Financial market. Subscribe to promotions and bonuses Non-banking model of the securities market
Today, in many countries of the world, the income of commercial banks from operations with securities plays an increasingly important role in the formation of profits, but the role and place of commercial banks in the stock market is different. In modern national financial systems, depending on the role of banks in the securities market, the delimitation of the functions of financial intermediation (deposit and loan, emission and investment) between financial and credit institutions, three models of organization of the securities market are quite clearly distinguished - banking, non-banking and mixed ( table 9.1).
Banking model(European, continental) does not separate the activities of commercial banks from investment activities, and is characterized by the active role of banks (compared to other financial intermediaries) in the securities market. They invest in government securities, as well as in shares and bonds of financial companies that carry out placement (underwriting) of securities, engage in brokerage and dealer activities, and form the market infrastructure. In its most complete form, this model operates in Germany.
Non-banking model (American) limits the activities of commercial banks in the securities market by distinguishing between their credit and investment functions. Thus, there is a division of banks into commercial and investment.
Mixed model(English) characterized by the presence and activity in the securities market of both banks and special investment institutions.
The role and place of commercial banks in the stock market are different in different countries and depend on the legislation and traditions of banking.
The principle of universalism in banking is embodied not only in Germany, but also in the banking legislation of France, Switzerland, Belgium, Italy, and Austria. Banks in these countries have the status of a direct participant in the stock market, they can open their own brokerage and dealer units, carry out safekeeping of securities and clearing. In general, 2/3 of the shares held by German financial institutions are held by banks. Non-banking financial institutions are not focused on the investment function (the share of shares in their assets is about 5%). Banks are the main participants in trading; registration of securities on the stock exchange is permitted only after the general circulation of the company and the bank is valid. Individuals can enter into transactions only with the participation of banking intermediation.
In general, the policy of isolating banks from the stock market and the existing restrictions on certain types of their stock transactions should not be adopted
Table 9.1. Three models of organizing the securities market depending on commercial banks in the stock market
German model (banking) |
American model (non-banking) |
English model (mixed) |
There are universal banks that concentrate all three functions of financial intermediation: Provide long-term loans; Invest in the enterprise's own capital, monitor the financial condition of the enterprise, its production activities, and increase the competitiveness of German corporations in the world market; Carry out all types of transactions with securities. Since there are no intermediary brokerage firms in the country, all their functions have been taken over by banks, which are the largest investors and owners of investment groups carry out most transactions with securities. |
In the United States, there is a legislative differentiation of the functions of financial intermediation. Under the influence of crisis phenomena during the Great Depression in the country, the need arose to protect the interests of society and individual investors from risks in the financial market. 3 Taking this into account, the Glass-Steagall Act (1933) was adopted, which limited the participation of commercial banks in securities transactions. Federal and state banks that are members of the Federal Reserve were prohibited from underwriting the placement of securities, with the exception of obligations of the Treasury SIIT and certain government obligations, as well as from carrying out transactions in securities for their own account. That's why 90% of a bank's investment portfolio consists of federal government and federal agency obligations, state securities, and municipal bonds. |
British financial institutions have a clear specialization: The deposit-lending and issuing functions are assigned to the banking sector, and within the banking sector there is an obvious distinction: the issuing function is the prerogative of merchant banks (they have always been engaged in operations different from those carried out by commercial banks, which are too competent in issuing securities and in merger issues and acquisitions, and their resources are formed mainly from their own funds, proportional to borrowed capital, and more recently, deposits that exceed £ 2,500) British commercial banks are not legally prohibited from holding industrial shares, but they are reluctant to undertake such transactions because they consider them very risky. |
There is also a cross-shareholding system, which increases the banks' influence over the industry by giving them the ability to hold large blocks of shares in a small group of key companies. |
Banks are also allowed to: Perform some broker functions; Carry out a significant amount of trust services, actually acting as owners of large blocks of shares in industrial companies. After the restriction of the activities of universal banks in the United States, along with commercial banks, investment banks appeared, which specialize primarily in long-term investments in financial assets and issuing operations. Legislative delimitation of the functions of financial intermediation and a ban on commercial banks engaging in investment transactions with corporate securities existed until the end of 1999 |
The principles of the UK securities market do not provide specific advantages to specific types of financial institutions. However, it is non-banking financial institutions that are the leading players in the country's stock market, performing the function of a financial market controller over the production sector of the economy. Recently, there has been a tendency towards diversification of the activities of commercial banks - they began to penetrate the investment banking markets, buying up or creating merchant banks |
an example for Ukraine, especially considering that almost all domestic banks are universal.
The vast majority of countries with developed securities markets are countries with non-bank or mixed markets. The question remains debatable as to which model of organizing the securities market is most effective for banks. The advantage of the banking model of organizing the securities market is the effect of diversification of banking activities, increasing the competitiveness of banks in the financial market, and the advantage of the non-banking model is the ability to separate the risk of operations with securities from the risk of credit and deposit operations traditional for banks and thereby contribute to the stabilization of the banking sector.
The tendency to move away from the specialization of banking and investment institutions and the desire for the universal nature of their activities, which is due to growing competition between them, is observed in world practice. In addition, the development of the trend towards universalization is also facilitated by the abolition or easing of administrative prohibitions on the investment activities of banks in the legislation of some countries (USA, Canada), which assumed a clear separation of deposit-credit and investment activities of financial intermediaries.
The emergence investment banks preceded by specialization and division of labor in the financial and credit sphere. The main task of the functioning of investment banks is the accumulation of long-term capital and its effective placement. So, an investment bank as a specialized financial and credit institution can be considered in terms of the main player in the market for long-term investment resources, as well as as an alternative source of stimulation of the investment sector of the economy. The specificity of investment banks is that they do not attract deposits from the public.
Essentially, investment banks are financial institutions specializing in securities transactions.
At the beginning of the 21st century. In the US, the investment banking business was not clearly structured. Thus, the investment bank Merrill Lynch divided its own business into three main components:
1) group of global markets and investment banking business;
2) a group of private clients;
3) a group of investment managers.
Each of these groups includes dozens of legal entities - companies and banks that are registered not only in the USA, but throughout the world, and the investment bank Merrill Lynch simply consolidates the holding's income. Thus, the first and main group includes brokerage services in the markets of shares, debt instruments, derivatives, and the second and third groups are separated from the main one and perform rather marketing functions.
The activities of the second largest specialized investment bank in the United States, Morgan Stanley, are structured somewhat differently:
Individual sector;
Institutional sector;
Investment manager sector;
Credit servicing sector.
Goldman Sachs' business is divided into three divisions: investment banking, stock trading, and asset and securities management.
Investment activities, in turn, are divided into: financial consulting (consulting on mergers and acquisitions, restructuring, separation of companies from parent structures) and underwriting (public and private placement of equity instruments, securities and their derivatives). Like Morgan Stanley, the management of the investment bank Goldman Sachs sent a request to the US Federal Reserve to change its status, which at the end of 2008. It was satisfied and the path to emergency Fed lending was cleared.
In 1850, brothers Henry, Emmanuel and Mayer Lehman founded the investment bank Lehman Brothers. Already in the 20th century. The bank became one of the world leaders in the investment business, and at the same time, thanks to its specialization in financial services and investment management, it had regional headquarters in London and Tokyo, as well as numerous offices in many countries around the world. The number of staff of this bank was more than 25 thousand people. Despite this, in August 2008, Lehman Brothers filed for bankruptcy and asked for protection from creditors. The bank's debts reached $613 billion. However, the bank's subsidiaries (including in other countries), including broker-dealer and asset management divisions, continue to operate and are not subject to bankruptcy proceedings.
