2 types of international securities. Classification of securities traded on the international stock market
International securities as the term appeared in order to designate international securities that circulate in many countries at the same time.
The Eurobond market is one of the most voluminous markets for international securities.
It accounts for more than 75% of the total volume of the entire securities market.
Eurobonds, Euros and Euronotes are among Eurobonds.
Eurobonds - bonds of states and companies denominated in Euro currencies.
It is necessary to distinguish between Eurobonds and bonds that are issued on national capital markets (domestic issues). These are two different things. Domestic bond issue is carried out by an investor who is a resident of the country of issue. Such a bond issue is carried out in the currency of that country and is placed in the country of issue. It can be placed in a foreign country, but in the currency of the issuer's country, in addition, most of it will still be placed in the issuer's country.
Eurobonds are issued in a currency that differs from the currency of the issuer's country. The bonds will also be placed among international investors. The group for the placement of these securities will be composed of representatives of international investment banks.
The name "euro" arose only because of the location of the two leading clearing houses that deal with these issues.
The two main chambers are EURO-CLEAR (Belgium, founded in 1970) and CEDEL (Luxembourg, founded in 1972). It is these organizations that settle and clear the majority of Eurobonds. In addition, there is a so-called "electronic bridge" with which you can make payments directly from the accounts of these two organizations.
Eurobonds are characterized by the following features:
These are bearer securities;
Issued for a period of 2 - 15 years;
They can be placed simultaneously in the markets of several countries;
Their face value has a dollar equivalent;
The interest on coupons is paid to the holder of the Eurobonds in full, without tax deduction from the source of income.
Most Eurobonds are represented by global or individual certificates. They are located in depository clearing houses and simply move through the accounts of clients or agents. On the issue of Eurobonds, interest is paid only once a year, and trading prices reflect net prices without accrued interest. Interest is accrued according to the American system, that is, on the basis of 360 days a year.
Bonds are mostly issued in US dollars. It is in the US state that the main international investors are located, while the second large group of investors is located in Japan and willingly works with major world currencies. Securities trading is regulated by the International Securities Market Association (ISMA). It consists of the largest European banks and investment houses. ISMA is recognized by many countries as self-regulatory organization... The main concern of the International Securities Market Association is that trading rules are respected.
Euronotes are medium-term registered bonds that make up the main part of the Eurobond market and are in demand from mutual funds.
Euroshares are securities issued by transnational corporations, large banks, investment funds for additional attraction of investments to the European financial market.
They are often converted into Eurobonds or vice versa.
ADR, peculiarities of issue and circulation - American Depositary Receipt is an American security, testifying to the ownership of a certain number of shares foreign company deposited in the country of location of this company, the issue of which is carried out in the United States, and circulation - both in the United States and in other countries.
An American Depositary Receipt is a form of indirect (indirect) ownership of shares of a foreign (for American investors) company.
ADR belongs to the class of secondary securities and is: unlimited; nominal; usually documentary; emission; equity; profitable.
The number of shares to which it grants rights is taken as its par.
Depending on the initiator of the issue, ADRs are subdivided into: a) unsponsored ADRs are depositary receipts, which are issued on the initiative of individual shareholders of the company. The latter bear all the costs associated with their release. Receipts of this type have a simplified registration (issue) procedure, but they do not have the right to apply to American exchanges... This makes them less attractive to market participants; b) Sponsored ADRs are deposit receipts that are issued at the initiative of the company itself. The latter in this case has the right to conclude an agreement for their release with only one American bank (from among those who have been granted this right), and all costs arising in this case are borne by the company itself in accordance with the concluded agreement. Release procedure. In practice, issuing American Depositary Receipts for Russian shares is a complex, lengthy and expensive process. In the very general view it boils down to two groups of actions:
1) actions in Russia - an American intermediary bank deposits in our country in the name of its branch a certain number of shares Russian company that he has no right to sell in Russian stock market(that is, these shares are, as it were, withdrawn from internal circulation). These shares are held in Russia as the basis (collateral) for the issuance of American Depositary Receipts, being registered in the name of the given bank, which in this case is called the “depositary” bank;
2) actions in the USA - the specified bank in its country issues an equivalent number of depositary receipts for Russian shares in compliance with the established rules (laws) of the American stock market. The US Custodian Bank becomes the issuer of these receipts.
