Analysis of global and domestic markets of derivative financial instruments

Abstract

The article is devoted to the consideration of the main trends in the development of the world and domestic markets of derivative financial instruments. On the basis of the statistical base and analytical reports of the World Bank and the International Bank for Reconstruction and Development, the International Association of Swaps and Derivatives, as well as the National Commission for Securities and the Stock Market, an analysis of the structure of the global derivatives market was carried out, with a distinction between the exchange and over-the-counter parts of it and compared with the domestic analogue. A comparative analysis of the main characteristics of the functioning of the over-the-counter and stock market segments was carried out. The main threats to the over-the-counter derivatives market have been identified. The advantages of the functioning of the stock market from the position of protection of market entities from the influence of possible risks are considered. The analysis of monographic studies and periodical materials of domestic and foreign economists made it possible to outline the main stages of the development of the PFI market and attempts to introduce regulation in order to prevent the spread of new financial crises. The need to introduce increased requirements for the regulation of the over-the-counter derivatives market of the global and domestic PFI markets is substantiated. It has been established that Ukraine has embarked on the path to the formation of an appropriate regulatory and legal field, as well as the implementation of regulatory measures of countries with developed financial markets, which is evidence of an attempt to actively develop the domestic PFI market, and therefore readiness to preserve financial stability by timely compliance with all conditions of safe use derivatives, which is one of the priority areas of activity of the regulators.

Keywords

• global derivatives market
• derivatives market regulation
• over-the-counter pfi market
• stock market
• derivative financial instruments
• risks
• financial stability