Russian Journal of Economics and Law (Jun 2017)
Review of changes in the regulation of derivatives in compliance with the directive No. 2014/65/ЕС “The Markets in Financial Instruments Directive”
Abstract
Objective: to identify and analyze the changes in the legal regulation of financial markets in the EU, which occurred as a result of continuous reforms, one of the key steps of which was the adoption of Directive 2014/65/EC “On financial tools markets”. This document defines the framework for transactions with derivative financial instruments.Methods: formal-legal, comparative, historical, analytical methods of scientific cognition.Results: it was found that Regulation No. 600/2014/EU of the European Parliament and of the EU Council “On the financial tools markets” introduced the trading obligation to transactions with derivative financial instruments, that is, the rules on signing contracts on a certain type of regulated platforms. These platforms include regulated markets, multilateral and organized trading platforms, as well as similar platforms registered in the third states. The delegated regulations of the European Commission define the criteria for the diffusion of trading obligations onto various types of financial derivatives. At the moment it is impossible to fully evaluate the innovations results, as most of the provisions and secondary legal acts have not yet come into force or have not been adopted. However, it is clear that the reform of 2014 will not leave the derivatives market in its previous state. Directive No. 2014/65/EU and Regulation No. 600/2014/EU “On financial tools markets” produced a revolution for them. The trading obligation imposed by these documents has forced the parties, involved into transactions with derivative financial instruments, to adopt a new perspective on their activities. As a result of the innovation, a huge part of transactions with them has to be transferred onto regulated platforms and the OTC contracts for many will become illegal.Scientific novelty: the article for the first time analyses and studies the reform of the derivatives market in the EuropeanUnion, as well as peculiarities of functioning of regulated platforms.Practical significance: the findings and provisions of the article can be used for the preparation of normative legal acts in the sphere of financial law of the Eurasian Economic Union, as well as for the improvement of the legislation of the Russian Federation.
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