Participants operating in the financial market include: What is a financial market

Various entities (participants) operate in the financial market, the functions of which are determined by the goals of their activities and the specifics of participation in transactions with financial assets on the market.

The subjects of the financial market are the state represented by its individual institutions, organizations of various forms of ownership, individual entrepreneurs and citizens entering into economic relations in the financial market.

Financial Market Participants can be divided into groups according to their functional characteristics.

• 1. The main participants are sellers and buyers of financial assets (currency values, credit resources, securities). Creditors, issuers of securities and currency sellers act as sellers in the financial market, while borrowers (borrowers), investors and currency buyers act as buyers. However, in established practice, many participants are buyers of some and sellers of other financial assets. For example, financial and credit institutions, by selling resources on the credit market, buy (attract) funds in deposits. Issuers of securities can place (sell) them on the stock market and at the same time acquire other securities and credit resources to increase their capital, diversify their investment portfolio, i.e. in a dynamic financial market, sellers can become buyers, and vice versa.
• 2. Financial intermediaries. This group is represented by various financial, credit and investment institutions, the main of which are banks, investment companies and funds, trust companies, investment dealers and brokers.

Financial intermediaries, being professional participants in the financial market, bring together buyers and sellers of financial assets, thereby facilitating access to it for non-professional investors. Being between buyers and sellers, financial intermediaries accelerate the transfer of funds and assets from one to another, while reducing costs. Since in most cases the funds of individual creditors are not enough to meet the needs of borrowers, financial intermediaries solve the problem of pooling funds and then providing them for use. The profit of financial intermediaries is the payment they receive for the performance of their functions, the presence of certain risks in carrying out such operations. At the same time, it is possible to single out brokers - intermediaries who carry out transactions at the expense and on behalf of the client, charging commissions, the amount of which, as a rule, depends on the amount and efficiency of the transaction, as well as dealers - intermediaries who carry out transactions at their own expense and on their own behalf and receive profit from the difference between the sale and purchase prices of financial assets.

• 3. Organizations serving the financial market. They are represented by numerous subjects of its infrastructure: stock and currency exchanges, settlement and clearing organizations, consulting firms, rating agencies, etc. All these organizations are not directly involved in investing, transactions with financial assets, but influence it by creating conditions for the effective operation of other participants in the financial market, providing settlement services, storing securities, collecting, analyzing and disseminating information.
• 4. Bodies of state regulation and self-regulation in the financial market. Since the development of the financial market is one of the directions of the financial and monetary policy of the state, the state regulates and controls the activities of entities in the financial market, contributes to the creation of the necessary regulatory framework, a system of information on the state of the market and ensures its openness to participants, controls the stability and security of the financial market, etc. In addition, the state acts as a major participant in the financial market, using various financial instruments for monetary regulation.

The structure of state bodies regulating the financial market depends on the degree of centralization of management in the country and the existing model of the financial market. Currently, the main regulation and supervision in the Belarusian financial market is carried out by the National Bank and the Ministry of Finance of the Republic of Belarus.

The National Bank performs the following functions:

• develops and, together with the Government of the Republic of Belarus, implements a unified monetary policy;
• issues money;
• regulates money circulation;
• regulates credit relations;
• carries out bank refinancing;
• organizes currency regulation;
• carries out currency control both directly and through authorized banks in accordance with the legislation of the Republic of Belarus;
• performs the functions of a central depository for government securities;
• issues securities of the National Bank;
• organizes efficient, reliable and safe functioning of the interbank settlement system;
• performs the function of a financial agent of the Government of the Republic of Belarus;
• carries out state registration of banks and non-bank credit and financial organizations, issues licenses for them to carry out banking operations;
• establishes the procedure for carrying out banking operations;
• develops and approves accounting and reporting methods for banks and non-banking financial and credit institutions;
• determines the procedure for conducting non-cash and cash payments in the Republic of Belarus;
• organizes settlement and cash services for individual state bodies;
• creates gold and foreign exchange reserves and manages them;
• establishes the prices for the purchase and sale of precious metals and precious stones in the course of banking operations;
• organizes the collection and transportation of cash, currency and other valuables;
• exercises control over ensuring the security and protection of information in the banking system;
• other features.

The main functions of the Ministry of Finance of the Republic of Belarus are:

• implementation of state policy, implementation of regulation and management in the financial sphere of activity and coordination of activities in this area of ​​other republican government bodies;
• ensuring the active use of finance in order to increase the efficiency of production, the growth of national income, the creation and development of market forms and structures;
• development of proposals for improving the forms of financial relations between organizations and citizens with the state, ensuring the growth of financial resources;
• effective implementation of budgetary-financial and tax policy;
• participation in the organization of investment cooperation, regulation of external state debt;
• control over the observance of the financial interests of the state, including in the process of integration of the Republic of Belarus into the world economy;
• state regulation and control in the field of activities with precious metals and precious stones, the creation of their stocks;
• formation and implementation of a unified state policy in the field of development and production of protected securities and special materials;
• implementation of state policy in the field of insurance activities, state supervision of insurance activities in the territory of the Republic of Belarus;
• state regulation of accounting and reporting;
• regulation of audit activity;
• state regulation and exercise of control and supervision over the securities market, the issuance and circulation of securities, as well as professional activities in securities;
• registration of issues of securities;
• licensing of professional activity on securities;
• other activities.

