RUSSIAN ECONOMIC UNIVERSITY them. G.V. PLEKHANOV

in the discipline "World Economy"

"The world securities market as part of the foreign exchange market"

Completed by a 4th year student

group No. 7462-2

Faculty of Engineering and Economics

Zaitseva Alexandra Olegovna

Moscow 2010

Introduction

The circulation of capital is impossible without the existence of a capital market, of which the securities market is a part. This is the most important economic institution that brings together economic actors who want to provide a loan in order to make a profit on the money invested; and economic entities wishing to obtain a loan for the purpose of acquiring consumer goods or expanding production.

World market securities, like world market currencies, is one of the most effective and global tools for redistributing funds from one sector of the economy to another.

The current stage of development of the world market as a whole is characterized by an increase in the role and importance of the securities market, in connection with this, the topic of studying the securities market is particularly relevant.

Now on world market securities can identify a number of trends. The purpose of the work is to study in detail the current state and development of the global securities market.

To achieve the goal, the following tasks were set:

briefly consider the stages of development, the essence and structure of the world securities market;

characterize the trends inherent in the modern world securities market.

1. The essence of the securities market

1.1 Formation of the securities market and its place in the structure of the world market

M world market securities (MRCB) exists for about 150 years. The first stage of its development began before the First World War, then the process was severely hampered by the Great Depression and the Second World War. During this period, there were mainly episodic issues of bonds by foreign issuers in need of financial resources.

The second, main stage in the formation of the MRCB took place in the 1950s and 1960s. 20th century The MRCB was formed as a result of the mass export of capital, primarily from countries that own the main transnational corporations and banks. Its formation was accelerated by the scientific and technological revolution, which gave rise to many grandiose projects, the implementation of which required the use of capital from different countries, the development of integration processes, a certain stability of exchange rates, the introduction of common multinational currencies, and success in the development of banking and stock exchange business.

The third stage of the development of the MRCB covers the time when the process of formation of the world economy was intensively going on, strong ties were established between industrialized countries. During this period, fictitious capital retained a clearly defined national identity. But even then, in the late 60s. XX century, a special superstructure appeared on the national securities markets: the markets for Eurobonds and Euroshares, the operation of which is carried out according to special laws established by international agreements.

We can also single out the fourth stage, which began in the 90s of the twentieth century, when world market appeared Russian oil and telecommunications giants.

MRCB is an integral and relatively firmly isolated part of the capital market, which consists of separate national markets. Together with the market for medium-term and long-term bank loans, the securities market forms financial part capital market. The capital market, in turn, acts as an integral part of the market for factors (resources) of production and the loan capital market.

The overaccumulation of capital within national boundaries is the reason for its outflow to other regions and countries, where it brings profit to its owner. Therefore, the export of capital is characteristic and objective necessity advanced economy. The markets of individual countries have merged into an international securities market, the economies of different countries have become highly interconnected, and the capital of investors flows from one country to another. This trend has not bypassed our country, which is now a sector of the international market.

The main participants in the capital market are firms and individuals who can act in this market, both as a lender and as a borrower. Firms and consumers wishing to lend or borrow money are willing to do so in various amounts and for various periods of time. Therefore, intermediaries are needed in the capital market.

It is one of these intermediaries in the capital market are securities. The securities market is the area of ​​potential exchanges of securities, in other words, the institution or mechanism that brings together buyers and sellers of individual securities. Securities are a special area for investing loan capital, although they themselves are not such, it is an institution that allows you to partially bypass intermediaries in the capital market.

The securities market, as an external source of capital, acts as a tool for raising free funds, being an alternative to financing enterprises and companies. Thus, the securities market and the credit market, being components of the financial part of the capital market, simultaneously complement each other and compete with each other.

Now consider the correlation of the securities market with the financial and stock markets.

Capital is usually subdivided into capital that is involved in the underlying commercial activity, i.e. in the production of certain goods (things or services), and on capital that exists as market instruments that bring net income. The latter is usually called financial capital, and its market - the financial market. Financial markets also differ, primarily by types of income-earning assets. So, a security corresponds to the securities market, a bank deposit and a bank loan to the credit market, currency as a profitable asset - the foreign exchange market, insurance instruments - the insurance market, etc. Thus, the securities market is an integral part of the overall financial market, and not the market for material goods. At the same time, the current stage of development of the international financial market as a whole is characterized by an increase in the role and importance of the securities market.

The stock market is the largest part of the securities market. In essence, each security is a separate market, but in practice this has not been reflected in the development of separate market names, since, with the exception of the stock, bill and mortgage securities markets, the markets for other securities are insignificant in terms of trading volumes, in mainly due to their extremely limited use as securities that bring net income, i.e. as capital.

However, the concept of the stock market does not have a strictly fixed content. You can only point out the following characteristics:

the stock market covers the markets for shares, bonds and secondary securities and derivatives based on them;

the concept of "stock market" is close to the concept of "exchange market", since a significant part of transactions with these instruments is made on the stock exchange (public or electronic). At the same time, the stock market is mainly considered to be an exchange market, and the bond market is usually an over-the-counter market;

the stock market is a market in which transactions are made on a systematic basis, and not as single or random transactions;

the stock market is a market primarily for purchase and sale transactions, and not for any legally permissible transactions;

the stock market is a market for securities as instruments for increasing capital, and not as instruments for its process of circulation.

Thus, when it comes to the securities market as a capital market, then to a large extent it means the stock market as the market for the most important securities that bring net income.

Summarizing what was said in paragraph 1.1. It should be noted that in its development the securities market went through three stages of formation (taking into account the accession of the Russian sector to four), becoming a single world market as a result of globalization and internationalization.

Securities, being intermediaries between producers and consumers, reduce the so-called. transaction costs associated with finding partners.

The MRCB is built into the structure of the world market in the following way: on the one hand, it is a component of the financial part of the capital market, and a component of the financial market, on the other hand, it includes the stock market, in which the main securities rotate - shares and bonds. The stock market is the "lion's share" of the securities market, and sometimes the IRM is called the global stock market.

A segment of the global loan capital market is the global financial market on which the issue and purchase and sale of securities and various financial obligations are carried out. The central link of the financial market is the securities market, which converts funds into investments through the circulation of securities.

A security is a monetary document that allows you to claim the right to pay a certain amount of money and receive income from a share of the total capital as a result of the initial placement. One of the main tasks of the market is to ensure the circulation financial resources in the economy through the issuance, circulation, redemption (profit) of securities with the benefit of all subjects economic relations.

The international securities market is considered as a combination of international issues and foreign issues, i.e. issuance of securities by foreign issuers on the national market of other countries. Currently, the international securities market includes both the stock market and the bond market. In addition, the world securities market can be considered as a combination of national securities markets and as an international market for a certain type of securities. Thus, the world securities market is divided into 2 parts:

• 1) circulation between countries of shares and bonds of national issuers of different countries (for example, bonds are issued in country A in its national currency and are sold in countries B, C, D, etc.);
• 2) a special issue of securities of foreign issuers for a certain national market (for example, country A allows the opening of a foreign bond market for foreign individuals and legal entities issued in the currency of this country).

The global securities market is a complex structure, so it can be classified according to a large number of features.

Depending on how often securities are traded, the securities market is divided into primary and secondary markets.

Newly issued securities are distributed in the primary securities market, they acquire their first owners, i.e. here are the relations regarding the issuance of a security into circulation - this is the relationship between the issuer of the security and the investor, in which the movement of money and goods is directed from the investor to the issuer, and the movement of securities, on the contrary, from the issuer to the investor.

In the secondary securities market, a security previously placed on the primary market is traded between investors. Here are the relations regarding the security - in this case, the movement of money and goods and the reverse movement of securities is carried out exclusively between the investors themselves. The secondary securities market is a non-centralized or centralized (stock exchange) purchase and sale of issued securities.

Depending on the degree of concentration of relations between issuers and investors in terms of place and time, the securities market is divided into exchange and over-the-counter markets.

An exchange market is a market that has the legal status of an exchange. The economic basis of the exchange as a market is a high degree of concentration of the same type of transactions with securities in a certain place and for a discrete period of time.

The over-the-counter market is a market characterized by a chaotic process of concluding purchase and sale transactions with securities in time and space, and in organizational and legal terms, this market is dispersed across countries and participants.

The global securities market acts as a tool for raising free funds, being an alternative to financing enterprises and companies.

The securities market in the economy of any country performs a number of important functions. One of them is the function of the regulator of investment flows, which provides an optimal structure for the use of resources for society. Thanks to the securities market, there is a flow of money resources from obsolete industries and enterprises to more modern ones, which offer the highest return on investment.

Thanks to this function of the world securities market, the state implements its structural policy. If the state is interested in the development of any industry, it will buy securities, their rate will grow, and a flow of investments in this industry will be formed. And vice versa.

The next function of the world securities market - ensuring the mass nature of the investment process - allows any economic agents with free cash to invest in production by acquiring securities. The concentration of securities turnover on stock exchanges and/or professional intermediaries enables the investor to facilitate the procedure for making investments.

The global securities market, performing information function, is very sensitive to ongoing and expected changes in the political, socio-economic, foreign economic and other spheres of society.

Another function of the world securities market is the ability to be an instrument of state financial policy. The main lever through which this function is implemented is the government securities market, through which the state influences money supply and, consequently, to increase or decrease the level of GNI.

As an instrument of state financial policy, the world government securities market performs the following functions.

