scholarly journals Certain aspects of current state of domestic financial market

2021 ◽  
Vol 11/3 (-) ◽  
pp. 8-12
Author(s):  
Maryna BORMOTOVA ◽  
Tetiana MASHOSHYNA ◽  
Olena TROINIKOVA
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Securities Market ◽  
Financial Resources ◽  
National Commission ◽  
Financial Instruments ◽  
Global Indices ◽  
Banking Institutions ◽  
High Level ◽  
Investment Process

Introduction. The financial market, as a combination of exchange and redistribution relations associated with the processes of purchase and sale of financial resources is a complex system that is an indicator of the development of the economy as a whole. In the context of global challenges, the development trends of the financial market and its components are expanding. The securities market today occupies an increasing segment of the financial market, despite the fact that it is under development. Recently, it is characterized by a high level of dynamism. And already now it has positive results for the participants. Purpose. A study of the securities market, the structure of its financial instruments and the circle of participants. Results. Modern financial processes are characterized by the emergence of new financial instruments and technologies, which expands and forms an alternative to the placement and attraction of financial resources outside of banking institutions and increases the circle of participants. An example is the emergence of Internet trading. Internet trading is a system of securities work that gives the investor access to exchange information, and also makes it possible to conclude transactions on the purchase and sale of securities on the exchange in real time using a special certified program installed on a personal computer. The expansion of the range of financial instruments that contribute to the increase of the circle of participants in the financial process in the stock market occurred at the expense of Bonds of Internal Government Loans of Ukraine, whose income rates are higher then bank. They became the first hryvnia instruments included in the global indices of debt securities MVIS (MV Index Solutions. Also in October this year, the National Commission on Securities and Stock Market decided to allow the circulation of foreign securities in Ukraine. As a result, today Ukrainian investors can use the opportunity to invest in 85 securities of foreign issuers. All this makes it possible to obtain additional financial resources for both individual (households) and collective entities (communities). Conclusion. Domestic government bonds are effective financial instruments for the majority of participants in the investment process in the stock market are the first hryvnia instruments to be included in the the global MVIS debt securities indices. There is also a tendency to expand the circle of participants and the structure of financial instruments of the Ukrainian stock market due to the possibility of purchasing state securities by territorial communities, as well as admission of foreign securities by the Cabinet of Ministers of Ukraine.

scholarly journals THE IMPACT OF DIGITALIZATION ON THE DEVELOPMENT OF FINANCIAL INSTRUMENTS IN THE RUSSIAN STOCK MARKET: LEGAL ASPECTS

2020 ◽  
pp. 83-89
Author(s):  
D. V. Lubyagina
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
The United States ◽  
Legal Regulation ◽  
Legal Aspects ◽  
Securities Market ◽  
Financial Instruments ◽  
Blockchain Technology ◽  
Russian Stock Market ◽  
The Impact

The article is devoted to the topical issue of the introduction of digital financial instruments and the use of blockchain technology in the securities market, which is supposed to make the stock market more transparent and reduce the risks of participants. The main legislative trends in the development of digitalization in the financial market are considered. Attention is drawn to the characteristics of certain relatively recently introduced new financial market instruments, the features of legal regulation of their circulation and the problems that arise when using them in practice (for example, the United States as a pioneer in these issues). In connection with a whole package of legal acts aimed at regulating relations in the financial market in the conditions of digitalization, the issue of further prospects for the development of the securities Institute is considered, and the problem of justifying the division of securities into documentary and non-documentary as financial instruments with different legal regimes is raised.

scholarly journals FINANCIAL ENGINEERING AS A TOOL FOR THE DEVELOPMENT OF CORPORATE BOND MARKET IN EASTERN EUROPE ON THE EXAMPLE OF UKRAINE

2018 ◽  
Vol 4 (4) ◽  
pp. 120-125
Author(s):  
Maria Iorgachova ◽  
Olena Kovalova ◽  
Ivan Plets
Keyword(s):  
Stock Market ◽  
Financial Engineering ◽  
Bond Market ◽  
The State ◽  
Corporate Bond ◽  
Financial Resources ◽  
General Level ◽  
Financial Instruments ◽  
Corporate Bond Market