World experience has shown that when state regulation in the financial market is supplemented by self-regulation, then management efficiency increases. In the system of relations between the subjects of the financial market, self-regulatory organizations take the place of a kind of intermediary between public authorities, professional participants in the financial market and their clients. The Institute of Self-Regulation has received public recognition, which confirms the experience of such organizations in many countries around the world.

Self-regulatory organizations perform organizational, regulatory, informational and other functions on the basis of a voluntary association, as a rule, of professional participants in the financial market. They develop professional standards, train specialists, represent and protect the interests of their members, etc. Self-regulatory organizations can exist in various organizational forms: in the form of associations, unions, syndicates, guilds, committees, etc. In the Republic of Belarus, such self-regulatory organizations as the Association of Belarusian Banks and the Association of Securities Market Participants operate on the financial market.

Review questions

• 1. What is the financial market?
• 2. What is the importance of the financial market for economic development?
• 3. How can you characterize the place of the financial market in the financial system of the state?
• 4. What is the structure of the financial market?
• 5. What functions does the financial market perform in a developed market economy?
• 6. What models of organization of the financial market exist?
• 7. What are the participants in the financial market?
• 8. What role do financial intermediaries play in the financial market?
• 9. What are the state bodies that regulate the financial market in the Republic of Belarus?
• 10. What characterizes the process of self-regulation in the financial market?

Financial market

Concepts of the financial market, its meaning, functions

The financial market is a sphere of manifestation of economic relations between sellers and buyers of financial (monetary) resources and investment values ​​(that is, tools for the formation of financial resources), between their value and use value.

A financial market is an organized or informal trading system for financial instruments. In this market, money is exchanged, credit is granted, and capital is mobilized. The main role here is played by financial institutions that direct cash flows from owners to borrowers. Commodities are money and securities. Like any market, the financial market is designed to establish direct contacts between buyers and sellers of financial resources.

Functions:

1) The main function of the financial market is to ensure the flow of funds from business entities for which they are currently free (not used) to business entities that are in need of financial resources.

2) realization of the value and use value embodied in financial assets;

3) organization of the process of bringing financial assets to consumers (buyers, depositors);

4) financial support for investment and consumption processes;

5) impact on money circulation.

Structure of the financial market

Structure of the financial market:

Credit market

Currency market

Securities market (stock market)

Insurance market

Investment market

The money market is divided into:

1. The market for short-term bank loans is a market that serves enterprises and the population; in this market, banks provide enterprises and organizations with the missing funds necessary to make settlements and complete the circuit. The main institutions are comm.banks.

2. The interbank loan market is a market where banks borrow funds from each other in order to maintain their liquidity, i.e. in order to secure their obligations. Therefore, most often loans are of an ultra-short-term nature - 1,7,14 days, up to 3 months. The main institutions are commerce. banks and the Central Bank - as a lender of last resort.

3. The market for short-term securities is a market in which short-term securities are traded, the main types of which are: government short-term. securities, and short-term debt securities of various subjects (more often in the form of a bill). Main institutions: comm.banks, brokerage, dealerships, fear. companies, exchanges

4. The currency market is a market for a cat. currency purchase and sale transactions are carried out both in cash and non-cash form. Main Institutions – Comm. Banks and Currency Exchanges

5. The gold market is a market where transactions (cash, wholesale, etc.) are made with gold, incl. with gold bars

Financial Market Participants

Financial market participants are all economic entities: organizations, households, public legal entities. In some cases, they are suppliers to the free cash market, while in others they attract external sources of financing (buyers of financial assets).

The functioning of financial markets involves the operation of financial intermediaries (or financial institutions): credit institutions, insurance companies, professional participants in the securities market, mutual funds, etc.

Participants in the securities market are issuers, investors and their intermediaries (brokers and dealers) brokers act on behalf of and at the expense of clients; dealers - at their own expense and on their own behalf. In the securities market, professional activities include the activities of clearing centers, depositories, management companies.

Clearing centers keep records of mutual claims for the supply of securities or their payment, this is due to the fact that during the trading session, stock brokers do not make settlements for each individual transaction, transactions are recorded by clearing centers, and settlements are carried out already at the end of trading.

The need for the activities of depositories is determined by the requirement to protect the rights of securities holders, especially in the context of the development of non-documentary securities, the rights to which and transactions with which are recorded in the form of entries on accounts. The purpose of depositaries is to hold securities and record rights under securities.

In some cases, determined by law, an institution (for example, a non-profit organization) cannot, on its own behalf, carry out operations related to the placement of funds in financial assets, in this case an agreement is concluded with a management company, which, on the basis of a trust management agreement, carries out such activity.