The custody bank is responsible for providing American investors with information about the Russian issuer, which the latter is obliged to provide to all its shareholders. Appeal. An American investor places an order with his broker to buy a certain amount of ADRs. The broker purchases them in the US secondary market and the transaction is registered with the depository of the bank issuing these depositary receipts. If there is no offer to sell ADRs or the offer price on the American market is overstated, an American broker can contact a colleague in Russia and place an order to buy at a price that suits him. (All these actions are performed only within the permitted number of depositary receipts.) A Russian broker acquires the required number of shares on the Russian market. These shares are duly registered in the name of the branch of the American Depositary Bank (as the nominee Russian shares). A branch of a US bank informs its US headquarters that the required shares have been deposited. After that, the American bank issues an additional number of depositary receipts for these shares and transfers them to the American broker, who pays them and registers them in the name of his client.
The sale of ADRs by an American investor takes place in the reverse order. On his behalf, the broker is trying to sell them on the US domestic market. The concluded transaction is formalized in accordance with the established procedure: the investor receives his money, and the depositary receipts are re-registered to the new American owner. If a broker is unable to sell ADRs on the American market, then he can try to do so on the Russian market by contacting a Russian broker looking for a buyer in Russia. If such is found, then the depositary bank in the United States will cancel the required number of ADRs issued by it, and in Russia appropriate amount shares are debited from the account of a branch of an American bank as a nominee holder, and these shares are re-registered in the Russian register of shareholders to the new owner.
As for the circulation of ADRs on the US domestic market, investors pay the necessary commission costs within the limits existing on the market. If the operation with ADR affects Russian market, then, of course, the composition and size of these commission expenses are significantly expanded, since new intermediaries are involved in the operation.
More on the topic International securities:
- Government securities: objectives and characteristics of the issue
- Chapter 19. OTC securities market. International securities market
- Economic essence, classification and value of securities
- 3. International credit: problems of import and export of capital
- Accounting for redeemable treasury shares and valuation of retired securities for accounting and tax purposes.
- 61. International credit problems of import and export of capital.
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Complete abolition in the 70s. 20c. restrictions on the movement of capital in developed countries created the conditions for the formation of an international securities market. Only in 10 years (1980-1990) the share international operations with securities in the US GDP increased from 9 to 93%, in Germany from 8 to 58, in Japan - from 7 to 119%. In the total volume, the largest part falls on bonds (in 1994 - more than 60%). Almost 40% of the world securities market is in the USA, in Japan - over 20%.
A distinctive feature of the international market is trading in securities between residents different countries, as well as stock values with denominations expressed in currencies other than the national one. Export of capital is a characteristic feature and objective necessity of a developed market economy. The formation of the international securities market was accelerated by: the modern scientific and technological revolution; development of integration processes; certain stability exchange rates; the introduction of common multinational currencies; successes in the development of banking and exchange business; strengthening the activity of transnational corporations and financial institutions.
International securities as a term appeared in order to designate international securities that circulate in many countries at the same time. International securities include the so-called Eurobonds and international depositary receipts (previous chapter).
The Eurobond market is one of the most voluminous markets for international securities. It accounts for more than 75% of the total volume of the entire securities market http://www.mzb.ru/rubric5/ - Moscow Loan Bank.
Europaper: euronotes, eurobonds and euro shares. They are issued in any country, denominated in foreign currency and intended for placement outside this country. Securities market - Cathedral lecture notes - prepared by Associate Professor N.P. Nishatov ..
There is an official definition of Eurobonds, which is given in the Directive of the Commission of the European Communities of March 17, 1989, regulating the procedure for offering new emissions on the European market.
In accordance with this Directive, Euro securities are tradable securities with the following characteristic features, namely:
Underwritten and placed through a syndicate, at least two members of which are registered in different states;
Offered in significant volumes in one or more countries, except for the country of registration of the issuer;
They can initially be acquired only through the mediation of a credit institution or other financial institution. Securities market and exchange business: Textbook for universities / Ed. prof. O.I. Degtyareva, prof. N.M. Korshunova, prof. E.F. Zhukov. - M .: UNITI-DANA, 2004 .-- S. 344 ..
