Ukrainian Stock Market Research Articles

Digital Competition in Different Sectors of the Economy

The introduction of information and communication technologies (ICT) into different sectors of the economy has led to the emergence of the digital economy, defined by the “fourth industrial revolution”. Digital competition in different sectors of the Ukrainian economy is mainly seen in the creation of digital services, while global practice demonstrates the modernization of enterprises based on digitalization of production, the sales sphere and so on.Digitization and its competition in different spheres of the national economy is studied here. Namely, it is determined that nowadays digitization of the real sector of Ukraine's economy in the form of innovative production is not observed at the moment, but digitalization is more represented in the financial sector. Taking into account the current structure of the financial market in Ukraine, it was found that digitalization processes have largely affected the banking sector, which is embodied in the presence of developed Internet banking. It is found that the stock market in Ukraine currently lags far behind the banking sector in terms of the introduction of digital technologies.

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Abstract. Introduction. This article examines the domestic state loan bond market in Ukraine, taking into account the pandemic and the war with Russia. The deficit state of Ukraine's budget necessitates attracting additional funds to finance growing expenses. The government securities market is an important component of the country's financial system. The Ukrainian government most often issues bonds of the domestic state loan (OVDP), in their essence, these debt securities are an important tool of fiscal policy. Circulation of bonds in Ukraine is carried out exclusively in electronic form. The largest volumes of issuance of debt securities were recorded in 2014 and since 2019 till 2021 years. These years were a crisis for Ukraine, and the need for additional resources is justified. The work analyzed that the main buyers on the OVDP market are banking institutions and non-residents, while individuals do not have sufficient knowledge about the possibility of investing in debt securities. Purpose. The purpose of the article is to study trends in the volume of OVDP issuance on the stock market of Ukraine during 2013-2022, as well as directions for the use of withdrawn funds. If we talk about investing in foreign currency, the article examines that it is more profitable to invest in OVDP, rather than depositing, especially the high yield of bonds denominated in US dollars. Results. The authors analyzed and demonstrated the size of the issue of OVDP on the primary market and directions of use of funds from this placement. An important economic phenomenon during the issuance of a currency OVDP is the strengthening of the national monetary unit - the hryvnia. In this way, the government can influence the stability of the national currency. However, when the bond matures, there is a reverse effect, which is why it is important to take this into account and to facilitate the maturity of debt securities to coincide with a period when foreign exchange resources are flowing into the country in a larger volume than usual. Conclusions. Conclusions were made that for the state OVDP is a significant source of financing for state budget expenditures. It is noted that domestic state loan bonds play an essential role in the development of the economy as a whole because the funds received from their issue are used to cover the budget deficit, finance investment, and social projects.

Investigation of Socially Responsible Investment Strategies Taxonomy

Purpose: To generalize a taxonomy of responsible investment strategies based on assessing the main trends in the development of SRI at the global level and by major geographical regions. Analyse the types of existing SRI strategies and rank them according to their leading positions and active use in different geographical regions.
 Design/Method/Approach: System-structural in order to generalize approaches to the typology of socially responsible investment strategies in accordance with the current assets structure managed by investment managers, including by geographical regions; systematic analysis to identify current trends and patterns in the investment processes in line with the Sustainable Development Goals (SDGs); statistical and graphical methods for quantitative and visual presentation of analysis results.
 Findings: The current mechanism of socially responsible investments distribution in comparison with traditional assets is characterized; global trends in the field of SRI are assessed; the taxonomy of SRI strategies in accordance with general scientific approaches and classifications of international investment organizations aimed at achieving the Sustainable Development Goals at the global level has been formed and generalized.
 Theoretical Implications: A comprehensive assessment of global investment processes is carried out in the context of responsible investment and achievement of the Sustainable Development Goals; the most optimal approaches to the RI strategies typology have been determined based on its current trends, the level of attraction of them in different regions in order to apply them in the impact investments programs, developing the country's profile as an investment donor.
 Research Limitations/Future Research: The the obtained results will be used in the further study of the transformation of the stock market in Ukraine based on the responsible trajectory and fractal analysis. Also, identified responsible investment strategies can serve as a basis for developing the investment profile of the impact investment donor country, as well as for highlighting priority areas for attracting investments to restore the country's economy after crises, military conflicts and other macroeconomic destabilization factors.
 The study was performed within the state budget research “Fractal model of the stock market transformation in Ukraine: socially responsible investment to achieve the Sustainable Development Goals” № 0121U100473
 Paper type: Empirical