The main participants in the credit and foreign exchange market are commercial banks and non-bank credit organizations.

Non-bank credit organization(NCO) - a credit institution that has the right to carry out certain banking operations established by the Central Bank of the Russian Federation (collection organizations, organizations engaged in deposit and credit operations, organizations engaged in settlement operations).

Insurance companies, insurance agents, brokers, reinsurers, emergency commissioners, etc. participate in the insurance market.

4. Financial institution: concept, tasks

These are institutions (economic entity or individual entrepreneurs) that carry out operations in the financial market. These include banks, stock exchanges and other financial institutions. Financial institutions, except for banks and stock exchanges, are divided into two groups: investment and non-profit.

The main task of a financial institution is to organize the efficient transfer of funds from savers to borrowers. That is, all transactions are carried out between those who have money and those who need it.

If we talk about the market within the country or in the international format, then in a large number of cases it is the barter of products or material for cash. It is difficult for ordinary people to imagine that on both sides of such an exchange there can be a monetary currency in various forms, which in itself can act as a product. Initially, all this looks rather incomprehensible, but it directly underlies the global turnover and the market within states.

What is hidden under the concept of the financial market?

The financial market is a normalized concept of trading in both currency and its analogue, due to which a continuous movement of funds is made among depositors, countries, companies and other partners.

Based on a wide range of different interests, the market can be divided into various elements and types of relationships.

Efficiency is considered the most important function in our century. It has long been established that the need generates supply, and financial markets (participants of financial markets) timely help those who need them and those who agree to give more than their value, either because of the need, or believing in a repeated increase in earnings in the future.

The "state of health" of the country's economy is directly determined by the liveliness of foreign exchange capital. It is possible to compare this with the flow of blood in a person, that is, in a healthy state, blood rapidly brings nutrients to each human organ, the same is true in the economy - the resources being sold are rapidly moving from owner to owner, satisfying the requirements of market participants.

International level

In today's society, practically no state is able to act in isolation. Now state money does not circulate within the country, they have moved beyond its borders, respectively, financial market participants are international partners.

The international financial market is a formed concept of interaction between state and international economic markets, in which the movement of funds is carried out at the global level.

Foreign exchange funds are distributed based on competition between countries and their economic sectors.

How does this happen?

Let's look at examples of the movement of funds - this will help to get a picture of how financial markets work (participants of financial markets interact with each other).

Sample 1. Suppose a businessman started to increase the volume of furniture production, but at present he does not have enough money to buy the necessary special equipment.

If his business contains the configuration of a public joint-stock company, then he can issue additional shares.

Investors, hoping for the prosperity of his company, purchase shares to invest their money and with the hope of making a profit when the share price increases. Special equipment is bought, trade increases, as well as income, shares increase in value, investors sell them for an amount that is higher than the original, thereby extracting income for themselves.

Sample 2. To open a business, people go to the bank and receive the necessary funds on credit. The bank itself borrows the issued funds from the Central Bank at interest, but they are small compared to those directly provided to the borrower.

Thus, the bank earns on the difference received from interest payments. In this case, the financial market participants are the Central Bank, the borrowing bank and the entrepreneur.

The concept of the financial market

The following follows from the above examples. The modern world is built on a system of relations based on the principle of the exchange of economic benefits, called the financial market. The financial market, in turn, cannot exist without financial instruments. They represent the money supply in the form of cash, non-cash savings kept in bank accounts, as well as securities, futures, currencies, options.

Types of financial markets

The financial market may have the following structure (depending on the type of operations performed):

Credit market;

Currency market;

Stock market;

Investment market;

Insurance market;

Gold market.

The concept of "credit market" refers to the economic space with the movement of free cash. People who have an excess of free funds provide them for use by those in need on favorable terms for themselves. The main purpose of such transactions is to make a profit from the interest on the loan. There are many examples of such types of transactions. One of the most popular are bank lending operations. The bank gives the citizen the required loan amount immediately, and the latter, in turn, returns it with interest determined by the bank for the appointed period.

The foreign exchange market, or Forex, is a global market that connects participants in payment relations in all countries of the world. The principle of this segment is based on determining the relationship of supply and demand for specific currencies. The sale or purchase of funds depends on the exchange rate set by the bank. It must be remembered that carrying out such operations without the participation of the bank is illegal.

The securities market, or stock market, is a market segment where securities are issued, circulated and sold. Securities include bills, checks, shares, options, futures and other types. In this area, the principle of transferring funds into securities applies.

The principle of operation of the investment market lies in profitable investments or investment projects. Cash, securities or other property having a monetary value is invested in the objects of any activity for the purpose of making a profit or achieving a beneficial effect. In other words, capital is redistributed at the expense of financial companies or individuals as a result of their investment in development (investment), for example, a newly opening company that does not have enough own funds, by purchasing shares issued by it.