Euronotes- medium-term registered bonds, which are usually issued for a specific investor. The main advantage of euronotes is the ability to organize their issue in a few days or even hours. Issued by international corporations for a period of 3 to 6 months. They generate variable interest income based on the LIBOR rate, the offer rate on the London International Money Market. These papers act simultaneously as a form bank loan and the type of bonded loan. The euronotes market began to develop in the late 70s of the XX century.
Eurobills- unsecured liabilities that are not intended for public offering and are not traded on the secondary market. As a rule, Eurobills are issued for a period of one to five years by companies whose solvency is beyond doubt. Basic course on the securities market. Edited by R.A. Kokorev M., 2008 .-- S. 163.
Eurobonds have existed since the second half of the 60s. With their appearance, two markets began to function in parallel: the market for traditional foreign loans placed by non-residents in one of the national markets, and the market for Eurobonds placed simultaneously in several international markets. The par and market price of Eurobonds is denominated in foreign currency. They are long-term securities, because the circulation period of their various issues ranges from 7 to 40 years. The main issuers are international corporations, in particular financial institutions, national governments, as well as local authorities authorities.
Investment and commercial banks as well as banking houses. For this purpose, as a rule, a banking consortium is created, which signs an agreement with the issuer, called "underwriting".
In developed countries, there are several types of Eurobonds, namely: ordinary or straight, , with zero coupon, with indexed interest, convertible, with option.
Most common ordinary or straight bonds. A fixed percentage is paid on them. Their rate may change due to changes in bank interest rates.
Bond rate floating rate highly dependent on fluctuations in market interest. With its growth, as a rule, the volume of bond issue also increases, with a decrease - vice versa. The floating interest rate on the bonds is linked to the London Capital Markets rate with a premium called "SPREADO".
Bonds with zero coupon allow you to receive income only when they are redeemed due to the difference between the issue and nominal prices. This income is generally not taxed.
Bond rate with indexed interest is tied to the price index for certain groups of strategic goods, in particular oil, gold, etc.
Convertible bonds generate less income than others, but give the holder the right to exchange them for shares. This happens when the dividend on the shares is significantly higher than the coupon interest.
Bonds with option allow the owner to choose different options for an investment transaction. They can be exchanged for stocks, bonds with floating and fixed interest, etc.
It is necessary to distinguish between Eurobonds and bonds that are issued on national capital markets (domestic issues). These are two different things. Domestic bond issue is carried out by an investor who is a resident of the country of issue. Such a bond issue is carried out in the currency of that country and is placed in the country of issue. It can be placed in a foreign country, but in the currency of the issuer's country, in addition, most of it will still be placed in the issuer's country.
Russian Eurobonds(Eurobonds) began to be issued in 1996. They were denominated in US dollars, German marks and brought relatively high returns (9-10% per annum), since they were not reliable enough according to the estimates of "Western" investors. The terms of circulation of the first issues were 5-10 years. They were placed with little success in the markets of Asia, Europe and America. The emission of Eurobonds in the country was also carried out by individual constituent entities of the Federation and municipalities, in particular large cities.
Euroshares in terms of issue volume, they are significantly inferior to Eurobonds. This is explained by a number of factors, the main of which are: the limited institution of the international stock exchange and the greater preference of investors for the well-known shares of national companies. Mostly international corporations are the issuers of Euroshares. The resale of these securities also occurs on national stock exchanges, but not all countries allow foreign securities there.
The structure and dynamics of the development of the world securities market can be considered using Table 3.
Almost half - 46% of debt securities and stocks are in the United States, 15% is concentrated in Japan, 6% - in Germany and Great Britain, 4% - in France, and, finally, 4% falls on all other countries. Thus, the undisputed leader - the United States of America - immediately becomes visible. The dynamics of the market development is positive: in January 1999 there were $ 52.3 trillion in debt securities and stocks worldwide, and already in January 2001 - $ 72 trillion.
Table 3. The structure of the world market for debt securities and shares http://www.globfin.ru/articles/shares/japan.htm - World economy- Finance and investments
Debt securities |
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billion dollars |
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billion dollars |
billion dollars |
billion dollars |
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billion dollars |
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Germany |
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Great Britain |
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According to the well-established terminology international securities- these are securities placed on international financial markets external to the country of the issuer of these securities.