Forecasting the net investment position based on conventional and ESG stock market indices: The case of Ukraine and Austria

This paper examines the relationship between traditional and ESG stock market indices and the net international investment position for the case of Austria and Ukraine. For these purposes, the following methods are used: variance analysis, ANOVA analysis, correlation analysis, VAR analysis, R/S analysis, and Granger causality test. According to the results, ESG indices are less volatile than conventional ones. Based on the correlation analysis, it is concluded that there is a significant direct connection between ESG indices and their traditional counterparts (0.98 for Austria and 0.68 for Ukraine). A substantial level of persistence in Austria’s investment position indicates the possibility of using autoregression models for forecasting. The results of the net investment position modelling for the case of Austria showed a statistically significant impact of stock market indices on the net investment position. But for the case of Ukraine, this impact is insignificant. This is indirect evidence in favor of poor performance of the Ukrainian stock market. Further development of Ukrainian stock market is required, because Austrian experience showed that stock market can be used as a transmission mechanism in boosting investment position both within conventional approach and ESG. Acknowledgment Alex Plastun, Mario Situm, Inna Makarenko, and Yulia Serpeninova gratefully acknowledge support from Ministry of Education and Science of Ukraine (0122U002659).

Investment Attractiveness of Capital Markets: Trends in De-Shadowing Business Deals

The article considers the issues of de-shadowing of investment agreements on the capital market, in particular, on the stock market of Ukraine. Peculiarities of investing in securities as financial assets and making financial investments with the use of securities are determined. Capital markets can develop as investment-attractive systems. Common schemes of non-transparent investment in the capital market of Ukraine are revealed — the use of securities to avoid taxation or the so-called «tax optimization» of business transactions and withdrawal of capital outside Ukraine; manipulation of the price of stock assets and the use of insider information in securities trading; issue and formation of authorized capital at the expense of technical securities; raider seizure of securities of enterprises with the use of illegal change of owners. The causal factor in the reproduction of the shadowing of capital is the existing economic and organizational and legal reasons that distinguish business in one, on the other — there are such motives as greed, the desire to get rich quick, the accumulation of initial capital by any means. This is the irrational investment behaviour of households and corporations. It has been determined that securities fraud is a common crime in the stock market. Fraud in securities is manifested in criminal offenses and civil law violations of shareholders’ rights. Insufficient efficiency of regulatory institutions to combat the shadow economy is one of the reasons for the spread of the latter. The growing role of state preventive regulation in levelling the risks of shadow capital turnover is revealed and substantiated. It is substantiated that the state, represented by regulatory authorities, should have expanded institutional and instrumental capabilities to prevent risks of financial destabilization. Such opportunities are achieved both by increasing the financial literacy of investors and prudent precautionary regulatory action. Foreign experience of de-shadowing the capital market and combating economic crime is analysed. It is determined that in foreign countries much attention is paid to de-shadowing the economy and combating economic crime. Significant work in this direction is preventive in nature. Thus the system of prevention of fictitious economic activity consists of the following structures: police bodies; specialized law enforcement agencies; tax services; customs services; financial intelligence agencies. Reducing the level of shadowing of the capital market of Ukraine will increase its investment attractiveness. This will have such positive consequences as: increasing the capitalization of professional stock market participants (institutional investors) and increasing their financial stability by increasing the size of authorized capital, increasing the market price of freely traded securities («free-float»); achievement / excess of the actual solvency margin over the previous settlement. Protected and legitimate assets of professional stock market participants will provide investment income on trusted assets at a level not lower than inflation.