• 1. Financing the deficit of the budgets of the authorities of different levels. As a result of the issuance of government securities and their sale on open market the government and local authorities receive funds that are used to cover the budget deficit. This is one of the main internal sources of deficit reduction, which does not lead to inflationary surges, but only redistributes free financial resources from enterprises and the population to the state. In addition to achieving the goal, this way of solving budget problems has a significant negative side effect regarding the reduction in productive investment, which leads to a reduction (decrease in growth rates) of GNI. In addition, an increase in public debt to normalize the budget would subsequently lead to an increase in the burden on the budget due to the need to pay interest on previously made borrowings, resulting in an increase in both public debt and the deficit. state budget.
• 2. Financing of specific projects. The state issues and sells targeted bonds on the securities market, with the help of which funds are raised for the implementation of certain projects. Most often, such securities are issued by local authorities.
• 3. Regulation of the amount of money in circulation. This function is usually implemented by the country's central bank when conducting monetary policy. By implementing an open market policy, the central bank, by buying and selling government securities, increases or decreases the money supply, which leads to an increase or decrease in the rate of economic growth.
• 4. Maintaining the liquidity of the financial and credit system. Banks form reserves that are directed to government securities that have the least risk. They can always sell these papers and pay off their obligations. The securities market acts as a tool to attract free cash, being an alternative form of financing enterprises and companies.

The issue, placement and trading of securities are associated with the attraction professional participants, the variety and number of which largely depend on the development of the stock market of the country and its individual regions. Market participants - as a rule, legal entities and individuals serving its functioning. In almost every stock market, regardless of the state in which it is located, its participants are grouped (see Figure 1):

• issuers;
• investment institutions;
• Organizations specializing in servicing the market;
• · self-regulatory organizations;
• · state bodies of regulation and control;
• market infrastructure;
• investors.

Rice. 1.

Between issuers, i.e. those who are short of cash and investors interested in effective investment excess cash exists a large number of all kinds of intermediaries who seek to make the most of transactions.

Participants in the global securities market are individuals or organizations that sell or buy securities or service their circulation and settlements on them, as well as those who enter into certain economic relations with each other regarding the circulation of securities.

There are the following main groups of participants in the global securities market, depending on their functional purpose: issuers; investors; stock intermediaries. There are also organizations serving the securities market and government regulatory and control bodies.

An issuer is a legal entity, a group of legal entities linked by an agreement, or public authorities and local governments that, on their own behalf, bear obligations to investors of securities to exercise the rights certified by the security, supply the stock market with a security whose quality is determined by the status of the issuer.

An investor is a key figure in the stock market, since the market for any security exists and develops if it is based on the investor's interest in acquiring it.

A broker is a professional participant in the securities market who deals with brokerage, which, in accordance with the Law “On the Securities Market”, is defined as the performance of civil law transactions with securities as an attorney or commission agent acting on the basis of an order or commission agreement or a power of attorney for such transactions. Both individuals and organizations can act as a broker.

A dealer is a professional participant in the securities market (individual or organization) engaged in dealer activity, which is defined as the execution of securities purchase and sale transactions on its own behalf and at its own expense by publicly announcing the purchase and (or) sale prices of certain securities with an obligation purchases and (or) sales of certain securities at prices announced by persons engaged in such activities.

Registrars in the global securities market are usually called organizations that, under an agreement with the issuer, maintain a register (a list of registered securities holders compiled on a specific date). The task of the registrar is to supply the emitter on time and without registry errors. Another duty of the registrar is to maintain the personal accounts of securities holders and nominal account holders.

Depositaries are organizations that provide services for the storage of certificates of securities and (or) registration of ownership of securities. In other words, the depository maintains accounts that record securities transferred to it by clients for safekeeping, and also directly stores certificates of these securities.

Settlement and clearing organization is a special organization of the banking type, which carries out settlement service participants of the organizational securities market and its main goals are:

• - minimum costs for settlement services for market participants;
• - reduction of time of calculations;
• - reduction to a minimum level of all types of risks that occur in the calculations.

A trading organizer is a professional participant in the securities market, carrying out activities for organizing trading in the securities market, who is obliged to disclose the following information to any interested person:

• - rules for admitting a securities market participant to trading;
• - rules for admission to trading in securities;
• - rules for registering transactions, etc.

Thus, the securities market makes it possible to redistribute funds and further develop the economy. In general, the securities market is a complex system with its own structure, where there are buyers, sellers and intermediaries who trade in securities.

Securities not included in Russian legislation.

In addition to the listed types of securities in world practice, there are other securities.

These are primary securities - mortgage securities for real estate and various types of insurance policies. In addition to primary, the class of basic securities in world practice also includes the so-called secondary securities, which are issued on the basis of primary ones.

These include:

• 1. secondary securities issued on the basis of shares;
• 2. secondary securities issued on the basis of debt obligations (bonds).

The main types of secondary securities based on shares:

• 1. depositary receipts (or certificates);
• 2. share warrants;
• 3. signed rights to shares.

A depositary receipt is a transferable secondary security issued in the form of a certificate by a reputable depository bank of world importance for the shares of a foreign issuer. There are American depositary receipts (ADR) and global receipts (GDR), the difference between which is in the geography of their distribution: ADRs are freely circulating on the US stock market, and GDRs of other countries, the most common is ADR.

Depository receipts help simplify trading in shares of foreign issuers and reduce the cost of dealing with securities. An ADR issuer is a legal entity created by virtue of an ADR issuance agreement. Thus, American investors, actually investing money in foreign securities, for example, Russian, at the same time they acquire American securities and are protected by all the power of American legislation. On the other hand, the holder of receipts is granted the same rights as the holder of shares, the right to dividends, etc. In this case, the depository (usually a bank) sends voting ballots to holders of receipts, then adds up the received votes and votes in accordance with them at the annual meeting of shareholders. Simultaneously American bank- the ADR issuer is not responsible for the financial well-being of the foreign issuer. In the event of a deterioration in the state of affairs of a foreign issuer, the holders of receipts, and not the issuing bank, will suffer first of all.

Depositary receipts are divided into sponsored and unsponsored.

The issuance of unsponsored ADRs is initiated by a shareholder or group of shareholders and cannot be controlled by the issuer in any way. Unsponsored ADRs may be issued by one or more depository banks, but they may only be traded on the over-the-counter, so-called OTC market through the Bulletin Board by the National Association of Stock Market Dealers and the daily Pink Pages.

Sponsored ADRs are issued at the initiative of the issuer. They can be issued by only one depository bank, the signing of a special agreement with which is a prerequisite for registration with the SEC (Securities Exchange Commission - stock exchanges USA).

ADRs are one of the ways for Russian issuers to penetrate the world capital markets, a way to attract desired investments. And several Russian enterprises have already attempted to issue ADRs. These are Mosenergo, NK Lukoil, RAO UES of Russia. Also, the first level ADRs of Nizhnekamskneftekhim JSC and Nizhnekamskshina JSC are now being sold on the Berlin Stock Exchange. Their quotations on March 11, 1999 amounted to $31.41 and $4.33 per share, respectively. The depositary bank under this ADR is the Bank of New York.

A share warrant is a security that gives its owner the right to buy a certain number of shares of a given company within a certain period at a fixed price in it.

The issuer of warrants is the same company that issues shares and has the goal of making its shares more attractive to investors. The price of a warrant does not include the value of the share itself. It reflects only the value of the right to purchase the share itself and depends on the difference between the market value of the share and the price of the share fixed in the warrant.

Underwritten share rights is a security for the rights of a company's shareholders to purchase a certain number of its new shares at a price lower than the price at which these shares are offered to third-party buyers (investors). This security is close to a share warrant. The main difference is that the term of subscription rights is limited by the time of subscription to new shares of the company, i.e. usually it is several weeks or months.

Main types of securities based on bonds:

• 1. "strips";
• 2. mortgage-backed bonds.

“Strips” are zero-coupon (interest-free) bonds issued by a given company against annual interest payments on its portfolio of high-quality bonds, usually government bonds. Strips are bought and sold at a price below the face value of the bond. The strips of the corresponding year are redeemed at face value at the expense of the coupon income of the same year on bonds owned by the company that issued the country.

Mortgage-backed bonds are usually highly reliable collateralized debt. Having a portfolio of such mortgages, a company, in order to raise funds, can issue its own bonds, usually zero-coupon, the repayment of which in the corresponding period is carried out at the expense of interest payments on mortgages held by the company that issued these bonds.

infrastructure deposit promissory note clearing

Introduction

Chapter 1. Theoretical foundations for the functioning of the international securities market

1.1 The concept of the international securities market and its development

1.2 Classification of securities in the international market

1.3 International fund centers

Chapter 2. Analysis of the functioning of the international securities boom market G

2.1 The modern securities market and its promising areas

2.2 Dynamics of the international securities market

Chapter 3. Problems of Belarus' entry into the world securities market

Conclusion

List of sources used

Introduction

One of the leading trends in financial globalization is the formation and development of the international securities market - ISMB, which ensures the movement of transnational capital flows and their subsequent placement. The international stock market as a system of institutions and relations refers to that part of the international financial market where transactions are made with foreign stock assets such as stocks, bonds and derivatives. financial instruments, and there is an international movement of financial claims and liabilities between the owners of assets, companies managing them and debtors. Being at its initial stage a small part of the international financial market, it then expanded significantly and has now become one of its main components. Although in some cases the close interconnection and interweaving of various flows of transnational financial resources during their intercountry movement makes it difficult to clearly identify this market segment, nevertheless, in general, the trend towards its expansion, its growing weight in the system of international financial markets is becoming more and more obvious.

The international securities market initially developed as part of national markets and then gradually became a segment of the world market as a whole. First of all, it was considered as a set of transactions with foreign securities on national markets, purchases and sales of international securities proper. In modern conditions, national and international markets are closely interconnected, it is only conditionally possible to consider the actions of the participants in these markets in isolation from each other, in reality, the operations performed are of a cross nature, the advantages of one or another market are used to obtain higher income.

Now the world securities market is concentrated in two centers: the Tokyo Stock Exchange and the New York Stock Exchange, which was founded in 1792 by the “sycamore agreement”, which gave impetus to the creation of the largest exchange in the world. In 1971, the exchange was registered as a non-profit organization, and the entire world market began to be reflected in the daily movements of company stock prices. Now here are the shares of the world's largest companies.

