracts, the underlying assets of which are products concluded on trading platforms and which can be executed in the form of physical delivery (derivative contracts), except for contracts (agreements).
- Options, futures, swaps, forwards and other derivative contracts, the underlying assets of which are products that can be executed in physical form (derivative contracts), are concluded for non-commercial purposes and have the characteristics of another derivative financial instrument.
- Derivative financial instruments that involve the transfer of credit risk, including credit notes and credit default swaps.
- Financial contracts for the difference in prices.
- Options, futures, swaps, future interest rate contracts and any other derivative contracts relating to climatic parameters, freight rates, inflation rates or other economic statistics to be performed in the form of settlements (settlement derivative contracts) or may be made in the form of settlements at the option of one of the parties (mixed derivative contracts), except in cases of insolvency or other cases of termination of obligations.
- Derivative contracts relating to assets, rights, liabilities, indices, exchange rates, not specified in this part and which have the characteristics of another derivative financial instrument, including those concluded on a regulated market, OTM or BTM.
Securities trading
A security is a document of the prescribed form with the relevant details, certifying monetary or other property rights, determines the relationship between the issuer of the security (the person who issued the security) and the person entitled to the security, and provides for the fulfillment of obligations under such security paper, as well as the possibility of transferring rights to the security and rights to the security to others.
Securities trading / trading in financial instruments is a professional activity in the stock market.
Securities trading / trading in financial instruments is carried out by investment firms established in the form of a joint stock company, a limited liability company or an additional liability company for which financial instruments are an exclusive activity.
BMG provides all types of licenses for securities trading / trading in financial instruments.
Activities for trading in financial instruments, including securities trading includes the following activities:
Types of trading in financial instruments / securities trading
Sub-brokerage activity is the activity of an investment firm in securities trading for accepting orders from clients for concluding derivative contracts and concluding transactions on financial instruments at the expense of clients and providing relevant orders for execution to another investment firm engaged in brokerage activities.
Brokerage is the activity of an investment firm trading in securities, concluding derivative contracts and concluding transactions in financial instruments on behalf of and on behalf of clients or on behalf of clients, but on its own behalf.
Dealership is the activity of an investment firm trading in securities, concluding derivative contracts and concluding transactions in financial instruments on its own behalf and at its own expense.
Financial instrument portfolio management activities are the activities of an investment firm in the trading of securities for the management of portfolios of financial instruments, which consist of one or more financial instruments, in the interests of clients.
- An investment firm has the right to enter into agreements on the management of the portfolio of financial instruments with individuals and legal entities. A financial instrument portfolio management agreement may not be entered into by an investment firm with an asset management company.
- The minimum amount of the agreement on portfolio management of financial instruments with one client – an individual is set by the National Commission on Securities and Stock Market.
Investment consulting is the activity of an investment firm in securities trading to provide individual recommendations to the client at his request or on the initiative of the investment firm to enter into derivative contracts, contracts to replace a derivative contract, transactions in financial instruments and currency values.
Underwriting is an activity carried out by an investment firm trading in securities on its own behalf and / or on behalf of the issuer or offeror for remuneration in accordance with the terms of the underwriting agreement.
Under the underwriting agreement, the investment firm undertakes to arrange the placement of a predetermined amount of securities of the issuer or offeror on its own terms and within the terms specified in the securities prospectus, acting on behalf of the issuer or offeror, and to purchase securities on its own behalf and at its own expense. as of the end of the placement period provided for in the securities prospectus, they were not alienated to the first owners.
Underwriting involves the implementation of an investment firm:
- Preparation of the securities prospectus, including determination and coordination with the issuer or offeror of the main characteristics of the proposed securities to be alienated (including type, type, amount, term and conditions of alienation).
- Determining the price of securities proposed to be alienated, including by probing the capital market.
- Securities prospectus registration.
- Alienation of securities to the first owners within the period provided by the securities prospectus.
- Acquisition by an investment firm of securities that were not purchased by the first owners.