Development Trends of the Securities Market in Ukraine

The relevance of the research is due to the rapid development of the securities market. Financial instruments have been improving in Ukraine for a long time, new intermediaries and market participants have been appearing. Consequently, there is a growing need for effective regulation of changes that are mainly intra-economic and can affect various spheres of public life. The work aims to identify modern features of the functioning of the Securities Market on the territory of Ukraine. Taking into account the interdisciplinarity of this topic, analysis, synthesis and induction were chosen as the leading research methods. These systems of procedures were combined primarily to form ideas about the relationship between economics and law. In this context, the first method contributed to the objectification of the properties of securities; thanks to the synthesis, it was possible to draw complete conclusions and generalisations about the directions of development of the relevant market. At the same time, the induction was used to obtain a general conclusion about the possibilities of regulating the securities market. The article provides an essential description of the concepts of “securities market” and “stock market”. In addition, the structure of the financial market was determined: the main organisers of trade and its participants. The main laws were also presented in the field of legal regulation of the securities market of Ukraine and the EU. Finally, the development was justified of the Ukrainian stock market in the context of European integration processes. The article materials are of theoretical and practical importance for bank employees, financial management specialists, credit brokers, auditors and insurance agents. Due to the availability of a description of the international practice of using financial instruments, the study may be of interest to representatives of public authorities and educational organisations. However, the approximation of the legislation of Ukraine in the field of securities circulation to European standards will remain a controversial issue for each of these groups of people

АНАЛІЗ ЦИФРОВИХ ТЕХНОЛОГІЙ ФОНДОВОЇ БІРЖОВОЇ ТОРГІВЛІ В УКРАЇНІ

Activation of investment activity for the recovery of the economy after the corona crisis requires the development of stock exchange trading as part of trading in state securities, municipal securities, corporate securities, etc. Institutional, organizational and technical conditions have not been created for the development of stock exchange trading in Ukraine. The purpose of the article is to study the current state of digital technologies of stock exchange trading in Ukraine. An analysis of stock exchange trading in Ukraine was carried out based on the analysis of general activity on the stock market, analysis of stock market segments and activities of operators of organized markets. In 2014–2017, the stock market of Ukraine was in a state of stagnation due to a decrease in trading volumes. The recovery of the activity of stock market participants took place in 2018–2021. Activity on the stock market of Ukraine is ensured mainly in the secondary segment. The share of the secondary market in the stock market of Ukraine in 2014–2021 was more than 97%. The digital technologies of the stock exchange "Perspektiva" (Electronic trading system, BIT eTrade Mail, BIT eTrade, BIT eTrade Future, BIT eTrade IPO, BIT ePayment, BIT eReport, etc.) are characterized. Further restoration of stock exchange trading in Ukraine and use of the potential of the stock market for the needs of economic recovery is possible only under certain conditions. There are an increase in the number of issuers of debt securities and equity securities, publicity of information about the stock market and stock market participants, protection of stock market participants, improvement of financial literacy of the population, improvement of digital technologies of stock exchange trading. It is possible to improve digital technologies and activate the digitization of stock exchange trading in Ukraine through the development of software products and mobile applications for all stock trading participants, the use of artificial intelligence, Big Data for the formation and organization of information on the stock market, the integration of digital technologies of stock exchange trading with state registers and open data services.

PECULIARITIES OF THE APPLICATION OF TECHNICAL AND FUNDAMENTAL ANALYSIS OF SECURITIES OF UKRAINIAN ISSUERS

Objective. The objective of the present article is to study the peculiarities of the functioning of the securities market of Ukraine, in particular its stock market sector, the outline of its main differences from the world stock markets, the determination of the peculiarities of the application of the tools of technical and fundamental analysis of securities to shares. Ukrainian issuers, as well as assess the state of the Ukrainian stock market in war conditions. Methods. The following methods were used during the research: the dialectical method of learning processes and phenomena (to analyze the peculiarities and state of development of the stock market of Ukraine); graphic (to display stock market index trends); methods of technical analysis (construction of MACD-histograms; construction of Price Oscillator (OSC); calculation of the relative strength index RSI) and fundamental analysis (multifactor forecasting of the share price); abstract-logical method (for forming the resulting research conclusions). Results. As a result of the study of the peculiarities of the functioning of the Ukrainian securities market, in particular its stock market sector, it was found that the volume of trading in shares and derivative stock derivatives accounts for less than 2% of transactions from the entire stock market of Ukraine, the greater part of which is spent on bond trading, mainly on operations with bonds of domestic government loans. A specific situation developed on the Ukrainian stock market after the war began: quotations of shares of Ukrainian issuers were suspended and both stock indices were "frozen". For almost six months, the Ukrainian stock market existed only as a government bond market, including a military bond market. Only from August 2022. quotations of shares of Ukrainian issuers on the Ukrainian Stock Exchange resumed. The volume of trade in bonds suffered a decrease due to the war, but not critically, but the volume of trade in shares of Ukrainian issuers decreased almost 5 times. Taking into account the specifics and characteristics of the securities market of Ukrainian issuers, it is most appropriate to use a combination of fundamental analysis and technical analysis approaches, but in the conditions of excessive volatility of the stock market during the war, the best results are provided by the methods of technical analysis. Multivariate predictive regression and autoregressive models were proposed to predict the BAVL share price.