In the context of the gap between the financial and real sectors of the Ukrainian economy, there is a problem of the absence of financial instruments able to solve the issue of financing the development of the national economic system on a long-term basis. At the current stage of the stock market development, financial engineering has a significant potential for the effective application since it can become an instrument that meets the current needs of the market. The purpose of this article is to study the current dynamics of development and features of the corporate bond market in Ukraine, as well as to develop the parameters of the new profit-bonds with the help of financial engineering, which takes into account investors’ inquiries in the formation of an investment portfolio and supposed to be a profitable form of attracting financial resources for issuers. Methodology. Materials of periodicals, analytical market reviews, resources of the Internet are the informational and methodological basis of the investigation. The research is based on general scientific and special methods, such as: comparison, systematic approach factor analysis, economic and mathematical methods. A comparative analysis of the parameters of financial instruments has been carried out that allowed determining the investors’ inquiries, investment trends and features of the choice of financial instruments by investors and accordingly to offer competitive debt securities according to the parameters of payment, maturity, security, repayment order, issue of currency. The results of the study indicate that there is the necessity of reformation of the stock market in terms of expanding the range of financial instruments based on financial engineering. The introduction of profit-bonds will allow offering participants of the Ukrainian market competitive conditions for the issue of securities, which are based on the modelled parameters of bonds. A schematic algorithm for the implementation of profit bonds is developed; it joins a complex of interrelated stages of implementation, which are sensitive to internal and external factors of influence. Practical implications. Directions for improving financial instruments on the basis of financial engineering can be applied by the participants of the stock market that will increase the general level of economic activity in the national economy and permit to accumulate financial resources on the profitable terms. Value/originality. The article reveals the development of the domestic market for corporate bonds as an important segment of the stock market through the application of financial engineering and the use of new financial products created to address the issue of attracting the necessary financial resources to the real sector. The introduction of financial engineering as a tool for the development of Ukrainian corporate bond market and its schematic algorithm of the implementation will allow an investor to react in time to the market changes. The creation of the State Fund for the Guaranteeing of Income of the Investors Market Act, which is formed at the state level by analogy with the existing Guarantee Fund for Individual Deposits, will allow the fulfilment of the security parameter that will classify profit bonds as long-term debt instruments with a high credit rating.

scholarly journals The Securities Market in Ukraine: Theoretical Aspects of Historic Development

2019 ◽  
pp. 120-130
Author(s):  
S. S. ZALIUBOVSKA ◽  
Yu. B. KOLUPAYEV ◽  
К. R. TOKАREVA
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Computer Software ◽  
Securities Market ◽  
Information Support ◽  
Market Development ◽  
Second Phase ◽  
Investment Funds ◽  
Theoretical Approaches ◽  
Business Entities

The article sums up a review of theoretical approaches to the interpretation of economic categories “securities market” and “stock market” and a chronological analysis of the stock market development in independent Ukraine. It is shown that two general approaches to the interpretation of the above categories exist, legislative and scientific. The latter one can, in turn, be subdivided into narrower approaches: segment approach, with securities market treated as a part of the capital market or financial market; functional approach, with securities market seen as a floor for sales and purchase of securities; normative approach, with securities market addressed as a sophisticated mechanism used to set legal and economic relations between business entities; logical approach, with securities market considered as a set of transaction mechanisms. The authors’ definition of the securities market is proposed: a segment of the financial market, on which interactions between various market actors take place, related with issuance, purchase and sales of securities that have value, circulate freely and certify the relations of co-ownership or lending, with the purpose of effective distribution and rational allocation of financial resources in the socio-economic area of a country with due account for the society’s interests and needs. The authors’ chronology of the securities market development in Ukraine is proposed, in which six phases are distinguished. The first phase is “reappearance” (1990). The second phase is “formation” (1991–1994), falling upon radical market-driven transformation in the Ukrainian economy. The third phase is “development” (1995–1999): search of the effective owners on the boosting market, setting up a system for control over sales and purchase of securities, creation of investment funds, financial and industrial companies and private pension funds. The fourth phase is “improvement” (2000–2002): creating a system for information support for circulation of securities issued in non-documentary form, and computer software for operating the State registers. The fifth phase is “recovery” (2003–2006): gradual decline of crisis tendencies in the economy along with the recover at the securities market.  The sixth phase is “financial globalization” (from 2007 and on). This approach enables to investigate the securities market dynamics over 1991–2018 and give detailed descriptions of each phase with emphasis on core historic event in each. 

scholarly journals Research and methodological framework for managing the economic security of financial intermediaries in Ukraine

2018 ◽  
Vol 13 (4) ◽  
pp. 119-130
Author(s):  
Nataliia Zachosova ◽  
Nataliia Babina ◽  
Volodymyr Zanora
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Security Management ◽  
Economic Security ◽  
Financial Intermediaries ◽  
Financial Security ◽  
Advantages And Disadvantages ◽  
Banking Institutions ◽  
High Level ◽  
Conceptual Foundations