The insurance market is a part of the financial market where insurance services are offered. The subject of insurance can be both one's own life, health, ability to work, and entrepreneurial risks.

On the gold market, there are both retail and wholesale transactions with gold bars, which are also used for international settlements. Who occupies the financial markets?

Financial market participants

There are two broad categories in the financial market: sellers and buyers, as well as intermediaries. Participants in the financial market are all kinds of banks, currency and credit financial organizations, investment and insurance companies, currency and stock exchanges.

In the second category, we are talking about intermediaries, that is, people or companies that are the link between the buyer and the seller. These professional participants in the financial market, in essence, act as consultants in this matter (regarding the transaction) or as official representatives of the parties.

Each area has its own participants in the relationship: lenders and borrowers, policyholders and insurers, issuers (those who issue securities) and investors (those who acquire or invest). The Russian financial market, whose participants, in principle, do not differ from representatives of other countries, has its own specific features.

Thus, we can conclude that the concept of the financial market is closely related to financial instruments, the existence of which cannot be dispensed with. They have entered the modern life of people and companies, being an integral part of global economic relations.

Traders as part of the financial market

The cabinet of financial market participants cannot be imagined without traders. Who are they? A trader is a person who closely monitors chart and chart changes while sitting in front of multiple screens. Modern "traders" no longer have to sit in the pits of the stock exchange, now, thanks to the Internet, all the information necessary for making transactions falls under their control.

The trader carefully monitors changes in the rates of currencies, stocks or other securities, studies the news. His work requires discipline and patience in order to get a profitable quote. All his work is that it is necessary to carefully analyze and make a profitable deal.

What is the job of a trader?

As a rule, its activities cover the stock and currency financial markets. Participants of this type of financial markets are of two types: professionals and amateurs. Professionals have a permanent place of work in banks, brokerage firms or think tanks, for this they need to have a special education. They must have a license for this work, it is currently issued only by the Central Bank of Russia.

The work is too responsible, because a trader's intentional or unintentional disruption threatens the company with huge losses. There have been few such cases in history. In 2011, for example, UBS, a bank based in Switzerland, lost more than two billion dollars due to the unauthorized actions of its worker trader, Kweku Adoboli.

There are several options for traders: investors, arbitrageurs, hedgers and speculators. All their activities and specifics are determined by the goals that they set when concluding transactions.

Non-professional traders

A whole army of amateur traders already exists, their desire is to get rich on the sale of financial instruments. There is no need to have any education, for a start, a few thousand rubles and a desire to master a new area of ​​\u200b\u200bearning are enough. As a rule, novice traders seek advice from professional colleagues or use the services of intermediaries - brokers.

Who are brokers?

Broker - a legal entity representing the interest of its client for a certain commission. That is, they are financial intermediaries. They also need a license for the sale and purchase of securities issued by the Central Bank of the Russian Federation. Financial market participants of this type are widely known today.

Today on the Internet there are a huge number of offers from brokerage companies that are addressed to ordinary Internet users who are eager to increase their savings. As a rule, on the website of brokers it is possible to create a personal account, open an account, study video tutorials on the rules of sale, and also undergo practical training with training accounts in the demo version of the installed program on the website.

A novice trader can install the browser version of the trading platform recommended by the broker on their own computer and choose the most favorable tariff. The interest of a broker in the successful trading of his client will always come first, because the proceeds from trading set the size of the commission. Brokers always offer the client to learn free training, because the success and literacy of the trader depends on it.

Dealing companies and dealers

Dealers, unlike brokers, are more independent intermediaries between the buyer and the seller. A broker cannot become the owner of assets, nor can he bring them to the stock exchange and sell them only at the expense of the client. In turn, the dealer has the right to set the assets on his balance sheet, hold back and conduct the entire business at his own expense. Only a legal entity can be a dealer - this is required by Russian laws. Very often, this role is performed by funds, insurance organizations and banks - participants in the financial market.

Hello! In this article we will talk about the financial market and its participants.

Today you will learn:

1. What is a financial market;
2. What is the structure of the financial market;
3. Who are the main market participants;
4. Well-known brokers of the Russian market - who are they?

When it comes to the concept of a market on a national or international scale, the exchange of goods or raw materials for banknotes is most often presented. That is, something material is given in exchange for liquid funds. It is difficult for an ordinary person to imagine that on both sides of such an exchange there can be money in one form or another, acting as a commodity. No matter how strange this role may seem at first glance, it is the cornerstone that underlies the financial market, both domestic and global.

What is a financial market

Financial market - this is an established system of trading in money itself and its equivalent, through which there is a constant movement of monetary resources between investors, the state, enterprises and other participants.

Thanks to a whole range of disparate interests, the market can be identified and broken down into components of diverse types of relationships.
One of the important characteristics of our age is the need for such a concept as timeliness. As you know, demand creates supply, and the flexible financial market supplies money in time to those who need it and are ready to pay more for money than they are worth, due to their acute need or in the hope of a multiple increase in income in the future.