Most managers of American investment banks associate the investment business with underwriting agreements and mergers and acquisitions in the corporate sector (the so-called M&A transactions). However, modern US investment banks are the product of reorganization and represent bank holding companies that seek to cover client demand for a complex product. Investment banking in the United States absorbed the entire range of classic investment services and made a breakthrough in operations with mortgage-backed securities.
Deutsche Bank is a global financial company and Germany's largest banking concern, headquartered in Frankfurt am Main, founded in 1870 and throughout the 20th century. developed through mergers and taking control of other organizations. Today it is universal, one of the 29 most important transnational banks, which includes commercial, mortgage, investment banks, leasing companies, etc. It has 13 million clients, more than 1,500 branches in the country, numerous branches and representative offices abroad (in 76 countries of the world , including New York, London, Singapore, Sydney).
For a long time, Deutsche Bank has demonstrated a stable investment policy in the countries of the European Union. It has a fairly complex organizational structure, into which the entire investment business of this financial and credit institution is successfully integrated. The management structure consists of functional and specialized executive committees that develop investment business strategies and regional committees that implement these strategies on the market.
So, investment banks are professional stock market participants who help other market participants accumulate long-term financial resources and allocate them rationally and are reliable partners for both issuers and investors.
- Encyclopedia of Banking / Editorial Board: V.S. Stelmakh et al. - M.: Youth: In Yure, 2001. - 680 p.
- Glushchenko S.V. Investment services of banks: foreign practice and Ukrainian prospects / S.V. Glushchenko // Finance of Ukraine. - 2007. - No. 5. - P. 96-104.
- History of Lehman Brothers. - URL: library.hbs.edu/hc/lehman/history.html.
Chapter 1. Securities market
Topic 1.1. Functioning of the financial market
The financial market is:
A contract that results in a financial asset for one entity and a financial liability or equity instrument for another is called:
The functions of the financial market include the following, except:
A financial instrument can exist in the form of:
I. Financial asset;
II. Financial obligation;
III. Rights to a licensed computer program;
IV. Rights to real estate.
Financial assets include:
I. Currency;
II. Securities;
III. Derivative financial instruments;
IV. Rights to real estate;
What role does the state play in the financial market?
I. Acts as a creditor;
II. Acts as a borrower;
III. Establishes general rules for the functioning of the financial market, exercises day-to-day control over it, and conducts monetary policy.
The main segments of the financial market by asset type are:
I. Foreign exchange market;
II. Credit market;
III. Stock market;
IV. Insurance market;
V. Derivatives market;
VI. Market of public services.
The amount indicated as a percentage of the loan amount that the recipient of the loan pays for using it is:
I. Discount rate;
II. Interest rate;
III. Cost of capital;
IV. An amount indicated as a percentage of the loan amount that the recipient of the loan pays for using it for a certain period.
The financial market includes:
I. Commodity market;
II. Money market and capital market;
The real interest rate is:
The required level of return, reflecting the equilibrium price of capital that satisfies the investor and the issuer at a given level of risk, consists of:
I. Risk-free return;
II. Market risk premiums adjusted for inflation;
III. Premiums for the risk of investing in a company;
IV. Discounts for insurance.
A situation of equilibrium in the market for investment resources means that:
The company's sources of investment resources are the following:
The main sources of financing from the company’s own funds include:
I. Loans;
III. Profit;
IV. Depreciation.
External sources of financing the company’s investment activities include:
I. Loans;
II. Issue of shares and bonds;
III. Profit;
IV. Depreciation.
The non-banking financial market model includes:
The banking model of the financial market includes:
I. The decisive importance of bank lending in providing resources for the investment needs of firms;
II. Dominance of financial markets for direct access to attracting financial resources;
III. Banks acting as the main financial intermediaries;
IV. The priority of the securities market in meeting the investment needs of firms.
The banking market model is also called:
I. Continental;
II. German;
III. Anglo-Saxon;
IV. Market;
V. Outsider;
VI. Insider;
VII. Islamic.
The non-bank market model is also called:
I. Continental;
II. German;
III. Anglo-Saxon;
IV. Market;
V. Outsider;
VI. Insider;
VII. Islamic.
The Islamic financial market model is characterized by:
I. A ban on the activities of banks;
II. Prohibition on charging interest;
III. A ban on investing in certain types of business (alcohol, tobacco, etc.);
IV. Ban on rental income;
V. The need to help the poor (mandatory payments to the poor).
State the correct statement regarding the role of the state in the financial market.
The main trends in the development of the financial market include:
I. Globalization;
II. Monocentrism;
III. Disintermediation;
IV. Securitization.
The desire for market concentration, reducing the number of exchanges and financial institutions is:
What is the name of investing in the financial market, in which funds invested by a large number of investors (mostly small ones) are combined into a single fund (pool) under the management of a professional manager for their subsequent investment in order to obtain investment income?
From the following, indicate financial institutions that are classified as investment-type financial intermediaries.
I. Joint-stock investment funds;
II. Insurance companies;
III. Commercial banks;
From the following, indicate financial institutions that are classified as deposit-type financial intermediaries.
I. Insurance companies;
III. Commercial banks;
IV. Mutual investment funds.
From the following, indicate financial institutions that are classified as financial intermediaries of the contract-savings type.
I. Insurance companies;
II. Credit Unions;
III. Commercial banks;
IV. Non-state pension funds.
Which of the listed financial institutions invest their funds in predominantly long-term financial instruments due to the fact that their obligations are long-term in nature?
I. Non-state pension funds;
II. Commercial banks;
III. Closed-end mutual funds;
IV. Open-end mutual funds.
The erasing of borders between countries, the expansion of financial flows and increasing interdependence of markets is called:
Which of the following is a form of collective investment?
I. Insurance companies;
II. Joint stock investment funds;
III. Non-state pension funds;
IV. Mutual investment funds.
Unlike speculation, investment:
I. Represent an investment of capital in assets for a long period with the expectation of receiving greater income in the future;
II. They represent short-term investments in assets for the purpose of resale and profit from rising or falling prices;
III. Represent investments in assets for the purpose of participation in the management of the company;
IV. They represent the purchase of assets solely for the sake of a possible change in their price.
Reducing the role of banking intermediaries in the redistribution of capital is called:
What type of financial intermediaries are life insurance companies?
I. To the deposit type;
II. To investment type;
III. To the contract-savings type.
What type of financial intermediaries are pension funds usually classified as?
I. To the deposit type;
II. To the contract-savings type;
III. To the investment type.
A supply graph is a graphical representation of the relationship between:
A demand schedule is a graphical representation of the relationship between:
From the following, indicate ways to invest free funds that can be considered financial investments.
I. Purchase of a refrigerator;
II. Saving funds in a safe;
III. Investing funds in a bank deposit;
IV. Providing a loan at interest;
V. Purchase of securities.
What is the liquidity of a financial asset?
What is the circulation of a financial asset?
What sources of funds can a company use to finance the construction of a plant?
I. Retained earnings;
II. Bank loans;
III. Commercial bills;
V. Medium- and long-term bonds.
Please indicate your main investment objectives from the following.
I. Receipt of current income in the form of interest payments and dividends;
II. Increasing capital by reinvesting income received;
III. Capital gains through changes in the market value of assets.
What is the law of demand?
The risk associated with the possibility of non-payment of an obligation is:
The structural product is characterized by the following features:
I. Cannot be unprofitable;
II. The risk of loss can be clearly limited;
III. May consist of one instrument;
IV. May include securities and derivatives.
Market equilibrium is a market state in which:
The main factors determining the level of investment spending in the economy include:
I. Level of bank interest rate;
II. Economic expectations of entrepreneurs;
III. Changes in production technology;
IV. Taxation level.
Indicate what is included in the basic elements of the financial system.
