Trading Of Financial Instruments Research Articles

THE CAPITAL MARKET MATTERS - THE EXPERIENCE OF THE GRAND DUCHY

The Bulgarian capital market is not founding its place in the national economy for more than 30 years, and the market infrastructure is far from world standards, at least as far as the central depository is concerned. The government is a major shareholder in CD (Central Depository) and BSE (Bulgarian Stock Exchange) and is not doing enough for their development and integration. The state is also absent as a factor in the development of securities trading. The example of Luxembourg shows that the capital market can be a driver of the national economy and a factor for growth, which is why it should be recognized. The stated goal of the research also sets the limitations in the present study - it is an overview and uses a comparative analysis of indicators for economic development and trading in financial instruments. The analysis shows that government guidance of capital market development can become a major factor for remarkable growth, and this can be achieved by small economies as well.

Theoretical principles of the formation and development of the stock market of Ukraine

The article's purpose is to consider the theoretical foundations of the formation and development of the stock market of Ukraine in modern conditions. The report provides a comprehensive study and analysis of the building and development of the stock market of Ukraine. The stock market allows for attracting capital and effectively distributing it for the development of the national economy. The development of the stock market increases the level of participation of companies in attracting additional funds for their investment programs by placing their securities on the market, and a developed stock market plays a crucial role in financing the economy compared to the banking sector. Therefore, on the stock market, enterprises with real potential can attract financial resources to implement a promising project. It was determined that the primary goal of the functioning and development of the stock market in Ukraine should be attracting financial resources to direct them into the real economy to renew production. The functioning of the market is based on specific relations between the participants of the market space, which are simultaneously part of the market and its driving force. It is shown that the stock market is the most important mechanism that ensures the effective functioning of the country's entire economy. Thus, the stock market creates conditions for a free, albeit regulated, transfer of capital to the most efficient sectors of the economy. The current state, problems, and prospects of Ukraine's stock market development are studied. The stock market of Ukraine, in terms of the scale of its development and the ratio to the total volume of financial assets, is not significant. According to the analysis results, it was established that the volume of exchange contracts with securities on trade organizers in 2018-2021 had positive dynamics. Still, according to the results of trading during January-December 2022, compared to the data of the same period in 2021, the volume of trading in financial instruments decreased by 291.36 billion hryvnias. The decrease in the book of trades in financial instruments in 2022 was influenced by the start of military operations. It has been established that the modern stock market is an effective mechanism for trading financial assets. Therefore, it needs to ensure financial and economic stability, contributing to attracting investment flows. Keywords: stock market, securities, issuers, stock exchanges, financial resources, financial investments.

Investment activities on the stock market: information security in the network economy

Introduction. The network economy is developing in the conditions of geopolitical conflicts, military confrontation, the growth of public debt, and the scaling of investment attraction and investment through the use of technologies, products, and processes using network electronic interaction. An important place in the financial sector is occupied by the stock market, which in the conditions of digitalization opens up wide opportunities for investment activities of international donors, and institutional and private investors to restore the economy of Ukraine. Purpose. The purpose of the article is to consider the key problems of information provision of investment activities on the stock market, taking into account new regulatory provisions on capital markets, financial services, financial companies, and trading of financial instruments at operators of organized capital markets using network electronic interaction to increase liquidity. Method (methodology). The theoretical and applied basis is the scientific works of foreign and Ukrainian scientists researching the network economy, market microstructure, investments; modern statistical and information base of the stock market. The methods of dialectical logic, critical and scientific analysis, graphic, structural-functional, and expert evaluations are applied. Results. The relationship between the network economy and the stock market regarding the formation of a developed market microstructure, innovativeness, promotion of business activity, algorithmization of an integral set of quantitative and qualitative characteristics of investment activity, creation of new stock instruments and products are revealed. Attention is focused on reforming state regulators, taking into account the trends of digitalization of processes, and canceling the adjustment of regulatory acts, which makes it possible to direct investment policy to the coordination of geo-economic fragmentation of investments during the recovery of the economy. The methodical and applied approaches of information support for attracting investment from donors and stock market participants in reconstruction projects by the four freedoms regarding the movement of capital, goods, services, and free movement of the labor force are characterized.