DEVELOPMENT OF THE STOCK MARKET AS A FACTOR OF THE INVESTMENT ATTRACTIVENESS OF THE ECONOMY OF UKRAINE

This article identifies the role of the stock market as the basis of economic life of our country, because it is the stock market that allows you to redistribute money effectively between economic entities through financial instruments. It is noted that the stock market of Ukraine at the moment of development is at the stages of further formation, and therefore the analysis of conditions and problems of its functioning requires considerable attention. Changes in the regulatory framework, economic instability, distrust of economic entities are becoming manifestations of stock market imperfections. The article analyzes the current state of the stock market, features of the stock and extra-stock markets. Also the features and problems of the stock market, are highlighted prospects for the stock market of Ukraine, are identified and the factors that inhibit the development of the stock market of Ukraine are considered in this article. Since the instruments for ensuring the turnover of financial resources in the stock market are securities, the article states that stock instruments exist in the first and second order and highlights the share of each in the stock market of Ukraine. The real state of the stock market can be determined by the set of participants that operate there, so it is determined that the main role of major consumers and suppliers in the stock market is played by issuers and investors. The role of financial corporations, which are more likely to act as an intermediary in the extra stock market, is defined but to expand their financial portfolio, very often they issue securities on their own behalf or invest in securities of the real and public sectors of the economy. As the development of the stock market contributes to the development of the real sector of the economy, which in turn should significantly strengthen Ukraine’s economic position in the world market, a number of proposals have been identified to ensure the effective development of the stock market in Ukraine.

Фінансовий моніторинг на ринку цінних паперів України

The purpose of the article is to study the current status of financial monitoring carried out in the securities market of Ukraine. The article analyzes the activities of the entities of the State-based financial monitoring and primary financial monitoring in the stock market of Ukraine. Their main functions and tasks in the financial monitoring system are distinguished. Based on the carried out research, it is concluded that securities are often used in illegal schemes (withdrawal of assets outside Ukraine, minimization of tax liabilities, tax evasion, etc.) that precede the laundering of criminal income. One of the risky instruments of the financial market was also the purchase and sale of domestic government bonds. On the one hand, this type of securities can be considered one of the most reliable financial instruments due to its high liquidity and wide range of applications. At the same time, the high demand and peculiarities of execution of contracts concluded on the stock exchange for the purchase/sale of domestic government bonds make them attractive in schemes of legalization of illegal income, especially for public figures who must declare their wealth. Considering the nature of reports of violations of securities transactions, it can be concluded that there is a high proportion of possible schemes for legalizing dirty funds. Under martial law, there have been significant changes in the process of identification and verification of clients of the primary financial monitoring entities in order to simplify the purchase of government securities. Thus it is worth noting that the largest share of violations of financial legislation falls on government bonds, which have become available to various categories of investors (including individuals). This fact may contribute to the emergence of new schemes for laundering (legalization) of proceeds from crime. Therefore, the entities of the State-based financial monitoring should develop a system of hedging risks regarding the placement of government bonds among different categories of investors. This is especially true of the over-the-counter market. It is worth noting that this segment of the stock market is under the partial control of the national depository of the NBU. Therefore, it is proposed to create an entity in the securities market that would adopt the functions of controlling and preventing fraudulent and manipulative actions with securities.