It is interesting that the world securities market in our understanding has existed for about 150 years. Its development began before the First World War, then it was severely hampered by the Great Depression and the Second World War, but in the 60s, along with the technical revolution and the outflow of capital, the second stage of the rapid development of the global stock market began. The third stage of development is usually associated with the emergence of euroshares, but it is logical to single out the 90s, when Russian oil and telecommunications giants appeared on the world market.

The object of research is the securities market.

The subject of the study is the global securities market.

Target term paper- study of the international securities market, its role and problems of the entry of the Republic of Belarus.

To achieve this goal, it is necessary to solve the following tasks:

consider the theoretical foundations of the functioning of the international securities market;

analysis of the functioning of the international securities market;

study the problems of Belarus' entry into the world securities market. security market

The work consists of introduction, 3 chapters, conclusion, list of references.

Chapter 1. Theoretical foundations for the functioning of the international securities market

1 The concept of the international securities market and its development

Difficulties that arise in determining the MRCB require the development of uniform approaches based on general principles. According to the principle of transfer of ownership, these transactions, for example, can include transactions between non-residents and residents of a given country, or between non-residents, the former are often defined as foreign, the latter as actually international in the securities market. At the same time, it is possible to consider the composition of the participants in the international financial market as investors and borrowers, as well as professional intermediaries specializing in operations in this market.

The international stock market is also defined as a group of institutions and organizations that provide international trading in financial products, for example, a section of foreign shares on the stock exchange. In this case, the international securities market also includes directly the relationship of sellers and buyers in the course of trading in financial instruments. Shares for sale in this section are offered, for example, by a multinational company, and the buyer is a brokerage firm engaged in international operations.

Another important part of the international financial market is the totality of financial instruments circulating in this market. In a broad definition, they include all types of financial instruments that are traded between residents and non-residents, or between non-residents. In most developed market countries, securities having national jurisdiction can be purchased by a foreign investor under capital convertibility regime.

The international securities market in a narrower definition is considered as a market for specific international instruments traded in limited market segments. Therefore, the instruments of the international securities market usually include the following: shares of foreign companies - exchange and over-the-counter transactions; foreign bonds and eurobonds, which enable foreign borrowers to accumulate funds by placing their securities on foreign debt markets; derivatives, where the underlying asset is the above groups of instruments that ensure the cross-border movement of capital through transactions related to hedging and speculative transactions between residents of different countries.

The close connection of the international securities market with other segments of the financial market is manifested primarily through the mediation of the international currency market, serving the movement of cross-border capital flows. To a large extent, it is based on the activities of international financial centers, where the necessary financial infrastructure is available. Liberalization of foreign exchange transactions in freely convertible currencies in the 70-80s. significantly expanded the circle of participants who have the opportunity to directly carry out currency transactions, although due to their specificity and scale, the implementation of international financial transactions is still carried out mainly through "big players". At the same time, the volatility of foreign exchange markets, especially during periods of crisis shocks, becomes one of the factors hindering the movement of capital between countries, although in some cases the presence of stable flows, for example, between the stock and credit markets, can help maintain exchange rates and volume of transactions.

Along with foreign exchange market the influence on international stock transactions of the market of derivative securities, which are built on the basis of traditional financial instruments and use the possibilities of hedging and speculative operations on changes in the rates of securities, currencies, etc., is increasing. The uncertainty and instability of the global financial market is accompanied by the emergence further development of the financial instruments management mechanism. Especially importance this gains in the case of using credit derivatives based on depositary receipts and debt securities.

The promotion of the securities market to the place of one of the main segments of the global financial market, both in terms of the breadth of financial instruments used and the volume of capital raised, required from national and international organizations a much more complete statistical coverage of the main elements of the global stock market. The most detailed statistical information is available on stock markets for securities presented in the publications and database of the World Federation of Exchanges, which, in addition to associated 54 full participants with a capitalization of more than 60 trillion. dollars In recent years, the main trends in the development of the securities market are increasingly reflected in the publications of rating agencies and consulting companies. Despite the significant difficulties in conducting international comparisons for various groups of financial instruments, as well as for investors and intermediaries, cross-country information on many financial indicators is expanding, which is especially important for determining the situation on the market and in the global economy as a whole. For international comparisons, static publications of the International Monetary Fund, the World Bank, the Bank for International Settlements, the OECD and other international and regional organizations are usually used.

The development of the international securities market is the result of complex processes in the sphere of the movement of transnational capitals, which determine their functional and regional structure. The processes of global financial integration have intensified since the early 1990s. During this period, companies in the United States and other developed countries significantly increased the international diversification of asset investment, and by the end of 1999, foreign assets had already reached a significant amount, amounting to 28 trillion. dollars, or 79% world GDP. A system of cross-border flows has developed between the United States, Western Europe and Japan, dominated by the capital of American companies, which accounted for about 50% of all open international financial positions. At the same time, cross-border financial ties with countries with emerging markets were at a low level: in general, the movement of capital did not exceed $ 1 trillion. dollars. Their development was hampered by possible risks of macroeconomic and political instability, which especially intensified after the Asian financial crisis 1997-1998, as well as limited information on market potential. On the other hand, investors in emerging markets did not have sufficient access to the financial markets of developed countries, both due to the weak development of the international operations sector in their financial system, and as a result of the restrained position of American and Western European companies in relation to attracting funds from this group of countries. .

TO beginning of XXI V. The network of cross-border investments is undergoing significant changes as economic and political ties expand and deepen between different regions and groups of countries. The growth of foreign assets is no longer determined only by the movement of investments between the major financial centers of developed countries, but also reflects the growing importance of the financial markets of developing countries. The system of cross-border relations is becoming noticeably more complicated, mutual capital flows in Europe after the creation of the eurozone are growing, and the volume of financial resources moving between developed and developing countries, especially between Western European countries and the countries of the Near and Middle East, Southeast Asia, etc. there is a decrease in the role of the United States as a leading exporter of capital - over the first decade of this century, the share of the United States in the total volume of cross-border investments has decreased from 50% to 32%.

At the same time, flows are also expanding between various south-south developing regions as governments and corporations in these countries become more active players in global markets. Before the 2008 global financial crisis, cross-border investment among developing Asian countries, Latin America and the Middle East grew about twice as fast as the exchange of investments with developed countries, but now this trend is recovering again.

2 Classification of securities in the international market

The securities market is of no small importance for the enterprise in terms of providing the enterprise with financial assets. All funds of the enterprise can be divided into two types:

) means to maintain current liquidity enterprises;

) funds intended for investment, for the development of production.

If the enterprise has a shortage of funds, managers can decide to attract loans; if there is an excess of funds, the enterprise itself can act as a creditor. In both cases, securities can act as a loan instrument. In its size, the securities market far exceeds all other markets. The securities market is not associated with the presence of any natural resources or political system in the state, and therefore can exist in any country.

By regulating the securities market, the state

establishes mandatory requirements to the activities of issuers, professional participants in the securities market;

creates systems for protecting the rights of owners and monitoring the observance of their rights by issuers and professional participants in the securities market;

carries out registration of issues of issuance securities and prospectuses and control over the observance by issuers of the conditions and obligations stipulated in them;

licenses the activities of professional participants in the securities market;

participates directly in open market operations.

Representative bodies of state power and bodies of local self-government set limits on the issue of securities issued by executive bodies appropriate level of authority.

All types professional activity on the securities market are carried out on the basis of a special permit - a license issued by the relevant state authority (in Russia - the Federal Commission for the Securities Market or its authorized bodies that have a general license.) The authority that issued the licenses controls the activities of professional participants in the securities market and makes a decision to revoke the issued license in case of violation of the legislation on securities.

When considering options for placing free cash assets of an enterprise in securities, it is necessary to proceed from the risk-return ratio. The highest return can be obtained on securities with the highest risk. The most reliable of all existing securities are government securities, which provide not very high, but guaranteed income.

When issuing debt obligations, the state pursues following goals :

financing of the state budget as a whole or specific state investment programs;

smoothing cash gaps (differences in the time of receipt tax payments and making public expenditures);

refinancing (repayment of previous government loans).

In the United States, federal government securities are usually divided into direct liabilities. Federal Treasury, which performs the functions of the Treasury Department in the United States, and the obligations of federal agencies. Three types of Treasury bonds are especially popular among Treasury securities:

treasury bills - discount obligations issued for up to one year in order to cover cash gaps;

treasury notes - interest-bearing bonds with maturity from one to 10 years;

treasury bonds - interest-bearing bonds with a maturity of more than 10 years; 30-year bonds are of the greatest interest, the real yield to maturity of these securities is one of the main financial indicators economic situation in USA.

For a number of obligations of federal agencies, the US Government provides its own guarantees. Agencies whose obligations are guaranteed by the government include EXIM Bank (Export-Import Bank), which issues bonds to finance foreign trade, and the Government National Mortgage Association (State National Mortgage Association, a division of the Department of Housing and Urban Development), which issues real estate-backed securities.

UK government securities have a number of features. For example, in 1888, the British Government issued bonds with a 2.5% annual coupon, which could be redeemed by the issuer after 1924. Later, a number of similar bond issues were made. These bonds are circulating on the market to this day. In fact, these bonds do not have a definite maturity (they are called bonds with an indefinite maturity date - undated bonds), their redemption will be beneficial for the issuer when the real market interest rates fall below the interest rates on these bonds.

Another feature of UK government bonds is the existence of index linked bonds. The essence of these bonds is that the interest income paid on them increases by the value of the index consumer prices, which is calculated for 600 types of goods.

The second place in terms of reliability among securities is occupied by a bond - an issuance security that secures the right of its holder to receive from the issuer of the bond within the period stipulated by it its nominal value and the percentage of this value fixed in it or other property equivalent.

Unlike stocks, bonds express exclusively credit relations and have a final circulation period, however, this period can be very long. So, in 1996, the American company IBM placed bonds with a maturity of 99 years.