RELATHIONSIP BETWEEN MONEY VELOCITY AND INFLATION TO INCREASING STOCK INVESTMENT RETURN: EFFECTIVE STRATEGIC BY JAKARTA AUTOMATED TRADING SYSTEM NEXT GENERATION (JATS-NG) PLATFORM

This study aims to formulate strategies to avoid macroeconomic risks in investing in the Indonesian capital market so that more people will be able to trade in financial instruments traded in the Indonesian capital market using an integrated online transaction system. This type of research is quantitative descriptive with the research population of 20 State-Owned Enterprises (BUMN) listed on the Indonesia Stock Exchange. The type of data in this study is time series data taken from 2016 to 2020 by conducting a documentation study conducted on the publication of annual financial statements (Financial Statements), so that the target population is 40 (8 Companies x 5 Years) annual financial report data for the research sample. The data analysis method in this study uses Moderate Regression Analysis (MRA) and data analysis uses the Smart PLS statistical software. The outputs of this research are publications of reputable international journals, international proceedings and reference books for ISBN certified research results with TKT level 3.

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.

Role of E-Commerce in Insurance Industry

E-commerce consists of buying and selling of products and services over electronic systems such as the internet and other computer networks. E-commerce is a commercial activity dealing directly with the trading of goods and services and with other related business activities, in which the electronic communication medium plays a central role. These activities include the communication of information, the management of payment, the negotiating and trading of financial instruments and the management of transport. The e-business can be used for three primary processes which help to enhance the business and they are; • The Production Process • Customer Centric Process • Employee Centric Process The production processes is the first which include procurement, ordering and replenishment of stocks; processing of payments; electronic links with suppliers; and production control processes, among others. The second is customer-focused processes, which include promotional and marketing efforts, selling over the Internet, processing of customers purchase orders and payments, and customer support, among others. An internal management process The third includes employee services, training, internal information-sharing, video-conferencing, and recruiting. Generally electronic applications enhance information flow between production and sales forces to improve sales force productivity. The purpose of this paper is to find the benefits, challenges and success of e-commerce with special reference to Life Insurance Corporation of India.

Peculiarities of the domestic stock market functioning

Subject of research is the stages of development and the actual state of the domestic stock market. The purpose of the article is to identify the stages of formation and development of the domestic stock market and as a result of determining the prospects for further development. Methods used in the research process: method of system-structural analysis and synthesis, method of comparative analysis, generalization, general scientific, special methods of scientific knowledge and other research methods. Study results. The experience of developed economies shows that the stock market, unlike other markets (including commodity or foreign exchange), is one of the most regulated and regulated. The specificity of the domestic stock market is that in Ukraine there is virtually no domestic investor, a significant number of transactions are concluded to obtain speculative profits; quite often shares are bought at the beginning of trading only in order to "sell" the market more expensive to sell them and make money on it. Investigating the activities of the domestic stock market, the main stages of its development are consistently identified. The role and importance of the stock market in ensuring economic development, to a large extent, is determined by the volume and structure of trading in financial instruments. At the current stage of development of the stock market, trading is concentrated on two stock exchanges of PJSC Stock Exchange "Perspective" and PJSC "Stock Exchange PFTS", identified trends to consolidate trade in these infrastructure market participants. Application of results. The results of the study can be used in the activities of the Ministry of Finance of Ukraine, the Verkhovna Rada of Ukraine, the National Commission on Securities and Stock Market, as well as in higher education institutions in the teaching of economic disciplines. Conclusions. The stock market must attract investors with its legality, honesty and order. This can be achieved only through state regulation of the securities industry in close cooperation with its representatives.