Indicate which of the listed principles does not apply to the basic principles of credit?
Which of the listed functions does not belong to the main functions of the Bank of Russia in the economy?
Indicate the main functions of the financial market in a market economy.
I. Transformation of savings into loan and investment capital;
II. Formation of market prices for financial instruments (assets);
III. Carrying out qualified intermediation between sellers and buyers of financial instruments (assets);
IV. Accelerating the turnover of funds, contributing to the activation of economic processes.
Which of the following is not a financial (portfolio) investment?
What is the name of a high-risk investment of capital that allows for high returns in the long term?
The risk associated with changes in interest rates is:
Topic 1.2. The securities market as a sector of the financial market
The stock market is classified by types of securities and terms of their circulation into:
The securities market is classified according to the timing of transactions into:
The organized securities market is classified according to the place of circulation of financial instruments into:
The term "capital market" is used to describe:
List the financial instruments that are usually classified as capital market instruments.
I. Preferred shares;
II. Commercial papers;
III. Certificates of deposit;
IV. Medium-term bonds.
Indicate those segments of the financial market in which the process of exchange of financial assets takes the form of purchase and sale of securities.
I. Credit market;
II. Money market;
III. Precious metals market;
IV. Capital market.
Indicate those segments of the financial market in which the process of exchange of financial assets does not take the form of purchase and sale of securities.
I. Precious metals market;
II. Money market;
III. Capital Market;
IV. Credit market.
What is the name of the market segment in which purchase and sale transactions of financial instruments are concluded on the terms of payment and delivery within 1-2 days?
The term "money market" is used to describe the market:
In terms of investment selection, which of the following statements is true?
I. The greater the expected risk associated with an investment, the higher the reward the investor expects;
II. The shorter the investment period, the higher the reward the investor expects;
III. The longer the investment period, the higher the reward the investor expects;
IV. The lower the expected risk associated with an investment, the higher the reward the investor expects.
State the correct statement about the relationship between risk and return when investing in the financial market.
Of the following, identify the investments that are generally best suited to generate current income (interest or dividends) in a market economy.
I. Shares of venture companies;
II. Preferred shares of first-class companies with a fixed dividend;
III. Bank deposits;
IV. Zero coupon corporate bonds.
List financial instruments that are considered low-risk investments.
I. Corporate bonds with a high credit rating;
II. Bank deposits;
III. Government securities;
IV. Derivatives.
For shares of first-tier companies, called blue chips, the following parameters are characteristic:
I. High liquidity;
II. Low liquidity;
III. Low risk;
IV. Minimum spread;
V. Maximum spread.
Capitalization of the securities market is:
The process of replacing traditional financial transactions in the form of bank loans with new financial instruments that ensure the attraction of financial resources through the issuance of securities is called:
Obtaining risk-free profit due to the difference in prices for identical financial assets in different markets is called:
Insurance against the risk of losses from changes in prices for financial assets, interest rates or exchange rates is called:
The process of transforming illiquid assets into highly liquid securities is called:
A method of reducing the total risk of a portfolio of financial assets (securities), which consists in distributing investments between various assets with a minimum correlation of returns included in it, is called:
Volatility is:
What is the significance of the secondary securities market?
I. Attraction of resources by the company for the purposes of its development;
II. Redistribution of funds between investors;
III.Share price formation, which determines the market capitalization of the company;
IV. The presence of a liquid secondary market allows the company to conduct a more successful placement of shares of a new issue and sell shares at a higher price.
The segment of the financial market in which securities are issued and circulated is called:
The ability of a security to be sold quickly and without significant losses on the financial market with minor fluctuations in market value is called:
In which of the listed segments of the securities market is a transaction concluded with the issuer or its representative regarding the acquisition of a new issue of paper?
How is the securities market classified according to the method of trading?
The quote promotion market is:
In which type of securities market do buyers compete with each other for the right to purchase a security?
I. Dutch auction;
II. English auction;
III. Dealer market;
IV. Double auction.
In which type of market do buyers and sellers of securities compete with each other for the right to enter into a transaction?
I. Dutch auction;
II. English auction;
III. Dealer market;
IV. Double auction.
An auction based on establishing a minimum price as a starting, base price for further bidding, during which the asking price gradually increases, is called:
The method of organizing trade, called the "Dutch auction", is based on:
A method of organizing trade, in which trading is carried out at a certain period of time during the exchange session, “in volleys”, is called:
The state of the market in which only past information about prices, dividends, market statistics, etc. is available to all interested parties is called:
The state of the securities market, when investors know all publicly available information, and insider information cannot be used, since it is strictly regulated by law, is called:
Securities market participants are:
I. Investors;
II. Issuers;
III. Professional participants in the securities market;
IV. Supervisory authorities;
V. Educational organizations and accredited certification centers.
Which type of market uses a trading method called "quote promotion"?
I. Dutch auction;
II. English auction;
III. Dealer market;
IV. Double auction.
Quantitative characteristics of the securities market include:
I. Market capitalization;
II. Number of participants;
III. Number of tools;
IV. Volatility;
V. Volume of transactions;
VI. Stock indices.
Relative indicators of the development of the securities market include:
I. Market capitalization;
II. Number of participants;
III. Number of tools;
IV. Volatility;
V. Ratio of capitalization to GDP;
VI. Profitability.
Topic 1.3. Concept and types of securities
In accordance with the Civil Code of the Russian Federation, securities are:
I. Documents that meet the requirements established by law and certify obligations and other rights, the exercise or transfer of which is possible only upon presentation of such documents (documentary securities);
II. Obligatory and other rights that are enshrined in the decision on the issue or other act of the person who issued the securities in accordance with the requirements of the law, and the implementation and transfer of which are possible only in compliance with the rules for accounting for these rights in accordance with the Civil Code of the Russian Federation (uncertificated securities) ;
III. Documents certifying, in compliance with the established form and required details, property rights, the exercise or transfer of which is possible only upon presentation.
Person responsible for execution of a certificated security:
I. Has the right to raise against the claims of the owner of the security only those objections that arise from the security or are based on the relationship between these persons;
II. Does not have the right to raise objections against the claims of the owner of the security that arise from the security or are based on the relationship between these persons;
III. Responsible for a security if the document came into circulation against his will;
IV. Does not have the right to refer to the objections of other persons responsible for execution of this security in all cases.
The persons responsible for execution of an uncertificated security are:
I. The person who issued the security;
II. Persons who provided security for the fulfillment of the relevant obligation;
III. Persons who are indicated in the decision on its issue or in another act provided for by law of the person who issued the security;
IV. The person who keeps records of rights to these securities;
V. Person transferring securities.
II. Investment share;
IV. Issuer option;
V. Privatization securities;
VI. Bond;
VII. Bill of exchange;
VIII. Mortgage;
IX. Deposit (savings) certificate;
XI. Bank savings book to bearer;
XII. Bill of lading;
XIV. Clearing certificate of participation.
The Civil Code of the Russian Federation classifies the following documents as securities, with the exception of:
Indicate the securities provided for by the legislation of the Russian Federation.
II. Bond, including government bond;
III. Bill of exchange;
IV. Deposit and savings certificate;
VI. Bank savings book;
VII. Clearing certificate of participation.
Specify securities that are financial market instruments.
II. Bond;
III. Bill of exchange;
VI. Bill of lading;
VIII. Certificate of Deposit.
Indicate the securities certifying funds.
