scholarly journals MODERNIZATION OF THE INSTITUTIONAL FOUNDATIONS OF THE STOCK MARKET IN UKRAINE: PROSPECTS FOR UPDATING FINANCIAL INSTRUMENTS

2021 ◽  
Vol 2021 (9) ◽  
pp. 18-40
Author(s):  
Stanislav SHYSHKOV ◽  
◽  
◽  
Keyword(s):  
Financial Market ◽  
Legal Framework ◽  
Infrastructure Development ◽  
Financial Instruments ◽  
The Real ◽  
Freedom Of Contract ◽  
Market Participants ◽  
Tax Legislation ◽  
Wide Range ◽  
Legislative Changes

The negative tendencies in the development of the financial market of Ukraine are stated, including the limitedness of the applied financial instruments. Despite the extensive list of types of securities and derivatives already available to market participants, investors' interest is concentrated almost exclusively on government securities, while transactions with corporate financial instruments are sporadic. In the course of the study of the updated Ukrainian legislation in the field of capital markets it is substantiated that the declared purpose of introduction of new financial instruments does not correspond to the real content of legislative changes. It is, first of all, a cosmetic change of classification features or names and regulation at the legislative level of requirements for certain types of securities, which already existed before at the level of bylaws. Formally, the number of groups and types of securities available for circulation will even decrease after the legislation is updated. Perhaps the only noticeable expansion of the list of tools concerns the legislative design of certain categories of debt securities, the issue and circulation of which, however, did not contradict previous legislation. It was found that a significant expansion of the classification features of derivatives is provided by atypical instruments, the use of which has not previously been prohibited by law, but it is not accompanied by changes in tax legislation; restricts the current freedom of contract for the parties to derivative contracts, even if they are concluded outside the regulated market, and leads to significant legal uncertainty due to the inclusion of a wide range of issues regarding the specifics of the use of derivatives in the scope of the regulator's powers to regulate them at the level of its own regulations, which obviously will not be developed in time, until the amendments come into force. It is substantiated that sporadic changes in the legislation related to the contradictory implementation of the European legal framework are insufficient to solve the real problems of financial market infrastructure development and expansion of its tools.

Financial Market in Nepal

2020 ◽  
pp. 794-842
Author(s):  
Narayan Prasad Paudel
Keyword(s):  
Private Sector ◽  
Financial Market ◽  
Financial Institutions ◽  
Banking Sector ◽  
Financial Sector ◽  
Legal Framework ◽  
Capital Gains ◽  
Individual Investors ◽  
Infrastructure Development ◽  
Private Sector Development

The Nepalese financial sector is attributed of banking sector and non-banking sector. There is exponential growth in the number of financial institutions in Nepal in the last decade. The existing legal framework and institutional setup in Nepal is not conducive to the overall financial sector and private sector development and thus there is an urgent need for reformation in these sectors. The major impediments to private sector involvement in infrastructure development projects include the political and administrative instability; lack of consistent planning; lack of effective institutional support in designing and development of private sector infrastructure projects. Talking about the capital market and capital gains In Nepal, capital gains on securities transactions are taxed as ordinary income to corporations and individual investors while in most of the emerging markets capital gains on investments in stocks and bonds are not taxed, which need to be reformed as per the international practices.

Using Financial Instruments

2019 ◽  
pp. 37-46
Author(s):  
Alan N. Rechtschaffen
Keyword(s):  
Financial Market ◽  
Capital Markets ◽  
Federal Reserve ◽  
Financial Instruments ◽  
Case Scenario ◽  
Worst Case ◽  
Financial Instrument ◽  
Market Participants ◽  
Managing Risk ◽  
The Stability

Capital markets provide enterprises with the opportunity to access capital to maintain their level of business activity. Therefore, ensuring the stability of the capital markets and preventing systemic failure are paramount concerns of the Federal Reserve and other financial market regulators. Access to capital markets is facilitated through the use of financial instruments that allow risk to be negotiated among market participants. When using financial instruments to achieve goals, a corporation must be aware of several considerations: the value of the asset underlying the financial instrument, duties or obligations the corporation owes to the other party to the contract, the implications and “worst case scenario” of the performance of the financial instrument, the risk of the transaction, and how the specific transaction can achieve the corporation's goals. This chapter discusses goal-oriented investing, achieving investment goals, and managing risk.

scholarly journals XBRL as a Digital Reporting Format for Economic Entities: International Experience and Russian Practice Abstract

2020 ◽  
Vol 7 (3) ◽  
pp. 6-17 ◽  
Author(s):  
R. P. Bulyga ◽  
I. V. Safonova
Keyword(s):  
Financial Market ◽  
Financial Reporting ◽  
Multidimensional Space ◽  
World Language ◽  
Business Reporting ◽  
Market Participants ◽  
Digital Format ◽  
Wide Range ◽  
Analysis And Synthesis ◽  
Volumetric Representation