РИНОК ЦІННИХ ПАПЕРІВ В УКРАЇНІ: АКТУАЛЬНІ ПРОБЛЕМИ ТА ПОТЕНЦІЙНІ НАПРЯМИ ЇХ ВИРІШЕННЯ

The purpose of the article is to characterize the current development of the domestic securities market, highlighting its current problems, as well as providing suggestions for their potential solution. The topicality of the study is conditioned by the need to monitor the domestic securities market under a constantly changing external and internal environment along with the processes of digitalization of the financial system of the state and the economy as a whole. In the article, the authors outlined the main trends in the development of the securities market of Ukraine covering the period of 2016-2020. The authors used secondary data analysis based on data obtained from the official web-sites of the National Commission on Securities and Stock Market, National Bank of Ukraine and State Statistics Service of Ukraine. The results of the study: authors analysed and described the volume of trading in financial instruments in the securities market, including separate analysis of its exchange and over-the-counter segments; a special attention was paid to the negative aspects of the securities market of Ukraine, where the main current problems that securities market entities are currently facing have been identified and potential ways to solve or localize them have been suggested. The study was conducted not without research limitations; the authors did not investigate the underlying factors or reasons why the current problems exist within the securities market of Ukraine, which can be considered as a potential topic for further research. The findings of the study have practical implications and are likely to be useful for researchers working on the issues of financial assets, financial markets and securities exchanges as well as for practitioners dealing with investments and financial advisory services. The authors with the article contribute to the discussion about the role and importance of the securities market for the economy of a state, the existing current problems within it and the recommendations on how these problems can be solved or eliminated.

The concept and general characteristics of Polish securities law

The article presents the general characteristics of Polish securities law and the main juridical, legislative and practical issues arising in this area of legal transactions. Securities law comprises a set of regulations that govern the principles of creating securities, the rules of trading in these instruments and the principles of exercising rights and performing obligations stemming from securities. Polish law does not define the concept of a security. The doctrine generally assumes that a security is a document stating a specific property right of a transferable nature, which incorporates this right into this document, the possession of which is a necessary condition for the exercise of this right and its disposal. Securities law in Poland has not been codified and its sources are dispersed. General issues are regulated in the provisions of Art. 9266–92616 of the Civil Code, while specific issues are regulated in legislative acts regulating particular types of securities, acts devoted essentially to other issues but also containing regulations of particular types of securities, and in normative acts of the European Union, in particular, in Regulations of the European Parliament and the Council (EU). Securities have been regulated in more or less detail under Polish law. However, there are considerable legislative issues that need to be addressed with regard to certain types of securities which have recently become “dematerialised” and this “dematerialisation” has made the traditional legal solutions governing them, which were essentially based on property law constructions, inadequate. What the Polish legislator has not achieved yet is uniform set of legal solutions that could apply to both tangible and intangible, dematerialised securities taking the form of book entries only. As a result, we have to do with a certain regulatory dualism in this area in Poland. The general provisions on securities contained in the Civil Code are generally applicable to traditional securities, whereas the issue and trading in dematerialised securities is regulated by other provisions as well, mainly the Act on trading in financial instruments of 2005.

Международные подходы к регулированию виртуальных банков, систем алгоритмической торговли и искусственного интеллекта при совершении финансовых сделок

This paper reviews certain legal aspects of automatic and autonomous financial transactions. International approaches to regulation of key areas of digitalization in the financial sector, such as virtual banking, algorithmic trading of financial instruments and the introduction of artificial intelligence systems, are considered.