II. Bond;
III. Bill of exchange;
V. Bank book to bearer;
VI. Bill of lading;
VII. Simple warehouse receipt;
VIII. Certificate of Deposit.
Indicate the securities that certify the financial investment.
II. Bond;
III. Bill of exchange;
V. Bank book to bearer;
VI. Bill of lading;
VII. Simple warehouse receipt;
VIII. Certificate of Deposit.
Indicate the securities that are instruments of the commodity market.
II. Bond;
III. Bill of exchange;
V. Bank book to bearer;
VI. Bill of lading;
VII. Simple warehouse receipt;
VIII. Certificate of Deposit.
Specify debt financial instruments.
II. Bond;
III. Bill of exchange;
V. Bill of lading;
VI. Mortgage;
VII. Mortgage participation certificate.
Specify equity financial instruments.
II. Bond;
III. Bill of exchange;
IV. Investment unit of a mutual investment fund;
V. Issuer option;
VI. Bill of lading;
VII. Mortgage;
VIII. Mortgage participation certificate.
Specify the title securities.
I. Bill of exchange;
II. Bill of lading;
III. Mortgage participation certificate;
V. Issuer option;
VI. Simple warehouse receipt;
VII. Mortgage.
A bearer security is a certificated security for which the person authorized to demand execution under it is recognized as:
An order is a documentary security for which the person authorized to demand execution on it is recognized as:
A registered security is a certificated security for which the person authorized to demand execution under it is recognized as:
I. The owner of the security, indicated as the copyright holder in the records maintained by the obligated person or a person acting on his behalf and having the appropriate license;
II. The owner of a security, if the security was issued in his name or transferred to him from the original owner in a continuous series of assignments of a claim (assignment) by making personal endorsements on it or in another form in accordance with the rules established for the assignment of a claim (assignment) );
III. Bearer of a security;
IV. A person named in a security who can exercise these rights himself or appoint another authorized person by his disposition (order).
If the document does not contain the required details of a documentary security, or does not comply with the established form and other requirements, the document:
If there are several persons in whose favor the obligation to transfer or encumber rights to the same book-entry securities has been established, if the operation to transfer or encumber them has not yet been carried out, the following has priority:
What is the name of the method of transferring rights under a security by making an endorsement on this paper?
The endorsement of the order security was completed on 06/10/16, the acceptance and transfer certificate of the specified security was signed on 06/12/16. What date did the transfer of rights to the security take place?
The following cannot be demanded from a bona fide purchaser:
Indicate the statement that contradicts the Civil Code of the Russian Federation in relation to securities.
State the correct statement regarding the order security and the performance of obligations under it.
The person transferring the right under an order security is called:
Please indicate the correct statement.
Issue security - any security, including uncertificated paper, which is characterized by the following features:
I. Secures a set of property and non-property rights that are subject to certification, assignment and unconditional implementation;
II. Posted in editions;
III. Has equal volume and terms of exercise of rights within one issue, regardless of the time of acquisition of the security.
State the incorrect statement.
A. An issue of equity securities that is subject to state registration is assigned a single state registration number, which applies to all securities of this issue
B. The issue of equity securities that is not subject to state registration is assigned a single identification number
C. Issue of issue-grade securities - a set of all securities of one issuer that provide the same or different scope of rights to their owners and have the same nominal value in cases where the presence of a nominal value is provided for by the legislation of the Russian Federation
D. Issue of issue-grade securities - a set of all securities of one issuer that provide the same amount of rights to their owners and have the same nominal value in cases where the presence of a nominal value is provided for by the legislation of the Russian Federation
State the incorrect statement.
A. Additional issue of issue-grade securities - a set of securities placed in addition to previously placed securities of the same issue of issue-grade securities
B. Additional issue of issue-grade securities - a set of securities of a different category (type) placed in addition to previously placed securities
C. Additional issue securities are placed on the same terms
D. All three statements are true.
The part of the securities of a given issue placed within the scope of this issue on any date during the circulation period of the securities of this issue that does not coincide with the date of the first placement is called:
Indicate the correct statements regarding the form of issue-grade corporate securities in accordance with the Federal Law “On the Securities Market”.
II. Registered documentary security;
III. Registered uncertificated security;
IV. Order documentary security.
Indicate the forms in which emissive corporate securities may be issued in accordance with the Federal Law “On the Securities Market”.
I. Registered uncertificated securities;
II. Registered documentary securities;
III. Documentary bearer securities;
IV. Order documentary securities;
V. Order book-entry securities.
Please indicate the correct statement.
Registered issue-grade securities are securities, the transfer of rights to which and the exercise of the rights secured by them require mandatory identification of the owner, and information about the owners of which must be available to the issuer in the form:
I. Register of securities owners;
II. Records about the name (name) of the owner on the form of the certificate of the issue-grade security;
III. Records about the name (name) of the owner on the form of the issue-grade security.
The documentary form of issue-grade securities is a form of issue-grade securities in which the owner is identified on the basis of:
I. Presentation of a properly executed security certificate;
II. Records on the securities account, in case of deposit of a security certificate.
A document issued by the issuer and certifying the totality of rights to the number of securities indicated in it is:
The uncertificated form of issue-grade securities is a form of issue-grade securities in which the owner is identified on the basis of:
I. Entries in the system for maintaining the register of securities owners;
II. Records on the securities account, in case of deposit of securities.
In the case of the issue of book-entry securities, which document contains data sufficient to establish the scope of rights secured by the security?
Specify the documents certifying the rights secured by the issued security in documentary form.
I. Certificate;
II. The decision to issue securities.
The rights of owners to issue-grade securities are certified:
I. Certificates - in a documentary form of issue without storing certificates in a depository;
II. Records on securities accounts - in the case of a documentary form of issue and storage of certificates in the depository;
III. Entries on personal accounts with the registry holder - in a non-documentary form of issue;
IV. Records on securities accounts in depositories - in the non-documentary form of issue.
In what cases can the rights of owners of issue-grade securities be certified only by entries on personal accounts in the register system?
I. In the case of registered documentary securities;
II. In the case of registered uncertificated securities;
III. In the case of documentary bearer securities.
In what cases can the rights of owners of issue-grade securities be certified by records on securities accounts in depositories?
I. In the case of bearer certificated securities;
II. In the case of registered uncertificated securities.
If the certificate is in the possession of the owner, the ownership of the documentary bearer security passes to the acquirer at the moment:
I. Transfer of the certificate to the purchaser;
II. Making a credit entry on the acquirer's securities account in the depository;
III. Making a credit entry on the acquirer’s personal account in the registry system.
How are rights under bearer securities exercised if certificates are stored in depositories?
I. By transferring certificates by depositories to owners of securities or their proxies for presentation to the issuer;
II. By presenting certificates to the issuer by depositories on behalf of the owners of securities;
III. By presenting securities certificates to the issuer by depositories on instructions provided under the depository agreement, as well as a list of securities owners.
In relation to which person is the issuer fulfilling its obligations, if by the time the register was closed for the fulfillment of obligations, information about the new owner of the securities had not been reported?
The action recognizes:
Please indicate the correct statement.
A. The joint stock company places ordinary shares and has the right to place one or more types of preferred shares
B. The joint stock company issues preferred shares and has the right to issue one or more types of ordinary shares
C. A joint stock company may not issue ordinary shares.
D. A joint stock company does not have the right to place preferred shares
Preference shares are not cumulative in the following cases:
Please indicate the correct statements.
I. The par value of preferred shares of all types must be the same;
II. Preferred shares of a joint stock company of the same type have the same par value;
III. The par value of all common shares must be the same;
IV. The market value of the shares should be the same.
State the correct provisions regarding salvage value.
