Abstract
The purpose of the paper is to determine the current state of the global derivatives market in the context of structural and dynamic processes and to substantiate the prospects for its further development, given the existing global challenges. Methodology. The research is based on analysis and comparison of data from the Bank for International Settlements (BIS) for the period from 2000 to 2020. The paper uses methods of correlation analysis to establish the relationship between the state of the world economy and the size of the derivatives market. The method retrospective study of the dynamic series was applied to structure information of derivatives world market development. To reveal the features, the specifics of the usage of various mechanisms and tools for the distribution of derivatives, and established the differences between exchange and over-the-counter trading article applies elements of structural analysis. The results of the study showed the importance and scale of the global derivatives market for the global economy. They allowed us to reveal a close relationship between market size and world GDP and assess the structural features of the market. Accordingly, the derivatives market development has been periodized since 2000. Its structural features have been revealed in terms of the type of transactions, underlying asset, place, and currency of derivatives trading, their maturity, etc. Consequently, a significant predominance of OTC derivatives trading has been found, due to greater flexibility of instruments and less formalized control. The predominance of different types of derivative instruments in different segments of the market has been determined. Practical implications. The obtained conclusions are of interest in terms of monitoring the world derivatives market. They allow the correct assessment of the processes occurring in the market and respond to them rationally. The scientific confirmation of the connection between the size of the world economy and the market for derivative financial instruments is of particular practical importance. Systematization of market reform directions allows a better understanding of the ongoing processes in the over-the-counter derivatives market. Value/originality. The value of the article lies in the complexity of the analysis of the state and prospects of the derivatives world market development. It is provided through a detailed structural analysis, extrapolated to measures of market system transformation, as well as possible prospects for its further development.
Highlights
In the 21st century, globalization and digitalization have deeply permeated all aspects of human life
The objectives of the study are subordinated to achieving the purpose and focused on the following aspects: determining the importance of derivatives in the world economy; analysis of the current state of the world derivatives market and identification of its structural features; coverage of the processes related to the reform of the global derivatives market; substantiation of prospects for its further development
The analysis examined the correlation between the size of the world GDP (x2), the derivatives market (x3) with the time factor (x1), as well as the correlation between the components of the derivatives market with these factors
Summary
In the 21st century, globalization and digitalization have deeply permeated all aspects of human life. Due to the current importance and scale of the global derivatives market, significant scientific tasks occurred including the need for continuous monitoring of its condition, identification, and analysis of key indicators, as well as substantiation of further prospects of operation, based on existing trends and global processes. The purpose of our study is to determine the current state of the global derivatives market in the context of structural and dynamic processes and to substantiate the prospects for its further development, given the existing global challenges. The objectives of the study are subordinated to achieving the purpose and focused on the following aspects: determining the importance of derivatives in the world economy; analysis of the current state of the world derivatives market and identification of its structural features; coverage of the processes related to the reform of the global derivatives market; substantiation of prospects for its further development. Based on the result of the study, extrapolating them to the current situation in the financial market were substantiated the prospects for further development of the derivatives market
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