Financial Market Instruments Research Articles

The Effects of Green Technology, Clean Energy, and Green Finance on Faith-Based Investments: Evidence from Islamic Stock Markets

This study examines the long-term relationship between Islamic Stock prices, faith-based investments, green technology, clean energy, and green finance. The variables used in the study are the Clean Energy Index for clean energy, Green Bond Index for green finance, the Renewable Energy and Clean Technology Index for green technology and the Islamic Market Index for Islamic Stocks’ closing prices, as explained by S&P. The utilized research model is the NARDL model, and the findings reveal a cointegration relationship between faith-based and green finance instruments. Green finance instruments are unsuitable for the research period to be used as a safe-haven or effective diversification instrument for faith-based portfolios. Comprehending faith-based investments’ relationship with other green finance assets is critical in supporting sustainable development with financial market instruments, which provide environmental and societal benefits. As a result, apprehending the relationship between faith-based investments and green finance instruments can contribute to increasing social and environmental responsibility awareness in financial markets. The study’s outcomes hold significance in understanding how investors in financial markets react to positive and negative shocks, estimating these effects, efficiently managing portfolios comprising green financial assets and faith-based investments, and formulating an appropriate investment strategy.

LONG-TERM LENDING FOR PUBLIC-PRIVATE PARTNERSHIP PROJECTS: OPPORTUNITIES AND PROSPECTS

The article is devoted to the topical issues of long-term lending to public-private partnership projects in the context of a permanent shortage of budget funds and the financial instability of business entities. The purpose of the study is to highlight the problems of attracting long-term credit resources by partners in the process of implementing joint projects and to outline areas for their solution. To achieve this goal, general scientific research methods and analytical data from the State Statistics Service of Ukraine and the National Bank of Ukraine were used.The article reveals the main problems in the development of the debt financial instruments market, which make partnership projects between the state and business unattractive for investors. It is argued that the possibility of providing long-term loans depends not only on the actions of the bank, but also on the monetary policy of the NBU, which should ensure the introduction of preferential reserve requirements for banks, the provision of irrevocable deposits, the NBU's approval to refinance banks for the implementation of PPP projects, and the introduction of preferential lending by banks to PPP projects. The authors emphasize the priority importance of the state policy on the development of programs for the availability of long-term loans in the process of implementing partnership projects. Given the underdevelopment of financial instruments for public-private partnerships, the author substantiates the need to use innovative instruments – credit derivatives, the effectiveness of which is confirmed by international experience. The article offers a list of the most effective financial instruments that should be used at each stage of the project life cycle.It is concluded that the recommendations provided will ensure that the partners attract the necessary amount of financial resources in the process of long-term project implementation and will allow them to obtain a synergistic effect from such cooperation.

Development of a cyber-physical system in Python and QLua for trading on the QUIK platform on MoEx in line with the digitalization of the economy

The article discusses theoretical approaches to modeling stock trading robots — cyber-physical systems in the conditions of innovative transformations and large-scale digitalization of the economy and financial sector. The relevance of the study is that currently there is a tendency to increase the share of algorithmic trading on the stock exchange, and the share of trading robots based on artificial intelligence is increasing. A fresh technological trend is the use of stock trading robots — cyber-physical systems based on cognitive modeling, artificial intelligence algorithms operating in digital ecosystems. Robotic algorithms compete with each other, tracking the dynamics of submitted orders, looking for "densities" in the order book, changing the frequency of purchase/sale transactions, monitoring the entire market of financial instruments, tracking spikes in volatility, catching transactions of large players in the table of impersonal transactions, adjusting the parameters in your scripts online. The scientific novelty lies in the fact that in the presented study a deep learning model DL model "Random Forest" was formed, which calculates the forecast of the closing price of the SiZ3 futures contract on the required time frame. The practical signifi cance of the study is that the results obtained have been implemented and are actively used in stock trading. The criterion for the success of the predictive properties of the DL model was the value of the average forecast error (MAE). The proposed DL model uses the best decision tree, which has optimal hyperparameter settings, for example, the depth of the tree is six layers, the number of estimators (trees) in the ensemble is ten. In the experiment, the hyperparameters of the neural network did not change; the input parameters to various trees were selected randomly by the algorithm. The DL model showed high forecast accuracy.