It is the degree of activity of money capital that characterizes the "health" of the state's economy. You can draw an analogy with the circulation of blood in the body. Just as in a healthy body, blood actively runs from one organ to another, saturating them with oxygen, so in a prosperous economy, liquid funds quickly move from one “owner” to another, responding to the needs and requirements of market participants.

Due to the constant movement, redistribution and accumulation of capital, the supply and demand for it tend to balance.

In today's world, almost no country can exist in isolation from others. The concept of globalization is increasingly heard from the screens. Now, national finances do not revolve within one state, but have gone beyond its borders, which allows us to talk about the global financial market.

World financial market is an organized system of interaction between national and international financial markets, where the movement of capital is carried out between its subjects on a planetary scale.

Monetary resources are redistributed here on a competitive basis between states, their regions and industries.

Here are some examples of capital movements to illustrate how the financial market works.

Example 1 Let's suppose that an entrepreneur is planning to expand the production of furniture, but right now he does not have enough money to buy the necessary equipment. Then, if his business is in the form , he can issue additional shares.

Investors, believing in the success of his firm, buy shares in order to place their money and with the desire to capitalize on the increase in the stock price. Equipment is bought, trade increases, as well as profits, shares rise in price, investors sell them for more than they bought, securing a profit.

Example 2 To, a person goes to any bank and takes the amount on credit. The bank, being a commercial enterprise, provides a loan at interest. He himself borrows this money from the Central Bank also at an interest rate, but lower than he himself gave to the borrower. Accordingly, a commercial bank will eventually earn on the difference in percentage.

Financial instruments are inextricably linked with the concept of the financial market.

Financial instruments - this is the so-called "quasi-money", that is, "not quite money." This refers to securities, monetary obligations, currency, futures and options.

Types of financial markets

We have already determined that the object of purchase and sale in the financial market is money itself.

But money is a different concept. Money can be in gold, and in securities, and in currency, and in the form of any obligations. This determines the fundamental difference in the transactions themselves.

Therefore, the financial market does not act as a monolith, but has a structure that is divided both by types of operations and “by the interests” of participants.

Consider this structure in the form of a table.

Financial market participants - who are they?

Financial Market Participants These are banks, international monetary and financial organizations, brokerage firms, insurance and investment companies and funds, currency and stock exchanges, foreign trade and manufacturing companies.

Whatever role the participant plays in the financial market, his main goal is to derive benefits for himself. If you do not take into account some convinced investor who invests in domestic astronautics solely for the sake of pride in the achievements of his country, this benefit is material. Consider who these people are and how they make money on the movement of capital.

There are two broad categories in the financial market:

• Sellers and buyers (combined, since one person can be alternately both);
• Intermediaries.

The first category acts in its own interests and with the use of its capital. The concept of a trader and trading is closely related to it. Given the complexity of the financial market, it needs some layer in the form of intermediaries, whose task is to be a link between the seller and the buyer. He can simply give advice to the buyer or take on the tasks of buying and selling, being his official representative.

This list can be modified depending on the type of market. For example, in the insurance sector, policyholders and insurers are distinguished, in the credit sector - lenders and borrowers, in the stock sector - issuers (those who issue securities) and investors.

Who are traders

At the word trader, a person is seen sitting in front of several monitors and closely following changes in charts and charts. This is true, because the modern "merchant" no longer sits in a hole in the stock exchange, thanks to Internet platforms, all the necessary information for transactions appears before his eyes.

A trader closely monitors changes in the exchange rate, stocks or other securities, reads the news. He must be very disciplined in order to have the patience to wait for a profitable quote. Thus, his work consists of two parts: he carefully analyzes and then makes a deal.

Traders are professionals and amateurs. Professionals are distinguished by specialized education and a permanent place of work in brokerage firms, banks or think tanks. They are required to have a license for the relevant activity, which is currently issued by the Central Bank of Russia.

This is a very responsible job, because a trader's intentional or accidental failure can threaten the company with enormous losses. History knows several such cases. For example, in 2011 the Swiss bank UBS lost more than two billion dollars due to the unauthorized actions of its trader Kweku Adoboli.

There are several types of traders: arbitrageurs, investors, speculators, hedgers. The specifics of their activities are determined by the goals that they set for themselves in the implementation of transactions. In the future, we will devote a separate article to traders.

Amateur Traders make up a whole army of people who want to get rich trading financial instruments. To do this, you do not need to have any education, a few thousand rubles and a desire to master a new field of activity are enough to start. Usually, novice traders seek advice from professional colleagues or use the services of intermediary brokers.

What do brokers do

Brokers - legal entities that represent the interests of their clients for a commission - that is, they are financial intermediaries.

Brokers also need a license from the Central Bank of the Russian Federation to buy and sell securities.

Currently, the Internet is replete with offers of brokerage companies addressed to ordinary Internet users who want to increase their funds. Usually on their portal there is an opportunity to create your personal account, open your account, watch video tutorials on trading rules and even get hands-on training in the demo version of the platform with training accounts.

