It is necessary to legally identify all types of transactions with financial
derivatives with the help of world experts in order to protect the best interests of
participants in financial derivatives markets.
Global derivatives markets have long been using alternative instruments, such as
contracts for difference, over-the-counter options.
According to the Bank for International Settlements, the volume of stock
derivatives is in 6 times smaller than the volume of over-the-counter derivatives that
are traded on the over-the-counter market. Since such instruments become novelties
for domestic legislation, the markets for alternative financial derivatives should be
studied in more detail, as lack of definitions may have negatively influence on the stock
market.
The absence of an authorized state body that regulates and controls the derivatives
market poses a threat for direction of investment resources not to the real sector of the
economy, but to speculative sectors of the securities market and banking sectors.
It is necessary to develop requirements for market participants of financial
derivatives, in particular for stock and commodity exchanges, issuers of financial
derivatives, clearing houses, traders, banks, etc.
Thus, summing up the above, it can be concluded that Ukraine now needs to
develop and adopt appropriate legislation that would comprehensively regulate all
aspects which are related to financial derivatives taking into account foreign experience
and peculiarities of domestic financial market participants.
With the improvement of regulation of stock trading by financial derivatives in
the country need:
- To develop the state conception of the system of legal regulation of stock trading
by financial derivatives and stock infrastructure, while it is necessary to improve it on
the basis of world economic practice of stock trade by derivatives in terms of its
adaptation to the economic conditions of Ukraine;
- To build stock and over-the-counter markets of financial derivatives, both in the
direction of state and self-regulation;
- To include futures, options, swaps and instruments of financial engineering into
legal regulation of the market of financial derivatives, so the legal regulation of
derivatives circulation should be comprehensive for a large number of objects and
subjects of the stock market, identifying new ones rights and obligations, taking into
account those that existed before;
- To develop the system of legal regulation of financial derivatives and an analysis
of its needs which require revision of legislation according to other areas and branches
of law;
- To develop legislative regulation of the circulation of financial derivatives that
requires specific knowledge, experience and analysis not only in jurisprudence. There
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