Արդյո՞ք բավարար են կենսաթոշակային ֆոնդերի եկամտաբերությունները/ ARE PENSION FUND RETURNS SUFFICIENT?

Mandatory pension funds are institutions that solve an important social problem. They have the function of paying future pensions to participants through the funded part of the pension system. For this reason, society is sensitive to fluctuations in fund returns, and they become the subject of widespread debate. The author tried to trace changes in the profitability of mandatory pension funds during 2014-2023. The paper attempts to evaluate the risk-weighted returns of funds, estimate real returns, and compare them with the returns of other financial market instruments such as government bonds and deposits.

Развитие национальной самоидентификации инструментарием мегапроектного финансирования экономики

Introduction. The article analyzes the interpretations of the concept “megaproject” and proposes the author’s definition of the concept presupposing explicit and implicit beneficiaries and ensuring high-tech products with a high potential for market sales. Purpose. Based on the results of the regression analysis, the paper draws conclusions and describes the behavior strategies of the explicit and implicit beneficiaries in the megaproject when its results are being registered and after it. Materials and Methods. Theoretically and methodologically, the paper refers to the works of scientists examining megaprojects. The regression analysis for thirty constituent entities of the Russian Federation made it possible to determine that the indicators of their budget revenues illustrate that cash flows determined by the investment return from the investments in fixed capital go through the budget system with a minimal tax burden. Results. It has been found that in the analyzed period, the return on investment in fixed assets was determined by the investors’ speculative motives when using financial market instruments under personal guarantees of the heads of the constituent entities of the Russian Federation. At the same time, the applied financial market instruments gave the minimum inflow of taxes into the budget system of the Russian Federation. Conclusions. In its model, Russia is closer to the continental civilizational type; the balance in the socio-economic relations determined by megaprojects with their maximum contribution to GDP could be achieved when national self-identification is distinctly shaped; national self-identification could only be developed with due regard to the quantitative and structural composition of population.

Население как участник фондового и срочного рынков: ожидания, риски, перспективы

The relevance of the article is due to the fact that the instruments of the stock and futures markets are currently considered by the population as an attractive alternative to traditional investments in bank deposits. This category of inves-tors, which ten years ago did not have any noticeable weight on stock and fu-tures markets, is gradually turning into active participants in the securities market, capable not only of ensuring the efficiency of the Russian economy, but also of overcoming market risks. The subject of the study is the activity of retail investors in the domestic finan-cial market during the period of tightening anti—Russian sanctions. The pur-pose of the work is to consider the specifics of citizens' investment behavior, identify the main trends of the current period and factors contributing to the further development of the investor protection system and increase citizens' confidence in financial markets. The article identifies the peculiarities of the de-velopment of the retail segment of the domestic market in the period 2022–2023, and on this basis it is concluded that the sanctions regime has caused significant damage to the Russian financial market, however, the degree of im-pact of the negative processes constraining its development turned out to be less significant than predicted by most researchers. The continuation of the regulator's work in terms of developing additional measures to protect inves-tors' rights and improve financial culture, coupled with the implementation of initiatives by trade organizers and the professional community, will make it possible to counteract the spread of unfair trading and marketing practices, improve the investment climate in the country, and strengthen the confidence of private investors in financial market instruments and institutions.

«Зеленое» финансирование развития городского транспортного комплекса: тенденции и проблемы

The article examines the features of green financing, analyzes the trends of its development in the Russian Federation, highlights the factors, problems and features of green financing of the urban transport complex at the present stage. Based on the generalization of theoretical approaches, priority tasks for the development of the market of green financial instruments have been identified to ensure the implementation of the Geo-agenda in the development of the urban transport complex, which should take into account the specifics of cities, strategies and prospects for their development, financial and regional potentials of local budgets, business and the population.

