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Online trading with war bonds on UX swells in May

KYIV. May 6 (Interfax-Ukraine) – The trading volume of war bonds on the Ukrainian Exchange (UX, Kyiv) due to online trading from May 2 to May 5 amounted to UAH 334.4 million compared to UAH 57.22 million for the whole of April, and the number of transactions increased from 3,550 to 29,710, according to information on the UX website.

"In 2022, despite the war (or maybe because of it), through the FIX API – the "gateway" for connecting online trading systems – a second market participant, Universal Bank, connected to us, which implemented a very simple procedure for buying government domestic loan bonds in the monobank application. It happened last week. And over the weekend, there were so many buyers that today we broke the record of 2011 in terms of the number of transactions per day," Oleksiy Sukhorukov, Development Director of the exchange, wrote on Facebook following the results of trading on Monday, May 2.

UX said that 16,630 transactions for UAH 180.54 million were concluded that day. The most popular were bonds with maturity on November 2 this year – 9,500 transactions for UAH 115.38 million and with maturity on June 21, 2023 – 7,100 transactions for UAH 64.48 million.

In the next days, the turnover decreased, but remained significant: on May 3 – 6,040 transactions for UAH 70.01 million, on May 4 – 3,150 for UAH 37.68 million and on May 5 – 3,890 for UAH 46.17 million.

Since the beginning of Friday, 3,350 transactions for UAH 37.24 million have already been carried out.

Sukhorukov recalled that after the launch of the new trading system in 2019, the first Internet broker, Freedom Finance Ukraine, was connected to it via FIX.

"Unfortunately, by that time, the acidic regulatory environment had squeezed almost all investors into shares out of the country, but there was still hope for futures. In 2020, we did revive futures for the hryvnia exchange rate, but they did not arouse much enthusiasm among Ukrainian brokers and banks. Nevertheless, thanks to the growing interest of Ukrainians in foreign securities, that year several market participants began to think about the development of Ukrainian software for online trading," Sukhorukov said, describing the story of the return of online trading to UX.

According to him, in 2021 these projects moved into practice, but not many of them managed to be implemented.

"Since May 2022, a quantitatively and qualitatively new stage has begun on the stock market of Ukraine. We are still waiting for the currency license of the Settlement Center [a monopolist in Ukraine for the provision of clearing services] and are preparing to resume trading in currency government bonds. I know that monobank’s competitors don’t waste their time and soon they will also flood us with deals," Sukhorukov said, urging everyone to buy war bonds.