scholarly journals Binary Options as New Financial Instruments and Their Integration into the Financial Sector

2020 ◽  
Author(s):  
O.B. Novruzova ◽  
Y.O. Pronina ◽  
E.S. Vorobeva
Keyword(s):  
Financial Sector ◽  
Financial Instruments ◽  
Binary Options

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

scholarly journals Sustainable finance initiatives and their impact on financial stability

2020 ◽  
Vol 20 (4) ◽  
pp. 118-133
Author(s):  
Klaudia Zielińska-Lont
Keyword(s):  
Sustainable Development ◽  
Financial Stability ◽  
Financial Sector ◽  
Financial Instruments ◽  
Potential Threat ◽  
Sudden Loss ◽  
Sustainable Finance ◽  
The Subject ◽  
Potential Impact ◽  
The Impact

The article discusses the potential impact of sustainable finance initiatives on financial stability. A careful literature review on the subject of sustainable development and stability of the financial sector is performed in order to identify potential gaps in policies and regulations. Existing considerations around the impact of sustainable development efforts focus exclusively on the consequences of climate change for the portfolio of assets held by the financial sector, whereas the author examines the growing market for sustainable financial instruments as a potential threat. The results indicate that sustainability features of new financial instruments are not methodically evaluated in the context of their credibility and may therefore suffer from sudden loss of value that is not accounted for under the existing supervisory mechanisms. Inconsistent definitions and no single perception of sustainability further enhance the risk for investors and issuers and that risk needs to be accounted for under the mechanisms safeguarding financial stability.

scholarly journals TO THE QUESTION ON ECONOMIC AND LEGAL SECURITY OF THE USE OF BINARY OPTIONS AS FINANCIAL INSTRUMENTS

2020 ◽  
Vol 33 (20) ◽  
pp. 58-63
Author(s):  
L. D. Rudenko ◽  
A.Yu. Bavikin ◽  
O.P. Sokolenko
Keyword(s):  
Raw Materials ◽  
Precious Metals ◽  
Legal Regulation ◽  
Federal Republic Of Germany ◽  
Financial Instruments ◽  
Options Market ◽  
Financial Instrument ◽  
Online Platforms ◽  
Binary Options ◽  
Legal Security

The article investigates the current state of economic and legal support for the use of binary options as financial instruments. On the basis of the conducted research, the concept of binary option as derivative security and the financial instrument is specified, the main types of binary options are distinguished. Also, the article investigates features of the functioning of the binary options market through online trading platforms. The legal nature of the binary option as a derivative of security and a financial instrument (item 5 of Part 5 of Article 3 of the Law of Ukraine “On Securities and the Stock Market”) is specified. There is no comprehensive list of such securities in the legislation. That is, based on the features of the binary option (timeliness; purchase or sale of any of the financial instruments, including those that provide cash payment; no actual purchase of securities, currency or precious metals, raw materials; availability of a certain fixed condition at the time conclusion of the transaction; short-term and speculative nature of the financial transaction; trading on online platforms). The concept of a binary option has been clarified, namely: this is the type of options contract (contract) under which the payment will depend entirely on the result of the offer, yes or no, usually related to whether the price of a particular asset such as a stock or commodity will rise above or will decrease below the amount indicated. Unlike traditional options, when such an agreement is concluded, no actual purchase of a security, precious metal, raw materials is made, but a bid is made to increase or decrease the price of the asset for a certain time. Based on an analysis of EU law, including the MIFID, it is determined that binary options refer to derivative financial instruments. The peculiarities of economic and legal regulation of the binary options market are investigated by the European Securities Market Supervision Authority (ESMA). There is a lack of proper regulation and control over the binary options market by the state in Ukraine, which in turn led to an outflow of tens of millions of dollars from the Ukrainian economy and causing significant financial losses to traders. The article argues the feasibility of adopting a special law on the market for binary options based on the experience of the Federal Republic of Germany to protect Ukrainian traders. Keywords: binary option, financial instrument, trader, trading online platforms, ESMA, MIFID.

Ethiopian Financial Sector Development

2019 ◽  
pp. 158-174
Author(s):  
Yohannes Ayalew Birru
Keyword(s):  
Economic Development ◽  
Commercial Bank ◽  
Pension Fund ◽  
Financial Sector ◽  
Output Growth ◽  
Private Pension ◽  
Financial Instruments ◽  
Bank Branches ◽  
Financial Sector Development ◽  
Two Phases

Financial sector development has played a key role in Ethiopia’s economic development, particularly since the launching of the first Five-year Growth and Transformation Plan in 2010. The gradualist approach that Ethiopia followed in reforming its financial sector seems to have borne fruit as no single commercial bank has gone bust so far, unlike the case in neighbouring countries. Though Ethiopia’s financial sector growth was following output growth in the first two phases, government has started to play a key role in accelerating the sector’s growth through active interventions, such as encouraging branch expansion, and introduction of new financial instruments such as the Grand Ethiopian Renaissance Dam Bond, a housing saving scheme, and the private pension fund. Consequently, the number of bank branches expanded from 681 to 4,257 between 2010 and 2017 while the deposit-to-GDP ratio went up from 25.9 per cent to 31.4 per cent in the same period.

scholarly journals INTERNATIONAL APPROACHES TO THE RE-GULATION OF VIRTUAL BANKS, ALGORITHMIC TRADE AND ARTIFI-CIAL INTELLIGENCE SYSTEMS IN FINANCIAL TRANSACTIONS