On Russian market securities are dominated by bonds issued government bodies authorities. As for corporate bonds, the total volume of their issue in 1997 was less than 1% of the volume of issue of short-term government bonds. The main deterrent for the activation of corporate bond issues should be called high interest rates in the domestic market and the obligation to pay interest income on bonds, in contrast to shares, on which dividends can not be paid or paid in a minimum amount. In order to reduce the cost of servicing bonds, Russian enterprises are paying more and more attention to foreign financial markets. This process intensified after the credit ratings of the Russian Federation were assigned by the world's largest rating agencies at the end of 1996. Already in the following 1997, Russian issuers made 19 issues of Eurobonds in the amount of 7.25 billion US dollars, and the authoritative magazine Euromoney awarded Russia a prize in the nomination "The best borrower is a beginner."

It is necessary to distinguish between types of international securities.

Eurobonds (eurobonds) are securities placed simultaneously on the markets of several countries and denominated in a currency other than the national currency of the borrower or lender. Such bonds are placed through issuing syndicates of financial companies in several countries. The main part of the Eurobond market is made up of medium-term registered bonds (euro-medium-term-notes, EMTNs).

Foreign bonds (foreign bonds) - bonds placed on the market of one state (as a rule, resident companies are the underwriter), and the loan currency for the lender is national, and for the borrower - foreign.

Depending on the type of income, there are:

bonds with a fixed rate of interest, bonds with a constant coupon (straight bonds, standard fixed-rate security issues);

bonds with a floating rate of interest, bonds with a variable coupon (floating-rate bonds);

discount bonds, zero coupon bonds (zero-coupon bonds, discount bonds).

The third type of securities actively used in investments is stocks. A share is an emissive security that secures the rights of its owner (shareholder) to receive part of the profit joint-stock company(JSC) in the form of dividends, for participation in the management of the JSC and for a part of the property remaining after its liquidation.

Share properties:

certifies the ownership of the property of the joint-stock company after its liquidation, and also gives the right to manage this property in the course of the activity of the joint-stock company;

perpetual, inextinguishable security;

limited liability owner (it is impossible to lose more than invested in the share);

indivisibility of rights (with collective ownership of a share, the same rights are granted as with individual ownership);

exclusively registered security (according to Russian legislation), bearer shares are widely used in Germany, Switzerland.

According to the legislation of most countries, circulation on the domestic market of securities of foreign issuers, as well as securities of residents on foreign markets limited, and sometimes completely prohibited. To overcome this kind of barriers to the international integration of capital, depositary receipts arose. They first appeared in 1927 in connection with the British government's ban on exporting shares of national companies abroad. As of June 1997, the volume of American investments in foreign securities through depository receipts is more than $250 billion, including about $6 billion in shares of Russian companies. All existing receipts are divided into Global depositary receipts (GDR - global depositary receipts) and American depositary receipts (ADR - American depositary receipts). Characteristics existing species depositary receipts are given in table 1.1.

Table 1.1 - Characteristics of existing types of depositary receipts

Source:

Let's consider the technology of emergence of depository receipts on the example of issuing American depositary receipts (ADR) for Russian shares. The issuance of depositary receipts is carried out by the depositary-agent, who is a resident of the country in which the receipts are issued. Depository-agent (95% of ADR issues are accounted for by three banks - Bank of New York, Citybank, J.P. Morgan) is registered in the register of shareholders Russian company as a nominal holder. The issuing enterprise concentrates part of its shares and transfers these shares in nominal holding to the depository-agent. The depositary-agent issues certificates for the entire number of securities registered in his name. The ratio between the number of shares and certificates issued for them is established based on market value shares so that the value of one ADR is in the range of 20-50 US dollars. ¨

Along with the task of placing temporarily free cash in securities, an enterprise often faces the task of attracting additional resources to enhance its economic activity. Here again, securities appear as a solution to the problem. That is, the company begins to act no longer as an investor, but as an issuer of securities. Of the variety of securities, only two are used to raise capital - stocks and bonds. Both papers have their advantages and disadvantages. Shares in circulation are less burdensome for the enterprise in terms of mandatory payments, that is, with the support of shareholders, it is possible to build a dividend policy in such a way that only minimal dividends are paid, and the bulk of the profit is directed to the development of production. For a bond issue, such a delay interest payments impossible. In addition, a bond loan is urgent and sooner or later the time comes to repay the loan - to repay the bonds. On the other hand, with an additional issue of shares, shareholders of the enterprise have problems, because with the appearance of an additional number of shares in circulation, the share of shareholders in the authorized capital of the company, and, accordingly, the ability to influence the policy of the enterprise, is significantly reduced. Therefore, most often, enterprises with highly dispersed capital resort to the issue of shares, when none of the shareholders is able to single-handedly influence the policy of the enterprise, or enterprises with highly concentrated capital, when the main owner is not afraid of new issue shares and a slight decrease in the share in the capital of the company.

Both shares and bonds are emissive securities, that is, they are placed in a single issue or issue. The issue of securities is a set of securities of one issuer that provide the same amount of rights to the owners and have the same conditions for initial placement. An equity security is simultaneously characterized by the following features:

placed by issues;

establishes a set of property and non-property rights subject to certification, assignment and unconditional exercise in compliance with statutory form and order;

has an equal volume and terms of exercising rights within one issue, regardless of the time of purchase of the security.

The procedure for issuing securities includes the following steps:

) adoption by the issuer of a decision on the issue of securities;

) preparation of the issue prospectus;

) registration of the issue prospectus and issue of securities;

) production of securities certificates - for the documentary form of issue;

) disclosure of information contained in the prospectus and in the report on the results of the issue;

) placement of issuance securities;

) registration of a report on the results of the issue of emissive securities.

In the case of a public issue of securities, the issuing enterprise is obliged to provide access to the information contained in the emission prospectus. An issuer placing securities is obliged to provide any potential owners with the opportunity to access information before purchasing securities.

3 International fund centers

The relationship between the financial and stock markets, the interpenetration of various investment functions is clearly visible in the activities of international financial centers - the IFC. In a number of cases, the formation of the MFC took place around the exchange infrastructure, or the development of various market segments within their framework proceeded in parallel. It is precisely because of their wide functionality that international financial centers were able to provide conditions for attracting foreign investors. They are becoming one of the foundations of the modern network structure of the world economy, which ensures the movement financial flows between large clusters of the world economy.

The formation of international financial centers was a consequence of internationalization economic processes, further concentration of financial capital on present stage development of the world economy. They have developed as a form of functioning of the national financial market as part of the global financial market in the face of growing global capital flows and differ significantly in their size, specialization and financial transactions. These currently include more than 60 cities and territories, while the top ten most active include London, New York, Hong Kong, Singapore, Tokyo, Zurich, Chicago, Shanghai, Seoul, Toronto, where a wide range of assets under management. By nature and scope financial services MFCs can be global, regional or sub-regional, universal or specialized, domestically oriented or offshore. Among them are those that have been operating for several centuries and have appeared in recent decades.

Nevertheless, despite significant differences, they, as a rule, have the following basic conditions that ensure their activities: the stability of the national economy and its integration into world economy; favorable geographical position in terms of MFC specialization; presence of a diversified, competitive and capacious financial market, developed monetary system and exchange infrastructure, providing favorable conditions for international stock and currency transactions; providing access to foreign financial intermediaries with the participation of international financial institutions; availability of a wide range of financial instruments corresponding to the current stage of development of the global financial market; a stable and predictable regulatory system that operates in accordance with international standards for working in financial markets; provision of conditions for the training of highly qualified personnel for servicing the MFC.

Among the leading financial centers in the context of globalization, London has managed to regain its lost positions in a number of key performance indicators, while New York's leadership has ceased to be unconditional. The London MFC maintains a more flexible nature of regulation, especially for international stock transactions, flexible and differentiated listing systems, incl. regarding inclusion in the lists of global depositary receipts, placement of foreign shares on the London Stock Exchange. Another advantage was the possibility for foreign companies, subject to the established standards, to be included in the FTSE group of indices.

At the same time, American stock markets have become less attractive due to the tightening of American legislation, especially after the adoption in 2002 of the Sarbanes-Oxley Act, which establishes strict financial reporting rules not only for American companies, but for all companies. Ultimately, these actions prompted a number of foreign companies to leave the New York Stock Exchange and move to London and other major Western European markets. This, however, does not mean that New York, which retains its leadership in key performance indicators among the world's exchanges and developed infrastructure, will not seek to regain its dominant position, especially in the field of innovation in financial markets.

Using cluster and correlation analysis, Z/Yen Group identified three key areas that determine the profile of the financial center in terms of its competitiveness: interaction with other financial centers, providing the necessary conditions for the unhindered movement of transnational capital; diversification as the breadth of a set of financial and industrial services that provide the most favorable business environment for the activities of the MFC; specialization as the degree of concentration on the provision of services in areas such as asset management, investment banking, insurance, wealth management.

According to Z/Yen Group specialists, the combination of these three factors makes it possible to determine the general profile of financial centers and their place in the global financial architecture, classifying them in accordance with the results obtained as global, transnational or local MFCs, at the same time classifying them according to the degree of diversification of the services provided.

The creation of clusters built according to the sectoral specialization of issuers is one of the key factors in maintaining the competitive positions of the leading financial centers. First of all, there are four main areas of specialization that contribute to the attractiveness of the London Stock Exchange and the New York Stock Exchange for listing shares. foreign companies: mining cluster. Currently, the London Stock Exchange lists the shares of the largest companies for the extraction of non-ferrous and precious metals and their subsequent processing. investment banks and asset management funds provide high level expertise in the evaluation of shares, which is carried out by a highly professional staff in the field accounting, consulting and production, as well as supported by lobbying groups, which, as a rule, makes it possible for securities to be quoted at a premium; fuel and energy cluster.

