The theoretical basis of financial instruments research in the world economy system

Abstract

The results of research on the theoretical basis for determining the nature and role of financial instruments in the world economy system are presented in this article. The systematization of the theoretical research approaches of financial instruments in the world economy system, determination of derivatives market factors which influence the development of international business, as well as justification of scientific and practical recommendations for improvement of derivatives market infrastructure management are the purpose of this research. It has been noted that the fact that international business subjects reach their efficiency limits (in terms of income and expenses) for a number of reasons, both subjective (shortcomings of the control systems used by them) and objective (the impossibility of further reducing costs due to the limitations of existing technology production and demand for products) encourages economic actors to search for new opportunities for obtaining economic benefits including usingfinancial instruments, particularly, derivatives. In the course of the research the types of financial instruments, conditions of stable derivatives market functioning have been analyzed, as well as derivative financial instruments market factors which influence the development of the international business have been identified. Over the course of the research the peculiarities of internal and external regulation of derivative financial instruments market have been identified. The author proposes scientific and practical recommendations on derivative financial instruments market infrastructure management improving in the world economy system, in particular: 1)improving the risk management system for derivative financial instruments and basic assets with the most extensive range of participants in this market; 2)the establishment of rational requirements for the amount of equity capital of market participants, taking into account both price and interest, and credit risks; 3) improving the quality of statistical reporting standards with disclosure of information for public access; 4) reforming legal rules related to offsetting agreements and the bankruptcy of multinational corporations; 5) coordination of actions of national and international authorities in the regulation of markets for derivative financial instruments on a global scale.