The main subjects of the securities market. A
Market participants valuable papers are issuers, investors and intermediaries.
I. Issuers are those who issue securities for the purpose of attracting Money... These include:
1. State (Ministry of Finance, Treasury).
Municipal authorities.
3. Legal entities - industrial corporations, banks, financial credit institutions.
4. Individuals.
II. Investors are those who purchase securities. They are categorized into institutional and individual investors.
I. Towards institutional! investors include financial and credit institutions that carry out transactions with securities.
Commercial banks are universal banks that, among other operations, carry out transactions with securities. One side, commercial banks place their own securities, on the other hand, are engaged in investing in securities, as well as reselling securities. In countries where there are no investment banks, such as Germany, they take over the functions of investment banks. Commercial banks, as a rule, carry out fairly stable operations in the securities market and rarely carry out speculative operations. They primarily form a portfolio of liquid securities, which include government securities, primarily short-term blue chips. Such investments are necessary for a commercial bank to create a reserve for deposits of the population. Commercial banks place long-term funds in long-term government securities, corporate securities - in shares and bonds. To carry out transactions for the purchase, sale of securities, i.e., to generate income in the form of margin, banks can purchase short-term securities - promissory notes, certificates, discount bonds, and shares.
Investment banks are specialized banks, the main activity of which is related to the securities market.
The functions of such a bank include: raising funds by issuing its own securities, the secondary distribution of shares and bonds, mediation in the placement of international securities, advising corporations on investment issues. Investment banks are of two types.
Banks of the first type, which are exclusively engaged in transactions with securities. These banks are prohibited from accepting deposits from the population, and they form capital only through the placement of shares and bonds. They place their funds in corporate securities, less often in government securities. In addition, they carry out extensive activities in the primary securities market, it is with them that corporations conclude an underwriting agreement, i.e. they help corporations place securities. They are also engaged in consulting clients. Such banks are typical for the USA and Canada.
Banks of the second type raise funds by accepting deposits from the population and issuing their own securities. It should be noted that they attract long-term deposits, which allows them to invest in long-term securities, as well as provide long-term loans. These banks should first of all form reserves of highly liquid securities (short-term government securities) in order to ensure their solvency, since clients can withdraw funds from the deposit before its expiration date.
However, most of the funds are invested in long-term securities. These banks also operate in the primary securities market, providing assistance in the placement of securities, provide consulting services, they are also represented in the secondary market. Such banks mostly exist in countries where the securities market has not found wide development, for example, in Italy, in the future they will be in Russia.
Insurance companies are companies whose main activity is insurance. At the same time, they mainly attract long-term funds, which they place on the securities market, acting as a large institutional investor. They form their investment portfolio, firstly, from government securities, which ensure the reliability of investments and liquidity, i.e.
the ability to sell at any time with minimal losses, secondly, from blue chips, pursuing the same goals as in the first case - reliability and liquidity, thirdly, from corporate stocks and bonds, which account for the bulk of investments and which bring the bulk of income from the placement of funds.
Pension funds are organizations involved in attracting money from the population in the form of contributions with the aim of their subsequent return in the form of accumulated pension. To accumulate funds, pension funds place the attracted funds primarily on the securities market, which allows them to be classified as participants (investors) in the securities market. Pension funds, by virtue of their specificity, attract long-term funds, which gives them the opportunity to invest money by buying securities for long periods. The objects of such investments, as a rule, are stocks and bonds. There are two types of funds: funded, which imply a cumulative pension system, and unfunded, realizing the redistribution of funds from workers to retirees. Funded pension funds form long-term investment portfolios consisting of government and private securities, with almost 80% of pension fund assets being corporate securities, and over 30% of assets being common shares... Unfunded - prefer short-term investments in government securities, since the period between receipts and payments is very short. In conditions when the receipts of the unfunded pension fund are greater than the payments (and this happens less and less every year), they are also invested in long-term securities. Pension funds are state and non-state. If the fund is state-owned, then the bulk of the funds is directed to the purchase of government securities. Private pension funds are formed under an enterprise, and in this case, the bulk of the securities that form the securities portfolio are securities of this enterprise.
Investment companies are companies that form their funds by issuing shares. As a rule, they rarely issue bonds. They also place money in shares of other companies. As a profit, they have a margin between the amount they paid to raise money
3.1. Subjects of the securities market
funds, and the amount that they received in the form of dividends. The scope of activity of investment companies in the market is very extensive. In addition to investing in securities, they are engaged in the formation of subsidiaries, financing investment projects, assist in organizing the placement of securities, issue guarantees for the placement of securities, carry out dealer activities. It all brings additional income, which is received in the form of dividends by the shareholders of these companies. Currently investment companies exist in two forms: open and closed. Public investment companies, which are called " mutual funds», Issue their shares gradually, in certain tranches, mainly for new buyers, thus gradually forming equity and expanding its activities. These shares can be traded and resold in the market. Closed-end investment companies issue shares at once in a certain amount. The new buyer can only purchase them on the market from the previous owner at the market price. Such companies operate most successfully in the USA and Canada. Japan, England, in last years began to expand their activities in Germany. Such companies have not yet become widespread in Russia.
Fund management companies are organizations that manage the assets of investment, non-state pension or mutual funds. Investment and pension funds usually carried out by investment companies that have received the appropriate licenses, giving the right to manage the assets of funds. Management of a mutual fund is an exceptional activity that can only be combined with the management of other funds.
