Financial markets. Participants in financial markets in Russia

Financial markets are institutions that ensure the flow of funds between participants: the state, companies, investors. The goal of some is to raise funds to finance tasks in the real sector, while others are to increase capital. More details on what are the financial markets, participants in financial markets, read on.

Classification

By objectives, markets can be divided into:

• Currency;
• Monetary;
• Debt;
• Urgent;
• Commodity;
• Stock.

Banking sector

The foundation of the system is the money market for short-term investments. Making transactions, participants exchange liquid financial instruments. Fundamental market indicators assess the level of risks. This segment is highly dependent on the monetary policy of leading banks and the Federal Reserve System of the United States. If the situation on the market worsens, credit institutions consider the risks as high and increase rates on loans.

Central banks, as the main participants of the financial market, have the monopoly right to issue banknotes, accumulate reserves, and supervise the entire system.

Specialized lending institutions serve customers of a certain industry or perform hotel operations.

Universal banks as participants in the world financial market provide a wider range of services: RKO, attract deposits, trade and store securities, invest funds.

Other financial and credit institutions (depositories, pension, insurance companies) mobilize savings of the population, provide mortgage loans, carry out operations with shares and bonds.

Capital market

Long-term instruments are used here. Issuers issue bonds to financial markets. Participants in financial markets assess the reliability of the borrower, which is expressed in the profitability of the Central Bank. The attracted funds can be used for different purposes, for example, to finance investment programs. The higher the risk, the higher the cost of borrowing. Central banks can stimulate the economy, reducing yield on bonds. That is, the conditions for the borrower may change for the better after investing. The presence of developed capital is considered the main sign of a progressive economy.

Stock market

Its main task is to attract money for business. Business entities place shares, selling part of their companies to investors. The Central Bank falls on the financial markets. Participants in financial markets, assessing the prospects for the development of the organization, decide to buy or sell shares.

FOREX

The interaction of the three financial markets is carried out on the basis of the foreign exchange market. To perform transactions, participants need to purchase the currency of the country in whose financial assets they plan to invest. If the investor wants to invest in bonds of New Zealand, then first the New Zealand dollar should make its way .

World market

There is accumulation of free funds between individual countries. In the primary market, there is a redistribution of capital between investors and borrowers, on the secondary market there is a change of owners.

The world market is divided into international and national. The first is understood:

• The aggregate of operations of residents in the national currency;
• The borrowings made by participants in the financial market are in foreign currency.

All operations are carried out with the participation of a resident bank. The international financial market refers to operations in foreign currency that are not subject to direct state regulation. In the banking segment, there are operations between credit institutions for the provision of short-term loans. Participants in the financial market can also receive loans and trade with the Central Bank. Borrowings are provided for both short-term (up to 3 months) and long-term periods, at a floating interest rate. It includes the cost of raising funds for a particular borrower and margin.

Participants of the international financial market

On the side of supply and demand are lenders, investors, the state and intermediaries. The population turns a part of the income into savings, which invests in financial markets. Participants in financial markets can, with an appropriate mechanism, become a source of government growth. Securities are issued by legal entities. All these subjects are divided by legal status into individuals and industrial participants. Enterprises can not only issue securities, but also invest in them temporarily free cash.

The state usually acts as a borrower, which places debt obligations to finance the budget deficit. It also regulates operations. With the help of laws and regulations, it affects the behavior of participants and guides the development of the market. If there is an excess of funds, then the state can become an investor, that is, provide financial support to certain business entities.

Participants in the financial market are also intermediaries, thanks to which the savings of the population turn into loans, which enables enterprises to meet the need for funds.

Brokers

These participants of the international financial market are involved in assisting in transactions as an attorney or commission agent, that is, they execute transactions on their behalf or on behalf of the client, but at his expense. They carry out activities both in an organized and over-the-counter market. The broker's income is a commission payment from the concluded transactions. The client signs the contract with the professional participant, which stipulates all kinds of instructions. Based on this document, the broker performs operations on the market, independently choosing the CB. At any time, the client may suspend the activity of the intermediary. The broker is obliged to notify the client about all operations and transfer to him the income from the sale of the Central Bank in the period specified in the document. All transactions are subject to mandatory registration.

Dealers

These market participants carry out transactions with financial instruments at their own risk and risk for profit. Dealers publicly announce transaction prices, undertake to reverse the transaction with the specified conditions. Their income is formed from the difference in the prices of purchase and sale. Therefore, dealers are required to monitor the situation on the market. Only legal entities can obtain a license. At the same time, one and the same organization can be a dealer, a broker, an issuer, an institutional investor. This group most often includes:

• Commercial banks;
• Investment companies;
• Funds;
• Underwriters;
• Insurance organizations;
• PF and other financial institutions.

Dealers perform such functions:

• Provide information on the securities issue;
• Fulfill clients' orders;
• Follow the state of the RCB;
• Reduce buyers and sellers.

Guardians

Depository - participants in the financial market of the Central Bank, which provide services for the storage, accounting of property rights and the movement of the shareholders' securities. The contract with the professional participant must contain the following conditions:

• Subject of the transaction - provision of services for the storage of securities or the recording of rights;
• The procedure for transferring information about the use of certificates;
• validity;
• The procedure for payment for the services of the depositary;
• Frequency of reporting;
• Obligations of the depositary.

All entries are recorded on the client's "depo" account.

Registrars maintain a listing of owners of registered securities. A fee is charged for recording, storing information, making changes to the register. Only legal entities can obtain a license to carry out such activities. The register is a list of owners of the Central Bank, which indicates the number, nominal value, categories of documents that belong to shareholders on a certain date. A contract for the provision of services for a fee consists of one registrar. But one professional participant can maintain listings of not limited number of issuers. Owners and holders of the Central Bank should provide timely information to the system of keeping the register. If the number of shareholders exceeds 500, the listing holder must be a large specialized organization. The main duties of the participant are timely provision of listing and maintenance of personal accounts of owners and holders.

Clearing organizations

These participants of the Russian financial market collect, verify and update information about the Central Bank for accounting, conduct settlements between entities. In the most general sense, the Clearing House is a specialized institution of the banking type that conducts a cash settlement between bidders. To reduce the risk of non-execution of transactions, clearing companies form reserve funds. They are created in the form of CJSC. To carry out activities must obtain a license from the Central Bank. The income of such organizations is formed from:

• Registration fees;
• Revenues from the sale of data;
• Income from the circulation of available funds;
• Profits from the sale of their software;
• Miscellaneous income.

Other entities

The following RZB participants perform auxiliary functions.

1. Self-regulating organizations are voluntary associations of participants of the stock market in order to protect the interests of the owners of the Central Bank.

2. The manager is a participant in the financial market, which, on its own behalf, manages the Central Bank, the holder's cash (for a fee for a specified period).

3. Information institutions are institutions that provide clients with services for processing and disseminating market information about RZB entities, current exchange rates, indices for the compilation of reviews and trends.

4. Trade organizers are professional participants of the financial market who enter into transactions with the Central Bank. They provide the following information to any interested person:

• Rules for admission to trading;
• Conditions of conclusion of transactions;
• Rules and procedure for registration, execution of transactions;
• Price restrictions;
• The procedure for making changes to the listing;
• List of securities admitted to trading.

5. Jobbers - consultants on the problems of the RZB conjuncture. The scale and structure of the market is constantly expanding, operations are becoming more complicated. There are a large number of securities of different issuers in depositories. Jobbers not only assess the quality of the shares already issued, but also help issuers place new certificates. They advise on the proposed sales courses, determine the prospects for the development of economic sectors, conduct an analysis of tax policy.