A newly minted trader, by analogy with the tariffs of mobile operators, chooses the most suitable trading tariff for himself and can install the browser version of the trading platform offered by the broker directly on his computer. For example, the MetaTrader 4 or 5 platform. Also, a special version of the platform can be downloaded to a mobile device.

A good broker will always be interested in his client's success in trading, as the user's revenue determines the amount of commission. And success largely depends on the literacy of the trader, so brokers often offer clients to undergo free training.

Dealers and dealing companies

Unlike brokers, dealers are more independent intermediaries between the seller and the buyer. If a broker is a slave who does not become the owner of assets, cannot but bring them to the stock exchange and trades only at the expense of the client, then dealers can put assets on their balance sheet, keeping them for themselves, and conduct the entire business only at their own expense. According to Russian laws, only . Most often this role is played by banks, funds, insurance companies.

Main brokers in the market

Consider several well-known brokers on the Russian market in the table.

The situation with the reliability and popularity of the broker may change. Traders are advised to keep track of the current ratings of brokers, which are compiled mostly by voting by the traders themselves.

Global financial markets giants

Despite the inevitable processes of globalization, several major exchanges stand out among the national financial markets. Thanks to well-established ties with other international structures, vast experience and wise management, these exchanges are known far beyond the borders of their homeland. They are followed by traders from all over the world.

1. NYSE Euronext – New York Stock Exchange, which merged with the European Stock Exchange in 2007. Along with them, the NASDAQ over-the-counter stock market is mentioned, where the securities of companies engaged in the development of high technologies circulate. The US stock exchanges are rightfully considered the epitome of power and success, they are second to none in terms of market capitalization.
2. Tokyo Stock Exchange - Tokyo Stock Exchange. Loses only to New York. It is considered one of the oldest exchanges - it was founded at the end of the nineteenth century. It accounts for more than 80% of the total exchange turnover in Japan.
3. LondonStock Exchange - London Stock Exchange. It is characterized by high internationality - more than 50% of all transactions are in international stock trading. The exchange is also the oldest - its history began in the middle of the sixteenth century.
4. Moscow Exchange. Perhaps it is too early to include it in the top of the most-most, although the statistics of January 2017 showed excellent dynamics in both general trading (an increase of 4% compared to 2016) and the growth of individual markets.

The Moscow Exchange dates back to 1992 and was conceived as a platform for currency auctions. In 2011, it merged with RTS and received its current name. The former name - the Moscow Interbank Currency Exchange - is reminiscent of the MICEX indices broadcast daily in the news, reflecting market behavior through the average value of changes in share prices.

No one can dispute the fact that the new fashionable activity in the financial markets attracts crowds of people who want to master the profession of a trader and a number of others. But, as in any business, here a novice financier must selflessly study and boldly go forward. What we wish our dear readers!

There are various participants in the financial market, whose functions are determined by the goals of their activities and the degree of participation in the commission of individual transactions. The composition of the main participants in the financial market is differentiated depending on the forms of transactions, which are divided into direct and indirect.

Taking into account the fundamental forms of making transactions in the financial market, its main participants are divided into two groups:

W sellers and buyers of financial owl instruments (services);

Ш financial intermediaries.

In addition to the main participants in the financial market directly involved in the implementation of transactions, its subjects include numerous participants performing auxiliary functions (functions of servicing the main participants in the financial market; functions of servicing individual transactions in the financial market, etc.).

Sellers and buyers of financial instruments (services)

They make up a group of direct participants in the financial market, performing the main functions of conducting financial transactions on it. The composition of the main types of this group of financial market participants is largely determined by the nature of the financial assets (instruments, services) circulating on it.

1. In the credit market, the main types of direct participants in financial transactions are:

W Lenders. They characterize the subjects of the financial market, providing a loan for temporary use for a certain percentage. The main function of creditors is the sale of monetary assets (both own and borrowed) to meet the various needs of borrowers in financial resources. Lenders in the financial market can be: the state (carrying out targeted lending to enterprises at the expense of the national and local budgets, as well as state targeted non-budgetary funds); commercial banks that carry out the largest volume and a wide range of credit operations; non-bank credit and financial institutions.

Ш Borrowers. They characterize financial market entities that receive loans from lenders under certain guarantees of their return and for a certain fee in the form of interest. The main borrowers of monetary assets in the financial market are the state (receiving loans from international financial organizations and banks), commercial banks (receiving loans in the interbank credit market), enterprises (to meet the need for monetary assets in order to replenish working capital and form investment resources); population (in the form of a consumer financial loan used for investment purposes).

2. In the securities market, the main types of direct participants in financial transactions are:

W Issuers. They characterize the subjects of the financial market, attracting the necessary financial resources through the issuance (emission) of securities. In the financial market, issuers act solely as a seller of securities with an obligation to comply with all requirements arising from the terms of their issue. Issuers of securities are the state (executive bodies of state power and local governments), as well as various legal entities, created, as a rule, in the form of joint-stock companies. In addition, securities issued by data by non-residents.