Investment funds are organizations formed in the form of an open joint stock company, the main activity of which is investment. Investment funds in their activities rely on collective forms of investment. They attract funds from small and medium investors and form corresponding portfolios of securities on the securities market that generate income. It should be noted that collective forms of investment have a number of advantages: firstly, an investment fund can place funds not in one or two securities, but in a sufficiently large number of securities, thereby forming
Chapter 3. Participants of the securities market
portfolio of securities (a set of securities purchased by the investor), and at the same time ensure more income as the securities will be included with different yields. The small investor cannot always afford the same. Secondly, diversification (dispersion) of investments in securities is ensured, which leads to a decrease in risk, since even if several securities from the investment portfolio do not bring income, then these losses will be covered by income from other securities. Thirdly, an investment fund saves on costs due to an increase in the scale of operations, which is due to the fact that the costs of tracking information for managing a small portfolio and conducting operations (primarily payment of commissions) per unit of investment are significantly higher than that of a professional an investor with a large investment portfolio. Fourthly, the professionalism of investment funds leads to an improvement in the quality of the portfolio and, accordingly, not only reduces the risk of investments, but also increases its profitability. All this has led to the fact that the role of investment funds in the developed securities markets is becoming more and more significant. In Russia, the first investment funds appeared as voucher investment funds, and their activity was associated with voucherisation, i.e. they bought vouchers, invested money, and paid the owners the income. However, due to many reasons, primarily due to low professionalism, the majority of voucher investment funds ceased to exist, while others, having slightly curtailed their activities in the late 1990s, are now seriously expanding them. Currently on Russian market there are a lot of investment funds that work successfully, bringing their clients a fairly stable high income.
2. Individual investors, whose tasks include the purchase of securities for the purpose of investing money and generating income. These include individuals and entrepreneurs.
III. Professional participants in the securities market. They are constantly on the market, they know the market perfectly, they are intermediaries in the securities market or organize it. 1. Intermediaries. To these include: brokers-intermediaries, acting on behalf of the client and on behalf of the client, dealers, acting in the securities market on their own behalf and at their own expense as intermediaries between buyers and sellers. Brokers are intermediaries between buyers and sellers of securities
3.1. Subjects of the securities market
magician who are constantly engaged in mediation in the purchase and sale of securities. They are part of the exchange staff, trade in the commodity sections and register the verbal consent of the buyer's and seller's brokers to conclude a deal. The broker works closely with the broker and receives remuneration from each of the parties involved in the transaction, in an amount depending on the amount of the transaction. Distinguish between a registered broker, a member of the stock exchange who buys / sells securities at his own expense, a rate broker who is in charge of quotation of securities prices, an operational broker who carries out operations on behalf of brokers at their expense. In Germany, in particular, free brokers are singled out, which are analogous to dealers, i.e. act as intermediaries between credit institutions, as well as between banks that do not have a sufficient number of their own employees on the exchange, operate at their own expense and set the course in regulated and free trade, and official exchange brokers, acting as professional intermediaries, analogous to brokers appointed by the Supervisory Board of stock exchanges, performing the functions of acceptance applications for transactions with securities and determination of their rate, receiving a commission, their place of business - parquet or parquet trade. Jobbers are consultants on the problems of the securities market and the most highly paid part of intermediaries. Their activity is necessary in the market due to the constant expansion of the scale and structure of the securities market, the complication of operations in this market. Jobbers are necessary not only in order to correctly assess the merit of already issued securities, but also in order to help issuers to carry out their new issues. Dealers, investors turn to them, and they give one-time consultations, solve complex market problems, determine the prospects for changes in securities prices, etc. For this they receive a commission. They are allowed to operate on the market only as dealers, as brokers are prohibited.
2. Registrars are organizations that maintain registers of holders of registered securities.
Such organizations do not exist in all countries. For example, in Germany, the responsibility for the collection of registries and their transfer to issuers is assumed by the depository system, in particular, the central depository created in accordance with the recommendations of the G30, which is called BKU (German
Chapter 3. Participants of the securities market
Cash Union "). German Cash Union performs the functions of a clearing center and a depository, while cash settlements based on the results of transactions on stock market are conducted through the Deutsche Bundesbank. At the same time, registration activity in Russia is exclusive and cannot be combined with any other.
3. Depository - an organization that provides services for the storage of securities and / or registration of rights to them. As a rule, a depository exists at the exchange.
4. The clearing organization carries out clearing, i.e. activities to determine the mutual obligations of participants in transactions with securities (both cash and settlements with securities), offsetting these obligations and settlements on net obligations. In practice, on the exchange, such a function is assumed by the clearing house.
5. Investment advisors are individuals or firms who advise their clients on investing money for a fee.
They offer a variety of services ranging from advice on securities selection and strategy to complete management. monetary transactions client, including financial planning, preparation tax returns etc. The most general form of advice is a newsletter, which is published by the consultant and given to clients. These bulletins provide general advice on the state of the economy, current events, market conditions and individual securities. In addition, investment advisors offer complete investment appraisals, advice and management services. For an appropriate reward, they can make an assessment of the goals chosen by the investor, his financial capabilities, the current investment portfolio, and also propose one or another sequence of actions. In some cases, the consultant is given the right to completely dispose of the client's portfolio. Investment consultants are financial planners, stock brokers, bank employees, employees of agencies that publish financial subscription information, as well as persons who work as consultants in individually and on the staff of consulting firms. A financial planner works with an individual client on a financial plan or strategy. Personal financial planning is such an organization of all personal assets, liabilities and sources of income, which allows
3.1. Subjects of the securities market
maximum degree to solve financial tasks investor. The financial planner determines the financial goals of the client, among which may be - ensuring the protection of savings from impairment, obtaining a high current income, profitable allocation of funds with a view to the future, maximum investment growth in a short time, investment motives depending on age, nature, the social status of the client; investment risks, such as complete or partial loss of invested funds, depreciation of funds while maintaining their nominal size, non-payment of all or part of the expected income, delay in receiving income. After the consultant found out the client's goals, introduced the client to the risks, got to know him financial opportunities, he begins to study the market, evaluate all the information related to this, chooses an appropriate strategy for buying and selling securities, draws up a written plan, helps to execute it and from time to time revises this plan in accordance with real conditions. As a rule, the consultant offers several options and justifies them. The final decision is made by the client. The consultant receives payment for the services rendered (conclusion of insurance contracts, investment in financial assets, legal services) or a commission depending on the results obtained.