Main problems of the derivatives market in Ukraine and ways to solve them

This article highlights one of the key problems of the financial market of Ukraine – the development of the derivative securities market. The relevance of the study of the problems of the market of derivative financial instruments based on the example of Ukraine is substantiated. Special attention is paid to the study of the scientific works of Ukrainian researchers and scientists, their results and the significance of these works for Ukraine. The article also highlights interesting approaches and relevant information on the basis of which this research was conducted. The main types of derivative securities (forward and futures contracts, options, swaps and warrants) and their key features are characterized – essence, terms of conclusion, functions and significance for the market, roles of participants in these operations, etc. The use of these derivatives is explained, with advantages and disadvantages indicated. The principles of the functioning of the derivatives market in Ukraine are also described and researched, the main types of derivatives concluded on the Ukrainian financial market over the past few years and the prevailing trends in this area are mentioned. With the use of statistical data and comparative analysis, the dynamics of the main indicators of the Ukrainian derivatives market were studied, compared with some indicators inherent in the world derivatives market, and graphically interpreted. With the help of general scientific methods of synthesis, induction and deduction, the main differences between the indicators of the Ukrainian and world markets of derivative financial instruments, as well as possible reasons for their appearance, were determined. The main internal shortcomings of the derivative securities market in Ukraine are highlighted. The influence of the mentioned shortcomings was studied, the negative consequences of the pandemic and full-scale war on the dynamics of these indicators were proved. In contrast to the described shortcomings, attention is focused on successful participants of the derivative securities market and the results of their activities. Key trends were also displayed graphically. In conclusion, the intended strategy of our state in solving the existing problems of the derivatives market is described, and its own ways of solving them and accelerating the development of the derivative financial instruments market in Ukraine are proposed.

FORECASTING INDONESIAN ISLAMIC BANK (BSI) SHARE PRICES USING THE FUZZY TIME SERIES CHENG METHOD

Shares were one of the most popular financial market instruments. In Indonesia, stock market activity continued to increase so that stock investment was in great demand by the public, especially in the banking sector. Indonesia had a majority Muslim population. Based on this, Indonesia had good potential in the field of Islamic finance, especially Islamic banking. One of the Islamic banks that had achieved positive performance was Bank Syariah Indonesia (BSI). BSI's stock price every day from February 1, 2021, to January 11, 2023, tended to experience a downward trend and fluctuated, making it difficult for investors to see the prospects of a company in the future. For this reason, a forecasting technique was needed. A good forecasting method used for data with trend patterns both down and up was Cheng's Fuzzy Time Series (FTS) method. So, this study used Cheng's FTS method to predict BSI's share price in the future. The calculation of the accuracy of the prediction results in this study used Mean Absolute Percentage Error (MAPE). The results showed that the forecasted value of BSI's share price for the period January 12, 2023, to January 31, 2023, was constant at 1,353.267 million with a MAPE value of 3.09%.

The Narrow Channel of Quantitative Easing: Evidence from YCC Down Under

ABSTRACTWe study the recent Australian experience with yield curve control (YCC) as perhaps the best evidence of how this policy might work in other developed economies. YCC seemingly worked well in 2020, when the market expected short rates to stay at zero for a long period of time. As the global recovery and inflation gained momentum in 2021, liftoff expectations moved up, the Reserve Bank of Australia purchased most of the targeted government bond outstanding, and the target bond's yield dislocated from other financial market instruments. The evidence suggests that central bank bond purchase programs can operate more narrowly than previously considered.

Financial Indicators of Sustainable and Financialised Municipal Water Infrastructure

Organisations that operate utility infrastructure, such as water and electricity, within the municipal context have choices to make in terms of their preferred business model. Such choices include their business goal, implementing agent, and market structure. This study focuses on two of the possible business goals, namely to deliver a ‘sustainable service’ or a ‘financialised service’, defining these terms and exploring the general characteristics of the types of organisations involved in each, such as ownership profiles and exposure to financial market instruments. The study then goes into detail for two relevant case studies, which are Joburg Water, South Africa as a sustainable service, and Thames Water Utilities, England, as a financialised service. It takes a closer look at ten specific financial indicators calculated from the 2021/22 financial statements of Joburg Water and Thames Water Utilities. The study concludes with a tentative proposal for the financial indicators of sustainable and financialised services.