Information Support of Investor Behavior in the Stock Market

The Ukrainian stock market being at the initial phase of formation, its low performance results in the inattractiveness of the Ukrainian economy for domestic and foreign investment. With poor awareness of theoretical principles underlying stock market operations, participants of the domestic stock market require advanced professional skills and competencies, especially ones related with information support. 
 In focus of the article are applications of statistical methods in decision-making by investors in the stock market. A detailed description of the stock market performance in Ukraine is given. The barriers on the way to obtaining comprehensive information on partners, subject of transaction and stock market conjuncture in Ukraine are determined. A scheme of statistical support for stock market analysis and forecasting is proposed; the objectives of statistical analysis of the stock market for various investor categories are outlined; the phases of assessment of the issue’s investment attractiveness are determined, with providing its algorithm. The types and causes of risks immanent in the stock market events are summed up. 
 The proposed approach allows for creating and using statistical information to justify the choice of market segment and a particular issuer whose securities, once purchased, should contribute to the investor’s goal. Statistical assessment of phenomena and processes in the stock market and its modeling and forecasting on the appropriate statistical basis will increase the efficiency of investment, which should have a positive impact on the economic development.

Фондовий ринок України: перспективи розвитку і світовий досвід державного регулювання

The Ukrainian stock market has a huge potential for development, but many systemic problems hold it back. The purpose of the study was to develop proposals for the use of international experience in regulating the stock market of Ukraine. To achieve the goal, the current state of development of the stock market of Ukraine was analyzed and its main problems were identified. It is revealed that the nominal indicators of the volume of the stock market have been decreasing since 2015, but qualitatively the market is developing. The number of organizers of exchange trades and the number of new issues of securities decreased, many licenses to work on the stock market were revoked. At the same time, the responsibility of exchange traders is growing, information sharing is improving, and most traders adhere to accepted trading principles. The article analyzes the legislative changes in the regulation of the stock market, which have occurred since the signing of the Association Agreement between Ukraine and the EU. Separately identified elements of the stock market and technological processes of stock trading, requiring increased government regulation. Despite the increased level of institutional independence of the NSSMC and improvements in depository and clearing activities, the current legal framework allows owners of large businesses to forcibly buy out minority shareholders' shares. There are almost no shares of large profitable enterprises for free sale, and the level of monopolization of key sectors of the national economy is too high. The results of the analysis of U.S. laws and EU directives regulating the operation of stock markets, allowed to formulate proposals for the use of the experience of developed countries in the practice of reforming the stock market in Ukraine. In particular, changes are proposed regarding the obligation of issuers to ensure a minimum free float of their securities, strengthening accountability for violations on the stock market, streamlining the work of investment companies (funds) of various types, investment incentives in the real economy, protecting investors' rights and providing large stock exchanges with the status of self-regulatory organizations. Proposed measures for the development of legal regulation of the Ukrainian stock market will bring us closer to ESMA standards, to sign a Multilateral Memorandum of Understanding concerning consultation, cooperation and the exchange of information with IOSCO, increase overall market capitalization and liquidity of the market and allow the Ukrainian economy to attract capital on favorable terms.

Certain aspects of current state of domestic financial market

Introduction. The financial market, as a combination of exchange and redistribution relations associated with the processes of purchase and sale of financial resources is a complex system that is an indicator of the development of the economy as a whole. In the context of global challenges, the development trends of the financial market and its components are expanding. The securities market today occupies an increasing segment of the financial market, despite the fact that it is under development. Recently, it is characterized by a high level of dynamism. And already now it has positive results for the participants. Purpose. A study of the securities market, the structure of its financial instruments and the circle of participants. Results. Modern financial processes are characterized by the emergence of new financial instruments and technologies, which expands and forms an alternative to the placement and attraction of financial resources outside of banking institutions and increases the circle of participants. An example is the emergence of Internet trading. Internet trading is a system of securities work that gives the investor access to exchange information, and also makes it possible to conclude transactions on the purchase and sale of securities on the exchange in real time using a special certified program installed on a personal computer. The expansion of the range of financial instruments that contribute to the increase of the circle of participants in the financial process in the stock market occurred at the expense of Bonds of Internal Government Loans of Ukraine, whose income rates are higher then bank. They became the first hryvnia instruments included in the global indices of debt securities MVIS (MV Index Solutions. Also in October this year, the National Commission on Securities and Stock Market decided to allow the circulation of foreign securities in Ukraine. As a result, today Ukrainian investors can use the opportunity to invest in 85 securities of foreign issuers. All this makes it possible to obtain additional financial resources for both individual (households) and collective entities (communities). Conclusion. Domestic government bonds are effective financial instruments for the majority of participants in the investment process in the stock market are the first hryvnia instruments to be included in the the global MVIS debt securities indices. There is also a tendency to expand the circle of participants and the structure of financial instruments of the Ukrainian stock market due to the possibility of purchasing state securities by territorial communities, as well as admission of foreign securities by the Cabinet of Ministers of Ukraine.