Financial centers in other countries are also striving to build their own system of clusters in order to take a leading position in the corporate securities market with a more narrowly defined specialization. Thus, the investment base of Hong Kong, where trading in securities of foreign companies, including derivatives, is developed, the legislation complies with international standards, and is primarily focused on serving the financial sector of the PRC. Singapore, being one of the largest international ports in Southeast Asia and having an offshore trading zone, is expanding its position in the international market for risk management, insurance, and real estate services. As Canada's leading financial center and North America's third-largest regional mining financial services leader, Toronto is rapidly expanding as a hub for mid- and small-cap mining companies.

For regional and local MFCs, there is a growing risk of an overflow of operations with assets to other, more competitive markets. Under these conditions, a fuller use of the opportunities created by globalization, and the limitations at the same time arising from not? risks are becoming one of the most important tasks for regulators in the capital markets. As a result, for many of them it is absolutely necessary to strengthen the international functions of the existing national financial market in order to ensure access to a higher level of competition. The crisis of 2008-2009 had a significant impact on the configuration of world finance, one of the consequences of which was the relative strengthening of the positions of emerging markets, primarily in terms of the accumulation and redistribution of national capital.

After two decades of globalization in the financial sector, as well as the development and implementation of new information and telecommunications technologies, industrialized countries have found themselves at the epicenter of the most serious economic problems. For the first time since the 1950s, the financial services sector of these countries began to show a steady downward trend, while financial centers in Asia continued to grow. In conditions of more dynamic development economy, a growing part of the capital in the world, attracted by share issues, falls on Asia and Australia, which is also directly reflected in the results of exchange activities. The capitalization of companies, mainly local ones, is growing especially fast on the stock exchanges of mainland China and Hong Kong. Ratio is changing competitive advantage"old" and "new" financial centers, although, of course, one cannot ignore the possibility of further expansion of the speculative "bubble" in a number of Asian countries, primarily in China, as a result of an excessive inflow of liquid assets, not enough developed system listing.

One of the reasons for the significant depth of the crisis phenomena in recent years was the contradictory nature of the process of financialization of the economies of the leading countries. In the pre-crisis period, the expansion of the financial services sector was the result of economic policy developed countries in order to provide a favorable business environment for their financial institutions in the face of ongoing changes at the "top floors" in international division labor and the revitalization of offshore centers, as well as the growing demand for resources from corporate finance, the expansion of support in various forms by governments under pressure from the financial "lobby" of banking and other operations. Subsequently, the decline in activity in the financial industry led to a contraction in the financial and related industries, showing a high elasticity of the labor market from the production of financial services. At the same time, the expansion of the stock market of developing countries continued.

In the face of increased competition, one of the ways to strengthen international financial centers was the introduction of financial innovations, as well as the introduction of special institutions into the infrastructure of the centers for the development and release of new products. The process of asset securitization, which began in the 90s, has been further developed in the modern period as a result of the entry into the market of such products as bonds secured by debt obligations, mortgage-backed securities, asset-backed securities, and a number of others. creation of new types of OTC derivatives in addition to the previously established groups of financial derivatives for stock indices and interest rates, as well as those based on the development of the bond market.

On the other hand, the basic model of servicing the leading financial centers economic markets largely maintained after the financial crisis of 2008-2009. In particular, London, New York, Hong Kong and Singapore, which form a significant share of global financial services, especially in the banking and investment sector, continue to largely hold their positions in global finance. Until now, these centers have significant advantages from the concentration of capital and the organization of urban agglomeration, which provide greater market liquidity, a developed and stable market infrastructure, a system of regulation and supervision, and the stability of transnational communications. More liquid and mature markets and mature regulatory systems are usually key factors for market participants, especially during and after a crisis.

For new, rapidly developing international financial centers, the creation of financial markets with such basic parameters in the near future becomes one of the most difficult tasks due to the difficulties of restructuring existing global financial ties with the corporate sector and government bodies of other countries, as well as due to the need for large costs. to be included in this system. Thus, the process of forming a multipolar financial architecture is at a transitional stage and is not clearly defined.

The conditions for the operation of international financial centers will be significantly affected by the formation of a “new financial world order”, the main contours of which are already being formed. According to the concept promoted by the IMF and the G20, they include: the development of an international system of regulation and supervision, the strengthening of the role of individual supranational organizations - the G20, the Financial Stability Forum, the IMF, the Bank for International Settlements, combined with the tightening of existing rules and standards within national systems; modernization of modern architecture monetary system; the creation of transnational financial conglomerates and a number of others. They should provide the necessary conditions for the development of the MFC as a multi-tiered financial market of a greater degree of complexity, capable of attracting and moving significant volumes of domestic and foreign investments and providing domestic and foreign businesses with a wide range of world-class financial services.

It should also be noted that the possibilities for financial centers to ensure the best competitive positions in the future will also depend on the degree of adaptability of the systems. financial regulation to ongoing changes in the banking systems and the stock market. Crisis of 2008-2009 revealed serious shortcomings in the American and English systems of financial regulation, in connection with which the Federal Reserve System and the Financial Services Administration were forced to urgently reformulate the basic concepts of financial regulation and propose measures for their implementation through the use of administrative levers and the introduction of broad legislative initiatives for this purpose . At the same time, a number of countries with large emerging markets - China, India, Brazil, managed to limit the impact of financial shocks to a greater extent and earlier Western countries to apply macroprudential instruments, incl. regarding the capital adequacy of financial institutions.

However, since in terms of quality characteristics the financial centers of this group of countries still have a gap with the United States and Western European countries, a large share of participation of state-owned banks, an orientation towards the domestic financial market with an underdeveloped infrastructure, a weak role of self-regulatory organizations, and a lack of the necessary number of qualified specialists in international operations and others, there are fears that they may hinder initiatives to create a new "international regulatory environment", thereby contributing to unfair competition based on less stringent rules for the operation of institutions or "regulatory dumping". From this point of view, the United States, Western Europe and Japan, which have a more developed financial system, based on broad and comprehensive legislation, will be interested in developing closer trilateral cooperation in order to maintain the traditionally leading positions of their international financial centers.

At the same time, the further development of the US and European IFCs will be largely determined by the trends in the movement of financial resources between them and countries with emerging markets, primarily the BRICS, which are actively using the capabilities of these centers to finance their economic growth. Until the last financial crisis, the London Stock Exchange, the New York Stock Exchange and the NASDAQ were the main markets for these countries. This is evidenced by the largest placements of recent years: the double listing of VTB in the amount of $ 8 billion in London and Moscow in 2007, the IPO of Fresnillo Mexico in the USA in the amount of $ 1.8 billion in 2008 and a number of others. Although the crisis of 2008 temporarily interrupted this trend, there was a recovery in the activity of large-scale operations on the stock exchanges, incl. dual listing of Banco Santander Brazil in New York and Sao Paulo in the amount of $7.5 billion in 2009, the IPO of Essar India in the amount of $1.9 billion in London in 2010, etc.

Stable the economic growth in most countries, it provides conditions for increasing demand from local companies for foreign investment resources both to strengthen their domestic economic potential and to move into foreign markets. One such example is Petrobraz Brazil's secondary offering of shares on the New York Stock Exchange in 2010, where international sales of depository receipts to foreign investors amounted to about $8 billion, or about 12% of the total issuance. As expected, the scale of this demand will continue to expand in the future due to the need to finance a number of large-scale projects - India, Brazil, privatization of companies - Russia, major international mergers and acquisitions, the formation of a segmented financial market. These processes are taking place against the backdrop of a significant slowdown in issuing activity in developed countries, which indicates an increase in the share of capital attracted in international markets from this group of countries.

Chapter 2. Analysis of the functioning of the international securities market

1 The modern securities market and its promising areas

The modern securities market is represented by a wide range of its participants, instruments and operations that can be used and carried out on it, respectively. Almost nowhere you can find as many opportunities to win / lose (make a profit / loss) as in the securities market. And each of its participants has everything for this. For example, an investor has different instruments (different securities: stocks, bonds, warrants, options, etc.) to invest his money in securities with different levels of risk and, accordingly, with different returns. It must be remembered that the greater the yield, the greater the risks - this is one of the main rules in our life and is especially relevant in the modern securities market.

The modern securities market is a market in which all national securities markets are concentrated and interconnected. On it, investors and issuers meet in order to obtain a certain benefit (profit and capital, respectively). But at the present stage, there are intermediaries between them, as well as other participants in the modern market (brokers, dealers, banks, Insurance companies, depositories, etc.), each of which performs a specific role and functions in the market and allows you to make the process of buying / selling securities more automated, simple, reliable and allowing the investor to deal only with the process of making an investment decision, and the issuer about how to further develop their own, for example, a corporation and where to invest capital received from securities.

It is interesting that, in general, the underdevelopment of the securities market in various developing countries does not guarantee that the global economic crisis will not affect them or that the consequences will be more favorable than in countries where the securities market is very well developed, because. the country itself, whether it wants it or not, is in the process of constant integration with other countries, economies, and all this as a whole is modern economy and the modern stock market. Countries are interconnected, including by securities markets, and therefore they transfer their internal problems to members of various economic communities.

Last years this is clearly seen in the example of the countries of the European Union, namely Greece, Spain, Italy and Portugal (2010-2012), when internal problems with the external debt of these countries led to a drop in the ratings of countries (the ratings of all countries automatically fall to this level). national structures: banks, companies, etc.), which, in turn, led to a significant decrease in the price of securities of these countries. But due to the fact that these countries are part of the European Union, the reputation of all countries included in it also suffered and stocks, bonds and other securities began to decrease in value. It is very dangerous when government bonds are downgraded, which allows us to talk about receiving less investment in the country, and this, in turn, will lead to an increasingly worse economic situation in the country if nothing is done to prevent a recession.

Thus, the modern securities market is characterized by an increasing process of globalization and integration, especially today, when there is an increasing integration of national economies and countries in general.