The integration process of countries with market economy occurring in the world requires the creation of a common financial market for an effective investment policy. A lot of experience has already been accumulated in the implementation of international investment projects... Securities issued by banks and corporations of some countries for distribution η to other countries are traded in large volumes on the international securities market. Complete abolition in the 1970s. restrictions on the movement of capital to the developed countries created conditions for the formation of an international securities market. In just 10 years (1980–1990), the share of international securities transactions in the US GDP increased from 9 to 93%, in Germany - from 8 to 58, and in Japan - from 7 to 119%. In the total volume of funds borrowed on the international capital market, the largest part falls on bonds (in 1994 - more than 60%). Almost 40% of the world securities market is in the USA, in Japan - over 20%.
The world financial market is increasingly acquiring the form of a two-tier system, in which the upper level - the supranational one - is represented by the circulation of securities of leading transnational corporations, and the lower - national - by the circulation of securities of national companies. Each of these levels is characterized by the corresponding institutions of the financial market - international or national.
The international securities market, like the national markets, consists of primary and secondary markets. On the primary market the issuer of one country places its securities in another country or other countries, and on the secondary market the securities are resold through special financial institutions. The main buyers and sellers in secondary market securities are central and commercial banks, Insurance companies and other non-banking institutions.
In the last decade, the attractiveness of the Eurobond market has increased. Euroinstruments are stocks, notes, bonds, derivative securities (derivatives) placed on international financial markets external to the country of the issuer.
Eurobonds are issued by national governments, municipalities, banks, international credit institutions, transnational corporations. External loans in the form of Eurobonds are actively used by them as additional source financing, especially in the context of limited financial resources in developing countries with a credit rating of "BB" (Mexico, Brazil, Argentina, Venezuela, a number of Eastern European countries, Russia). Even appeared special type bonds - PAR-
Bonds , which are exchanged for the corresponding debts of the countries at par. These bonds correspond to a set of fixed coupon payments, the rates for which are often below market rates. These bonds are also called brady bonds but named after the US Treasury Secretary, who proposed such a method of debt restructuring, when in the late 1980s - early 1990s. international financial institutions are faced with the problem of non-return of large credit funds developing countries. PAR -bonds are issued for a period of 25 to 30 years, which provides issuers preferential order repayment of debt obligations.
Eurobonds are predominantly bearer securities, i.e. their owners are not registered. These bonds are issued and sold primarily outside the domestic market of the currency in which their denomination is indicated. At the same time, Eurobonds are denominated in currencies that occupy a leading position in international trade.
Wanting to receive significant additional funds through the issue of bonds, a large borrower has the opportunity to enter the international market. In the external market, the issue of bonds can be divided into a foreign issue and an issue of Eurobonds. Foreign bonds are issued by a non-resident in any country in the currency of that country, in other words, a foreign issue is placed in London in pounds sterling, in Tokyo in yen, etc. Eurobonds are placed on several national markets, but in a currency that is foreign to the country of their placement.
The following main types of securities are traded on the European market:
- - bonds with a fixed rate of return (coupon payments);
- - bonds with a floating rate of return. The amount of coupon payments consists of two parts - the value of the most commonly used rate (for example, LIBOR ), plus a fixed positive margin that remains unchanged. The terms of circulation of such bonds are from 5 to 15 years;
- - two types of bonds associated with the issuer's shares - convertible into common shares the issuer on pre-agreed terms and bonds with warrants. A warrant is similar to a call option, but can be exercised over a longer period, which makes bonds more attractive.
The first Eurobonds appeared in the early 1960s. in connection with the internationalization of economic life and the liberalization of the financial markets of the USA, Germany and Japan.
In 1987-1991 the largest share of borrowings on the European market was observed from Japanese issuers (banks and industrial corporations). In 1995-1996 Governments of Eastern European countries and administrations of the largest cities of these countries entered the Eurobond market. Russia first placed its own Eurobonds in November 1996. Then, in 1997-1998. The Russian government has placed several more loans. In the same years, a number of subjects of the Russian Federation entered the Eurobond market of the government: Moscow, St. Petersburg, Nizhegorodskaya, Sverdlovsk regions, Tatarstan, as well as private issuers. Currently on the Eurobond market professional participants represented mainly by large banks and securities companies.