Guaranteed placement activities are activities carried out by an investment firm on its own behalf in accordance with the terms of the guaranteed placement agreement.
- Under the guarantee placement agreement, the investment firm undertakes to purchase all securities of the issuer or offeror proposed to be alienated on its own behalf and at its own expense on the terms and within the terms specified in the securities prospectus. An agreement on the organization of placement with a guarantee may provide for the investment firm to perform one or all actions.
Non-guaranteed placement activities are securities trading activities carried out by an investment firm on behalf of the issuer or offeror in accordance with the terms of the placement arrangement.
- Under the agreement on the organization of placement, the investment firm undertakes to organize the placement of a predetermined amount of securities of the issuer or offeror on the terms and within the time limits specified in the securities prospectus, acting on behalf of the issuer or the offeror.
Additional services of an investment firm
Subject to the requirements of the law, an investment firm may provide clients with such additional services, except for securities trading, if they are specified in the decision of the National Securities and Stock Market Commission entered in the register of professional participants in capital markets and organized commodity markets:
- Storage of financial instruments and funds of clients (including accounting for rights to securities and rights to them on accounts in securities of the client in the depository activities of the depository institution), as well as disposal of financial instruments and funds of the client, which are subject to security securities in the interests of the client).
- Providing clients with loans and borrowings for concluding derivative contracts with the participation or mediation of such an investment firm and concluding transactions in financial instruments.
- Providing clients with advice on financing their business activities, development strategies, other related issues, providing services and advice on reorganizing or purchasing corporate rights of legal entities.
- Services that involve foreign exchange transactions, in cases involving the provision of services by an investment firm to its client. The provision of such services is subject to the requirements of the Law of Ukraine “On Currency and Currency Transactions”.
- Conduct investment research and financial analysis or provide any other general advice related to the conduct of transactions in financial instruments.
- Underwriting services.
- Providing guarantees for the fulfillment of obligations to third parties under contracts concluded on behalf of the client of such an investment firm.
Registration of an investment firm / securities trader
In order to create, register an investment firm / register a securities trader, it is necessary to go through the main stages:
- Registration of a legal entity
- Bringing to the standards of the investment firm
- Obtaining approval for membership in the SRO – a self-regulatory organization in the securities market
- Obtaining a license to trade in financial instruments / securities trading
- SRO membership
- Entry in the register of financial companies
- Registration in the financial monitoring service
License for trading in financial instruments / trading in securities
The professional activity of trading in financial instruments / trading in securities on the stock market is carried out exclusively on the basis of a license to trade in financial instruments / a license to trade in securities issued by the National Securities and Stock Market Commission.
Obtaining a license to trade in financial instruments / a license to trade in securities is a complex procedure and requires a number of licensing conditions.
Conditions for obtaining a license to trade in financial instruments / license to trade in securities:
- Share capital
- Office
- Head
- Chief Accountant
- Responsible for financial monitoring
- Certification of employees
- Financial condition of the participant
- Sources of origin of the participant’s funds
- Business reputation
- Submission to the SRO
- SRO membership
SRO self-regulatory organization
A financial instruments trader / securities trader (investment firm) may engage in professional activities in the stock market - financial instruments / securities trading activities in accordance with a obtained securities trading license issued by the National Securities and Stock Market Commission.
One of the conditions for obtaining a license to trade in securities is - membership in at least one association of professional participants in the securities market and / or self-regulatory organization that unites professional participants in the securities market by relevant professional activity and inclusion of a securities trader (except bank) to the state register of financial institutions that provide financial services in the securities market.
Share capital
Financial Instruments Trader / Securities Trader (Investment Firm) may obtain a license to trade in financial instruments / securities trading license if the authorized capital is paid:
- The amount of initial capital of an investment company engaged in professional activities in securities trading (trading in financial instruments), namely sub-brokerage, brokerage, financial instrument portfolio management activities, investment advice, and / or placement activities without a guarantee, provided that such an investment firm shall not have the right to receive and dispose of clients’ funds and financial instruments, must meet the requirements of its size and calculation procedure established by the National Securities and Stock Market Commission, and may not be less than 1.5 million.