I. Liquidation value is determined on ordinary shares;
II. Liquidation value is determined for all preferred shares;
III. Liquidation value is determined for each type of preferred shares;
IV. The liquidation value of preferred shares is determined by the charter;
V. The amount of liquidation value is determined by the general director;
VI. The amount of liquidation value is determined by the general meeting of shareholders.
State the correct statement regarding stock splits.
The company carried out a consolidation of shares from a ratio of 4:1. What will be the number and total par value of the block of shareholders who, before the consolidation operation, owned a block of 100 shares with a total par value of 500 rubles?
Please indicate the correct statements regarding stock dividends:
I. Dividends are paid on declared shares;
II. Dividends are paid on outstanding shares;
III. Dividends are paid in money, and in cases provided for by the company's charter - in other property;
IV. The share does not provide the right to receive dividends.
Indicate the correct statements regarding the form of the action:
Russian depositary receipt is:
JSC X issued 800 ordinary shares with a par value of 10 rubles and 100 preferred shares with a par value of 20 rubles. Determine the volume of property rights (as a percentage of the net asset value) certified by one ordinary and one preferred share.
JSC X issued 800 ordinary shares with a par value of 10 rubles and 100 preferred shares with a par value of 20 rubles. Shareholder A owns 18 common shares, shareholder B owns 18 preferred shares. Determine what percentage of votes shareholders A and B will have when voting on the issue of reorganization of the joint-stock company.
The company's charter for preferred shares of each type must define:
I. Dividend amount;
II. The cost paid upon liquidation of the company (liquidation value).
The dividend amount and liquidation value are determined:
Owners of preferred shares for which the dividend amount is not determined:
Conversion of preferred shares into bonds and other securities, with the exception of shares:
The investment share provides the owner with the following rights:
I. Share in the ownership of property constituting a mutual investment fund;
II. Ownership of property constituting a mutual investment fund;
III. The right to demand from the management company proper fiduciary management of the mutual investment fund;
IV. The right to receive income (interest);
V. The right to receive monetary compensation upon termination of the trust management agreement for a mutual investment fund with all owners of investment shares of this mutual investment fund.
An investment unit of one mutual investment fund certifies:
Investment units can be issued as:
Restrictions on the circulation of investment units may be established:
In cases where it is necessary to compile a list of owners of investment shares, the depository for which a nominee holder account is opened in the register of owners is obliged to provide the person maintaining the register with the information necessary to compile a list of owners of investment shares no later than:
Mortgage coverage may be:
I. Claims secured by a mortgage for the return of the principal amount of the debt and (or) for the payment of interest under credit agreements and loan agreements, including those certified by mortgages;
II. Mortgage participation certificates certifying their owners' share in the common ownership of another mortgage;
III. Cash in the currency of the Russian Federation;
IV. Cash in foreign currency;
V. Government securities;
VI. Real estate in cases provided for by Federal Law.
The mortgage participation certificate provides the owner with the following rights:
I. Share in the right of common ownership of the mortgage coverage;
II. Ownership of mortgage coverage;
III. The right to require the issuer to properly administer the mortgage security;
IV. The right to participate in trust management of mortgage coverage;
V. The right to receive income from trust management of mortgage coverage;
VI. The right to receive funds received in fulfillment of obligations, the claims for which constitute mortgage coverage.
An issue-grade security that secures the right of its owner to purchase, within the period specified therein and/or upon the occurrence of circumstances specified therein, a certain number of shares of the issuer at a price specified in this security is:
State the true statements regarding the issuer option.
I. Is an issue-grade security;
II. Is a non-issue security;
III. It is a derivatives market instrument that determines the right to receive (transfer) property (including money, currency values and securities) or information with the condition that the option holder can unilaterally waive the rights under it;
IV. Secures the right of its owner to purchase, within a specified period and/or upon the occurrence of circumstances specified in this security, a certain number of shares of the issuer at the price specified in this security;
V. Is a registered security;
VI. It is a bearer security.
Identify the correct statements regarding the form of the issuer option.
An issue-grade security that secures the right of its owner to receive from the issuer a security within the period specified in it for its nominal value or other property equivalent is:
What is the name of a bond on which no interest is paid, and the investor receives income from the difference between the purchase price and the redemption of the bond at par?
I. Coupon;
II. Discount no coupon.
State the true statements regarding the bond.
I. The bond is an issue-grade security;
II. The bond is a non-issue security;
III. The bond secures the right of its owner to receive from the issuer within the period specified in it its nominal value or other property equivalent;
IV. The bond secures the rights of its owner to receive part of the profit of the joint-stock company in the form of dividends, to participate in the management of the joint-stock company;
V. A bond may provide for the right of its owner to receive a fixed percentage of the nominal value of the bond or other property rights;
VI. The yield on a bond is interest and/or discount;
VII. The income from the bond is dividends.
In accordance with the Federal Law "On the Securities Market", the fulfillment of obligations under bonds can be ensured:
I. Collateral;
II. Penalty;
III. Retention of the debtor's property;
IV. By guarantee;
V. Bank guarantee;
VI. Deposit;
VII. State or municipal guarantee.
State the correct provisions regarding the security of the bond.
I. The subject of collateral for secured bonds can only be uncertificated securities, immobilized documentary securities, real estate and monetary claims on obligations, including monetary claims that will arise in the future from existing or future obligations;
II. The subject of the pledge can be any thing, including money and securities, other property, including property rights;
III. The period for which the bank guarantee is issued must be at least 6 months longer than the maturity date (expiration date) of the bond;
IV. The period for which a bank guarantee is issued may be equal to the maturity of the bond;
V. Bonds secured by a mortgage must be placed before the state registration of the mortgage;
VI. It is prohibited to place bonds secured by a mortgage until the state registration of the mortgage.
A mortgage-backed bond is:
Identify the correct statements regarding the form of a corporate bond.
I. Documentary bearer security;
II. Order documentary security;
III. Registered documentary security;
IV. Registered uncertificated security.
State the correct statement regarding a floating rate bond.
Identify true statements regarding the market prices of fixed-rate and floating-rate bonds.
I. The market price of a bond with a fixed coupon rate does not change, since the coupon is a constant value throughout the entire circulation period of the bond;
II. The market price of a fixed coupon bond fluctuates with market interest rates;
III. The market price of a floating rate bond does not change because the coupon adjusts based on market interest rates;
IV. The market price of a bond with a floating coupon rate is less volatile compared to the market price of a bond with a fixed coupon rate.
What is the name of the guarantee of payment of a bill for any person obligated under it?
What is the name of the drawer of a bill of exchange?
What is the name of the payer of a bill of exchange?
What is the name of the holder of a bill of exchange?