The effective management of economic security of financial and banking institutions at the application level is not possible without formulating the conceptual foundations of this process in the research and methodological plane. With that, the management system should take into account the specifics of financial intermediaries, which requires the development of specific research and methodological approaches. The purpose of the study is to generalize the conceptual framework for economic security management of banking and parabanking financial institutions as an integral part of ensuring the economic security of the financial market and financial security of the state. The authors propose an algorithm for managing the system of economic security of banks and other financial institutions, and identify the features, advantages and disadvantages of models for providing economic security. It is proved that managing the economic security system should consider the type of an institution, its size, the adequate personnel availability, and financial, information and material support. Consequently, effective economic security management should ensure its high level, and, therefore, partially solve the problem of regulating banking security, the financial market security, and, as a consequence, the financial security of the country.

scholarly journals Financial instruments of raising household savings for investment purposes: pragmatic and analytical aspects

2018 ◽  
pp. 33-46
Author(s):  
Tetiana Kizyma
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Insurance Companies ◽  
Household Savings ◽  
Financial Instruments ◽  
Financial Condition ◽  
Bank Deposits ◽  
State Pension ◽  
Theoretical Foundations ◽  
Credit Institutions

The article illustrates that the process of reforming Ukraine’s economy has been accompanied by an increasing interest in examining and analyzing the major instruments of household savings, as well as ways of their transformation into investment resources. Thus, the purpose of the study is to deepen the theoretical foundations and develop practical recommendations for transforming savings of national households into investment instruments on the Ukrainian financial market. It is formulated that the major instruments of household savings in Ukraine include: bank deposits, funds in the accounts of non-bank financial and credit institutions, cash money in national and foreign currencies, securities, gold, etc. It is pointed out that bank deposits, which are considered to be traditionally more popular and attractive instruments of savings for Ukrainians, not only have significant advantages, but also a number of disadvantages. The non-bank financial and credit institutions, which cooperate closely with the household sector, include credit unions, life insurance companies, and non-state pension funds. However, their activities cannot be compared with banks when it comes to raising household savings. As shown in the article, the insufficient use of such financial instruments as securities by national households is a sign of distrust towards the state and stock market institutions (only about 1-2 % of Ukrainians are willing to invest into stock market instruments). The study indicates that, since the current institutional framework is imperfect, Ukraine’s households cannot function as strategic investors of the national economy. In order to enhance these processes, state executive and administrative bodies should promote national projects aimed at improving financial condition of Ukraine’s households and strengthening their investment presence on the Ukrainian financial market.

scholarly journals FINANCIAL MARKET OF UKRAINE - A MODERN LOOK AT THE ESSENCE OF THE CONCEPT

2019 ◽  
pp. 13-20
Author(s):  
I. Blahun
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Basic Function ◽  
Insurance Companies ◽  
Financial Resources ◽  
Financial Intermediaries ◽  
Financial Instruments ◽  
Investment Funds ◽  
The Impact

The article presents a modern view of understanding of "financial market" concept, as the development of financial technologies gradually influences the change of paradigm of its functioning, new financial institutions, institutions of market infrastructure, financial instruments are emerging, as well as the development of forms of alternative financing. On the base of the systematization, it is determined that the term "financial market" in the current scientific literature is considered from three positions, first as a mechanism of distribution of financial resources, secondly, as a system of economic relations, and thirdly as a set of markets and institutions. As a result of the research on the contrary to the popular opinion that the financial services market and the financial market are two separate markets, it has been substantiated that the financial services market is a part of the financial market, because financial instruments are formed through the provision of financial services. The financial market and the market of financial services have common subjects - financial intermediaries (banks, insurance companies, non-government pension funds, investment funds, etc.), but at the same time the objects of these two markets are different. Financial instruments are objects for financial markets, and services – for the market of financial services. Through the process of financial services providing, financial intermediaries ensure the fulfilment of the basic function of the financial market, which is the redistribution of financial resources in the economy, thereby creating financial assets, liabilities, etc., which is the basis for the formation of financial instruments. Taking into account of the impact of fintech on the development of the financial market, author's definition was presented in this work as a system of financial institutions (market subjects), which create the conditions for transactions with financial instruments of economic agents (market objects) using appropriate infrastructure and financial technologies. Transfer of flows of financial resources in the economy at national, subnational and global levels, adequate assess of financial risks and ability to absorb exogenous and endogenous shocks were determined as a purpose of the functioning of the financial market. Keywords: fintech, financial instruments, financial institutions, financial services market, financial system, financial services..

scholarly journals Evolution of Professional Participants in Russian Securities Market

2019 ◽  
Vol 29 (3) ◽  
pp. 416-424
Author(s):  
Irina Alekseeva ◽  
Ksenia Ovchinnikova
Keyword(s):  
Stock Market ◽  
Financial Market ◽  
Public Involvement ◽  
Scientific Literature ◽  
Regulatory Framework ◽  
Securities Market ◽  
Sharp Decline ◽  
Investment Activity ◽  
Market Participants ◽  
Domestic Stock