- The amount of initial capital of an investment company engaged in professional activities in securities trading (trading in financial instruments), namely sub-brokerage, brokerage and / or financial instrument portfolio management activities, provided that such investment firm has the right to receive and dispose of funds and financial instruments of clients, must meet the requirements of its size and the procedure for its calculation, established by the National Commission on Securities and Stock Market, and may not be less than UAH 4 million.
- The initial capital of the investment company, in all other cases, namely the implementation of professional activities in underwriting, dealership, must meet the requirements of its calculation, and the amount of such initial capital may not be less than UAH 22 million.
Office
A securities trader (other than a bank) must own or use non-residential premises in order to conduct professional activities in the stock market.
In order to carry out the activities of a separate subdivision, a securities trader must own or use a non-residential premises located at the location of such a subdivision, which must meet the requirements established for that premises.
The total area of the securities trader's premises (except for the bank) and its separate subdivision must be at least 20 sq.m.
If a securities trader organizes activities within specialized structural units that are an integral part of its internal organizational structure and have a different location, the area of each such unit must be at least 10 square meters.
The premises of a securities trader must be completely separated from the premises of other legal entities at the location specified in the Unified State Register of Legal Entities, Individuals - Entrepreneurs and Public Associations.
At the location of the securities trader (its separate subdivision) (except for the bank) there must be a sign indicating the name and location (floor and room numbers, if any).
Certified employees
The condition for obtaining a license to trade in securities, the trader must have certified professionals at the time of the licensing procedure for securities trading.
Certified specialists of a securities trader (including senior officials), its separate subdivisions and / or specialized structural subdivisions in carrying out securities trading activities must meet the qualification requirements established when obtaining a license to trade in securities.
Certified specialist - an employee of a legal entity that carries out a particular type of professional activity and meets the qualification requirements established by the Commission:
- He has a qualification certificate of the established sample and has received the corresponding certificate.
Experience in the stock market - the total experience of a certified specialist in any professional activity of a professional stock market participant, and / or experience as a senior official in the State Commission on Securities and Stock Market and / or the Commission, and / or experience of a certified specialist in a self-regulatory organization or association of professional participants in the securities market.
The securities trader (except for the bank), when obtaining a license to trade in financial instruments / license to trade in securities, qualification requirements are as follows:
- At least three certified specialists (including senior officials) and two certified professionals (including senior officials) – for a separate unit that conducts any of these activities.
For a securities trader (except for a bank), when obtaining a license to trade in securities, several types of professional activity in securities trading are carried out at the same time, the qualification requirements are as follows:
- At least four certified specialists (including senior officials) and three certified professionals (including senior officials) – for a separate unit that conducts these activities.
Certified securities traders who, in accordance with their job responsibilities, directly carry out professional activities in the stock market may not simultaneously work in other departments engaged in activities other than securities trading and in other professional stock market participants.
Head
The head of a securities trader (his separate and / or specialized structural subdivisions) may not simultaneously work in other professional participants of the stock market while carrying out securities trading activities.
The head of a securities trader (except for a bank) must have at least three years of experience in the stock market, including at least one year of experience as a senior official in the stock market.
Chief Accountant
The chief accountant of a securities trader must meet the following professional requirements:
- Have a complete higher education (specialist, master)
- Have a document on professional development by training according to the standard program of professional training of accountants of professional stock market participants, approved by the National Commission on Securities and Stock Market, and certification in the manner prescribed by the Regulations on training and certification of stock market specialists. In the absence of such a document within three months after hiring as chief accountant to undergo training. To pass this advanced training at least once in three years
- Not to have an outstanding or unresolved criminal record for crimes against property, in the sphere of economic and official activity, as well as not to be deprived of the right to hold certain positions and engage in certain activities
- Have at least two years of experience as an accountant or chief accountant in a financial institution or at least five years in any other institution
Financial condition of the owner
A financial instruments trader / securities trader (Investment Firm) and its substantial holders must meet such requirements.