To provide services, a financial advisor in Russia, for example, must have a license to carry out brokerage or dealer activities, ensure the appropriate size own funds within the framework of the adequacy of own funds, have at least three specialists and a separate structural subdivision, submit to the Federal Service for financial markets notification of the professional participant's compliance with the requirements with the attachment of the calculation of own funds, balance sheet, a profit and loss statement, a list of employees, copies of qualification certificates, a list of measures aimed at preventing conflicts of interest, the use of proprietary information. After that, he will be allowed to engage in counseling.
The main function of stock brokers is to make purchases and sales on behalf of clients, for which they receive a commission. In addition, they can provide information and advice to their clients. Many brokers can analyze the client's portfolio and give him recommendations on what changes can be made to the portfolio so that he
Chapter 3. Participants of the securities market
better suited to meet the client's needs. Information to clients is usually provided free of charge, while portfolio analysis and management recommendations are paid for. The consulting services offered by brokers are quite varied. For example, in the United States, you can open a package account with a stock broker, which will shift the responsibility for the selection of shares to a management professional cash flows... Such a service is rendered to large investors, since opening such an account requires that the portfolio be worth at least $ 100,000. For its management, a fee is charged equal to 2-3% of the value of the assets included in the portfolio. This fee includes a commission for transactions in the purchase or sale of securities, as well as fees for professional management account.
Like stock brokers, bankers also provide their clients with advisory services for investing money. This is usually the responsibility of the trust department. Bank services can be limited to maintaining the client's account, when the bank simply accepts securities for safekeeping, or the bank can also take over the management of the client's investments. Typically, the bank's clients are small and medium-sized investors. Because banks tend to recommend only high quality securities, their advice and investment management style is somewhat conservative. In recent years, an increasing number of banks have established investment advisory units that manage portfolios of small investors for a fee.
Financial subscription agencies provide their subscribers with advice of all kinds - from general advice about the state of the economy, markets and certain types prior to periodic portfolio reviews and even active management of subscriber portfolios. Additional remuneration is taken for active management. When subscribing, it is usually agreed which personal tips are included in the subscription price, and which are provided for a fee.
Individual advisors manage their clients' investment portfolios for a fee. These people are paid to know the finer points. tax legislation, monitor market conditions and can apply their knowledge to help clients achieve their goals. Typically, individual consultants serve few clients and are selective. Sometimes they
3.1. Subjects of the securities market
agree to manage the client's portfolio on an ongoing basis, which means giving them full control over the portfolio. Most often, however, they advise clients directly as the situation develops or when new investment opportunities arise.
The activities of companies consulting in this area are of a larger scale. To do this, they have on staff researchers and consultants, mainly, as, for example, in the United States, sworn financial analysts specializing in certain types of portfolios. Some deal only with large portfolios of securities, selected with the expectation of an increase in market value; others may pursue more conservative portfolios based on current income, but each client is served by one manager. In these companies, it is customary to use mathematical models for calculations on computers and other complex analytical techniques. Companies prefer to have ample freedom to manage client portfolios, but at the insistence of clients, the final say in decision making may remain with them. Both consulting firms and one-to-one professionals prefer clients investing $ 100,000 or more, and, unlike financial planners, tend to confine themselves to investment issues.
As the experience of the United States shows, many investors, especially not the richest ones, in search of advice and experience in the formation and management of a portfolio, join investor clubs. In its legal form, an investor club is a partnership with a specific organizational structure, procedural rules and a common objective that unites a group of investors. The goal of most of these clubs is to invest in securities with a moderate level of risk to generate stable long-term income. Very rarely, investor clubs are created for the sake of financial speculation.
Investor clubs are usually formed by a group of individuals with the same goals and seeking to combine both their investment experience and capital to form a jointly owned portfolio of investments. Clubs are built in such a way that certain persons are responsible for obtaining information about certain securities or strategies and for analyzing this information. Club members at their meetings share their findings and rivers
Chapter 3. Participants of the securities market
recommendations, discuss them and jointly decide whether to accept or reject the proposed tool or strategy. Most clubs oblige their members to do regular contributions to the general cash desk, thereby increasing the joint capital for further investments. Most often, clubs are engaged in investments in stocks and bonds, but sometimes they are formed for investments in options, operations with real assets and real estate.
For novice investors looking for stable income, membership in the club is the most The best way studying the main issues of the formation of portfolios and their management. A number of useful materials are published by the National Association of United Investors, which unites about 7 thousand of such clubs, which meets with club members to exchange information on the latest investment techniques and strategies. Those wishing to join such a club can get the necessary information and help from stock brokers. In addition, more and more investors make decisions using personal computers, and clubs can provide invaluable assistance in this matter, taking on the costs of software... 6. Self-regulatory organizations of professional participants in the securities market are voluntary associations of market participants that establish rules of conduct for their members in the market and operate on the principles of a non-profit organization.
All incomes of self-regulatory organizations are used exclusively for the fulfillment of statutory tasks and are not distributed among its members. Self-regulatory organizations are established by professional participants in the securities market in order to create a more favorable climate for doing business within the organization, to ensure conditions for the professional activities of participants in the securities market, to comply with professional ethics standards in the securities market, to protect the interests of securities holders and other clients of professional market participants securities that are members of a self-regulatory organization, in their relationship with government bodies, other market participants, non-members of the organization, establishing rules and standards for conducting transactions with securities that ensure effective activities in the securities market, providing advice in preparing normative documents regulators in order to disseminate the experience gained within the organization to the entire market. Self-regulatory organizations have the right to: receive information on
3.1. Subjects of the securities market
the results of inspections of the activities of its members conducted in the manner prescribed by the Federal Service ( regional office Federal Service); develop in accordance with the Federal Law "On the Securities Market" rules and standards for the implementation of professional activities and operations with securities by its members and monitor their observance; in accordance with the qualification requirements of the Federal Service, develop curricula and plans, train officials and personnel of organizations carrying out professional activities in the securities market, determine the qualifications of these persons and give them qualification certificates; create compensation and other funds in order to reimburse the damage suffered by investors (individuals) as a result of the activities of professional participants (members of a self-regulatory organization).