Relationship between Oil Prices and Russia Exchange Indices: Analysis of Frequency Causality

One of the important research topics is the potential impact of changes in oil supply and demand on current and future price movements or financial market instruments. Especially in developing countries such as Russia, which is an oil and natural gas exporter, sanctions on oil exports affect the country on a macroscale and businesses on a microscale. In this context, the aim of the aforementioned study is to examine the causality relationship between Brent oil price, which is an important input for the chemistry and transportation sectors, and the Moscow Stock Exchange MOEX Chemicals, MOEX Transport, and MOEX Financials indices using Breitung and Candelon frequency causality analysis. For this purpose, monthly data for the period January 2015–December 2022 were analysed first with traditional Granger causality analysis, Toda and Yamamoto causality analysis, and finally with Breitung and Candelon frequency causality analysis. Traditional Granger causality analysis (Toda and Yamamoto causality analysis) revealed a bidirectional causality relationship between Brent Petrol and the MOEX Chemistry and MOEX Finance Indices. However, there is no causality between Brent Petroleum and MOEX Transport. As a result of the Breitung and Candelon frequency causality analysis, causality has been determined from oil prices to stock prices in the chemical sectors, both in the short term, in the medium term, and in the long term. Only short-term causality has been found between Brent oil prices and stock prices in the financial and transportation sectors.

Intergenerational sharing of unhedgeable inflation risk

We explore how members of a collective pension scheme can share inflation risks in the absence of suitable financial market instruments. Using intergenerational risk-sharing arrangements, risks can be allocated better across the scheme's participants than would be the case in a strictly individual- or cohort-based pension scheme, as these can only lay off risks via existing financial market instruments. Hence, intergenerational sharing of these risks enhances welfare. In view of the sizes of their funded pension sectors, this would be particularly beneficial for the Netherlands and the U.K.

Financial Market Instruments and Economic Development in Nigeria (1988- 2020)

Financial market provide institutional and instrumental framework that facilitates the mobilization of short to long term funds from the surplus units (savers and lenders) and allocating such mobilized funds to the deficit and real sector of the economy for productive purposes. The main objective of this study is to examine the effect of financial market instruments on the economic development in Nigeria. The specific objectives are to determine, examine, ascertain and assess the effects of stock market instruments, debt instruments, commercial instruments and treasury instruments respectively on Economic Development in Nigeria which is proxied by Per Capita Income. Econometric techniques including Augmented Dickey Fuller (ADF) and the Philip Perron Tests for Unit Roots and Ordinary Least Square (OLS) were applied on data sourced from the Stock Exchange Daily Official Listing (SEDOL) and fact book. The result of the study show that stock market instruments, debt instruments, commercial instruments and treasury instruments have positive and significant effect on Per Capita Income. The study therefore concludes that financial market instruments have positive and significant effect on per capita income and standard of living of average Nigerian. This researcher recommends that the relevant regulatory agencies for the capital market should focus on enhancing the efficiency and transparency of the market in order to boost and strengthen investors’ confidence which had regrettably posed a major setback to the Nigerian business environment. Capital market growth inducement channels should be introduced to support the much needed robust and responsive financial system to achieve the desired effect on economic development. Regulators of the market and financial institutions should be actively involved in making systemic checks and appropriate policy innovations to ensure a capital market led economic development. Finally, government should give adequate

Buy-ins, buy-outs, longevity bonds, and the creation of value

AbstractLongevity risk is the risk that people on average will live longer than expected. That potential increase in life expectancy exposes corporations and pension funds to the risk of having insufficient funds to pay a more extended stream of annuity benefits. Buy-ins, buy-outs, and longevity bonds provide pension funds with insurance and financial market instruments to hedge their longevity risk. The most straightforward instruments and the most robust markets are currently for buy-ins and buy-outs. The model developed here shows that these instruments transfer value to pension holders and, other things being equal, would not be used by firms since shareholder value is reduced. The analysis, however, also shows that these instruments can be used to solve the under-investment problem created by underfunded pension plans and so increase not only the pension fund value but also the corporate stock value.

Investment decisions in the real estate market using instruments to reduce the level of financial risks

The real estate market is an important element of the system of market relations, acting not only as an object of ownership, but also as an object of investment. Real estate investments are one of the key aspects of ensuring the functioning of the economic system and have a multiplicative effect. The article substantiates the role of real estate investments as the most important catalyst for economic development. The structure and dynamics of investments in commercial real estate were analyzed, which led to the conclusion that the overall increase in the volume of investments in this market is accompanied by a reduction in the share of foreign capital in investments. Various forms of investment are considered and their distinctive features are investigated in the context of the fundamental characteristic features of each of the forms. Special attention is paid to investment decisions related to investments in real estate and implemented using financial market instruments. Based on a number of characteristics, the presented forms of investment were compared, their profitability, growth prospects and possible risks were determined. Based on the analysis, the directions of investment strategies in the real estate market are formulated, which are relevant in the current market conditions.