The securities market is one of the most important segments of the financial market of any state. The development of the Russian securities market can be judged on the basis of the development of its participants, their evolution. An analysis of today’s economic scientific literature shows an insufficient coverage of the evolution of professional participants in the domestic stock market. The article considers the changes in the composition of professional participants of the securities market, analyzes the regulatory framework that have given rise to these changes. It brings forth the reasons for the changes and expectations of financial market participants from the changes, presents the dynamics of the number of over the period of 2008–2018. The article reveals a sharp decline in the number of professional participants, determines the causes of this trend. It places an emphasis on the significance of including the investment advisors in the ranks of professional participants of the securities market in order to increase public involvement in the investment activity.

scholarly journals PUBLIC DEBT MARKET AND BUDGET DEFICIT FINANCING TOOLS

2020 ◽  
Vol 1 (19(47)) ◽  
pp. 80-85
Author(s):  
Mykhailo Hantsiak
Keyword(s):  
Financial Market ◽  
Public Debt ◽  
Budget Deficit ◽  
Credit Market ◽  
Government Debt ◽  
Securities Market ◽  
Financial Resources ◽  
The Public ◽  
Debt Market ◽  
The Government

The purpose of the study is to substantiate the need to determine the essence and place of the public debt market in the financial market. Achievement is ensured by the implementation of tasks: systematization of views of domestic and foreign scientists on the essence of the place of public debt in the classification system of financial market segments; study of the structure of the financial market in terms of segments that ensure the implementation of debt financing of public debts; development of a theoretical approach to the structure of the public debt market. The article considers and systematizes the views of scientists concerning the place of the state morgue market in the financial market. The article substantiates the need to supplement the classification features for financial market segmentation in terms of complementing the target of market participants and identifying segments: the market for attracting financial resources to cover the state budget deficit (public debt market); the market for attracting financial resources to increase private capital. The concept of the public debt market is defined and its structure is proposed in general and detailed form. In general, the structure of the public debt market covers the debt securities market and the external credit market. The government debt securities market is a segment of the securities market, which in turn can also be classified. The same can be said about the external segment of the credit market. However, if the government debt securities market is fully owned by the public debt market, then the external segment of the credit market is only partially owned. The detailed structure of the public debt market is also presented. Conclusions are drawn and the directions of further scientific research in this direction are indicated.

scholarly journals FINANCIAL MARKET AS A CONSTITUENT OF SOCIAL AND ECONOMIC SPHERE OF STATE

2018 ◽  
pp. 115-119
Author(s):  
Natalia Botvina
Keyword(s):  
Financial Market ◽  
Economic Life ◽  
Financial Resources ◽  
Private Firms ◽  
Financial Assets ◽  
Financial Instruments ◽  
Demand And Supply ◽  
Country Market ◽  
Monetary Relations ◽  
Market Relations

The interconnection of social and economic life with activity of financial market of the state is exposed in the article. State of by deepening of processes of privatizing and development of enterprise, expansion of infrastructure of market relations cause the necessity of further perfection of credit and monetary relations. It also causes the necessity of creation of special sector of ménage that is connected with the circulation of securities, credit resources, currency assets and other financial instruments. Financial market belongs undoubtedly to the spheres of social and economic life of the country. Market of equities is the unchanging constituent in the structure of the financial market. In the economy of every country, there is a constant rotation of financial resources. The enterprises, organizations, private firms, corporations, state, individual managers, various financial institutes are its main subjects. Thus, some subjects have a requirement in additional funds while the others accumulate savings, which can be used for investing. The aim of financial market can be determined as the accumulation and effective placing of savings in the economy of country. Thus, a financial market is defined as money relations that arise in the process of purchase and sale of financial assets under the acts of demand and supply on the borrowed capital. Its circulation is implemented in securities.

Financial market regulation in the internal market

2020 ◽  
Author(s):  
Kern Alexander ◽  
Vivienne Madders
Keyword(s):  
Financial Market ◽  
Capital Requirements ◽  
Market Regulation ◽  
Financial Instruments ◽  
Investment Funds ◽  
Financial Market Regulation ◽  
Minimum Capital ◽  
Eu Legislation ◽  
High Level ◽  
Crd Iv

The chapter considers some of the main post-crisis European Union (EU) financial legislation from the perspective of high-level principles (Level 1) that apply to credit institutions and certain investment firms under the Capital Requirements Directive IV (CRD IV), including prudential requirements to hold minimum capital and liquidity requirements and prudential governance standards. The chapter also analyzes the EU legislation that regulates investment funds and the sale of investment products and the distribution of financial products, particularly the Markets in Financial Instruments Directive and Regulation (MiFID II/MiFIR), the Undertakings for Collective Investments in Transferrable Securities (UCITS), the Personal Retail Investment Products Regulation, and the Alternative Investment Funds Managers Directive (AIFMD).

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