The leading self-regulatory organization in the United States is the National Association of Dealers, which in 1971 founded the NASDAQ over-the-counter market.
According to Russian legal norms, self-regulatory organizations can take the form of associations, trade unions, professional public organizations and perform the following functions: self-regulation of the activities of participants in the securities market, maintaining high professional standards and personnel training, development of financial market infrastructure, joint scientific research, collective entrepreneurship in their own interests and protection of the interests of investors. Supervision over the activities of such organizations and control over their creation is carried out by the Federal Service for Financial Markets (FFMS). Currently, there are five self-regulatory organizations in Russia:
The National League of Managers (NLU), founded on January 26, 2001, and self-regulating professional participants in the securities market involved in the management of investment and mutual funds. This organization does not have branches and representative offices.
The National Securities Market Association (NFA), established on July 9, 1996, and is self-regulating in the field of brokerage, dealer, securities management, depository activities. This organization has no branches and representative offices.
Chapter 3. Participants of the securities market
Professional Association of Transfer Agent Registrars and Depositories, established on September 14, 1994, and is a self-regulatory organization of registrars and depositories, and since 2002, clearing organizations. This organization has 5 regional offices (North-West, Volgo-Vyatka, Volga, Siberian, Ural) and 7 offices in the cities of Saratov, Kazan, Orel, Khabarovsk, Rostov-on-Don, Omsk, Krasnoyarsk.
Professional Institute for the Placement and Circulation of Securities Instruments (PROFI), established on October 29, 2003 and carrying out self-regulation of professional participants in the securities market, as well as brokerage and / or dealer activities in the securities market and providing financial advisory services and / or participating in the placement and / or circulation of securities. This organization has no branches and representative offices.
The National Association of Securities Market Participants (NAUFOR), established in November 1995 by companies - professional participants in the stock market from various regions of Russia, carries out self-regulation of professional participants in the securities market. NAUFOR has 14 branches - Western, Ural, Kazan, Chelyabinsk, Rostov, Omsk, Saratov, Novosibirsk, Orel, Krasnoyarsk, Samara, Irkutsk, Nizhny Novgorod, Primorsky.
Thus, trading in the securities market is carried out by many organizations that are not only independent, but also under the control of self-regulatory organizations.
All types of professional activities in the securities market are legally established and carried out in accordance with licenses. In Russia, for example, such licenses are issued in accordance with the Law “On the Securities Market” by the Federal Service for Financial Markets. There are three types of such licenses: the license of a professional participant in the securities market; license to carry out activities for keeping the register; stock exchange license. A license to operate in the securities market is issued for 3 years. Also installed in all countries General requirements presented to professional participants in the securities market, including the largest minimum size own
3.2. Brokerage activity
capital, in particular, in Russia it is assumed that the minimum equity capital should be: brokerage (excluding transactions with individuals) - 5000 minimum wages (minimum wage); brokerage activities, including transactions with individuals - 20,000 minimum wages; dealer activity - 3000 minimum wages; securities management activities - 35,000 minimum wages; depository activity - 75,000 minimum wages; clearing activities - 100,000 minimum wages; organization of trade on the securities market - 200,000 minimum wages. Professional participants are also subject to certain qualification requirements, such as education, seniority, no criminal record.
More on topic 3.1. Subjects of the securities market:
- 16.3. Mechanisms of the securities market The securities market is the essence, the system of relationships in the securities market
- TOPIC 1. Essence and functions of securities markets. Major participants in the securities market
- 1.5. Features of the functioning and the role of the Federal Commission for the Securities Market in the regulation of the securities market
All participants in the securities market can be divided into two groups. The first group includes professional participants securities market, represented mainly by organizations that provide intermediary and advisory services on the RZB, and also act as players on the stock exchange. These organizations form the infrastructure of the stock market. The second group includes participants whose purpose is to temporarily place free financial resources. These can be both individuals and legal entities. Professional participants of the RZB are licensed to operate by the Federal Commission for the Securities Market (FCSM). The main thing actor in the market - an intermediary called a broker in the stock market. A broker is a person who acts at the expense of a client on the basis of commission or commission agreements. The broker is usually brokerage company... The agreement-thief of the commission with the broker may provide for the possibility of using the client's funds intended for investing in securities or obtained as a result of the sale of securities in their own interests until the money is returned to the client. The broker cannot give guarantees regarding investment income. The next professional participant is the dealer. A dealer is a person who concludes transactions for the purchase and sale of securities on his own behalf and at his own expense on the basis of a public announcement of their quotes. Only a legal entity can act as a dealer. The dealer makes a profit from two sources.
First, he constantly updates the quotes at which he is ready to buy and sell securities. The difference between the seller's price and the buyer's price is called the spread. The dealer makes a profit from the spread.
The dealer is obliged to conclude transactions at the prices of the announced quotes. It can also set mandatory conditions, such as the minimum and maximum number of securities to be bought or sold, as well as the duration of prices. If the dealer refuses to conclude a deal on the announced conditions, a claim may be brought against him for the compulsory conclusion of an agreement or for compensation for losses caused to the investor.
Secondly, the dealer earns from a possible increase in the market value of the securities he has purchased. A dealer is a large organization. Therefore, it usually combines two types of activities: a dealer and a broker.
The next participant in the stock market is an investment fund. Investment fund is joint-stock company, which issues its shares and sells them to investors. Funds are open-ended and closed-ended. An open-ended fund is a joint-stock company that places shares with the obligation of their subsequent repurchase at the request of the investor. A closed-end fund is a joint stock company that places shares without an obligation to repurchase them. An investor can get his money back only by reselling shares on the secondary market if there is a demand for them. Investment funds primarily represent the interests of small and medium investors. First, because the funds are transferred to professional stock market participants. Secondly, the fund allows you to reduce the level of risk by diversifying its investments, that is, dividing funds between various financial instruments.
An investment fund is an organization that only multiplies money. To fulfill his goals, he concludes contracts with two other persons. The first of these is the depository. A depository is an organization that stores funds and securities and which provides mutual settlements for transactions. Only a legal entity can act as a depositary. An investor who has entered into an agreement with the depositary for the safekeeping of securities is called a depositor. The second person is represented by the manager. He manages funds investment fund... The manager can be either a legal entity or individual entrepreneur licensed.