Forecasting PT Bank Central Asia Tbk Stock Price Using ARIMA Model

Stocks are one of the most popular financial market instruments. Issuing shares is one of the company's options when deciding to fund the company. On the other hand, stocks are an investment instrument that many investors choose because stocks are able to provide an attractive level of profit. Autoregressive Integrated Moving Average (ARIMA) model is a method used to predict the stock price of PT Bank Central Asia Tbk. This analysis shows that ARIMA (3,2,0) is the best model for forecasting the stock price of PT. Bank Central Asia Tbk because it has the smallest MAPE among the other model which is 14.03%. This forecasting is very useful for the investor as a guideline in the future for making effective and efficient decisions about stocks on PT Bank Central Asia Tbk.

THE IMPORTANCE OF HEDGING IN FINANCIAL ACCOUNTING

The purpose of the study is that in the financial market, in addition to the money market, there are markets for the purchase and sale of assets in future periods. However, the parties to such contracts have the right or obligation to sell or purchase a financial asset at a fixed price on a fixed date. Such contracts are called derivative financial instruments, since it is believed that the contract price is directly related to the change in the price of the underlying asset. Derivative financial instruments help not only to fix future prices, but also to insure against unfavorable exchange rate volatility. To fulfill the latter function, the country's economy must have a market of derivative financial instruments and a market of underlying assets.Methodology. The methodological basis of the research is the dialectical method of cognition. In the process of research, both general scientific methods (analysis, synthesis, deduction, classification, systematic approach) and special methodological techniques (accounting and tax accounting) are used.Originality / value of the research. In the conditions of instability of the world economy, the accounting of derivative financial instruments as a mechanism of crisis management and regulation in the country, stabilization of the efficiency of business portfolios of economic entities occupies an important place. The practical significance of this scientific article, designed to reflect the specifics of the organization of accounting for financial instruments in the financial risk management system of business owners in an unstable financial crisis, is considered to be quite high.Therefore, in this scientific article we will give a description of theoretical scientific and practical approaches to the peculiarities of accounting for financial instruments.Findings. The article reflects the methods of regulation of accounting for derivative financial instruments through the standards of IFRS 32 «Financial Instruments: provision of information», IFRS 7 «Financial instruments: disclosure of information», IFRS 9 «Financial Instruments». Based on the data, the essence of hedging will be reflected in the accounting and reporting system.

Impact analysis of the factors influencing the development of the alternative finance market in Moldova

Abstract The emergence of a decentralized peer-to-peer platforms that matches lending and borrowing without collateral requirements and bank lending channels allowed to develop the new market of alternative financial instruments. In this paper, we aim to analyze the origins and nature of alternative finance, consolidate, and categorize the theoretical foundation of the alternative finance market, determine the taxonomy of its instruments, and identify and critically analyze the strategies and legislative framework for the development and functioning of the alternative finance market in the Republic of Moldova. The theoretical and practical significance of this research lies in the development of an econometric model that examines the influence of various groups of factors (regulatory, social, economic development, information technology) on the per capita volume of the alternative finance market. The obtained data enabled the identification of priority areas and specific proposals for the development of conditions and the potential of alternative finance in the Republic of Moldova.

Prospects for digitalization of sustainable development projects in the Russian Federation

Green bonds have become the most notable innovations in the field of sustainable financing over the past 10 years. The article discusses the problems of issuing and circulation of such financial market instruments, examines the opportunities that modern financial technologies provide for the development of this market segment. Technologies for investing in green bonds and sustainable development bonds remain burdensome and technologically complex, as they involve going through many stages and attracting a significant number of participants. In addition, to date, there has not been a liquid and transparent market for retail investors, and economic sanctions against Russia cut off the country from the financial markets of other countries for an indefinite time. However, the tools of sustainable development can now be successfully applied if innovative technologies such as blockchain technologies, smart contracts, the Internet of things and digital assets are used. The purpose of the study is to formulate recommendations for the progress of the sustainable development system in Russia, as well as to propose a mechanism for the tokenization of sustainable development bonds to attract and place funds from small investors in order to solve social and environmental problems of the Russian economy.