Please indicate the correct statements regarding the endorsement:
I. The endorsement must be simple and unconditional;
II. The endorsement may be limited by the conditions indicated on the additional sheet;
III. Partial endorsement is invalid;
IV. The endorsement transfers all rights arising from the bill;
V. The endorser has the right to transfer part of the rights by endorsement, indicating them on an additional sheet;
VI. Crossed out endorsements are considered unwritten;
VII. A bill of exchange is considered invalid if it contains crossed out endorsements.
In accordance with the Federal Law “On Bills of Exchange and Promissory Note”, on a bill of exchange and promissory note the right to undertake:
I. Citizens of the Russian Federation;
II. Legal entities of the Russian Federation;
III. The Russian Federation, constituent entities of the Russian Federation, urban, rural settlements and other municipalities only in cases specifically provided for by federal law;
IV. Foreign citizens;
V. Foreign governments and international organizations.
The bill can be issued for the following period:
I. Upon presentation;
II. In such and such a time from presentation;
III. In so much time from compilation;
IV. On a specific day;
V. Before the occurrence of any event;
VI. Consecutive payment terms may be established.
The bill remains valid in the following cases:
I. In the absence of parts that do not affect the content of the bill of exchange details;
II. If there are sealed tears;
III. In the absence of part of any bill of exchange details that affect the debtors’ performance of their obligation.
Income from transactions with a bill of exchange, the issuance of which is based on a loan relationship, is recognized as:
I. Bill amount on an interest-bearing bill;
II. Interest on a bill;
III. Bill amount on an interest-free bill;
IV. Discount amount.
The endorser may relieve himself of responsibility for payment of the bill by stipulating:
The mortgage certifies the following rights of its owner:
I. The right to receive performance under a monetary obligation secured by a mortgage, without providing other evidence of the existence of this obligation;
II. The right of pledge on property encumbered with a mortgage;
III. The right to receive part of the profit in the form of dividends;
IV. The right to receive, upon expiration of the established period, the amount of the deposit and the interest stipulated in this security.
The mortgage is:
Who issues the mortgage to the original mortgagee?
A security certifying the amount of a deposit made to a bank and the right of the depositor to receive, upon expiration of a specified period, the amount of the deposit and the specified interest, is called:
The preparation and issuance of a certificate of deposit confirms the conclusion of the agreement:
List the correct statements regarding certificates of deposit and savings certificates:
I. Are securities;
II. Issued by banks;
III. Issued by any credit and non-credit organizations;
IV. Issued in documentary form;
V. Issued in both documentary and non-documentary form;
VI. Can serve as a means of payment and payment;
VII. Cannot serve as a means of payment or settlement;
VIII. A certificate of deposit is a means of payment and/or payment.
Please indicate the correct statements regarding the check:
I. The payer of the check is the bank;
II. The payer of the check is the counterparty to the transaction;
III. The issuance of a check does not extinguish the monetary obligation in fulfillment of which it was issued;
IV. The check is paid at the expense of the payer;
V. The payer has the right to make an endorsement;
VI. If the payer refuses to pay a check, the check holder has the right, at his own discretion, to file a claim against one, several or all persons obligated under the check (drawer, avalists, endorsers);
VII. If the payer refuses to pay the check, the check holder has the right, at his own discretion, to file a claim against the drawer.
Indication on the check regarding interest:
The preparation and issuance of a bank savings book to bearer confirms the conclusion of the agreement:
The savings book certifies the conclusion of a bank deposit agreement:
I. With an individual;
II. With a legal entity.
Which of the following documents is a security?
I. Bearer savings book;
II. Personalized savings book.
The preparation and issuance of a bill of lading confirms the conclusion of the contract:
Please indicate the correct statements.
A bill of lading can be issued:
I. In the name of a specific recipient (nominal bill of lading);
II. Order of the sender or recipient (order bill of lading);
III. To bearer.
Please indicate the correct statements.
A personal bill of lading can be transferred:
II. In a form in accordance with the rules established for the assignment of a claim.
Please indicate the correct statements.
A bill of lading may be transferred:
I. According to personal endorsements;
II. According to blank endorsements.
State the incorrect statement.
A. At the sender’s request, he may be issued several copies (originals) of the bill of lading
B. If multiple copies of a bill of lading are issued, each copy will indicate the number of originals of the bill of lading available.
C. After the cargo is released on the basis of the first original bill of lading presented, the remaining originals remain valid
D. The correct answer is not specified.
The commodity warehouse issues one of the following warehouse documents as confirmation of acceptance of goods for storage:
I. Double warehouse receipt;
II. Simple warehouse receipt;
III. Warehouse receipt.
What is the name of the pledge certificate that is part of a double warehouse receipt?
Which warehouse documents are securities?
I. Only the first part of the double warehouse receipt;
II. Simple warehouse receipt;
III. Each of two parts of a double warehouse receipt;
IV. Double warehouse receipt;
V. Warehouse receipt.
The holder of which parts of a double warehouse receipt has the right to dispose of the goods stored in the warehouse in full?
I. Warehouse certificate;
II. Collateral certificate.
Please indicate the correct statement.
A. The warehouse receipt and the pledge certificate can only be transferred together with endorsements
B. The warehouse receipt and the pledge certificate can only be transferred separately by endorsement
C. The warehouse receipt and the pledge certificate can be transferred together or separately by endorsement
D. The warehouse receipt and the pledge certificate can be transferred together or separately according to the credit entry on the personal account in the register
A simple warehouse receipt is a security:
I. To bearer;
II. Nominal;
III. Warrant.
A clearing participation certificate is a security:
I. To bearer;
II. Nominal;
III. Warrant.
Please indicate the correct statement.
A. The Clearing Certificate of Participation can only be transferred by endorsements
B. A Clearing Participation Certificate may only be transferred by delivery
C. A clearing certificate of participation is a non-issue, documentary, bearer security with mandatory centralized storage
D. The clearing certificate of participation can only be transferred by receipt entry on the personal account in the register
List the correct statements regarding what should be contained in a property pool agreement:
I. Determination of property that can be included in the pool;
II. Nominal value of the clearing participation certificate;
III. Rights and obligations of pool participants;
IV. Rights of the owner of the clearing participation certificate;
V. Rights and obligations of the clearing organization that formed the pool, including the issuance and redemption of clearing participation certificates;
VII. Procedure and terms for terminating a property pool.
The bond program must contain:
I. Full name of the issuer and its location;
II. The rights of bondholders, defined in a general way;
III. The maximum amount of nominal values of bonds that can be placed under the bond program;
IV. Maximum maturity of bonds placed under the bond program;
V. Validity period of the bond program (the period during which the terms of a separate bond issue within the bond program may be approved);
VI. Signature of the person performing the functions of the sole executive body of the issuer and the seal of the issuer;
VII. The date of the decision to approve the bond program, which is the decision to place bonds within the bond program, and the name of the authorized body of the issuer that made the decision to approve the bond program.
The document containing the actual results of the placement of exchange-traded bonds is:
I. Notification of the exchange about the results of the placement of exchange-traded bonds;
II. Report on the results of the placement of exchange-traded bonds;
III. Notification of the Bank of Russia on the results of the placement of exchange-traded bonds.
The forms of bond repayment are:
I. Cash;
II. Property;
III. Conversion.
The mortgage participation certificate certifies:
I. The share of its owner in the right of common ownership of the mortgage coverage;
II. The right to receive funds received in fulfillment of obligations, the requirements for which constitute mortgage coverage;
III. The right to require the issuer to properly administer the mortgage security.
The following are recognized as significant violations of the terms of fulfillment of obligations under bonds:
I. Delay in fulfilling the obligation to pay the next interest income on bonds for a period of more than ten working days, unless a shorter period is provided for by the terms of the bond issue;
II. Delay in fulfilling the obligation to pay part of the nominal value of the bonds for a period of more than five working days, unless a shorter period is provided for by the terms of the bond issue, if the payment of the nominal value of the bonds is carried out in parts;
III. Delay in fulfilling the obligation to purchase bonds for a period of more than ten working days, unless a shorter period is provided for by the terms of the bond issue, if the issuer's obligation to purchase bonds is provided for by the terms of their issue;
IV. Loss of collateral on bonds or significant deterioration in the terms of such collateral.
The following are recognized as secured bonds:
I. Bonds, the fulfillment of obligations under which is fully or partially secured by a pledge;
II. Bonds, the fulfillment of obligations under which is fully or partially secured by a guarantee;
III. Bonds, the fulfillment of obligations under which is fully or partially secured by a bank guarantee;
IV. Bonds, the fulfillment of obligations under which is fully or partially secured by a state or municipal guarantee.
Topic 1.4. Concept and types of contracts that are derivative financial instruments
What is recognized as an option agreement in accordance with the Directive
What is recognized as a futures contract in accordance with the Bank of Russia Directive “On the types of derivative financial instruments”?