Sh Investors. They characterize the subjects of the financial market, investing their money in various types of securities in order to generate income. This income is formed due to the receipt by investors of interest, dividends and an increase in the market value of securities. Investors operating in the financial market are classified according to a number of criteria: according to their status, they are divided into individual (individual enterprises, individuals) and institutional investors (represented by various financial and investment institutions); according to investment purposes, strategic (acquiring a controlling stake for the implementation of strategic management of the enterprise) and portfolio investors (acquiring certain types of securities solely for the purpose of generating income) are distinguished; by belonging to residents in the national financial market, domestic and foreign investors are distinguished.

3. In the foreign exchange market, the main types of participants in financial transactions are:

W Currency sellers. The main sellers of currency are: the state (realizing on the market through authorized bodies a part of foreign exchange reserves); commercial banks (having a license to carry out foreign exchange transactions); enterprises conducting foreign economic activity (realizing their foreign exchange earnings for exported products on the market); individuals (realizing their currency through there are foreign exchange offices).

Ш Buyers of currency. The main buyers of the currency are the same entities as its sellers.

4. In the insurance market, the main types of direct participants in financial transactions are:

W Insurers. They characterize the subjects of the financial market that sell various types of insurance services (insurance products). The main function of insurers in the financial market is the implementation of all types and forms of insurance by taking on various types of risks for a fee with the obligation to compensate the subject of insurance for losses upon the occurrence of an insured event. The main insurers are: insurance firms and open-ended companies (providing insurance services to all categories of insurance entities); captive insurance firms and companies - a subsidiary of a holding company (financial-industrial group), created to insure mainly business entities that are part of it (the coincidence of the strategic economic interests of the insurer and its clients in this case creates ample financial opportunities for effective use of insurance payments); risk reinsurance companies (reinsurers) that accept part (or the entire amount) of the risk from other insurance companies (the main purpose of reinsurance operations is to split large risks in order to reduce the amount of recoverable loss by the primary insurer at occurrence of an insured event).

Ш Insurers. They characterize financial market entities that buy insurance services from insurance companies and firms in order to minimize their financial losses in the event of an insured event. The insurers are both legal entities and individuals.

5. In the gold (and other precious metals) market, the main types of direct participants in financial transactions are:

W Sellers of gold (and other precious metals). The following can act as such sellers: the state (realizing part of its gold reserves); commercial banks (realizing part of their gold holdings); legal entities and individuals (if necessary, reinvestment of funds previously invested in this type of assets (hoarding funds)). The composition of the sellers of this market in our country requires appropriate legal regulation related to functioning of this market.

Ш Buyers of gold (and other precious metals). The main buyers of these metals are the same entities as their sellers (with appropriate legal regulation of their composition).

Financial intermediaries

They constitute a rather large group of the main participants in the financial market, providing an intermediary connection between buyers and sellers of financial instruments (financial services). A certain part of financial intermediaries can themselves act in the financial market as a seller or buyer. The main types of financial intermediaries operating in the financial market. Financial intermediaries engaged exclusively in brokerage activities are professional participants in the financial market, whose activities are subject to mandatory licensing. The main function of such intermediaries is to assist both sellers and buyers of financial instruments (financial services) in making transactions in the financial market. A financial intermediary engaged in brokerage activities participates in the conclusion of transactions as an attorney (on the basis of an order from a client) or as a commission agent (on the basis of a commission agreement). When carrying out transactions under a commission agreement, a financial intermediary (broker) acts solely on behalf of the client and at his expense (i.e. the client himself is the party to the transaction, who is fully financially responsible for its execution).

When carrying out transactions under a commission agreement, the financial intermediary (broker) acts on its own behalf, but at the expense of the client (i.e. the party to the transaction is in this case the broker who is responsible for its execution, reimbursing all financial expenses on it at the expense of the client ). This group of financial intermediaries is represented by a numerous institution of financial brokers operating both in the organized (exchange) and unorganized (over-the-counter) financial markets. In accordance with the law, both legal entities (brokerage offices and firms) and individuals can act as financial brokers.

The creation of a powerful financial center in Russia is possible only with the combined efforts of financiers, economists, and lawyers. At the beginning of this year, the Association of Regional Banks of Russia, together with experts from the Expert RA rating agency, came up with a large-scale initiative to look at the problems and prospects of the Russian financial system as a whole. This proposal was supported by the Public Chamber of the Russian Federation.

The initiators of the study sought not only to convey a general picture of the development of the banking, insurance and stock markets, but also to offer specific economic and legal recipes for modernization. As a result, a large-scale concept for the development of the Russian financial market until 2020 was prepared, which in fact includes strategies for the development of certain sectors of the financial market (banking, insurance, investment).