Influence of world stock markets on the development of the stock market in Ukraine

Viewing the development of the stock market in Ukraine, the economy, which world financial organizations characterize as small and open, is largely determined by the trends formed by the global stock markets and leading stock exchanges. Therefore, the study aims to analyze Ukraine’s stock market, the world stock market, stock markets in the regions, and to assess their mutual influence. The study uses the data of the World Federation of Exchanges and National Securities and Stock Market Commission (Ukraine) from 2015 to 2020. Stock market performance forecasts are built using triple exponential smoothing. Based on pairwise correlation coefficients, the existence of a significant dependence in the development of the world stock market on the development of the American stock market was determined. Regarding the Ukrainian stock exchanges, only SE “PFTS” demonstrated its dependence on the US stock market. The results of the regression model based on an exponentially smoothed series of trading volumes in all markets showed that variations in the volume of trading on the world stock market are due to the situation on the US stock markets. Trading volume dynamics on Ukrainian stock exchanges such as SE “PFTS” and SE “Perspektiva” is almost 50% determined by the development of stock markets in the American region. Although Ukraine is geographically located in Europe, the results show a lack of significant links and the impacts of stock markets in this region on the major Ukrainian stock exchanges and the stock market as a whole.

Дисфункціональність ринку акцій в Україні: фактор ваучерної приватизації

The author determines the peculiarities of privatisation processes in transformational economies compared with mature ones and considers the difference of the goal – to accelerate the development of the already existing stock market, and in fact, to create the market anew. Socio-economic transformations, privatisation of property and creation of market infrastructure are prerequisites but not a guarantee for the emergence of the domestic stock market as a specific institutional phenomenon, especially in the absence of adequate incentives for public equity. It is established that some local stock markets are degraded against the background of increasing size, globalisation, liquidity, and integration of world capital markets, including the Ukrainian one. It is stated that, unlike the neighbouring post-socialist states (firstly, Poland), the stock market has not been built in Ukraine as a basis for compelling attraction and allocation of capital. Paper substantiated that this is primarily a consequence of inefficient and protracted privatisation, mainly over-the-counter sale of shares, inconsistency of state and regulatory policy, optional iterations in the development of market infrastructure, the creation irrationality of privatised enterprises (even the smallest) exclusively in the form of open joint-stock companies, which die to their objective inability to raise public capital faced inadequate financial burden and coercion of listing on exchanges. The author identified the main problems of the Ukrainian stock market laid down during privatisation: excessively consolidated share capital structure, insecurity of minorities, meagre free-float and liquidity, conditional exchange pricing, the predominance of over-the-counter circulation of shares, etc. Emphasis is placed on the consequences of the attempt to implement the squeeze-out procedure in Ukraine. In the absence of market prices and the acquisition of control by dominant shareholders long before the legislative changes, the share buyback did not protect minorities. However, it led to significant investors’ losses, termination of circulation of shares of most issuers, even greater conditionality of indices, capitalisation and other indicators of market development. It is noted that the effectiveness of the announced state plans for the development of the stock market due to the privatisation of state property remains in doubt in the absence of prerequisites for balancing economic interests between market participants, the objectivity of pricing, incentives for public capital raising and effective institutional environment. It is concluded that in Ukraine, the focus on privatisation procedures in the stock market development has no prospects in the absence of adequate incentives for the public raising of capital.