Among the debt securities on the European market are widespread Euro debentures (euronotes ). These medium-term securities account for 50-60% of new issues. Obligations nominated for American currency, occupy about half of the market, in German marks - 15% and Japanese yen - 10%. In addition, currencies such as Argentine pesos, Polish zlotys, Croatian kunas and Russian rubles, and since 1999 Eurobonds with a denomination in euros have been issued.
On the Euro market there are short-term debt obligations with maturities from one to six months. Each issue is underwritten, syndicated and hosted. If the borrower fails to place the next issue of debt obligations, the members of the syndicate undertake to redeem the remaining unplaced securities at a price not lower than the announced (rate LIBOR plus margin).
A relatively new instrument on the European market - commercial obligations, the peculiarity of which is that they do not go through underwriting. Banks - members of the syndicate undertake obligations to place the borrower's securities on agreed terms, but do not undertake to redeem under-placed obligations.
The term of circulation of commercial obligations on the European market is from several months to several years. Unlike similar securities in the United States, Eurocommercial obligations are issued for a longer period (in the US domestic market, their circulation period is 60-180 days). In addition, the issuers of these securities must go through the rating procedure, which explains the relative decrease in the share of these securities on the European market in the 1990s. and increased investor interest in medium-term debt.
A significant role in the Eurobond market is played by euro deposit certificates (DS), intended mainly for large institutional investors. The main issuers of DS are branches of leading American, British, Canadian, Japanese and European banks. DS are issued for a period of three to six months and have a fixed interest rate... There are DCs with longer maturities and floating interest rates.
On January 1, 1999, the third stage of the formation of the European Economic and Monetary Union began ( ESVS ). With the introduction into circulation on the territory of 11 European countries of a single monetary unit the euro, a new monetary and financial union - the eurozone - emerged, where 11 capital markets of these countries were transformed into a united internal capital market of the European Union.
As a result, there have been important changes in the structure and development trends of the market, the behavior of investors and borrowers in the Eurozone. Insurance and investment companies, private pension funds and banks that traditionally favor robust government securities have turned their attention to higher-yielding private corporate securities and new secondary debt market instruments. In turn, borrowers, seeking to expand the liquid base, are increasingly resorting to issuing bonds and various derivative securities. First of all, this applies to companies and mortgage banks that have reliable collateral.
The introduction of a single currency unit, the euro, and the creation of a stable situation led to the presence of prerequisites for accelerating the development of the market. corporate bonds... The volume of issues not only of high-rated corporate bonds increased, but also of high-yield securities with a lower rating. The market has a fairly high demand for this kind of bonds.
The transition of the EU countries to a single currency - the euro, which since January 1, 1999 acquired the status of the official monetary unit of 11 countries, and their own currencies became its fractional expressions - had a serious impact on the development of the Eurobond market.
Modern Russia is a fairly active participant in the international securities market.
In particular, after a two-year hiatus in 2012, a large volume of Russian currency Eurobonds was placed, differentiated in terms of maturity and beneficial for issuers, which created the preconditions for active entry into the global market of Russian corporate borrowers.
The previous unit of account EU - ECU was replaced by the euro in a 1: 1 ratio, then after the necessary preparatory period from 1 January 2002 the euro became in cash, and since July 1, 2002, after the exchange of old banknotes for new ones, it is the only currency of its zone.