Banking law ◽  
2020 ◽  
Vol 6 ◽  
pp. 58-72
Author(s):  
Andrey V. Shamraev ◽  
Keyword(s):  
Artificial Intelligence ◽  
Financial Sector ◽  
Legal Aspects ◽  
Algorithmic Trading ◽  
Financial Instruments ◽  
Financial Transactions ◽  
Artificial Intelligence Systems

This paper reviews certain legal aspects of automatic and autonomous financial transactions. International approaches to regulation of key areas of digitalization in the financial sector, such as virtual banking, algorithmic trading of financial instruments and the introduction of artificial intelligence systems, are considered.

scholarly journals FINANCING OF THE AGRO-INDUSTRIAL COMPLEX IN THE CONTEXT OF THE IMPLEMENTATION OF INTERNATIONAL EXPERIENCE

2021 ◽  
Vol 3 (38) ◽  
pp. 341-350
Author(s):  
R. Sodoma ◽  
O. Brukh ◽  
T. Shmatkovska ◽  
N. Vavdiiuk ◽  
A. Bilochenko ◽  
...  
Keyword(s):  
Agricultural Sector ◽  
Financial Sector ◽  
Developed Countries ◽  
International Experience ◽  
Research Approach ◽  
Industrial Complex ◽  
Financial Instruments ◽  
Agricultural Enterprises ◽  
Industrial Enterprises ◽  
Low Efficiency

Abstract. The situation on the market of bank crediting of agricultural enterprises is analysed. Have been identified the key reasons for the low efficiency of the current mechanism of lending by banks to the agro-industrial sector. The key shortcomings in the system of financing the enterprises of the agro-industrial complex are revealed. The investment attractiveness in Ukraine is considered and specified in the dynamics by regions. The volumes of financing the activity of agro-industrial enterprises in Ukraine by sources of income are analysed. It is proved that effective financing opens wide opportunities for the development of enterprises in the agricultural sector. In the study general and specific economic methods, as well as a basic research approach, which allowed us to determine the economic nature of the financial sector and the scope of financing of agricultural enterprises are used. The financial instruments of the agricultural enterprise use of which will promote the achievement of the European standards are offered. Scientifically substantiated recommendations on the directions of application in Ukraine of the international experience of stimulation of the financial activity of subjects of the agro-industrial complex are entered. In developed countries, a rich arsenal of support tools is used to support financial activities in the agro-industrial complex. A list of the most common tools for such support used in developed countries is given. It is noted that the solution of problems of financial support for the development of the agro-industrial complex should be carried out on the basis of studying, generalizing, and taking into account the best international experience. The world experience of financing the agricultural sector of the economy and the peculiarities of the distribution of state subventions for the development of agricultural production are studied. The scientific novelty of the obtained results is represented by a set of theoretical and practical aspects of the study, namely proposals for the current state of lending to agriculture and recommendations for the use of new financial instruments in the context of the implementation of international experience. Keywords: crediting, financial sector, agro-industrial complex, international experience. JEL Classification Q14 Formulas: 0; fig.: 5; tabl.: 2; bibl.: 16.

Challenges and Opportunities in the .new Millennium - Financial Sector Perspective

2002 ◽  
Vol 1 (1) ◽  
pp. 20-29
Author(s):  
Suchint Majmudar
Keyword(s):  
Financial Markets ◽  
Financial Sector ◽  
Financial Instruments ◽  
Global Development ◽  
Challenges And Opportunities ◽  
Key Issues ◽  
Recent Trends ◽  
New Millennium

The Indian financial sector has been buffeted by a recent global development in accounting and financial markets. Technology is enabling the financial sector to transfer funds and settle trades across borders in real times and novel financial instruments such as securitisation of debt and derivatives while extending the reach of investment manifold are also resulting in recycling of existing funds. This article examines recent trends in the financial sector and sums up the key issues facing Indian financial professionals.

Product Intervention Measures in the European System of Financial Supervision

2019 ◽  
Vol 1 (98) ◽  
pp. 42-54
Author(s):  
Beata Mrozowska - Bartkiewicz
Keyword(s):  
European Union ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Sector ◽  
Financial Supervision ◽  
The European Union ◽  
Member States ◽  
Intervention Measures ◽  
European System ◽  
Binary Options

The European System of Financial Supervision (ESFS) sets a framework of financial supervision in the European Union. Its main objective is to ensure that the rules applicable to the financial sector are properly implemented in all the Member States to preserve the financial stability of the financial sector, promote trust and guarantee consumer protection. The new powers refer to investment-related products, offered by both financial institutions and insurance undertakings. Each European supervisory authority is endowed with the power to apply supervisory measures, including the product intervention, which means the power to issue a decision binding in the European Union to temporarily prohibit the provision of certain financial products, conducting some activities or practices which threaten the proper operation and integrity of financial markets or the stability of the financial system in the European Union. In 2018 the product intervention measures were adopted by ESMA for the first time in two decisions, namely on the prohibition of the provision, distribution and sale of binary options to retail clients and on the restriction of the provision, distribution or sale of contracts for differences (CFDs) to retail clients. These precedent decisions will set the new directions for the EU supervision of financial institutions, mainly because of the issuing authority, which is not national, but European, and whose decisions are automatically applied in the territories of the Member States.

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