Assessing the impact of globalization on stock market in Ukraine

The article is devoted to studying the impact of globalization processes on the development of national economies. In particular, the indicators of assessing the impact of globalization on financial and non-financial indicators of countries' development are considered. Attention is paid to the place of Ukraine in the KOF Globalization Index 2020 ranking, namely in terms of economic, social, and political globalization. The author has formed three groups of indicators that allow assessing the influence of globalization on the securities market of a country. The first group includes indicators that help determine the degree of integration of the national securities market into the global one. The second group includes indicators that determine the extent to which domestic securities legislation and principles of securities market regulation are adapted to international standards. The third group of indicators is aimed at quantifying the impact of trends in the global securities market on the national. The article examines the impact of one of the indicators of the third group on the securities market of Ukraine. In particular, the correlation analysis of the relationship between the Ukrainian PFTS index and the indices of American, British, European, and Polish stock markets was conducted. The author made conclusions about the availability of the significant correlation between global stock indices, as well as the weak impact of global securities market trends on the dynamics of the Ukrainian market. It was also revealed during the analysis, that the level of correlation between indices depends on whether the financial market is in crisis. Particularly, the analysis covered three periods: the 2008-2010 financial crisis, the 2020-2021 Covid-19 crisis, and the 2010-2020 period between the crises.

The stock market infrastructure development in formation of the investment bank business model in Ukraine

Introduction. Modern trends in the world economy development cause an objective process of increasing stock market role and stimulate forming of investment bank business model in the domestic financial markets.
 Aim and tasks. The aim is to determine the role of the stock market infrastructure development in formation of the investment bank business model in Ukraine. It is necessary to perform the following tasks to achieve this goal: to determinate direction of Ukrainian financial market development and to analyze dynamic of the structure of loan and investment bank portfolio in last five years which allow to evaluate forming of the investment bank business model in Ukraine; to estimate the stock market infrastructure development through its participants.
 Results. The analysis of the loan and investment bank portfolio structure has shown rising of banks’ interest to the operations in the stock market and forming of the investment bank business model in Ukraine. But the structure of the investment portfolio of Ukrainian banks is dominated by domestic government bonds. The main reasons of such investment structure: the low total trading volume in the stock market; the absence of other financial instruments in the stock market; the low level of stock market development through the need to form stock market infrastructure. Studying the stock market infrastructure essence has substantiated the using of institutional approach to identify the level of its development. To the infrastructure participants in the stock market it is carried out organization of trade in financial instruments, clearing institutions, depository system, information, analytical and rating agencies. The infrastructural participants of the stock market in Ukraine has been characterized and analyzed.
 Conclusions. The Ukrainian stock market infrastructure is actively developing in the direction of creating conditions that brings it as close as possible to European and world standards. Such situation will make foundation of the investment bank business model forming. But conducted research has shown that it is necessary, on the one side, to stimulate the increase in stock trading volume and, on the other side, to make the stock market more accessible not only to investors, but to individuals too. The development of information technologies as an integral part of the stock market infrastructure in Ukraine has been worked out.

DIRECTIONS OF OFFENSE PREVENTION IN THE STOCK MARKET OF UKRAINE

Abstract. The article considers the legislative and regulatory documents which outline the features of detecting offenses in the stock market of Ukraine. The main offenses in the domestic stock market have been formed, and the subjects, objects and types of sanctions for offenses have been considered. It is determined that the main body in the field of detection and prevention of stock market violations is the National Securities and Stock Market Commission (NSSMC), which considers cases of offenses, regulates the activities of issuers and financial intermediaries, prepares reports on stock market operations, carries out licensing of professional participants and provides cooperation with state institutions, state and local authorities in the field of crime prevention. An analysis of offenses in the stock market of Ukraine during 2017—2019 has been carried out. The main directions of stock market offenses prevention are outlined, namely: imposition of financial sanctions, revocation or suspension of licenses of professional participants, issuance of orders and resolutions, increase of fines in the stock market, prevention of price manipulation. Proposals were made to improve the activities of the Stock market infrastructure development agency, in particular to form a single complete and detailed base of issuers, professional participants, offenses, foreign investors and large securities holders. It is proposed to reduce violations in the stock market through active cooperation with the International Organization of Securities Commissions (IOSCO). In general, we can conclude that there is no critical situation in the field of offenses in the stock market of Ukraine, as evidenced by analytical studies.
 Keywords: offenses, stock market, license, issuer, professional market participants, National Securities and Stock Market Commission.
 JEL Classification G18, K22, K40, K49
 Formulas: 0; fig.: 4; tabl.: 0; bibl.: 16.