The applicant has an authorized capital and the amount of own funds, not less than the minimum amount of authorized capital established by law for a particular type of professional activity in the stock market.
The financial (property) condition of the natural person of the direct owner with significant participation in the securities trader must meet the requirements for the availability of own funds in excess of the amount contributed to the authorized capital of the applicant and / or the acquisition of significant participation in the secondary market. greater than the amount proportional to its share acquired from the applicant as a percentage of its nominal value in UAH in the applicant's equity or in the authorized capital of such applicant, if the equity is less than the authorized capital.
The financial (property) condition of an individual who is the ultimate controller of the applicant must meet the requirements for the availability of own funds, the amount of which is proportional to its share in the applicant as a percentage of its nominal value in UAH in the applicant's equity or authorized capital of such applicant. capital is less than the authorized capital.
The financial (property) condition of the natural person of the owner with significant participation in the applicant should provide an opportunity for the person in the future to provide, if necessary, additional financial support to the applicant.
The funds of the natural person of the owner with significant participation in the applicant, to confirm the financial (property) status may not include funds (property) received by him under loan agreements, loans and other transactions under which such funds are repayable.
Business reputation
An important element of a securities trading license is the ideal business reputation of participants, manager, chief accountant, specialists, members of the executive body, as well as persons who exercise indirect control over the activities of a securities trader.
The following requirements for business reputation for the last two years are put forward to these persons:
- The person was not deprived of the right to hold certain positions or engage in activities in the financial services markets
- The person has no criminal record for crimes against property, in the sphere of economic activity and / or in the sphere of official activity, not removed or not repaid in the manner prescribed by law
- Previous activity (inaction) of the person who exercised control in the financial institution and / or in the absence of persons in the ownership structure who exercised control, was the ultimate beneficial owner (controller), exercised the powers of a sole executive body or appointed chairman or member of a collegial executive body ) financial institution, did not lead to decisions on bankruptcy (compulsory liquidation) of the financial institution, the appointment of an interim head (interim administration) as of any date within one year preceding these events
- Previous activity (inaction) of the person who exercised control in the financial institution and / or in the absence of persons in the ownership structure who exercised control, was the ultimate beneficial owner (controller), exercised the powers of a sole executive body or appointed chairman or member of a collegial executive body ) financial institution, did not lead to the application of a sanction in the form of revocation (revocation) of the relevant license to trade in securities (except for revocation of the license due to failure of the securities trader to perform certain activities in the financial services market), which was not revoked order, as of any date during the year preceding the said events
- The actions of the person did not lead to the cancellation of documents entitling him to operate in the financial services market (cancellation of certificates, etc.)
- Economic and other restrictive measures (sanctions) were not applied to the person by foreign bodies (except for states that carry out armed aggression against Ukraine and (or) whose actions create conditions for military conflict, use of military force against Ukraine), intergovernmental associations , international organizations or Ukraine
- The person was not brought to administrative responsibility for violating the legislation on the securities market more than twice a year for the same offense
- The person appeared to draw up a report on an administrative offense in the securities market (if it is drawn up and there are no objective grounds for non-appearance)
- The person was not released at the request of a state body (including a foreign one)
the person has no unpaid penalties imposed for violations of financial services legislation, including in the securities market - The person agreed to a substantial participation in a professional stock market participant in the event of its acquisition and / or increase in the manner prescribed by law (if on the date of acquisition and / or increase of substantial participation such a requirement was established by law)
- The person is not on the list of persons connected with terrorist activities or against whom international sanctions have been applied, in accordance with the procedure established by law.