Investment funds are divided into mutual funds. Its task, which boils down to the accumulation of depositors' funds and placing them in other financial assets. The mutual fund has a number of differences in the order of formation and functioning. A mutual fund is a property complex without creating legal entity... It is created under a company licensed to carry out activities in trust management the property of mutual funds, which becomes the management company of the fund. Unlike an investment fund, investors in a mutual fund do not purchase shares, but investment units. Investment share- this is a registered paper certifying the investor's right to receive funds in the amount of the value of the share on the date of its redemption. No dividends or interest are paid on the share. An investor can get profit only due to an increase in the market value of a share. The fund undertakes to redeem the shares. The share price is estimated at the time of redemption by dividing the value net assets fund by the number of shares in circulation. In terms of the timing of the redemption of shares, funds are divided into open-ended and interval funds. The fund is open if Management Company undertakes to redeem the shares at the request of the investor within the period established by the rules of the fund, but not exceeding 15 working days of the date of the request. A fund is considered an interval fund if the management company undertakes to redeem the shares within the time period established by the fund's rules, but at least once a year.
The fund is recognized as formed from the moment of registration of the prospectus. After that, the sale of shares to investors begins. However, if the shares will be sold for an amount less than that provided for by legislative documents on mutual funds, then it is subject to liquidation.
The next type of funds is hedge funds, they mainly exist in Western countries. There is no official definition in the legislation of Western countries, but a number of features inherent in such organizations can be listed.
Firstly, they are private companies with at least 100 members, it is not uncommon for them to offshore companies... An offshore company is a company registered in a country or economic zone with preferential taxation.
Secondly, fund participants are wealthy individuals, so they can afford to take big risks. The rules of such organizations usually require that a member's fortune be equal to at least $ 250,000.
Thirdly, they conduct a very risky financial policy, opening positions in the market that exceed the size of their property by 5-20 times.
Fourth, they usually show high profitability results on their operations.
Clearing organizations act as an element of the stock market infrastructure, whose responsibilities include determining and offsetting mutual obligations to investors for deliveries and settlements for securities. They collect, reconcile, and correct information on transactions with securities and prepare accounting documents for them. The clearing organization should form special funds to reduce the risk of default in securities transactions.
Registrars or registrars operate in the stock market. A registrar is an organization that, under an agreement with the issuer, maintains and stores the register of registered securities. The register itself is a list of registered owners indicating the number, par value and category of securities they own. The register may include not only the names of the owners of the securities, but also the nominal holders of the securities. A nominee holder is a person who holds securities, does not own them, on his own behalf in the interests of another person. As a rule, the nominal holders are professional participants in the securities market. The registrar is obliged, at the request of the owner or nominee holder, to provide him with an extract from the register according to his personal account.
The registrar is also obliged to provide the registered in the register holders and nominee holders owning more than 1% of the voting shares of the issuer, upon their request, data from the register about other holders of securities, indicating the number, category and par value of their securities. The activity of maintaining the register does not allow its combination with other types of professional activity at the RZB.
The next participant in the RZB is the stock exchange. Stock Exchange is an institution created to organize trading in securities. In addition to the function of organizing securities trading, it can carry out depository and clearing activities. The stock exchange is formed in the form of a non-profit organization. Only its members can trade on the exchange. Other persons wishing to exercise exchange transactions are required to act through members of the exchange as intermediaries. Only professional members of the RZB can be members of the exchange. The exchange is the place where securities transactions are made. Therefore, the securities themselves are not physically present on the market. After the conclusion of the transaction on the exchange, the buyer and the seller carry out mutual settlements among themselves in accordance with the rules of the exchange. If an investor wants to buy or sell securities on the exchange, then he needs to conclude an appropriate agreement with a member company of the exchange, which will provide him with brokerage services. In the West, such a concept as an investment bank is widespread. Investment bank is a large brokerage company that helps the issuer to issue and place securities. An investment bank differs from a commercial bank in that it does not raise funds for deposits and does not issue loans. V Russian legislation no distinction is drawn between the activities of commercial and investment banks in the securities market. Therefore, commercial banks can also perform the functions investment bank.
Active participants can be divided into speculators and arbitrageurs. A speculator is a person seeking to profit from the difference in the market value of securities. If a speculator predicts an increase in the price of a security, then he will play up, i.e. will buy paper in the hope of selling it later at a higher price. These speculators are often called bulls. If a speculator predicts a fall in the price of a security, he plays down, i.e. will take the paper and sell it in the hope of redeeming it later at a lower price. Such speculators are called bears. An arbitrator is a person who makes a profit by simultaneously buying and selling the same security in different markets, if they have different prices. For example, the same share is traded on two exchanges. Since each exchange is an independent market, then at some points in time the price of a share on them may differ. The arbitrageur sells paper on the exchange where it is more expensive and buys where it is cheaper. The difference in prices is his profit. As a result of the actions of arbitrageurs, prices in different markets become the same. The person carrying out such operations must have good systems connections with different markets. V modern conditions arbitration operations are often carried out using specially programmed computers. Summing up, we can say that one and the same person can be both a speculator and an arbitrageur.
Subjects of the securities market are issuers, investors, professional participants, self-regulatory organizations, the state
Issuer is an entity that issues securities into circulation and bears on its own behalf obligations to the owners of securities to exercise the rights assigned by them.
Investor- an entity investing its own, borrowed or borrowed funds in the form of investments in securities in order to obtain profit and other positive economic results.
Professional participants in the securities market- these are legal entities, including credit institutions, as well as individuals registered as entrepreneurs who carry out professional activities in the securities market. Professional participants in the securities market, in accordance with Chapter 2 of the Law on the Securities Market, are brokers, dealers, managers, clearing organizations, depositories, registries, organizers of trading in the securities market.