Zasady przenoszenia praw z akcji w spółce akcyjnej. Odrębność regulacji kodeksu spółek handlowych względem kodeksu cywilnego w dobie dematerializacji papierów wartościowych

Ustawodawca 30 sierpnia 2019 roku dokonał zasadniczej zmiany przepisów kodeksu spó- łek handlowych w odniesieniu do akcji oraz zasad przenoszenia z nich praw w spółce akcyjnej. Nowo wprowadzone przepisy, które mają wejść w życie od 1 stycznia 2021 roku, przewidują bowiem obligatoryjność dematerializacji akcji oraz utworzenie rejestru akcjonariuszy, którego celem jest zastąpienie księgi akcyjnej. Zamiarem ustawodawcy było również dokonanie ujednolicenia reżimu przenoszenia praw z akcji imiennych i na okaziciela, który ma się opierać na założeniach analogicznych do tych dotyczących przenoszenia praw z papierów wartościowych regulowanych w ustawie o obrocie instrumentami finansowymi. W niniejszym artykule podjęto próbę analizy uchwalonych przepisów i mogących pojawiać się na tle ich stosowania wątpliwości interpretacyjnych. Celem dokonanej analizy było także określenie, czy uchwalone przepisy wprowadzające nowe zasady przenoszenia praw z akcji w kodeksie spółek handlowych mają charakter zupełny i odrębny względem przepisów kodeksu cywilnego.

Pendampingan Pentingnya Strategi dalam Meningkatkan Minat Nasabah terhadap Investasi Saham di Surabaya

Capital markets are often interpreted as a market for a long-term financial instrument (securities) (its maturity is more than 1 year). In addition to that understanding, the capital market is also often associated as a place for the transaction of the party that needs funds (the company) and the Excess party (financier). The initial step of Sharia capital market developments in Indonesia began with the issuance of sharia funds on 25 June 1997 followed by the issuance of sharia bonds at the end of 2002, followed by the presence of the Jakarta Islamic Index (JII) in July 2000. The marketable securities traded on the stock exchange include stocks, bonds and mutual funds. Marketable securities are often referred to as ' financial instruments ' or ' securities ' or ' Sekuritas ' (Securities Act No. 8 year 1995 defines the capital market as "the activities concerned with public offerings and securities trading, public companies relating to securities, published, as well as institutions and professions relating to the securities". The capital market acts as a liaison between investors and companies or government institutions through the long-term trading of financial instruments. In an effort to support the realization of the Indonesian capital market to become a resilient and global economic driver of the national economy as stated in the Indonesian capital market blueprint, it needs to be done continuously to improve and expand the capital market infrastructure towards the better direction.

Towards Single Market in Financial Services: Highlights of the EU and the EAEU Financial Markets Regulation

The article covers key formats of interstate cooperation in the post-Soviet space. The authors conclude that the Eurasian Economic Union is the major integration project bringing together Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia. This research addresses various legal issues related to founding of the EAEU single financial services market with provisions and annexes of the EAEU Treaty studied. The EAEU meets challenges and creates legal and institutional framework for single financial services market within a relatively short timeframe. By 2025 both Supranational Eurasian financial regulator should be established and EAEU legislation on financial services should be harmonized. These tasks require international and national regulation experience. Therefore through the use of comparative analysis some advantages of the European Union law in the field of financial services market regulation are pointed out alongside with particular national legislation aspects of the EAEU member states in the similar or relative fields. Comparative analysis provides for determination of modern approaches to financial services market regulation in the EAEU and its member states, and allows to emphasize advantages and disadvantages of such regulation. Comparative analysis is applied to specifically investigate three subject areas of high relevance for global financial community: institutional forms of trade in financial instruments; organized trade in financial derivatives; organization of algorithmic and high-frequency algorithmic trading. Conclusion drawn is that the EU experience in the matters of financial markets regulation is of particular interest for the EAEU and its member states.