There are prospects for the securities market or, in other words, the stock market, but for development it is necessary to solve the problems of the stock market, which will allow it to develop. First of all, this is the emergence of new tools, i.e. new types of securities, which provide investors and issuers with completely different opportunities and allow them to attract large resources.

New instruments of the stock market are many types of derivative securities, varieties and types of new securities are being created. New trading systems are trading systems that are based on the interaction of different means of communication and computerization, which allows trading around the world online, one on one and without any contracts between sellers and buyers.

The new market infrastructure means new information systems, such as clearing, settlement, and depository services for the stock market. Another prospect for the development of the stock market is securitization - this is when funds transfer from a standard form to securities or a tendency to transfer a certain form of a security to another form of securities that are more accessible and more used by investors.

Thus, the outlook for the securities market does not mean that other markets, such as the capital market, will not lead to their disappearance. Of course, one might think so, because. on the one hand, the stock market takes part of the capital, but on the other hand, it allows you to move these capitals through the mechanism of buying / selling securities to other markets, which contributes to the development of these markets. Those. prospects for the development of this market, as well as other markets, exist all the time and will never end, only if the markets themselves, including the securities market, disappear.

Another prospect for the development of the securities market is its computerization, but not in the literal sense, because. it has already happened, but by increasing the speed of transactions, obtaining information, improving the safety of information, as well as improving the mechanisms for making transactions and developing types of securities.

2 Dynamics of the international securities market

A stock index is an indicator of the state and dynamics of the securities market. By comparing the current value of the index with its previous values, one can evaluate the behavior of the market, its reaction to certain changes in the macroeconomic situation, various corporate events (mergers, acquisitions, stock splits, resignations and appointments of leading managers), speculative processes.

Depending on what securities make up the sample used in the calculation of the index, it can characterize the market as a whole, the market for a certain class of securities (government bonds, corporate bonds, shares, etc.), the sectoral market (securities of companies of one industries: telecommunications, transport, insurance, Internet sector, etc.). Comparison of the dynamics of various indices can show which sectors of the economy are developing the fastest. The index may represent the national stock market as a whole or a specific trading floor in that market (for example, a stock exchange index). Stock indices are calculated and published by various organizations, most often information or rating agencies and stock exchanges.

Consider the dynamics of the main stock indices.

In the USA, the Standard & Poor's family of indices is considered. Standard & Poor's Composite 500 Index. The index includes 400 industrial, 20 transport, 40 utility and 40 financial companies. Weighted by market capitalization. Covers approximately 80% total capitalization companies traded on the New York Stock Exchange. The capitalization of companies in the sample ranges from $73 million to $75 billion (Figure 2.1).

Figure 2.1 shows the average movement in the value of the shares of 500 corporations with the largest capitalization. The top 10 companies in the S&P 500 index range from $166 billion to $406 billion. These are companies such as Microsoft, Apple, IBM, Procter and Gamble, General Electric. As can be seen from Figure 2.1, the peak value of the shares of 500 corporations occurred in November 2014 and amounted to $ 2,000 billion. & Poor's 400 Index (S & P Midcap) is similar to the S & P 500, but covers 400 industrial companies, the capitalization of which varies from 85 million to $6.8 billion. The Standard & Poor's 100 is similar to the S&P 500, but covers only 100 stocks that have option contracts on the Chicago Board Options Exchange. "OEX" is the name of an option on this index, which is one of the most popular and traded options.

A price-weighted index as opposed to a capitalization-weighted index. Some believe that this index gives a better indication of the performance of an investment because individual stocks do not outperform in it, and most individual investors do not build their portfolio weighted by market capitalization. (until they buy index funds) .

In the UK, the FTSE 30 Share Index is considered, the Financial Times Industrial Ordinary Share Index first began to be published in 1935. and covers the shares of 30 industrial and trading companies. It is calculated as a geometric average obtained by multiplying the prices of 30 stocks from the sample and then extracting the root of the 30th degree from the product (Figure 2.2).

100 is the most common index in the UK, commonly known as "footsie" (Footsie 100). It is a weighted arithmetic index calculated on the basis of the 100 largest UK companies by market capitalization on a per-minute basis. Footsy components account for about 70% of the total capitalization of the UK stock market.

It began to be calculated on January 3, 1984 from the level of 1000 points. Reached its all-time high of 6950.6 on December 30, 1999. After a dramatic drop during the 2007-2010 financial crisis below 3500.0 in March 2009, the index largely recovered to a peak of 6091.33 on February 8, 2011 , which was the highest value since mid-2008. On the morning of September 23, 2011, the index fell below 5000.0. On June 19, 2012, the value was 5,586 points. Mid 250 - An index of mid-cap stocks that account for approximately 20% of the UK market. These are the next 250 companies behind the 100 largest in the FT-SE 100. Calculated since December 1985.

Main stock index Japan - "Nikkei" (short for the phrase "nihon keizai" - "nihon" in Japanese Japan, and "keizai" - "finance, economics") (figure 2.3). His sample includes 225 stocks traded on the Tokyo Stock Exchange. This is the arithmetic mean unweighted index, calculated using the same methodology as the DJIA. Published since 1950.

Like the Dow Jones Industrial Average, the Nikkei is a price-weighted index. This means that those companies whose shares are most valued on the stock exchange, the index gives more importance. The list of companies included in the index is revised annually and includes Japanese companies from business areas such as the pharmaceutical industry, financial institutions etc. As can be seen from Figure 2.3, the index peaked in April 2007.

The second fairly popular index is Topix, calculated since 1968. for all shares traded on the 1st section of the TFB. The JPN index is a modified price-weighted index that reflects the dynamics of 210 ordinary shares, actively traded on the Tokyo Stock Exchange and representing an extensive cross-section of all sectors of the Japanese economy. The JPN is closely related to, but not identical to, the Nikkei.

Canada. The most famous index of the Toronto Stock Exchange TSE 300, weighted by capitalization and covering 14 sectors of the economy.

Mexico. The IPC index is calculated on the Mexican Stock Exchange. It is a capitalization-weighted index covering the 35 largest Mexican companies. The composition of the sample for calculation is adjusted every 2 months.

Hong Kong. The most well-known index is the market capitalization-weighted Hang Seng Index of the Hong Kong Stock Exchange, calculated on the shares of 33 companies, the capitalization of which represents about 70% of the total market capitalization. The index includes companies from 4 sectors: trade and industry, finance, public utilities, landed property.

Chapter 3. Problems of Belarus' entry into the world securities market

An analysis of the structure of the community of issuers of the international Eurobond market shows that in terms of the place of registration of the geographical distribution, developed countries account for about 80% of the volume of issues. Nevertheless, for potential participants of the Belarusian financial market, the experience of countries with a similar state of development of economic relations, i.e. developing countries. Despite the uniqueness of the initial conditions of each country, according to the author, it is the cumulative analysis of the world experience of the Eurobond market, taking into account the specifics of the participation of this group of countries on it, that will allow us to assess the potential effectiveness of this borrowing tool for the Republic of Belarus and determine the most promising directions for using the attracted resources.

The reasons hindering the development of the corporate bond market include:

For investors:

high rate taxation of income (40 percent) received by legal entities from operations with securities;

unequal competitive opportunities for banks and business entities when borrowing funds from the population. In accordance with the law, income received by individuals from operations with securities, including interest income on bonds, is taxed at the rates of taxation of the total annual income. At the same time, interest on deposits of individuals in banks is not taxed;

For issuers:

the presence of additional expenses of the issuer (as opposed to obtaining bank loans) associated with its costs for the payment of income (interest) on bonds, their registration, placement, circulation and redemption (up to 5 percent of the loan amount);

Today, the solution of the issue of the possibility of attracting investments by organizations in foreign stock markets by issuing Eurobonds and depositary receipts for shares is one of the priority tasks.

However, the main requirement for an issuer's admission to foreign investment resources is the availability of at least 25 percent of the issuer's shares in free circulation.

In a situation where 60 percent of the issued shares (in value terms) are owned by the Republic of Belarus or its administrative-territorial units, the entry of organizations into foreign financial markets is possible after the state creates conditions that ensure that at least 25 percent of the issuers' shares are in free float.

In addition, the issues of transition of organizations to international financial reporting standards, disclosure of information in accordance with international standards, formation credit history and obtaining a corporate rating of issuers.

Activation of the corporate bond market is one of the ways to form the credit history of issuing organizations, which is a necessary prerequisite for them to obtain an international credit rating and further attract credit resources in foreign financial markets.

Derivative securities (futures, options) based on underlying assets ( currency values, equity, debt securities, other financial instruments or rights in relation to them), are practically not used due to the lack of a liquid underlying asset.

The market for other securities (municipal bonds, warehouse receipts, bills of lading), despite the existing regulatory framework, is not developing due to the lack of interest among business entities in the use of such instruments.

Along with the continuation of work on the activation of already operating segments of the securities market, it is necessary to pay sufficient attention to the creation of markets for derivative securities, securitization instruments financial assets and mortgage-backed securities, exchange-traded bonds, as well as other instruments of the securities market.

The main goals of entering the international Eurobond market of Belarus:

Increasing the investment attractiveness of the borrower and strengthening investor confidence is one of the most important goals when countries with economies in transition place Eurobonds on the global financial market. So the issuance of Eurobonds by these countries is often part of state strategy to attract foreign capital to the national economy and develop the national stock market. In this case, the issued sovereign Eurobonds are designed to open access for national corporate borrowers to the global loan capital market.

increasing the prestige of the borrower;

satisfaction of domestic demand for foreign exchange resources:

Among the options may be the issue of Eurobonds by one of the largest banks in the country, which has a high credit rating, with the subsequent placement of the funds raised among smaller national financial institutions. The advantage of Eurobonds as a source of financing domestic demand for foreign currency is that such attraction of funds is more long-term and less limited.

refinancing and restructuring of existing debt:

The rate of increase in external borrowing by issuers of countries with economies in transition in most cases exceeds the rate of growth in profits or national income. As a result, the issuer is faced with a situation where it is forced to make new borrowings to ensure the timely repayment of previously issued obligations.

