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Cash-settled futures for foreign securities unlikely to appear in Ukraine – UX
KYIV. Sept 16 (Interfax-Ukraine) – The Ukrainian Exchange (UX, Kyiv) preferred the launch of physical delivery futures for foreign securities to cash-settled futures, since the issuance of the latter is not economically feasible today, Business Development Director of UX Oleksiy Sukhorukov has said.
"The price of physical delivery futures is fixed in U.S. dollars, which significantly reduces the exchange rate risks of investors, although it does not completely eliminate them… The absence of full prepayment and the price in U.S. dollars allow building more effective and less risky arbitrage strategies and hedging market makers’ risks," Sukhorukov said.
He added that there are no restrictions on online trading in futures.
At the same time, according to him, to launch a cash-settled contract, one needs to buy a license from exchanges where these foreign securities have passed the primary listing. At the current stage of market development in Ukraine, it is impossible to pay off the costs of this license, he said.