The legal situation of financial market participants in the context of the amendment of the Act on Trading in Financial Instruments

The main subject of this article is an attempt to resolve whether and on what principles active financial market participants were entitled to continue their activities related to trading in financial instruments during the so-called transition period determined by the provision of Article 29 of the Act of 1 March 2018 amending the Act on Trading in Financial Instruments and certain other acts (Dz.U. [Journal of Laws] of 2018, item 685). To this end, the authors have interpreted this provision in the context of the overall regulation of the amending act, with particular attention paid to the new wording of the definition of trading in financial instruments. The analysis of the indicated issues is carried out primarily from the point of view of active participants of the financial market, which constitutes a significant enrichment of the studies that have so far dealt with the discussed problem. Against the background of the above considerations, the authors draw attention to the influence of the Polish Financial Supervision Authority (Financial Supervision Commission) on other financial market participants, especially in relation to the supervisory proceedings conducted by the Authority and the supervisory measures applied. As a result of the conducted deliberations, the authors notice that the imprecision and incompleteness of the content of the analysed legal acts may be connected with significant negative consequences for the financial market participants, primarily in the form of financial sanctions.

Crypto-assets in the EU and Polish regulatory framework regarding financial instruments

Crypto-assets are private, convertible, digital tokens that are managed in a decentralized way using technology called distributed ledger technology (DLT). The term is not limited only to decentralized virtual currencies, but also commodities, digital goods and services. As such they can be considered an addition to a financial investment portfolio, being an alternative to traditional instruments, such as stocks, bonds or cash. However, wide use of crypto-assets is being currently hampered by lack of regulations followed by uncertainties as to the legal qualification of crypto-assets and consequences of investments in such instruments. From that perspective, it seems crucial to answer a question whether crypto-assets can be considered financial instruments in the light of the current Directive on Markets in Financial Instruments (so called MiFID II) at the EU level and national acts that implemented relevant provisions of MiFID II (in Poland it is the Act on Trading in Financial Instruments). Since neither the EU nor Polish legislator provided a clear answer to that question, some indications can be found only in official statements of regulatory authorities and the doctrine, which however are not always consistent with each other. Furthermore, the Member States used different legislative techniques in the process of implementing MiFID II so the nomenclature can differ. The article discusses the diverse approaches to crypto-assets in the interpretation of the EU and Polish legislation concerning financial instruments as well as implications of such differences.

The Digitalization of the Russian Financial Market: The Use of Technologies of the Distributed Ledger by the Institutions of Custodian Infrastructure

Over the past 30 years financial markets have moved from a highly centralized to a globalized system that includes all the world's stock exchanges and other financial institutions. The global stock architecture has united the world market. Traditionally, trading in financial instruments took place between stock brokers and traders who made personal transactions on trading platforms. At that time, stock brokers were monopolists of the market, only their information, their recommendations were the only source of information for investors. This was before the dotcom revolution, when communication became simple and accessible to everyone. Trade has been transformed from physical to electronic form, today you can buy securities, currencies and any derivatives in any quantity, at any time and from anywhere in the world. Development of blockchain technologies is integrated into financial transactions. Financial intermediaries are forced to follow the market and actively introduce new technologies in their processes. This article will consider the possibility of using the technology of the distributed ledger by institutions of custodian infrastructure. Today, a number of Russian financial institutions are developing their own projects using blockchain.

The Law and Economics of Hedge Funds: Financial Innovation and Investor Protection