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REGULATORY ACTS REGULATING ACTIVITIES
Regulatory framework
01. Law of Ukraine on Capital Markets and Organized Commodity Markets
02. Licensing conditions for professional activities in the capital market
03. Rules (conditions) for carrying out securities trading activities: brokerage, dealership, underwriting, securities management
SECURITIES TRADER REGISTRATION PROCEDURE
Stages of creating a securities trader
01. Company registration
Preparation of statutory documents, coordination of the position of director, registration of a legal entity
02. Reduction to standards
Formation of authorized capital, staff training, audit, development of rules and regulations
03. Participation in SRO
Preparation of a package of documents for participation in the SRO, receiving recommendations from other participants, participation in the SRO
04. Obtaining a license
Development of rules, audit, preparation of documents for the license, issuance of a license to trade in securities
WHAT CONDITIONS MUST BE FULFILLED
Requirements for the establishment of a securities trader
ORGANIZATIONAL AND LEGAL REQUIREMENTS
THE AMOUNT OF THE AUTHORIZED CAPITAL
- The amount of initial capital of an investment company engaged in professional activities in securities trading (trading in financial instruments), namely sub-brokerage, brokerage, financial instrument portfolio management activities, investment advice, and / or placement activities without a guarantee, provided that such an investment firm shall not have the right to receive and dispose of clients’ funds and financial instruments, must meet the requirements of its size and calculation procedure established by the National Securities and Stock Market Commission, and may not be less than UAH 1.5 million.
- The amount of initial capital of an investment company engaged in professional activities in securities trading (trading in financial instruments), namely sub-brokerage, brokerage and / or financial instrument portfolio management activities, provided that such investment firm has the right to receive and dispose of funds and financial instruments of clients, must meet the requirements of its size and the procedure for its calculation, established by the National Commission on Securities and Stock Market, and may not be less than 4 million hryvnias.
- The initial capital of the investment company, in all other cases, namely the implementation of professional activities in underwriting, dealership, must meet the requirements of its calculation, and the amount of such initial capital may not be less than 22 million hryvnias.
OFFICE REQUIREMENTS
The total area of the securities trader’s premises (except for the bank) and its separate subdivision must be at least 20 sq.m.
PARTICIPATION IN SRO
REQUIREMENTS FOR STAFF
- At least three certified specialists (including senior officials) and two certified professionals (including senior officials) – for a separate unit that conducts any of these activities.
For a securities trader (except for a bank) when obtaining a license to trade in securities to conduct several types of professional activities in securities trading at the same time, the qualification requirements are as follows:
- At least four certified specialists (including senior officials) and three certified professionals (including senior officials) – for a separate unit that conducts these activities.
REQUIREMENTS FOR THE HEAD
REQUIREMENTS FOR THE CHIEF ACCOUNTANT
- Have a complete higher education (specialist, master)
- Have a document on professional development by training in a standard program of professional training of accountants of professional stock market participants, approved by the National Commission on Securities and Stock Market, and certification in the manner prescribed by the Regulations on training and certification of stock market specialists. In the absence of such a document within three months after hiring as chief accountant to undergo training. To pass this advanced training at least once in three years
- Not to have an outstanding or unresolved criminal record for crimes against property, in the field of economic and official activities, as well as not to be deprived of the right to hold certain positions and engage in certain activities
- Have at least two years of experience as an accountant or chief accountant in a financial institution or at least five years in any other institution
WHAT YOU NEED TO GET STARTED
- Data on founders and final beneficiaries.
- Data on the Premises (physical address where the company will be located).
- Data on the Head, Chief Accountant, Responsible for financial monitoring (may be the person of the Director / Chief Accountant): copy of passport and identification, diploma, employment record book.
- Data on staff.
- The planned name of the Company.
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About Us
We know that the result is important for you, not the process. More than 10 years of work in the market, more than 1000 successfully implemented projects, we know how to get the desired result on time
Experience
More than 10 years of experience, more than 1000 successful projects throughout Ukraine
Professionalism
We have practitioners with over 5 years of experience.
Warranty
We guarantee the implementation of a particular project in the contract
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