Economic Consequences of Harmonizing the Ukrainian Stock Market with the Regulations of the European Union

Abstract

The current processes of Ukraine’s European integration are placing new demands on the regulation of the financial sector, in particular the stock market. Harmonization of the national regulatory framework with European Union regulations is a necessary prerequisite for increasing investment attractiveness, ensuring transparency, and integration into a single financial space. In view of this, research into the economic consequences of adapting Ukraine’s stock market to EU directives and regulations is of particular scientific and practical importance.

The purpose of the article is to comprehensively study the economic consequences of harmonizing Ukraine’s stock market with European Union regulations, identify gaps in national legislation, assess the risks of adaptation, and formulate scientifically sound recommendations for improving legal regulation.

The study uses comparative legal analysis methods, a systematic approach to studying the regulatory framework of Ukraine and the EU (in particular MiFID II, Prospectus Regulation, Market Abuse Regulation), risk management and analytical assessment methods, as well as content analysis of current scientific publications. The use of a comprehensive methodological approach made it possible to integrate both legal and economic aspects of harmonization.

The results show that the main gaps in Ukrainian legislation are related to insufficient transparency of the stock market, limited powers of supervisory authorities, imperfect mechanisms for protecting investor rights, and underdeveloped market infrastructure. A comparative analysis of EU regulations made it possible to identify priority areas for implementation, including improving information disclosure mechanisms, raising corporate governance standards, and introducing institutional mechanisms to counter market manipulation and abuse. At the same time, risks of harmonization have been identified, in particular low investor confidence, the likelihood of regulatory arbitrage, and the need for significant financial and organizational resources to adapt market institutions.

The conclusions summarize that the harmonization of the Ukrainian stock market with EU regulations is of strategic importance for integration into the European financial space, increasing investment attractiveness, and ensuring the stability of the financial system. The proposed measures, in particular the phased implementation of European standards, the expansion of the powers of the National Securities and Stock Market Commission (hereinafter – NSSMC), the improvement of market transparency, and the development of market infrastructure, are aimed at overcoming existing gaps and risks. The practical significance of the study lies in the formulation of recommendations for state bodies and market participants on improving legal regulation, which will contribute to the gradual integration of Ukraine into the European economic space.