Proposal Law on Financial Instruments

Considering that the Law of Securities (Official Gazette of the Republic of North Macedonia No. 95/2005 , 25/2007 , 86/2007 , 123/2007 , 140/2007 , 146/2007 , 7/2008 , 45/2009 , 57/2010 , 135/2011 , 13/2013 , 188/2013 , 43/2014 , 15/2015 , 154/2015 , 192/2015 , 23/2016 , 83/2018 , 31/2020 , 288/2021 ) does not comply with the latest Directives and Regulations of the European Union in the area of the capital market, the Ministry of Finance started preparing the new Law on Financial Instruments in March.

This Law regulates the activity of investment companies and other persons authorised to provide investment services and activities; the activity of the market operator, the regulated market of MPT and OPT; the activity of data service providers; the keeping of registers of dematerialised securities and financial instruments, the activity of the systems for determination and settlement and the operators of these systems; the transparency of trading venues and investment companies, as well as prohibited acts in relation to financial instruments and the status and powers of the Commission for the Supervision of the Capital Market.

With the adoption of the bill, new financial instruments and regulated markets will be introduced, allowing all financial instruments available to investors on international markets to be implemented and recognised on the domestic market. In addition to the Stock Exchange as the main institution for trading financial instruments, new trading platforms such as the Multilateral Trading Platform and the Organised Trading Platform will be able to be established.

In addition, with the adoption of the Law, the security of investors in the Republic of North Macedonia will be increased by establishing appropriate mechanisms for the transmission of data and transparency of trading venues through the publication of current buy and sell prices as well as the market depth at these published prices of the system which relate to shares, certificates for foreign securities, etc.

It remains to be seen when and with what changes and additions the draft Law on financial instruments will be adopted by the Assembly of the Republic of North Macedonia.