Classification attribute | Types of securities |
Attachment form | Share - securities that certify the participation of their owner in the authorized capital (except for investment certificates), provide the owner with the right to participate in the management of the issuer and receive part of the profit, in particular in the form of dividends, and part of the property in case of liquidation of the issuer. Debt - securities that certify the relationship of the loan and provide for the obligation of the issuer to pay funds within a certain period in accordance with the obligation. Mortgage - securities, the issue of which is secured by mortgage coverage and which certify the right of the owners to receive from the issuer the funds appropriate to them. Derivatives - securities, the mechanism of issue and circulation of which is associated with the right to purchase or sell during the period established by the agreement, securities, other financial and / or commodity resources. Commodity title - securities that give their holder the right to dispose of the property specified in these documents. |
Nesting order | Bearer - securities that do not fix the name of their owner, their circulation is carried out by a simple transfer from one person to another. The rights belong to the bearer of the security. Registered - securities containing the name of their owner and, in addition, registered in a special register. The rights belong to the person indicated in the security. Order - registered securities that are transferred to another person by making a transfer inscription (endorsement) on them. |
Origin | Basic (primary) securities are securities based on property rights to an asset (usually to goods, money, capital, property, various resources, etc.). Derivative (secondary) securities - securities, the mechanism of issuance and circulation of which is associated with the right to purchase or sell during the period established by the agreement, securities, other financial and / or commodity resources (commodities - grain, meat , oil, gold, etc.). |
Lifetime | Derivatives - securities that have set time existence (long -, medium - and short term). Perpetual - securities that last forever. |
Forms of existence | Paper (documentary) Paperless (non-documentary) |
Nationality | Domestic Foreign |
Type of use | Investment (capital) - securities that are the object of capital investment (shares, bonds, futures contracts and etc.). Non-investment - securities that serve cash settlements in commodity or other markets (bills of exchange, checks, bills of lading). |
The nature of the appeal | Market-based, or free circulation. Non-market (circulation of securities may be limited, securities cannot be sold to anyone other than the issuer, and after a specified period). |
Risk level | Risk-free Low-risk Risks |
Availability of income | Income Income |
The Bank for International Settlements distinguishes between such types of securities issues on the international market:
Issue of securities by non-residents in national or foreign currency in the domestic financial market country;
Issue of securities by residents in foreign currency;
Issue of securities by residents in national currency intended for sale to foreign investors.
Issue and placement of securities on the international stock market makes it possible to:
1. Get a loan for a long term (up to several decades, for example, bonds), i.e. investments in loan instruments;
2. Indefinite use of financial resources (shares), that is, investments in instruments of ownership (title of ownership);
3. Reduce financial risk, that is, invest in trading instruments financial risk(financial derivatives);
4. Have access to cheaper capital than on the national stock market;
5. Satisfy the requirements regarding the required amount of capital received (the world stock market, in contrast to the national one, has great opportunities for providing capital).
Given the nature of fundraising, international securities market includes: debt securities market, property rights market, financial derivatives market. These markets differ in the type of financial rights.
International debt securities market covers the international bond market and the market for medium-term notes, as well as securities money market... Loan market instruments characterize the debt relationship between the borrower (issuer of securities) and the lender (investor).
The international market for titles (rights) of ownership is represented by international shares and other property rights that are derivative instruments from shares, in particular such as depositary receipts. The instruments of this market characterize ownership relations and confirm the rights to co-ownership of the issuing corporation.
The size of the issue of debt securities is much higher than that of equity securities. This is due to two main reasons:
- Firstly, the issuers of shares are only corporations, and the issuers of bonds are not only them, but also the state, municipalities, various unincorporated institutions;
- Secondly, for the corporations themselves, the issue of bonds, all other things being equal, is more profitable, since it is cheaper and gives a faster placement among investors, without increasing the number of shareholders.
International financial derivatives market created to reduce financial risks when making investments and is represented by futures, warrants and options.
You can also highlight the following types of stock markets:
Classification attribute | Types of stock markets |
Customer Satisfaction | - universal (demand is satisfied completely and quickly); - non-universal (there are problems with the search and allocation of capital). |
By areas of placement and circulation financial resources | - primary market (attraction of financial resources necessary for reproduction); - secondary market(redistribution of financial resources with the help of intermediaries). |
By trade level | - organized markets (legally registered, licensed and controlled by the state and SRO); - unorganized markets. |
By methods of organizing trades | - stock market(trading in the exchange sector); - OTC market (trading is carried out outside the exchange). |
By types of ownership of financial instruments | - the market for state financial resources; - the market for corporate financial resources. |
By terms of circulation financial instruments | - the market for short-term resources; - the market for medium-term resources; - the market for long-term resources. |
Certain prerequisites are required for the functioning of the international securities market: demand, supply, intermediaries, regulation and self-regulation systems. The demand for securities is determined by the wealth of the nation. The higher the standard of living, the more savings the population has and the opportunity to purchase securities. Supply is driven by demand. It is the higher, the more developed the market mechanism for supplying sources of long-term crediting and financing. For the development of the securities market, investment business specialists are needed, a system for training such specialists, and, finally, intermediary organizations are needed - brokerage and investment-dealer firms, stock exchanges and investment business regulators.