On the eve of the crisis, the Belarusian Investment Forum was held, where the country's companies presented their assets for a public stock assessment. The main landmark in this moment- for the issue and placement of Eurobonds, which is also an institution for raising borrowed funds.

In addition, privatization will serve as a qualitative start for the formation of the Belarusian stock market. Privatization should increase the popularity of the investment portfolio in the country and serve as an incentive to attract foreign direct investment.

At the current stage, Belarus needs investment resources. At the same time, the volume of accumulation of foreign direct investment is still low, they have not played a decisive role in the development Belarusian economy, but increases the interest of a potential investor in Belarus due to the presence of a fairly large number of attractive assets.

Belarus' plans to enter the Russian and then the European securities markets are connected with the intention to finance the main part of the budget deficit from external sources. The possibility and expediency of obtaining a country credit rating for Belarus has been discussed in the government since 2001. Since 2003, the Republic of Belarus has been taking steps to obtain investment rating. This assumes that the government of Belarus will select on a competitive basis a foreign investment bank that will act as a financial advisor on attracting a country credit rating and placing Belarusian Eurobonds. The financial adviser will be required to assist in the selection rating agency and attraction rating. In addition, a financial consultant will have certain advantages when placing Belarusian Eurobonds.

The success should be facilitated by the fact that the level of Belarus' external debt is extremely low and the country's debt obligations are repeatedly covered by available collateral.

According to specialists from the Ministry of Finance and the National Bank, Belarus will be able to receive a B+ country credit rating. This is in line with the accepted international practice, when the first credit rating has a low value, then it rises depending on the efficiency of the state. The presence of the rating will make it possible to gradually reduce the price of credit resources attracted in foreign markets. After receiving the rating, Belarus will be able to issue Eurobonds.

In the future, Belarus is invited to participate in the placement of Eurobonds. It is more expedient to debut with the issue of Eurobonds, given its great advantage in terms of information disclosure, investor interest and the likelihood of a successful placement. The ultimate goal of any issuer should be to issue global bonds and place them on the US market: in exchange for higher requirements, you can get more opportunities.

The Council of Ministers of Belarus has approved a draft agreement with a foreign legal consultant on the issue of Eurobonds and a letter on the appointment of four foreign banks as organizers of the placement of securities. This was done by the Decree of the Council of Ministers of Belarus No. 420 dated March 24, 2010 "On negotiating draft agreements on the issue of Eurobonds of the Republic of Belarus and a letter on their placement and signing these documents."

A draft agreement was approved between the government of the Republic of Belarus represented by the Ministry of Finance and the American law firm WHITE & CASE LLC to provide Belarus with the services of a legal advisor in English law in connection with the issue of Eurobonds of the Republic of Belarus.

In addition, a draft letter was approved between the Ministry of Finance of the Republic of Belarus and BNP Paribas (London branch), Deutsche Bank AG (London branch), The Royal Bank of Scotland plc and Sberbank of the Russian Federation on their appointment as organizers of the placement of Belarusian Eurobonds as basis for negotiations. On the Belarusian side, this document was signed on March 25, 2010.

The need to develop a model for the entry of the Republic of Belarus into the MRCB is determined, on the one hand, by the needs of Belarus to attract external long-term financial resources for the restructuring and modernization of existing industries, mainly state form property, on the other hand, the need to work out the interaction of all participants in the mechanism in order to increase its efficiency.

The main tasks for the Republic of Belarus to enter the international securities market are:

development, approval and implementation of the selection and approval mechanism investment projects;

preparation and creation of a database of investment projects;

the creation of an interdepartmental body that controls the dissemination of data, as well as conducting operational correspondence with international investors.

The most important stage in the process of preparing for the placement of Eurobonds is the determination of the key parameters of the issue. The success of an issue often largely depends on the compliance of its parameters with the opinion of investors about the needs of the issuer and the ability to service the attracted debt. For example, if the declared volume of the issue exceeds the needs of the issuer. This will most likely be regarded as poor preparedness of the initiator of raising funds and will negatively affect the cost of borrowing.

In most cases, the general manager of the issue is responsible for calculating the needs and assessing the possibility of placing Eurobonds at acceptable rates. However, the issuer himself must clearly understand the objectives of the issue and calculate the conditions corresponding to them. At the current stage for Belarus priority goal is to create a precedent for issuing Eurobonds and to determine the % rate at which international investors will value sovereign securities. The debut issue, in fact, can be recognized as a marketing ploy aimed at studying the international borrowing market and shaping the image of a conscientious borrower.

The hierarchy of goals determines the expediency of the first issue of Eurobonds on terms that best correspond to the concept of a low-risk investment from the point of view of investors. This dictates the following release parameters requirements:

the use of the funds received should be directed to the direct creation of income;

volume of issue and term of circulation of Eurobonds;

loan currency, bonds should be as liquid as possible.

The first requirement for the directions of use of attracted resources arises from the contradiction between the goals set for investors of funds in securities and the peculiarities of the state social policy of the Republic of Belarus. The prevailing goals of investors in the conditions prevailing at the MRCB are to earn income and diversify their investments. Funding is the basis for making a profit. commercial projects, capable of generating a cash flow that covers current interest payments for attracted resources and guarantees timely repayment of the principal debt.

Currently, projects in the areas of oil refining, woodworking industry and production of potash fertilizers are also attractive. However, one should take into account the events related to the supply of hydrocarbons to Belarus. These included episodic reductions in supply volumes and price increases, which led to significant reductions in refinery profits. Despite the short duration of such events, if they occurred after the issuance of Eurobonds for the implementation of modernization projects, the value of the bonds would have significantly decreased.

There is no definition of a Eurobond in the legislation of the Republic of Belarus, so let's turn to the general provisions on bonds. According to Article 5 of the Law of the Republic of Belarus dated March 12, 1992 No. 1512-XII “On Securities and Stock Exchanges”, a bond is a security confirming the obligation of the issuer to reimburse the owner of the security for its nominal value in fixed time with the payment of a fixed percentage (unless otherwise provided by the terms of the issue).

Bonds are issued in series, consisting of homogeneous securities with equal nominal value and the same terms of issue and redemption, secured by property with the consent of the owner or a body authorized by him.

May 2010, Decree of the President of the Republic of Belarus No. 245 “On the issue of government bonds of the Republic of Belarus” (hereinafter - Decree No. 245) came into force. It is dedicated to the so-called Eurobonds, the issue of which, according to Decree No. 245 in 2010-2011. will be carried out by the Council of Ministers of the Republic of Belarus in the amount of up to 2 billion US dollars with a circulation period of at least five years and their placement outside the territory of the Republic of Belarus.

In July 2010, the Republic of Belarus placed Eurobonds on the world market in the amount of $ 600 million for a period of 5 years and maturity in 2015, the yield on which amounted to 8.75%. Interest on the bonds will be paid on a semi-annual basis on February 3 and August 3 of each year at a rate of 8.75% per annum. The experiment was a success, and already in August additional placements of Eurobonds in the amount of $400 million were received. The funds were credited to the account of the Ministry of Finance on August 3, 2010. BNP Paribas, Deutsche Bank, The Royal Bank of Scotland and Sberbank of Russia acted as the lead organizers of the Eurobond issue of the Republic of Belarus. The first interest payment was made on February 3, 2011. The bonds mature on August 3, 2015.

In 2011 Belarus plans to issue Eurobonds worth $1 billion.

January 2011, Eurobonds were placed in the amount of $800 million. Securities were placed at a fixed rate of 8.95%. Investors from the USA - 20%, Great Britain - 30%, Russia - 14%, as well as from other countries participated in the placement and purchased securities.

On February 1, 2013, Belarus paid investors the fifth coupon income on the first issue of Eurobonds in the amount of USD 43.75 million in accordance with the schedule. Belarus paid investors coupon income on two issues of Eurobonds for total amount USD361.95 million

The next coupon yield payments on Eurobonds of Belarus will take place: July 26, 2013 - the fifth coupon yield on the second issue of securities (USD 35.8 million), August 3, 2013 - the sixth coupon yield on the first issue of Eurobonds (USD 43.75 million .).

According to Bloomberg data, on January 30, 2013 Belarus Eurobonds of the first issue maturing on August 3, 2015 traded with a yield of 6.334% (purchase) and 6.017% (sale), the second issue maturing on January 26, 2018 - 7.130% (purchase) and 7.001% (sales).

The decrease in yield is due to the growth of market quotations of Belarusian securities and the reduction of their duration (term to maturity of Eurobonds). Apparently, during the new placement of securities, the Belarusian government will be able to raise funds for more favorable conditions compared to the previous two issues of sovereign Eurobonds. In particular, the coupon rate on the third issue of Eurobonds, according to our estimates, may be 6.3-7.3% per annum, depending on the length of the money.

Currently, there are two issues of sovereign Eurobonds in circulation: with maturity on August 3, 2015 in the amount of USD 1 billion (coupon rate is 8.75%) and with maturity on January 26, 2018 in the amount of USD 800 million (8. 95%).

Against the backdrop of improving international financial markets, the government of Belarus in 2013 has a real opportunity to half refinance foreign state debt and thus reduce the volume of actual payments to the level of 2012 (USD 1.5 billion).

The volume of the issue of securities may amount to about 800 million dollars in 2014. During the new placement of securities, the government may raise funds on more favorable terms compared to the previous two issues of sovereign Eurobonds. According to Bloomberg, on September 1, 2014, Belarusian Eurobonds of the first issue maturing on August 3, 2015 traded with a yield of 6.091% (purchase) and 5.067% (sale), the second issue with maturity on January 26, 2018 - 7.250% (purchase) and 6.901% (sales).