Broker- a professional participant in the securities market engaged in brokerage activities. Brokerage activities are deemed to be the execution of civil transactions with securities as an attorney or commission agent acting on the basis of a commission or commission agreement, as well as a power of attorney for such transactions in the absence of indications of the powers of an attorney or commission agent in the agreement.
Dealer- a professional participant in the securities market engaged in dealer activities. Dealer activity is deemed to be the execution of transactions for the purchase and sale of securities on its own behalf and at its own expense by publicly announcing the purchase and (or) sale prices of certain securities with the obligation to purchase and (or) sell these securities at announced prices. In addition to the price, the dealer has the right to announce other essential conditions of the securities purchase and sale agreement: the minimum or maximum number of purchased and (or) sold securities, as well as the period during which the announced prices are valid.
Manager- a professional participant in the securities market, carrying out activities in the management of securities. Securities management activity is recognized as the exercise by a legal entity or an individual entrepreneur on its own behalf for a fee within a certain period of trust management transferred to it in the possession and belonging to another person in the interests of this person or third parties indicated by this person:
securities; funds intended for investment in securities; cash and securities received in the process of managing securities.
Clearing Organization- a professional participant in the securities market performing clearing activities (clearing). Clearing is an activity aimed at determining mutual obligations (collection, reconciliation, correction of information on transactions with securities and preparation of accounting documents on them) and their offset for the supply of securities and settlements on them. The procedure for carrying out clearing activities is regulated by Art. 6 of the Law on Securities Market, as well as the Regulation on Clearing Activities in the Securities Market Russian Federation(approved by the Decree of the Federal Commission for the Securities Market of November 23, 1998 No. 51).
Depositary- a professional participant in the securities market, carrying out depository activities. Depository activity is the provision of services for the storage of securities certificates and (or) accounting and transfer of rights to securities.
Registrar (registrar)- a professional participant in the securities market that maintains a register of securities owners. Such activity is understood as the collection, recording, processing, storage and provision of data that constitute the system for maintaining the register of securities owners.
Organizer of trading on the securities market- a professional participant in the securities market, providing services that directly contribute to the conclusion of civil transactions with securities between participants in the securities market. The rights and obligations of this subject are governed by Art. 9 of the Law on the Securities Market, as well as the Regulation on the requirements for organizers of trading in the securities market (approved by the Decree of the Federal Commission for the Securities Market of November 16, 1998 N ° 49).
Self-regulatory organization i Professional Securities Market Participants is a voluntary association of professional securities market participants. Self-regulatory organizations are established in order to ensure the conditions for the professional activities of participants in the securities market, to comply with the standards of professional ethics in the securities market, to protect the interests of securities owners and other clients of professional participants in the securities market who are members of the organization, to establish rules and standards for conducting transactions with securities ...
State as a subject of the securities market acts in a double role. On the one hand, the state, acting through the appropriate competent government bodies, can be an issuer, investor and even a professional participant in this market. On the other hand, the state regulates the securities market, controls and supervises the activities of its subjects.
50. Concept, types and regulation investment activities
Investments - monetary funds, securities, other property, including property rights that have a monetary value, invested in objects of entrepreneurial and (or) other activities in order to obtain profit and (or) achieve another useful effect. Investment activity - investment (investment) and the implementation of practical actions in order to obtain profit and (or) achieve another useful effect. Depending on the content, the following types of investment activities are traditionally distinguished:
Direct, when there is a direct investment of values in the production of goods (works, services). For example, direct investment activity is carried out in the form of capital investments.
Loan, carried out in the form of a loan, credit;
- "portfolio" - the investor's investment in securities.
Leasing investments
Legal basis leasing set The Civil Code RF (Chapter 34 paragraph 6) and Federal Law of October 29, 1998 No. 164-FZ (as amended on January 29, 2002) "On Financial Lease (Leasing)" (hereinafter - the Law on Leasing). The law determines legal position leasing entities, forms, types and types of leasing, legal and economic foundations leasing measures state support leasing activities.
Leasing is a set of economic and legal relations arising in connection with the implementation of a lease agreement, including the acquisition of a leased asset. Leasing activity - a type of investment activity for the acquisition of property and its transfer to lease. Leasing activities are licensed. The subject of leasing can be any non-consumable things, including enterprises and other property complexes, buildings, structures, equipment, vehicles and other movable and real estate which can be used for entrepreneurial activity... The subject of leasing cannot be land and other natural objects, the free circulation of which is prohibited by federal laws or for which a special procedure for circulation has been established.
Currently, relations associated with the circulation of securities are regulated by the federal laws "On Joint Stock Companies", "On the Securities Market", "On the Peculiarities of the Issue and Circulation of State and Municipal Securities", "On the Protection of the Rights and Legal Interests of Investors in the Market securities "," On the protection of competition in the market financial services" etc.
Stocks and bods market - this is the sphere of circulation of securities. The securities market is an integral element market economy, since it performs a redistributive function, i.e. ensures the transfer of capital from one spheres of the economy to others.
There are the following types of securities market :
1) primary- added up when placing securities, i.e. when securities are transferred by the issuer to their first owners;
2) secondary- is formed in the process of subsequent resale of securities by their first and subsequent owners through the conclusion of civil transactions.
Subjects of the securities market are:
· The issuer;
· Investor;
· Professional participants of the securities market;
· Self-regulatory organizations of professional participants in the securities market;
· state.
Issuer Is an entity that issues securities into circulation and bears on its own behalf obligations to the owners of securities to exercise the rights enshrined by them. The issuers can be legal entities, executive authorities, local government bodies.
Investor – it is an entity that invests its own, borrowed or borrowed funds in the form of investments in securities in order to obtain profit and other positive economic results. As investors
may be individuals and legal entities, the state, municipalities.
Professional participants in the securities market - legal entities carrying out on a professional basis the types of activities in the securities market defined in Ch. 2 of the Federal Law "On the Securities Market". These include:
· Brokers;
· Dealers;
· Managers;
· Clearing organizations;
· Depositories;
· Registrar holders (registrars);
· Organizers of trade in the securities market.