Topic 7. Features of the functioning of the European market.
7.1 Euromarket as a component of the global financial market.
7.2 Eurocurrency market.
7.3 Eurobond market.
7.4 Market of Euros.
1. Receipt - type of security, money document in the form established by law, containing a written order of the owner of a current, settlement or other account (drawer) credit institution, in which the account is located, pay the check holder a certain amount of money specified in this document. Usually the bank acts as the payer for the check. A bank may not pay money on a check if the signature is not legible or if the check is written to an unsecured bank account. Typically, a check is issued on a special form received by the depositor from the bank.
There are several types of checks :
- bearer ( issued to the bearer; its transfer is carried out by simple delivery);
- nominal issued to a certain person with the clause “not to order”, it cannot be transferred in the usual way to another person;
- order- is written out in favor of a certain person or by his order. Thus, the check holder has the ability to transfer it to a new owner by means of a transfer inscription on the reverse side. This is the most convenient and common type of check, since transmitted over in a simple way than a personal check and at the same time guarantees that it cannot be used by a random person.
- travel (tourist) check- payment document, pecuniary obligation(order) to pay the amount of currency indicated on it to its owner. Traveler's checks are issued by major banks in the national and foreign currencies of different denominations. A sample of the owner's signature is affixed at the time the check is sold to him.
- eurocheck- check in euro - issued by the bank without the client making a preliminary deposit of cash and for larger amounts against a bank loan for up to a month; paid in any country that is a member of the Eurocheck agreement (since 1968). Uniform form Euro checks, their payment only on condition of presentation of guarantee cards by the owners, control over the processing of Euro checks with the help of a computer contribute to the improvement of settlements for international tourism.
The method of payment is distinguished:
- simple check, when the payment is made in cash;
- settlement check- when using it sum of money not paid in cash, but transferred from account to account. Thanks to this, the check provides security: it guarantees that only the organization to which the check amount was intended will receive the money on it. Therefore, the checking check is very often used in business. Typically, a settlement check is crossed out from the front side with two oblique or transverse lines. Such checks are called crossed. Crossing purpose- reducing the risk factor of erroneous payment of a check to the wrong person by limiting the range of possible check holders, who are entitled to present it for payment, only by banking institutions.
The check does not serve the purpose of financing, but is used in the non-cash settlement system, therefore, there are short deadlines for presenting the check. The check is used not only as a means of settlement within the country, but also in international settlements. The procedure for issuing, paying and transferring a check as one of the means of international settlements is governed by the Geneva Check Convention of 1931, ratified by many countries.
Settlements can also be made using a bill of exchange.
2. Solo bill of exchange (simple)- carried out in writing a simple and unconditional obligation of the drawer (debtor) to pay a specified amount of money at a specified time and place to the drawer or his order.
In international settlements, bills of exchange issued by the exporter to the importer are more often used. Draft (bill of exchange) - order of one person - drawer addressed to another person - drawee, pay a certain amount to a third party at the appointed time - remittee.
In other words, draft - This is a written order of the lender to the borrower for the latter to pay a certain amount of money to a third party. This means that the drawee is both a creditor in relation to the drawee and a debtor in relation to the remitter.
The obligation of the drawee under this order begins to operate only from the moment when he confirms his consent to pay on the document itself. The issue of a bill of exchange aims to settle both claims.
The acceptor, which is the importer or the bank, is responsible for paying the bill. Bank-accepted drafts can be easily converted into cash through accounting. The form, details, conditions for issuing and paying drafts are governed by bill of exchange legislation, which is based on Uniform Bill of Exchange Law, adopted by the Geneva Bill of Exchange Convention in 1930, the prototype of the draft were the drafts that appeared in the XII-XIII centuries. cover letters with a request to pay the bearer (usually the merchant) the appropriate amount in local currency... With the development of commodity-money relations and the internationalization of economic ties, the bill of exchange became a universal credit and settlement document.
The use of a draft in addition to collection and letter of credit gives the right to receive a loan and foreign exchange earnings.
Bills of exchange as securities have the ability to be negotiable.