ДЕРЖАВНЕ РЕГУЛЮВАННЯ БІРЖОВОГО РИНКУ КАПІТАЛУ В УКРАЇНІ

In modern conditions a developed stock market is a necessary element of the country's economy effective functioning as it establishes legal and economic relations between businesses that need financial resources and individuals who can provide them. The level of business activity in this sector determines the state of economic development of the country. Exchange activity in a market economy requires government regulation in order to ensure the efficiency, balance and stability of the exchange market. The purpose of the article is to analyze the state regulation of the stock market in Ukraine. The article analyzes the dynamics of trading on the stock market of Ukraine, identifies problems with its operation. The main models of state regulation of the financial services market are considered, namely: monoregulatory and polyregulatory. It is concluded that there is a multi-regulatory model of organized markets in Ukraine, as regulatory functions are assigned to the National Commission on Securities and Stock Market and the National Bank of Ukraine on domestic government bonds, money market derivative contracts, money market instruments. The state regulation of the stock market in Ukraine in accordance with the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Simplification of Attracting Investments and Introduction of New Financial Instruments" of June 19, 2020 is studied. which includes capital markets and commodity markets; improving the organization of the depository and clearing system; introduction of a trade repository and a liquidation of the netting mechanism; enshrining in law the differences between qualified and unqualified investors; introduction of green bonds as a new type of financial instruments. It is concluded that the adoption of the above law is an important step in the development of the stock market, as this law amends the law "On Securities and Stock Market" and establishes uniform rules for all exchange traders, defines the market regulator and circulation mechanism. financial instruments, radically changes the structure of the capital market and adapts Ukrainian legislation to the norms of the European Union in the field of financial services, bringing Ukraine closer to the global financial space.

Forming the Financial Reporting System of Issuers on the Basis of Taxonomy: Current Problems and Ways to Solve Them

The use of standardized financial reporting formats in a form convenient for international investors, in particular on the basis of taxonomy, is becoming increasingly common in the world, given the significant role of transparency for public investment and automated processing of branched statistical information on financial instruments. Implementation at the state level of significant changes in procedures, deadlines, formats for reporting information should take into account both the proper legal regulation of such changes and the availability of working infrastructure for the formation and submission of reports, sufficient time to adapt to changes in reporting entities, auditors, IT companies. Despite repeated postponements of the transition of Ukrainian companies to taxonomy-based reporting, there are numerous difficulties in implementing this project. Thus, the article’s objective is due to legal, financial and technological risks for many taxonomy-based reporting entities and the uncertainty of current and future procedures for adapting international reporting requirements in XBRL format for their application in Ukraine.
 The international experience of introduction of financial reporting on the basis of taxonomy is considered and the advantages of such format for all participants of information interaction (reporting subjects, state regulators, investors, financial intermediaries and users of financial services, subjects of information-analytical infrastructure) are determined.
 The current lack of expected benefits for Ukrainian issuers and investors is justified due to the preservation of duplication of reporting information in various formats, disorder of deadlines and reporting procedures, delay and omission of difficulties in implementing the Financial Reporting System.
 Measures are proposed to accelerate the efficiency of the Financial Reporting System, reduce legal and regulatory risks, avoid duplication of different forms and deadlines for reporting, expand the participants in the information interaction on the pilot launch of the project and prepare for regular taxonomy changes.
 It is planned to analyze the actual impact of increasing financial disclosure requirements by issuers on the investment attractiveness of the Ukrainian stock market (primarily the equity segment) and the quality of its information infrastructure in the absence of noticeable interest of issuers in public raising capital and circulation of their securities in the regulated market.