Brokers perform civil transactions with securities as an attorney or commission agent and act, as a rule, on the basis of an agency or commission agreement, as well as a power of attorney for such transactions in the absence of instructions on the powers of an attorney or commission agent. Reassignment is allowed only in cases where it is permitted by the contract, and only to other brokers
Dealers carry out transactions for the sale and purchase of securities on their own behalf and at their own expense by publicly declaring the purchase and (or) sale prices of certain securities with the obligation to purchase and (or) sell these securities at the prices announced by the person engaged in dealer activity. Dealer can only be commercial organization.
Brokers and dealers can also act financial advisors preparation of a prospectus for the issue of the client's securities.
Trustees manage clients' securities and funds on their own behalf for a fee within a certain period.
In accordance with Art. 1013 of the Civil Code of the Russian Federation, monetary funds cannot be an independent object of trust management. Therefore, it should be clarified that we are talking here only about funds intended for investment in securities and received in the process of managing securities.
According to Art. 5 federal law“On the Securities Market”, legal entities can be managers; their activities, rights and obligations are governed by the legislation of the Russian Federation. Management of securities is one of the types of trust management of property, therefore, the norms of Ch. 53 of the Civil Code of the Russian Federation. Therefore, one must bear in mind the requirements of Art. 1015 of the Civil Code of the Russian Federation, according to which a trustee can be not just a legal entity, but a commercial organization, with the exception of a unitary enterprise. A trust management agreement can be concluded for a period not exceeding five years (Article 1016 of the Civil Code of the Russian Federation).
Clearing Organizations determine mutual obligations of participants in transactions with securities (collection, reconciliation, correction of information on transactions, preparation of accounting documents), carry out offsets for deliveries of securities and settlements on them, form special funds to reduce the risks of non-execution of transactions
Depositaries provide services for the storage of securities certificates and (or) accounting and transfer of rights to securities. A depositary can only be a legal entity that acts on the basis of a depository agreement with a client. The depositary can act as a nominal holder of the client's securities when they are placed with another depository or with another registrar.
Registrars collect, record, process, store and provide data that make up the system for maintaining the register of securities holders. Only a legal entity can be a registrar. The register keeping system is intended for the accounting of registered securities. The activity of keeping the register is an exclusive type of activity and cannot be combined with other types of professional activity in the securities market.
All types of professional activities in the securities market are subject to licensing by the Federal Service for Financial Markets. The stock exchange itself is also a professional participant in the securities market as a trade organizer and must be licensed accordingly. The stock departments of commodity and currency exchanges are also recognized by stock exchanges and are subject to licensing.
Self-regulatory organizations of professional participants in the securities market is a voluntary association of professional participants in the securities market, established for the purposes of:
· Ensuring conditions for the professional activity of participants in the securities market;
· Compliance with the standards of professional ethics;
· Protecting the interests of owners of securities and clients of professional participants in the securities market;
· Establishing rules and standards for conducting transactions with securities.
State represented by its authorities, on the one hand, it can act as an issuer, investor and even a professional participant in the securities market, and on the other hand, it carries out government regulation the securities market through the publication of regulatory legal acts, the activities of the Federal Service for Financial Markets, etc.
The Federal Service for Financial Markets acts on the basis of the Regulations on it, approved by the Government of the Russian Federation of June 30, 2004 No. 317.
Subjects of the securities market. All participants in the securities market can be divided into two groups. The first group consists of professional participants in the securities market, represented mainly by organizations that perform intermediary and advisory services on the RZB, and also act as players on the stock exchange. These organizations form the infrastructure of the stock market.
The second group includes participants whose purpose is to temporarily place free financial resources... These can be both individuals and legal entities. Professional participants of the RCB are licensed to operate by the Federal Commission for the Securities Market of the Federal Commission for the Securities Market. The main actor in the market is an intermediary called a broker in the stock market.
A broker is a person acting for the client's account on the basis of commission or commission agreements. The broker is usually a brokerage company. A commission agreement with a broker may provide for the possibility of using the client's funds intended for investing in securities or obtained as a result of the sale of securities in their own interests until the funds are returned to the client.
The broker cannot give guarantees regarding investment income. The next professional participant is the dealer. A dealer is a person who concludes transactions for the purchase and sale of securities on his own behalf and at his own expense on the basis of a public announcement of their quotes. Only a legal entity can act as a dealer. The dealer makes a profit from two sources. First, it constantly updates the quotes at which it is ready to buy and sell securities.
The difference between the seller's price and the buyer's price is called the spread. The dealer makes a profit from the spread. The dealer is obliged to conclude transactions at the prices of the announced quotes. It can also set mandatory conditions, such as the minimum and maximum number of securities to be bought or sold, as well as the duration of prices. If the dealer refuses to conclude a deal on the announced conditions, a claim may be brought against him for the compulsory conclusion of an agreement or for compensation for losses caused to the investor. Secondly, the dealer earns from a possible increase in the market value of the securities he has purchased.
A dealer is a large organization. Therefore, it usually combines the two activities of a dealer and a broker. The next participant in the stock market is an investment fund. An investment fund is a joint stock company that issues its shares and sells them to investors. Funds are open-ended and closed-ended. An open-ended fund is a joint-stock company that places shares with the obligation of their subsequent repurchase at the request of the investor.
A closed-end fund is a joint stock company that places shares without an obligation to repurchase them. An investor can get his money back only by reselling shares on the secondary market if there is a demand for them. Investment funds primarily represent the interests of small and medium investors. First, because the funds are transferred to professional stock market participants. Secondly, the fund allows you to reduce the level of risk by diversifying its investments, that is, dividing funds between various financial instruments.
In Russia, investment funds emerged with the beginning of privatization state property... Basically, these were voucher investment funds, that is, funds whose shares were exchanged for privatization checks. Despite the fact that about 550 of them were created, their activities were not successful. This result is easy to explain. An investment fund is an institution typical of a country with a developed securities market and a working economy.