Thus, the use of such a borrowing instrument as Eurobonds for the Republic of Belarus may mean raising medium-term financial resources at a relatively low interest rate and gaining access to the international financial market for future borrowings. In addition, the first issue opened up access to international capital markets for other borrowers in the country.

Conclusion

The development of the modern world securities market, in addition to general economic ones that affect the stock market, also has specific trends. First, the trends in the concentration and centralization of capital have two aspects in relation to the securities market. On the one hand, more and more new participants come to the market, for whom this activity becomes the main one, and on the other hand, there is a process of separating large, leading market professionals based both on increasing their own capital (capital concentration) and by merging them into more larger structures of the securities market (centralization of capital). As a result, trading systems such as NASDAQ (National Association of Securities Dealers Automated Quotations), SEAQS (Stock Exchange Automated Quotation System) or other market organizers appear on the stock market, as well as several of the most famous platforms for trading securities (stock companies) ( New York Stock Exchange, Tokyo Stock Exchange, London International Stock Exchange, Frankfurt Stock Exchange), which serve most of all transactions in the international securities market. The internationalization of the stock market means that national capital crosses the borders of countries, a world securities market is being formed, in relation to which national markets become secondary. An investor from any country gets the opportunity to invest his available funds into securities traded in other countries.

The international securities market is, first of all, the primary market. Therefore, the international securities market is understood as the release of the latter, expressed in the so-called eurocurrencies and carried out by issuers outside the framework of any national regulation of emissions. In a broader sense, the international securities market is considered as a combination of international issues proper and foreign issues, i.e. issuance of securities by foreign issuers on the national market of other countries. Currently, the global securities market includes both the stock market and the bond market. The international bond market can, with a certain degree of conventionality, be represented as a combination of two markets: the market for foreign bonds and the market for international bonds proper - the so-called Eurobond market. Foreign bonds are a type of national bonds. Their specificity is connected only with the fact that the subject-issuer and the subject-investor are in different countries.

Actually international bonds (eurobonds) are issued by borrowers through international banking consortiums and are denominated in eurocurrencies. The German banks Deutsche Bank and Dresden Bank and the American investment firms Solomon Brothers and Morgan Stanley are the most active in the placement of Eurobonds. Eurobond income is not subject to taxation. Euroshares are less common than Eurobonds, they are publicly traded securities of transnational companies and have the same characteristics, in terms of issue currency and distribution area, as bonds (issued outside national markets).

In general, the world stock market of securities, as well as the world currency market, is one of the most effective and global tools for redistributing funds from one sector of the economy to another. Now in the world market, several trends can be distinguished, regardless of the industry. First of all, there is a decrease in the role of the state even in such areas of the economy as labor migration. The resettlement of people is now almost not slowed down in Europe, this is especially true for qualified personnel.

In addition, the growing interconnection of world market participants forces us to look for new technological solutions to overcome distances, hence the growing informatization of any financial institutions. Now the world securities market is entering a new era in terms of globalization - this applies to trading in Euroshares and Eurobonds and means a possible revision of the entire market and a change in positions on key indices.

List of sources used

Science and Education in the Conditions of Socio-Economic Transformation of Society: Proceedings of the XIII International Scientific and Practical Conference. - Minsk: Modern knowledge, 2010. - 426 p.

Aksenov, A.N., Alekseeva, T.M., Burmistrova, E.A. The securities market of the Republic of Belarus and its development trends. - Minsk: RIVSH BGU, 2001. - 340 p.

Barinov, E. A., Khmyz, O. V. Markets: currency and securities. - M.: Exam, 2012. - 608s.

Belzetsky, A.I. International securities market. - Minsk: MIU Publishing House, 2008. - 395s.

Bychkov A.P. Global securities market. - M.: AO Dialogue - Moscow State University, 2008. - 163 p.

Foreign economic activity of the enterprise / Edited by Dr. economic sciences, Professor L.E. Strovsky. - M.: Norma, 2011. - 382 p.

Galanov, V.A., Basova, A.I. Stocks and bods market. - M.: Finance and statistics, 2012. - 448 p.

International financial market / Russian Academy of Economics. G.V. Plekhanov. - Moscow: Master, 2013. - 543 p.

Melnikov, N.K. International securities market. - Minsk: Private Institute of Management and Entrepreneurship, 2012. - 53p.

Novik, S.V. Securities Market: Belarusian Perspectives. - Minsk: BSU, 2001. - 178s

Novik, S.V. Securities Market: Belarusian Perspectives. - Minsk: BSU, 2005. - 294 p.

Ovseyko, S. V. Eurobonds in Belarus (commentary to the Decree of the President of the Republic of Belarus dated 13.05.2010 No. 245 / S. V. Ovseyko // Taxes of Belarus: scientific and practical journal of the Ministry of Taxes and Dues of the Republic of Belarus. - 2013. - No. 22.

Rubtsov B.B. World securities markets. - M.: Exam, 2012. - 385s.

Securities Market and Exchange Business / Ed. O.I. Degtyareva, N.M. Korshunova, E.F. Zhukov. - M.: Unity, 2012. - 501 p.

The securities market of the Republic of Belarus and its development trends / Ed. V.M. Shukhno, A.Yu. Semenova, V.A. Kotova. - Minsk: BGU, 2005. - 340 p.

The securities market: in 2 books. Book 1 / Ed. A.Yu. Semenov, V.M. Shukhno. - Minsk: RIVSH, 2010. - 195 p.

Securities Market / Ed. V.A. Galanova, A.I. Basov. - M.: Finance and statistics, 2010. - 447 p.

Samodurov, A. A. Eurobonds of the Republic of Belarus: issue opportunities and forecasts. - Minsk: Law and Economics, 2010. - 182p.

Smyslov, DV World stock market and Russia's interests. - Moscow: Nauka, 2011. - 357 p.

Suetin, A.A. International financial market / A. A. Suetin. - Moscow: KnoRus, 2009. - 262 p.

Tikhonov, R. Yu. Securities Market / Nauch. Research Center. Economy Politics and business Armita . - Minsk: CJSC Armita-Marketing, Management, 2009. - 207 p.

Feldman A.B. Derivative financial and commodity instruments / A.B. Feldman. - M.: Finance and statistics, 2013. - 301 p.

World economy [ Electronic resource]. - Minsk, 2014. - Access mode: . - Date of access: 10.12.2014.

Tutoring

Need help learning a topic?

Our experts will advise or provide tutoring services on topics of interest to you.
Submit an application indicating the topic right now to find out about the possibility of obtaining a consultation.

The release of securities into the market is called emission , and the firm or organization that produces them - issuer .

World financial market (securities market) - This is a segment of the global loan capital market, where the issue and purchase and sale of securities and various financial obligations are carried out. Therefore, the MFR is often called the world securities market.

In the primary financial market, bonds, shares, etc. are issued. In the secondary market, there is a centralized or non-centralized (through stock exchanges) purchase and sale of previously issued securities.

World securities market is divided into 2 parts:

1) circulation between countries of shares and bonds of national issuers of different countries (for example, bonds are issued in country A in its national currency and sold in countries B, C, D, etc.);

2) a special issue of securities of foreign issuers for a certain national market (for example, country A allows the opening of a foreign bond market for foreign individuals and legal entities issued in the currency of this country).

The main instruments of borrowing in the world market are bonds, shares, Euro bills, etc.

Bonds placed by foreign firms in the US are called Yankees, in Japan - samurai, in Spain - matadors, in the UK - bulldogs.

The market for long-term loans exists, as a rule, in the form of a bond market. With a certain degree of conditionality, it can be represented as a combination of two sectors: the foreign bond market and the Eurobond market. A foreign bond is essentially a type of national bond. Their specificity is that the issuer and the investor are located in different countries. There are two main ways to issue foreign bonds (see above).

Eurobond – it's a bond issued by the borrower through the intermediary of the International Banking Consortium and denominated in Eurocurrencies. It is usually issued in a currency other than the currency of the issuing country, and is placed simultaneously in several countries (on the international capital market). The usual maturity of Eurobonds is 10-15 years. Eurobonds have a number of advantages over foreign bonds. They are not subject to national securities regulations, interest on Eurobond coupons is not subject to withholding tax, they more possibilities to make a profit and avoid currency risk. Eurobond holders do not require special registration. Eurobonds are issued to the bearer, so they have high liquidity.

Bonds have been circulating on the world market since the 1960s; before the shares arrived there, and the value of bonds in international circulation is several times higher than the volume of shares.

The placement of foreign bonds on the national market is carried out by associations of banks, which are called consortia.

International bonds are placed mainly in the form of a market eurobonds- issues of foreign issuers in the markets of developed countries. Most issues of foreign bonds are concentrated in the market of 4 countries: USA, Germany, Japan, Switzerland.

The US foreign bond market is attractive, firstly, because of the large size of loans ($100 million on average), and secondly, because of their long duration (up to 25-30 years).

There are more reliable borrowers on the Eurobond market, so developing countries have limited access to this market. The duration of the issue of Eurobonds is now 5-7 years.

International bonds are issued in different currencies. And since they have different stability, then interest rate, and, consequently, the yield of bonds, mainly depend on the stability of the currency in which the loan is issued.

In addition to Eurobonds, various instruments of loan capital market transactions have become widespread, in particular Euro bills- short-term debt obligations that can be alienated (assigned). Interest on euro bills more accurately reflects the movement of current market rates. Unlike other securities, euro bills can be issued by companies that do not have an official rating, and for any period (usually 3-6 months).

Widespread in the European market are also certificates of deposit- these are written certificates issued by banks on the deposit of funds by depositors, giving them the right to receive a deposit and interest (terms of deposits from a month to several years).

The profound qualitative changes that have taken place over the past decades have led to the creation of a global integrated market for loan capital. This creates, on the one hand, more favorable conditions for obtaining global financial resources, and on the other hand, it significantly increases systemic risks. That is why the importance of international monetary and financial institutions is growing.