What is recognized as a delivery forward contract in accordance with the Bank of Russia Directive “On the types of derivative financial instruments”?
What is recognized as a swap agreement in accordance with the Bank of Russia Directive “On the types of derivative financial instruments”?
An agreement providing for one of the following obligations:
The obligation of one party to the contract to transfer securities, currency or goods that are the underlying asset into the ownership of the other party no earlier than the third day after the date of conclusion of the contract, the obligation of the other party to accept and pay for such property and an indication that the contract is a derivative financial instrument;
The obligation of the parties or parties to the contract to pay amounts of money depending on changes in prices (values) of the underlying asset and (or) the occurrence of a circumstance that is the underlying asset,
is:
An agreement providing for the obligation of the parties or parties to the agreement to pay amounts of money depending on changes in prices (values) of the underlying asset and (or) the occurrence of a circumstance that is the underlying asset is:
The underlying assets of derivative financial instruments traded on the Moscow Exchange are:
I. Securities of Russian issuers;
II. Precious metals;
III. Volatility of the Russian market;
IV. Indexes.
Which derivative financial instruments traded on the Moscow Exchange are deliverable?
I. Futures contracts for shares of Russian issuers;
II. Futures contracts for precious metals;
IV. Futures contracts for federal loan bonds;
V. Futures contract for Eurobonds of the Russian Federation.
Which derivative financial instruments traded on the Moscow Exchange are settlementable?
I. Futures contracts for shares of foreign issuers;
II. Index futures contracts;
III. Futures contract for Russian market volatility;
IV. Futures contract for federal loan bonds;
V. Oil futures contracts.
Introduction 3 Chapter 1. Main directions of functioning of the banking model of the securities market and its features using the example of the functioning of the German securities market 5 1.1 Basic market models 5 1.2 Russian banking model of the securities market as close to the German one 8 1.3. Values and development trends as a result of securities regulation in accordance with international standards Basel-3 10 Chapter 2. Scenarios for the development of the Russian banking securities market 12 Chapter 3. Sberbank of Russia OJSC as a broker in the banking securities market 19 Conclusion 23 References 25
Introduction
The banking model of the securities market in Russia has a history of more than twenty years. In fact, the securities market in the Russian Federation appeared only in 1992, after the start of large-scale liberalization of economic relations, a sharp transfer of the economy to a market economy and voucher privatization of state property. Justification of the prospects for the development of the domestic market should be based on research and systematization of its recent history. Let us highlight the main stages in the evolution of the securities market in the Russian Federation. 1992-1995 can be characterized as the period of formation of the initial, largely imperfect structure and infrastructure of the stock market. 1996 – August 1998 – stage of strengthening the role of state regulation of the securities market. August 1998 – mid 1999 – a relatively short period of development of the domestic banking securities market against the backdrop of a general market depression, during which objective conditions began to emerge for the formation of a civilized model, similar in its parameters to modern Western models. Both previous stages ended in the collapse of financial pyramids (private and public). Russia's international investment rating at the end of 1998 was miserable, and the only popular financial and investment asset at that time was foreign currency. In these conditions, both the state and issuers had no other development opportunities other than declaring and guaranteed implementation of economically “fair” market organization rules aimed at the maximum possible protection of potential investors. Mid-1999 - the present is a period of gradual, although not entirely stable, too dependent on external economic and political factors, but generally progressive development of the domestic banking market. Relatively effective development of the Russian securities market in 2000-2003. can be explained by factors such as favorable conditions in world energy prices, economic growth trends, socio-political stability, etc. Commercial banks in Russia have the right to carry out issuance, investment and intermediary operations in the stock market. Moreover, in 1996-1998. Many domestic banks, in fact, with the approval of the state, which needed to cover the budget deficit, actively played in the highly profitable GKO market. As a result, the negative experience of the United States during the Great Depression was to some extent repeated - after the well-known events of August 1998, commercial banks that did not have time to withdraw funds from the GKO market went bankrupt and could not pay off their depositors. This situation has intensified the discussion about the role and place of commercial banks in the emerging Russian model of stock market development. Currently, regulation of the activities of commercial banks in the securities market of the Russian Federation has a dual character. On the one hand, commercial banks, like all other participants in the stock market, must obey the Federal Commission for the Securities Market of the Russian Federation, on the other hand, their activities, including transactions with securities, are subject to regulation by the Central Bank of the Russian Federation. On the one hand, commercial banks with significant amounts of financial resources can have a positive impact on the activity of the Russian securities market; on the other hand, the intensification of banks’ activities in this market will significantly increase the risks for depositors. This paper will examine the main models of banking markets, prospects and development trends in modern conditions of existence.
Conclusion
A type of stock market model called a banking market originated in Germany. It provides for the admission of various banks and similar commercial organizations to the stock market. A less common model in the world, occurring in only 10% of countries. The banking model is mainly presented in the European Union countries: France, Austria, Switzerland, and so on. It owes its origins to the Second World War, when the rehabilitation of the economies of the participating countries was carried out through the support of banks. Management activities are entrusted to the Central Bank and the Ministry of Finance. The remaining half of the countries chose a mixed model for organizing the stock market. In each of them, the share of participation of commercial banks in the market is expressed to a greater or lesser extent, depending on the policy of government regulation and the specifics of the economy. Such countries include Japan, Russia and others. The German banking model is the dominance of the stock market by monopoly owners of large blocks of shares, and a significant segment is occupied by debt obligations. The main type of securities are bearer shares. The advantage of this model is the low probability of risks due to the unity of banking and equality of trading participants. In addition, there is stability of commercial banks to the variability of the situation and lower costs. At the same time, due to the monopoly of banks on financial transactions, investors find themselves in a vulnerable position. The Russian mixed model is a stock market model adopted in the Russian Federation that arose from an analysis of the experience of other countries, therefore it combines the advantages of both of the above systems. Commercial banks and investment institutions simultaneously coexist in the market. Currently, the Russian securities market has not completed its development, due to which it is very profitable, but the degree of risks for participants is incredibly high. Very active work is being done in this direction. And we must hope that the Russian market model will soon assert itself in full force. The entire range of potential opportunities for the state in the banking securities market can be grouped within the following options. This is, firstly, the preservation of the existing regulatory model with its possible evolution only in the direction of further tightening the banking market administration system. Secondly, adjustment of the existing model in the direction of resolving the legal conflict between the Central Bank and the Federal Securities Commission in favor of the latter, the widespread distribution of risk-free government securities, both short-term and long-term. Thirdly, the transition to a model of primary self-regulation of the securities market (following the example of Great Britain and most Western European countries). The analysis of prospects showed that it is the consistent adjustment of the existing regulatory model while maintaining its basic principles and parameters in the short and medium term that is optimal in any scenario. Complete preservation of the existing model may lead to excessive regulation of the market, to a kind of regulation for the sake of regulation while maintaining low liquidity of shares. Effective formation of the Russian model of market regulation is possible only in conditions of stability and predictability of state policy as a whole. If the state cannot guarantee the inviolability of the results of privatization or ensure the stability of monetary policy in the foreseeable future, then it is unlikely to achieve a qualitative improvement in the structure and infrastructure of the banking securities market under any regulatory model.
