Percival’s CSD Solution, DEPEND, Goes Live In Ukraine
The National Depository of the Ukraine, NDU, successfully transitioned their business operations and went live with Percival’s CSD solution, DEPEND.
NDU currently acts as the CSD for over UAH 1.7 trillion in assets, which will now be settled in DEPEND, bringing considerable qualitative changes in the processes and functions of the Ukrainian capital market.
As part of the project, Percival also implemented and configured their HUBBLE message-layer product which was used to integrate DEPEND with other internal and external service users and providers. HUBBLE has allowed NDU to offer CSD services based on international messaging standards; ISO 15022 messaging has been deployed at the start, but HUBBLE will also provide a service using the newer ISO 20022 format when the market is ready.
DEPEND’s also allows participants to integrate their own back office systems directly with the CSD services rather than being forced to use the central system for the first time in twenty years. Furthermore, as NDU continue to modernise their business processes and their services to the market, DEPEND’s flexibility will support the changes and reduce the time to market.
Following an international tender, Percival was selected at the end of 2017; the delivery contract between Percival and NDU was signed in May, 2018; core functionality was delivered in November, 2018; and the final functional delivery was completed in April, 2019. The entire project was conducted in consultation with the key capital market stakeholders, and included initial presentations and training as well as comprehensive acceptance testing, which was completed in September, 2019.
The head of the NDU, Mindaugas Bakas, commented:
“The need to have a modern IT depository accounting platform for Ukraine’s integration into the European securities market is undeniable. And now we have such a system.
For the development of the Ukrainian stock market it is a new important stage. After all, the new software works according to the international standards of post-trading, which we systematically put into practice over the last three years. Currently, 61 depository institutions have chosen the alternative system, while 122 operate in a system module provided by NDU. This allows for stability and efficient operation of the market.
For all market participants, the new technology platform provides a much higher level of security. Communication of the Central Depository with depository institutions will be in accordance with the ISO standard, generally accepted and understood in the developed markets of the world. The new features and capabilities provided by the depository system will improve the quality of services that both national players and non-residents will receive. The new platform enables depositary institutions to choose alternative client service software themselves.”
The Chairman of the National Securities and Stock Market Commission, Timur Khromaev, said:
“For many years the attitude towards the development of financial infrastructure in our country has been formed on a residual basis, but in recent years the attitude to this issue has changed. Infrastructure is the foundation of the market. The market cannot be built on an unstable foundation.
The central depository is an important element of the financial infrastructure. Over the last three years, the National Depository team has done a great deal to put into practice the world’s best practices and standards, modern technologies. Today is another step towards technological integration of Ukraine into the world accounting system – NDU has completely transitioned to the new modern IT platform DEPEND.
This new platform gives new functionality for the whole market, new services for both companies and securities owners, provides a high level of protection of their rights”.
Percival Software Limited (Percival) have over 30 years’ experience with central securities depositories and other entities that operate shareholder registers. The company was founded in 1987, and since that time has developed and renewed its solutions continuously. Furthermore, over this period Percival have developed cutting edge software technology coupled with extensive knowledge of the central securities depositories and share registration.
National Depository of the Ukraine was established on December 18, 1998; the Securities and Stock Market State Commission and the National Bank of Ukraine signed an Agreement on Establishing the National Depository of Ukraine. NDU’s registration with the State took place on May 17, 1999.
As a CSD, NDU provides for the creation and operation of the securities depository record-keeping system; the CSD keeps depository records of all eligible securities, except for those that are kept by the National Bank of Ukraine within the terms of reference defined by the Law.
The CSD’s GTC define general procedure of rendering CSD services related to depository activity, executing transactions within the depository’s record-keeping system, and CSD oversight over depository institutions.