The use of a bill of exchange as a means of payment implies that the first acquirer of the bill has the right to transfer it into the ownership of another person, and each subsequent acquirer has the same right. The transfer of a bill of exchange (like a check) is commonly called endorsement; person who transfers a bill to another - endorser, and the person to whom the bill is transferred - endorsee.
The essence of the endorsement is that by affixing a transfer inscription on the reverse side of a bill of exchange together with the bill of exchange, the right to receive payment is transferred to a third party. The act of transferring a bill of exchange is called endorsement (endorsement) promissory notes.
Exists two types of transfer inscriptions:
1) personal signature - requires, in addition to the signature of the person transferring the bill, the name of the new acquirer of the bill (endorser).
2) blank signature - consists of only one signature of the transferor of the bill - the endorser.
In order to increase the reliability of bills, it is used bill of exchange - aval, which is bank guarantee , expressed in the form of a signature on the face of the bill. The avalist (who gives the order) is responsible to the same extent as the person for whom he vouched.
If the drawee of the bill wants to be sure that the drawee will pay the payee on time, he submits the bill to the drawee or through the bank for acceptance. Thus, a bill of exchange as such is not legal tender, but merely a "representative" real money therefore, the debtor (drawee), confirming in writing his consent to make payment on the bill, accepts the bill (writes the word "accepted" and signs, putting down the date). In this case, the drawee becomes an acceptor of the bill.
3. Since the 60s of the XX century. credit cards are actively used in international payments. Credit card - a registered monetary document that gives the owner the right to purchase goods and services using non-cash payments. Credit cards of American origin prevail (Visa-international, MasterCard, American-Express, etc.).
At the end of the XX century. 21.6 thousand banks from about 200 countries and territories issued more than 300 million.
credit cards Visa, 29 thousand banks in more than 70 countries - 150 million MasterCard, the American-Express system serves _______ about 100 million credit cards around the world. For their processing, computer, electronic and space communications are used. Computers of banks and shops are connected via telephone to the central computers of the system, which process information.
5. Payment system SWIFT
SWIFT- it is a society of international interbank financial telecommunications. This system was created in 1973 in Brussels by representatives of 240 banks from 15 countries. The goal is to simplify and unify international settlements, accelerate the transfer of large amounts of information while reducing the likelihood of errors. Now there are more than 3700 financial institutions from 92 countries in the system, the daily volume of transmitted information is about 2 million messages. Delivery of messages anywhere in the world takes 5-20 minutes. The system is characterized by a high degree of confidentiality and reliability. General strategy for the development of SWIFT: multiprocessing; the possibility of integration into other networks; transmission of graphic information; model software; compliance with open systems standards.
In addition to the SWIFT system, there are also other payment systems:
"Fedwire" is a translation system Money and securities for large sums. The system is owned and operated by the US Federal Reserve System. This system interconnects 12 Federal Reserve Banks. Fedwire money transfers are used primarily for payments related to interbank loans before the next business day, interbank settlement transactions, payments between corporations and settlements in securities transactions.
CHIPS- a private computerized network for on-line dollar transfers. This system belongs to the New York Association of Clearing Houses and has been operating since 1971. CHIPS, like Fedwire, is a credit transfer system. Unlike Fedwire, payment transactions in CHIPS are multilaterally settled and obligations are settled at the end of the day.
Western Union- American private money transfer system.
It was founded in 1851. Now the company provides services in 195 countries and territories of the world (including Russia). Western Union services are available to over 80 percent of the world's population. For more than 130 years, millions of people have trusted Western Union to send money home annually - a Western Union partner will help make this transfer reliable and fast.
Switzerland operates around the clock Swiss Interbank Clearing System (SMCS) ... It makes final and irrevocable payments using funds held at the Swiss National Bank. This system is the only system that performs settlements in in electronic format between Swiss banks... All payments are settled against the accounts of the participants on an individual basis. The purpose of the SMKS functioning:
Decrease credit risks;
Elimination of overdrafts for giro payments (a type of non-cash payments by means of settlement checks) at the Swiss National Bank;
Speed up settlements and make it easier for banks to manage cash.
Japan has been operating since 1988 Bank of Japan Financial Network System (SFS-BYA) for the purpose of making electronic money transfers between financial institutions, including the Bank of Japan, which operates it. Money transfers carried out by SFS-BYA are mainly credit transfers.