The current tendencies accounting for the competition in the global financial environment

Abstract

The essence and peculiarities of the global finance competition functioning was researched in this article. The world currency and derivatives markets within the context of the world financial system were analyzed. The dynamics of these markets development was assessed in terms of counteragents, currencies, currency pairs and financial instruments. The principles of the Financialization is defined and outlined by means of scrutinizing and summarizing the concepts of the economics such as Greta Krippner, Gerald Epstein and others, as well as its role and part in the formation and functioning of the global financial competitive environment. The inherent features of competitive relations, as well as the inalienable characteristics of a competitive market were defined and thoroughly grounded. Within the context of Adam Smith's competition theory, both the outstanding aspects and nature of competition were given a detailed description. BIS's (Bank of International Settlements) recent background research into the world financial market depicted precipitous soar in financial transaction, especially a striking discrepancy between the current amount of transactions and those of the end of the last century. On the basis of this analysis, the most tradable financial instruments on the world derivatives market, which is a branch of the world financial market, were defined and their driving forces were analyzed. Additionally, the financial transactions were also analyzed from the perspective of the crucial financial actors on the market.