The fund's profit depends on the activities of the enterprises, the securities of which it acquired. In the first years of reforms, the Russian stock market was practically absent. Thus, we can say that from the very beginning Russian funds had no future. An investment fund is an organization that only multiplies money. To fulfill his goals, he concludes contracts with two other persons. The first of these is the depository.
A depository is an organization that stores funds and securities and which provides mutual settlements for transactions. Only a legal entity can act as a depositary. An investor who has entered into an agreement with the depositary for the safekeeping of securities is called a depositor. The second person is represented by the manager. He manages the funds of an investment fund. The manager can be either a legal entity or a licensed individual entrepreneur. Investment funds are divided into mutual funds.
The task of which is to accumulate funds of depositors and place them in other financial assets. The mutual fund has a number of differences in the order of formation and functioning. A mutual fund is a property complex without creating a legal entity. It is created under a company licensed to carry out asset management activities for mutual funds, which becomes the fund's management company. Unlike an investment fund, investors in a mutual fund do not purchase shares, but investment units. An investment share is a registered paper certifying the investor's right to receive funds in the amount of the value of the share on the date of its redemption.
No dividends or interest are paid on the share. An investor can get profit only due to an increase in the market value of a share. The fund undertakes to redeem the shares. The unit price is estimated at the time of redemption by dividing the fund's net asset value by the number of units outstanding. In terms of the timing of the redemption of shares, funds are divided into open-ended and interval funds.
A fund is open if the management company undertakes to redeem shares at the request of the investor within the time period established by the rules of the fund, but not exceeding 15 working days of the date of the request. A fund is considered an interval fund if the management company undertakes to redeem the shares within the time period established by the fund's rules, but at least once a year. The fund is recognized as formed from the moment of registration of the prospectus.
After that, the sale of shares to investors begins. However, if the shares are sold for an amount less than that provided for by the legislative documents on mutual funds, then it is subject to liquidation. The next type of funds is hedge funds, they mainly exist in Western countries. There is no official definition in the legislation of Western countries, but a number of features inherent in such organizations can be listed. Firstly, they are private companies with at least 100 members, and often they are offshore companies.
An offshore company is a company registered in a country or economic zone with preferential taxation. Burenin A. N. Securities and derivatives market financial instruments 1998 page 26 Secondly, the participants in the funds are wealthy individuals, so they can afford to take big risks. The rules of such organizations usually require that a member's fortune be equal to at least $ 250,000. Thirdly, they conduct a very risky financial policy, opening positions in the market that exceed the size of their property by 5-20 times. Fourth, they usually show high profitability results on their operations.
Clearing organizations act as an element of the stock market infrastructure, whose responsibilities include determining and offsetting mutual obligations to investors for deliveries and settlements for securities. They collect, reconcile, and correct information on transactions with securities and prepare accounting documents for them.
The clearing organization should form special funds to reduce the risk of default in securities transactions. Registrars or registrars operate in the stock market. The registrar is an organization that, under an agreement with the issuer, maintains and stores the register of registered securities. The register itself is a list of registered owners indicating the number, par value and category of securities they own.
The register may include not only the names of the owners of securities, but also the nominal holders of securities. A nominee holder is a person who holds securities, does not own them, on his own behalf in the interests of another person. As a rule, the nominal holders are professional participants in the securities market. The registrar is obliged, at the request of the owner or nominee holder, to provide him with an extract from the register on his personal account. The registrar is also obliged to provide to the registered in the register holders and nominee holders owning more than 1 voting shares of the issuer, upon their request, data from the register on other holders of securities, indicating the number, category and par value of their securities. The activity of maintaining the register does not allow its combination with other types of professional activity at the RZB. The next participant in the RZB is the stock exchange.
The stock exchange is an institution created to organize trading in securities.
In addition to the function of organizing securities trading, it can carry out depository and clearing activities. The stock exchange is formed in the form of a non-profit organization. Only its members can trade on the exchange. Other persons wishing to carry out exchange transactions are required to act through the members of the exchange as intermediaries. Only professional members of the RZB can be members of the exchange. The exchange is the place where securities transactions are made. Therefore, the securities themselves are not physically present on the market. After the conclusion of the transaction on the exchange, the buyer and the seller carry out mutual settlements among themselves in accordance with the rules of the exchange.
If an investor wants to buy or sell securities on the exchange, then he needs to conclude an appropriate agreement with a member company of the exchange, which will provide him with brokerage services. In the West, such a concept as an investment bank is widespread. An investment bank is a large brokerage company that helps an issuer to issue and place securities.
An investment bank differs from a commercial bank in that it does not raise funds for deposits and does not issue loans. The Russian legislation does not distinguish between the activities of commercial and investment banks in the securities market. Therefore, commercial banks can also perform the functions of an investment bank. Active participants can be divided into speculators and arbitrageurs. A speculator is a person seeking to profit from the difference in the market value of securities. If a speculator predicts an increase in the price of a security, then he will play up, i.e. will buy paper in the hope of selling it later at a higher price. These speculators are often called bulls.
If a speculator predicts a fall in the price of a security, he plays down, i.e. will take the paper and sell it in the hope of redeeming it later at a lower price. Such speculators are called bears. An arbitrator is a person who makes a profit by simultaneously buying and selling the same security in different markets, if they have different prices. For example, the same share is traded on two exchanges.
Since each exchange is an independent market, then at some points in time the price of a share on them may differ. The arbitrageur sells paper on the exchange where it is more expensive and buys where it is cheaper. The difference in prices is his profit. As a result of the actions of arbitrageurs, prices in different markets become the same. The person carrying out such transactions must have good communication systems with different markets.
In modern conditions, arbitration operations are often carried out using specially programmed computers. Summing up, we can say that one and the same person can be both a speculator and an arbitrageur. 2.2
End of work -
This topic belongs to the section:
Problems of the development of the securities market in Russia
It was the beginning, flourishing and closing of the market for privatization checks, which were issued by the state in large quantities and issued to citizens .. And people exchanged privatization checks for shares of privatized enterprises .. To note that at this stage it was poorly developed normative base on securities, which led to the emergence of ..
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