A persistent theme underlying contemporary debates about financial regulation is how to protect investors from the growing complexity of financial markets, new risks, and other changes brought about by financial innovation. Increasingly relevant to this debate are the leading innovators of complex investment strategies known as hedge funds. A hedge fund is a private investment pool not subject to the full range of restrictions on investment activities and disclosure obligations imposed by the federal securities laws, that compensates management in part with an annual performance fee, and typically engages in the active trading of financial instruments. Hedge funds engage in financial innovation by pursuing novel investment strategies that lower market risk (beta) and may increase returns attributable to manager skill (alpha). Despite the funds’ unique costs and risk properties, the historical performance of hedge funds suggests that the ultimate result of hedge fund innovation is to help investors reduce economic losses during market downturns. In 2008, as losses from the U.S. mortgage market transformed to an international financial crisis, global equities dropped 42 percent while hedge funds worldwide lost a comparatively smaller 19 percent for their investors. By increasing investors’ ability to maximize risk-adjusted returns, hedge funds advance the same goal that federal investor protection regulation seeks to advance. This Article shows that the economic outcomes attained by hedge funds are in part attributable to the legal regime under which they operate. The hedge fund legal regime includes not only federal securities law but also the entity and contract law provisions governing the fund, its manager, and investors. Federal law applicable to hedge funds enables the funds to pursue innovative investment strategies employing the trifecta of leverage, short sales, and derivatives. The entity and contract law governance of hedge funds provides high-powered incentives for fund managers to engage in and capture the gains from financial innovation while maintaining a relatively healthy balance between risk taking and risk management. A general lesson from the law and economics of hedge funds is that when a legal regime permits financial intermediaries to be flexible in their investment strategies and aligns the incentives of investors and innovators through performance fees and co-investment by managers, financial innovation is likely to complement investor protection without wideranging regulation. The role of the funds in advancing the same goal as investor protection suggests that they should legally be available to a broader class of investors.

Składanie zleceń lub dokonywanie transakcji na rynku w celu dokonania optymalizacji podatkowej a manipulacja karalna na podstawie art. 183 ust. 1 ustawy o obrocie instrumentami finansowymi

The article analyse the criminal relevance of orders placement and execution of transactions in the stock market undertaken for purposes of tax optimisation. Firstly, the authors analyse the legal description of the prohibited act of market manipulation. Secondly, the authors address the issue, whether in the light of article 39 section 2 no. 1 of Polish Trading in Financial Instruments Act tax optimisation may constitute a justifiedcause to place orders and execute transactions in the regulated stock market. Finally, the authors come to the conclusion that orders placement or execution of transactions in the stock market, which is undertaken for purposes of tax optimisation, does not constitute a prohibited (criminal) act.

INSTRUMENTY FINANSOWE NOTOWANE NA RYNKU ‘CATALYST’ – WYBRANE ZAGADNIENIA PRAWNE

The Financial Instruments Listed on the Catalyst Bond Market: Selected Legal Aspects Summary The Catalyst Bond Market, which was launched on 30 September 2009, comprises four trading platforms which operate on the transaction platforms of the Warsaw Stock Exchange and BondSpot. Two of them can be classified as multilateral trading facilities (MTF) (in the meaning of art. 3 point 2 of the Trading in Financial Instruments Act of 29 July 2005) and the other two are an off-exchange regulated market (in the meaning of art 15 paragraph 1 point 2 of the Trading in Financial Instruments Act of 29 July 2005). Although the name of this market may suggest otherwise, bonds are not the only subject of the market transactions on the Catalyst Bond Market. This simplification may be due to social communication and marketing requirements. Besides bonds issued by companies (corporate bonds) and co-operative banks (co-operative bonds), other kinds of debt securities are listed on this market (i.e. issued by mortgage banks, cities, or even the State Treasury). Thus it would be more accurate to call Catalyst an organised debt securities market. Debt securities can be much more attractive for an issuer than equity securities. The issuer may for some reason wish to discourage the buyer of securities from exercising his ownership rights, e.g. by voting at the shareholders’ general meeting. The aim of this article is to describe this kind of organised debt securities market from the legal perspective, taking into consideration the growth of the debt market in the modern economy.

Time, trading and algorithms in financial sector security

ABSTRACTThis article examines the financial security issues raised by the rapid development of high-frequency trading (HFT). HFT involves automated algorithmic trading of financial instruments where the objective is to reduce the time scale between the initiation and execution of trades to microseconds (or even nanoseconds) so as to reap competitive advantage. After outlining the contours of a HFT world, the presentation goes on to discuss some of its important consequences and implications. Several matters are discussed in this context: market manipulation, hacking, index construction and violence. Of particular significance for the notion of financial security is the issue of time as embodied in algorithmic trading. In turn this raises concerns over the regulation and management of this new field of financial innovation and trading activity.