The issue of global transformation of the traditional format of accounting (financial) and non-financial reporting (in the form of PDF reports) into an interactive digital format of business reporting is relevant. The article is devoted to the analysis of domestic and world trends in the development of reporting of economic entities in the digital economy and identifying the prospects for using XBRL as the main digital format of business reporting. The research methodology is based on the application of a system of scientific methods: analysis and synthesis, induction and deduction, comparison, a systematic and logical approach and the method of analogies and groupings. As a result of the study, the trend in the development of reporting by economic entities is determined. The study justifies the strengthening of the role of information technology in the formation of new conceptual approaches to the disclosure of the information contained in it by synthesizing the elements of volumetric representation (using the method of “multidimensional space”) and modern IT platforms. A review of the use of the XBRL format as a world language for business reporting in international and Russian practice is conducted. Based on the analysis of global XBRL development initiatives actively discussed in the world community, it is concluded that the XBRL format has firmly taken the place of the main digital standard for the formation and disclosure of information by economic entities of leading world countries, and its further development is an inevitable future in solving the problem of creating a modern interactive digital format of business reporting of foreign and domestic companies. The research results can be used by a wide range of national regulators, investors and financial market participants, as well as international business and professional communities, with the practical transfer of all financial market participants to a single electronic format.

Financial Market in Nepal

2016 ◽  
pp. 146-194
Author(s):  
Narayan Prasad Paudel
Keyword(s):  
Private Sector ◽  
Financial Market ◽  
Financial Institutions ◽  
Banking Sector ◽  
Financial Sector ◽  
Legal Framework ◽  
Capital Gains ◽  
Individual Investors ◽  
Infrastructure Development ◽  
Private Sector Development

The Nepalese financial sector is attributed of banking sector and non-banking sector. There is exponential growth in the number of financial institutions in Nepal in the last decade. The existing legal framework and institutional setup in Nepal is not conducive to the overall financial sector and private sector development and thus there is an urgent need for reformation in these sectors. The major impediments to private sector involvement in infrastructure development projects include the political and administrative instability; lack of consistent planning; lack of effective institutional support in designing and development of private sector infrastructure projects. Talking about the capital market and capital gains In Nepal, capital gains on securities transactions are taxed as ordinary income to corporations and individual investors while in most of the emerging markets capital gains on investments in stocks and bonds are not taxed, which need to be reformed as per the international practices.

scholarly journals Financial market infrastructure in Ukraine: consequences of legislative update

2021 ◽  
Vol 2021 (9) ◽  
pp. 70-98
Author(s):  
Natalia SHELUDKO ◽  
◽  
Stanislav SHISHKOV ◽  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Legal Framework ◽  
Practical Implementation ◽  
Legal Basis ◽  
Active Involvement ◽  
Market Participants ◽  
Settlement Services ◽  
Money Transfers ◽  
Market Infrastructure

The defining principle of the effective functioning of the infrastructure of financial markets is a proper legal basis. It is emphasized that the general principles of infrastructure construction in the context of globalization should provide predictability, clarity and familiarity for international investors. This is most important for immature markets, where legal uncertainty, along with other objective difficulties in the functioning of the infrastructure, hinders the development and attraction of investment. The article notes the slow pace of modernization of the financial market infrastructure in Ukraine and the lack of significant progress in the implementation of international recommendations and proposals of foreign experts. In the course of the study of the updated Ukrainian legislation in the field of capital markets, its inconsistency with the legislation on payment systems and money transfers, inconsistency of terminology, lack of legal certainty, attribution of most fundamental issues to the regulator's discretion were substantiated. Legislative “innovations” of Law № 738-IX of 19.06.2020 are extremely destructive, and their practical implementation poses a threat to the integrity and operational landscape of the infrastructure of financial markets in Ukraine. It has been found that since the middle of 2021 a rather dubious form of cash settlements has been implemented, which revives the outdated inconvenient payment scheme and until 2023 preserves the monopolistic nature of clearing and settlement services, exposes stock market participants to legal and operational risks. It is stated that the Law does not follow the principles and recommendations developed in detail by international experts. The existence of preconditions in Ukraine for building a modern infrastructure of financial markets is substantiated, which requires a proper legal basis, which should be created taking into account the interests of market participants, active involvement of experts, quality implementation of European legal framework and international practices.

scholarly journals A Theoretical Conceptualization of Institutional Provision of the Financial Market

2020 ◽  
Vol 9 (512) ◽  
pp. 219-228
Author(s):  
S. V. Onyshko ◽  
◽  
D. O. Savenko ◽  
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Legal Framework ◽  
Financial Resources ◽  
Market Development ◽  
Market Participants ◽  
Financial Market Development ◽  
Relationship Of ◽  
The Relationship ◽  
Theoretical Conceptualization