A painstaking and accurate analysis made it possible to look into the future of the Russian financial market, predict its development and propose concrete steps to modernize the legislative framework. The developers of the Concept started from the economy and moved on to issues of management and law. The central task of the study is the search for a long-term financial resource: in the capital market, from managers of insurance and pension reserves, in the bins of the state. The synergy arising from the joint consideration of various segments of the financial market is extremely important here. The proposed model is based on the monetization of the potential accumulated in recent years. In other words, the purpose of the Concept is to literally drag huge property assets into the financial market that are concentrated in other sectors of the economy, but have not yet received a proper market assessment or have been deliberately withdrawn by the state from the financial market. The proposed document is a recipe for the success of the national financial market, it is an attempt to set priorities, it is a search for a national financial form.

It is based on a new methodology that takes into account the joint analysis of all segments of the financial market:

W but The latter abandoned the previously dominant "segmented thinking", when the development strategies of banks, insurers and the securities market were considered independently of each other. A breakthrough scenario is not possible unless the development of the capital market and the banking sector are closely coordinated;

The approach is based on the Concept of Development of the Russian Financial Market (in the broad sense), which covers all sectors of the financial system: banking, insurance, securities market, pension system and institutional investors;

Ш approach to the financial system not as a goal, but as a means of developing the country's economy, abandoning a narrow departmental approach, expanding the horizon of goals and objectives beyond the financial sector;

Sh scenario analysis. The Concept considers three scenarios for the development of events: a breakthrough scenario, an inertial scenario, a crisis scenario;

Ш long-term planning horizon;

Ш combination of measures of legislative influence and organizational and administrative measures of direct support of the financial system.

According to the developers, one of the key tasks of the current moment is the accumulation and attraction of a long-term financial resource to the financial market, including the banking sector. This, in turn, will qualitatively improve all the main financial and economic characteristics.

The sources (drivers) of growth in the breakthrough scenario described in the Concept are:

W public funds (as a "catalyst", prevail in the first three years);

Ш long-term resources (securitization, securities market, mortgage-backed securities, housing savings and irrevocable deposits, pension savings and funds of insurers, borrowings in foreign markets). At the same time, the mortgage lending market turns out to be a litmus test for success, since it imposes maximum requirements on the urgency of resources;

Ш capitalization of non-financial assets (modernization of pledge legislation, protection of property rights, registration of rights to natural, industrial, intellectual resources and their involvement in financial circulation);

Ø a multiple increase in the availability of financial services (expanding the client base, creating credit and savings systems, including banks, post offices, cooperatives, MFIs, telecom operators, etc.), improving the financial literacy of the population;

Ø introduction of financial innovations (structured financing, asset-backed securities, derivatives, project and syndicated lending, remote banking services);

Ø removal of excessive administrative barriers (regulation restrictions) and differentiation of regulation in the banking sector (establishment of a regulatory hierarchy: development banks, state banks, federal multi-branch private banks, regional small and medium-sized banks, credit cooperatives and MFIs, non-financial organizations - banking agents);

Ø increasing the role of the national currency;

• close coordination of plans for the development of the capital market (securities) and the banking sector;

• renunciation of the practice of "outsourcing the financial system" (by "outsourcing" is meant a large-scale export of capital with subsequent cross-border provision of financial services to various groups of Russian clients).

We have been convinced more than once that the subjective factor, morale are of great importance in the financial market, whether it is consumer lending or the stock market. Financial services should be understandable and accessible to ordinary people. Therefore, it is essential to focus on financial literacy and service accessibility.

The most important socio-political task that the banking system of Russia is solving today is to increase the availability of financial services for citizens of the country. Banking activity associated with the "movement to the regions", the introduction of card products, the expansion of remote banking, allows to rectify the situation and increase the availability of banking services. Therefore, one element of the proposed approach is the Financial Inclusion Strategy. If appropriate measures are ignored, the existence of the Russian financial market will be known only within the limits of the Garden Ring of the capital.

It should be remembered that the rapid and sustainable development of the country's economy depends not only on the introduction of new, more efficient production and financial technologies, but also on the willingness and ability of the population to perceive and use such technologies, that is, on the level of financial literacy. Given this fact, along with increasing the availability of financial services, it is necessary to develop and implement a program to improve the financial literacy of the population, which should help a person to plan personal finances and manage the family budget. It will teach citizens to compare the conditions under which various financial institutions provide services, and make them independent in their choice.

The country's leadership aims us at innovative development. Working on the Concept, the members of the working group focused on financial innovations, including securitization, derivatives, and project financing. What seems to be accessible to a few today, tomorrow should become a routine procedure. Otherwise, the domestic financial sector runs the risk of losing in tough competition.

The widespread use of new technologies allows credit institutions not only to expand their business, but also to start providing financial services to those segments of the population that have not previously used the services of banks. At the same time, post offices and retail outlets, including grocery stores, pharmacies, and gas stations, become points for the provision of payment and other banking services. For low-income segments of the population, the use of card products can be a convenient and effective mechanism for accessing financial services. For many clients, this may be the first time they have access to legal financial services, since legal services are usually much safer and cheaper than "shadow" (gray) alternatives.