Bibliography
1. Vorobiev P.V. Securities market - M.: Prospekt, 2015. - p. 400. 2. Voronina M. N. OJSC “Sberbank of Russia” as a broker in the securities market // Young scientist. - 2014. - No. 8. - With. 450. 3. Voronova N. S. Banks and capital funds as global investment management institutions // Problems of modern economics. - 2012. - No. 1 (41). – p.432. 4. Lugovtsov R.Yu. Basel III in Russian banking reality // Finance, money circulation and credit. – 2012. – No. 5 (90). - With. 180. 5. Miroshnichenko O. S. Profit in the formation and regulation of banking capital // Financial analytics: Problems and solutions. -2013. - No. 24. - p. 125. 6. Securities market: textbook for bachelors / under general. ed. N.I. Berzona. - M.: Yurayt Publishing House, 2012. - 533 p. 7. Securities market: textbook for applied bachelor's degree / ed. Yu. A. Sokolova. - M.: Yurayt Publishing House, 2014. - 383 p. 8. Website: http://cbr.ru Official website of the Central Bank of the Russian Federation 9. Website: http://www.sberbank.ru Official website of Sberbank of Russia OJSC
Market models
Historically, there are three conventional models of the stock market, depending on the banking or non-banking nature of financial intermediaries:
- · Non-bank model (USA) – non-bank securities companies act as intermediaries.
- · Banking model (Germany) - banks act as intermediaries.
- · Mixed model (Japan) - intermediaries are both banks and non-banking companies.
Classification of the securities market
There are many ways to classify securities markets:
- · By the nature of the movement of securities (primary, secondary).
- · By type of securities (bond market, stock market, derivatives market).
- · By form of organization (organized and unorganized, exchange and over-the-counter).
- · By territorial principle (international, national and regional markets).
- · By issuer (enterprise securities market, government securities market, etc.).
- · By terms (market of short-, medium-, long-term and perpetual securities). By type of transaction (cash market - implies instant execution of transactions, forward market, etc.).
- · On an industry basis.
- · According to other criteria.
Classification according to the nature of the movement of securities
Primary market - the market on which the initial placement of newly issued securities takes place. This placement can be public (IPO) or private, without a wide offer to an unlimited number of people. The initial public offering may take place through a stock exchange or other means.
- · Secondary market (eng. secondarymarket) - a market on which transactions are made with previously issued securities that have undergone the primary placement procedure. The secondary market accounts for the bulk of securities transactions. It is the secondary market that the novice investor is most familiar with, since the secondary market is represented primarily by the exchange.
- · The third market covers trading, as a rule, in unregistered securities, that is, those that have not undergone the listing procedure. It is also called the over-the-counter market or OTC (overthecountermarket). The third market has traditionally been used as a venue for large shareholdings between institutional investors. With the development of the Internet, it became available to private investors.
- · The fourth market is an electronic system for trading large blocks of securities directly between institutional investors. The most famous systems of the fourth market are InstiNet, POSIT, CrossingNetwork.
The economy of any country has many components, but one of the main elements is the financial market.
Its concept comes from cash, profitability. Expressed as a system that arose in the process of exchanging resources in the form of a monetary equivalent, as an intermediary.
There is a constant mobilization of capital, lending, and exchange operations for the smooth and successful operation of production. The global financial market is formed on the financial relations of demand and supply, lending and borrowers of all countries.
Structure
Countries around the world operate according to different models, each with its own specific management and organization of work.
In large cases, state regulation takes place at two levels simultaneously. The first level is represented by government bodies, while the second level is occupied by SROs and self-regulatory organizations. The creation of such companies belongs to securities trading professionals, these include: stock exchanges, unions, a team of participants, over-the-counter trading and its organization.
All functions and capabilities are distributed between two forms, it depends on the level, cultural and historical interests of the country and its current legislation.
The two management options differ in their approach in terms of tough decisions, subject to taking a larger percentage of activities with stock turnover of resources.
Types of models
As was already defined earlier, there are two main models of the stock market, let's look at them in more detail:
- the first model is predominantly in government agencies, with most of the powers of supervision and control. This model is mainly used in Seine, France;
- second - SROs have the main advantages; the rules are stricter compared to the first option. The advantages of this scheme are that the action plan is agreed upon with the participants, while the state retains control functions and the ability to intervene in all processes. This method is in demand in the UK.
More than 50% of countries with the most developed markets have their own agency, and there are about 30 of them, for example:
![](https://i2.wp.com/goldok.ru/wp-content/uploads/2015/12/vidy_finansovyh_rynkov_2.jpg)
This stage of development has a distinctive characteristic as the formation of supranational governing bodies of world financial markets. On economic ties, modern globalization has an impact on the internationalization of financial industries, provoking regulators to develop bilateral and multilateral ties with foreign controls. Control of this kind allows the promotion of international cooperation, minimization of financial fraud, and regulation of investment activities.
Financial relations are divided into: the securities market and the stock model. To ensure equilibrium of the entire financial market segment, Walras' law is often used.
Interesting to know!!! The amount of maximum demand for certain niches of financial markets should be equal to the amount of supply in others. This is one version of the formulation of Walras' law.
In practical work, using such a law for the relations of funds in the financial and securities markets makes it possible to automatically equalize the equilibrium in two markets.
Target
The main goal is efficiency and rational use of financial resources. By efficiency we mean:
![](https://i0.wp.com/goldok.ru/wp-content/uploads/2015/12/vidy_finansovyh_rynkov_5.jpg)
In turn, the participants in the transaction are divided into three groups:
- economic enterprises;
- individuals;
- state.
Transactions of financial resources, that is, their purchase and sale, take place in two ways:
- sales from the primary to the final owner without authorities or intermediaries.
- with the help of agents.
Intermediaries of financial transactions can be:
- international organizations IFAC IBRD, etc.;
- credit societies;
- financial market participants at the professional level;
- investment and pension funds with a non-state form of ownership;
- insurance and leasing companies.
Securities market models
The type of functioning of stock sales represents models depending on the functions received by the intermediaries of the financial plan.
Securities relations are divided into three types:
- banking model;
- non-banking model;
- joint.
Banking model - all intermediary functions represent the interests of commercial banks.
Non-banking is the work of an organization without banking structures, and the role of financial intermediaries are financial institutions and securities companies.
Joint - representation of the interests of this model of the securities market can be represented by both financial institutions and companies, and banking organizations.
Interesting fact. Until 1996, the mixed model had the opportunity to carry out any type of activity on the basis of a banking license. And with the adoption of the law “On the Securities Market”, banks have the right to conduct their activities only after receiving a license giving such a right. This document is issued by the Federal Securities Commission or an authorized government agency.
Classification
According to the organizational structure, there is a division into: primary and secondary markets.
Primary - all securities that have value and are put up for auction for the first time, are placed on it. You could say this is a sale and a kind of issue of securities. The buyer who purchased resources on the primary market becomes their original owner. The main function of the work is the mobilization of new capital.
The secondary market is divided into exchange and over-the-counter turnover of securities:
- exchange represents relations on exchanges according to quoted lists;
- over-the-counter turnover behind the exchange, but on the territory of trading floors;
Volumes may be significantly higher than stock levels.
Conclusion
The main element of financial relations is money, which can be presented in different forms: cash, non-cash, securities. They are an integral part of the development and functioning of the entire cycle of the financial and economic system as a whole.
World practice has confirmed that the full functioning of the market, as well as credit relations of banking and money circulation in general, is not possible without state control and management. Using the example of the Russian Federation, when creating a new structure, the role of state bodies became significant. Considering the two aspen construction models, the key point remains the autonomy of commercial banks.
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