The article is concerned with the problems of formation and development of institutional provision of the financial market. The relevance of the problem is caused by the relationship of formal and informal norms of economic processes and phenomena, the understanding of which provides the key to achieving the effectiveness of the financial market development. Understanding the essence of institutional provision of the financial market and the factors of its formation and development makes it possible to make more informed and effective decisions in the sphere of financial market development. The article is aimed at substantiating the conceptual approaches to the structuring of institutional provision of the financial market. It is substantiated that institutional provision of the financial market includes both formal and informal institutions. The formal institutions, in turn, consist of institutions-organizations and institutions-norms. The factors of occurrence of institutional deformations in the financial market are systematized. The institutions of the financial market are structured, in particular, in the composition of the institutions-norms the authors allocate the formal (international legal framework for concluding and implementing agreements in financial markets, national regulatory framework for concluding and implementing agreements in financial markets, norms of related national and international law, ensuring the conclusion and implementation of agreements in financial markets) and the informal norms (norms stipulated by religion, informal agreements and conspiracies between the financial market participants, unofficial (shadow) markets for the conclusion and implementation of financial agreements). In the composition of institutions-organizations the authors allocate the institutions-buyers of financial resources; institutions – sellers of financial resources; institutions that serve the functioning of institutions-sellers and institutions – buyers of financial resources; institutions-regulators. The institutional provision of the financial market is structured and the relationship between institutions-norms, institutions-rules and the State is defined. The principles of institutional provision of the financial market are substantiated and its functions are defined.

scholarly journals LEGAL ASPECTS OF MANAGING FAILURE OF A CENTRAL SECURITIES DEPOSITORY (CSD) PARTICIPANT

Obiter ◽  
2021 ◽  
Vol 32 (2) ◽  
Author(s):  
Lynette Swart ◽  
Vivienne Lawack-Davids
Keyword(s):  
South Africa ◽  
South African ◽  
Financial Market ◽  
Legal Framework ◽  
Legal Aspects ◽  
Financial Risks ◽  
Investor Confidence ◽  
Market Participants ◽  
Legal Position ◽  
The Impact

The success of the financial market in South Africa is dependent on investor confidence and such confidence is dependent on market stability and certainty with regard to the financial risks to which market participants are exposed when trading on the financial markets. Even before the global meltdown impacted on South Africa, some concerns were raised that the South African legal framework pertaining to the financial market does not contain comprehensive principles regulating the procedures and legal position after the event of insolvency of a market participant. In response, Strate Limited, with the assistance of other market players, has drafted a proposed manual, the Participant Failure Manual, regulating the event of insolvency of market participants, referred to as “Participant Failure”. This note aims to discuss the meaning of Participant Failure, provide an overview of the Participant Failure Manual and more importantly, discuss the impact of Participant Failure on settlement, and recommendations as proposed in the Manual.

scholarly journals Essential aspects of electronic money in the conditions of digitalization of banking business

2020 ◽  
pp. 76-92
Author(s):  
Oleksandr Dzyublyuk
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
Clear Understanding ◽  
Financial Instruments ◽  
Electronic Money ◽  
Real Money ◽  
Market Participants ◽  
Wide Range ◽  
Banking Business ◽  
Monetary Relations

Introduction. Advances in information technology and digitalization of the banking business have created the basis for the modernization of modern payment systems that operate using a wide range of new financial instruments, a special place among which belongs to electronic money. It is electronic money that is gradually replacing traditional forms of monetary relations, covering an increasing range of relationships between market participants and ensuring the movement of goods and services in each business cycle. Given the importance of money supply as a major factor influencing the dynamics of economic processes, a clear understanding of the nature of electronic money and their place and role in the modern monetary system and economy is especially important in the context of effective monetary policy and financial stability. Purpose. The aim of the study is to substantiate and systematize theoretical views on understanding the nature and basic types of electronic money, taking into account the evolution of monetary relations and the banking system, digitalization of which creates new conditions for market participants in the organization of payments using different types of financial instruments. Results. The nature of electronic money as a legal tender cannot be different from the nature of credit money, which is this tool in the country. Only those instruments of circulation and payment that are issued by the banking system of the country and have all the characteristics to regulate their circulation by the central bank should be considered real money, regardless of their material carrier. Therefore, electronic money should be defined as special electronic ways of storing monetary value in bank accounts using a technical device that can be exploited to make payments. Prospects. Necessary directions of further research of electronic money should be the development of proposals and recommendations for a clearer legislative regulation of differences between real money and their substitutes in order to ensure comprehensive protection of the interests of consumers of financial services.

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