Finance and Credit
 

Abstracting and Indexing

РИНЦ
Referativny Zhurnal VINITI RAS
Worldcat
LCCN Permalink
Google Scholar

Online available

EBSCOhost
Eastview
Elibrary
Biblioclub

Archiving

Cyberleninka (12 month OA embargo)

Innovative financial instruments as a driver of financial market security

Vol. 25, Iss. 10, OCTOBER 2019

Received: 23 September 2019

Received in revised form: 7 October 2019

Accepted: 21 October 2019

Available online: 30 October 2019

Subject Heading: Financial system

JEL Classification: G7, G38, H11, O16

Pages: 2236–2249

https://doi.org/10.24891/fc.25.10.2236

Loktionova E.A. Baikal State University, Irkutsk, Russian Federation
loktionova_ea@mail.ru

https://orcid.org/0000-0003-0126-7930

Subject This article discusses the rapid development of innovative financial instruments over the past decade that caused the need to examine their impact on the level of financial market security.
Objectives The article aims to consider security ensuring consequences caused by expansion of innovative financial instruments.
Methods The study involves the methods of analysis and synthesis, economic and statistical information analysis, and the systems approach.
Results The article shows the role of innovative financial instruments in the improvement of financial market security and ways how the modern financial market changes in response to economic and technological development. Financial market is considered as a complex self-organizing system, which helps analyze innovative financial instruments in a more thorough manner.
Conclusions The article concludes that spreading new innovative financial instruments along with the financial legislation improvement in the long term increases the adaptability and stability of financial market due to the growth of its diversification and the emergence of new investment opportunities. The Russian government tries to improve the national financial market security through legislation changes, whereas it may be more effectively achieved by a market diversification through the introduction of advanced innovative financial instruments.

Keywords: financial market, financial system, financial market security, innovative financial instruments, complex adaptive system

References:

  1. Beinhocker E.D. The Origins of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. Boston, Harvard Business Review Press, 2007, 544 p.
  2. Simon H.A. The Architecture of Complexity. Proceedings of the American Philosophical Society, 1962, vol. 106, no. 6, pp. 467–482. URL: Link
  3. Latora V., Marchiori M. The Architecture of Complex Systems. In: Gell-Mann M., Tsallis C. Nonextensive Entropy: Interdisciplinary Applications. Oxford, Oxford University Press, 2004, 440 p. URL: Link
  4. Holland J.H. Complex Adaptive Systems. Daedalus, 1992, vol. 121, no. 1, pp. 17–30.
  5. Hooker C. (Ed.) Philosophy of Complex Systems. Handbook of the Philosophy of Science, Volume 10. Elsevier, 2011, 952 p.
  6. Foster J. From Simplistic to Complex Systems in Economics. Cambridge Journal of Economics, 2005, vol. 29, iss. 6, pp. 873–892. URL: Link
  7. Rickles D. The Philosophy of Physics. Cambridge, UK, Polity Press, 2016, 212 p.
  8. Hayek F.A. The Theory of Complex Phenomena. In: Hayek F.A. (ed.) Studies in Philosophy, Politics and Economics. Chicago, University of Chicago Press, 1967, 356 p.
  9. Arthur W.B. Complexity and the Economy. Science, 1999, vol. 284, iss. 5411, pp. 107–109. URL: Link
  10. Foster J. The Analytical Foundations of Evolutionary Economics: From Biological Analogy to Economic Self-Organization. Structural Change and Economic Dynamics, 1997, vol. 8, iss. 4, pp. 427451. URL: Link00002-7
  11. Foster J., Wild P. Economic Evolution and the Science of Synergetics. Journal of Evolutionary Economics, 1996, vol. 6, iss. 3, pp. 239–260. URL: Link
  12. Dopfer K., Potts J. The General Theory of Economic Evolution. London, Routledge, 2007, 152 p.
  13. Bouchaud J.-P., Potters M. Theory of Financial Risk and Derivative Pricing: From Statistical Physics to Risk Management. Cambridge, Cambridge University Press, 2004, 400 p.
  14. Bouchaud J.-P., Cont R. Herd Behavior and Aggregate Fluctuations in Financial Markets. Macroeconomic Dynamics, 2000, vol. 4, no. 2, pp. 170–196. URL: Link
  15. Evstigneeva L.P., Evstigneev R.N. [Economics and Synergetics]. Ekonomicheskie nauki = Economic Sciences, 2007, no. 33, pp. 201–208. URL: Link (In Russ.)
  16. Marszk A., Lechman E. New Technologies and Diffusion of Innovative Financial Products: Evidence on Exchange-Traded Funds in Selected Emerging and Developed Economies. Journal of Macroeconomics, 2018. (In Press) URL: Link
  17. Yartey C.A. Financial Development, the Structure of Capital Markets and the Global Digital Divide. Information Economics and Policy, 2008, vol. 20, iss. 2, pp. 208–227. URL: Link
  18. Lechman E. The Diffusion of Information and Communication Technologies. Routledge, 2017, 232 p.
  19. Wurgler J. Financial Markets and the Allocation of Capital. Journal of Financial Economics, 2000, vol. 58, iss. 1-2, pp. 187–214. URL: Link00070-2
  20. Asongu S.A., Moulin B. The Role of ICT in Reducing Information Asymmetry for Financial Access. Research in International Business and Finance, 2016, vol. 38, iss. C, pp. 202–213. URL: Link
  21. Diaz-Rainey I., Ibikunle G., Mention A.-L. The Technological Transformation of Capital Markets. Technological Forecasting and Social Change, 2015, vol. 99, pp. 277–284. URL: Link
  22. Lee S., Alford M., Cresson J., Gardner L.M. The Effects of Information Communication Technology on Stock Market Capitalization: A Panel Data Analysis. Business and Economic Research, 2017, vol. 7, no. 1, pp. 261–272. URL: Link
  23. Shamim F. The ICT Environment, Financial Sector and Economic Growth: A Cross-Country Analysis. Journal of Economic Studies, 2007, vol. 34, no. 4, pp. 352–370. URL: Link
  24. Darushin I.A. Finansovyi inzhiniring: instrumenty i tekhnologii [Financial Engineering: Tools and Technologies]. Moscow, Prospekt Publ., 2015, 296 p.
  25. Hull I. The Development and Spread of Financial Innovations. Quantitative Economics, 2016, vol. 7, iss. 2, pp. 613–636. URL: Link
  26. Corbet S., Lucey B., Urquhart A., Yarovaya L. Cryptocurrencies as a Financial Asset: A Systematic Analysis. International Review of Financial Analysis, 2019, vol. 62, pp. 182–199. URL: Link
  27. Knoll M.S. The Ancient Roots of Modern Financial Innovation: The Early History of Regulatory Arbitrage. Faculty Scholarship at Penn Law, 2008, paper 47. URL: Link
  28. Ivanov V.V. et al. Sovremennye finansovye rynki [Modern financial markets]. Moscow, Prospekt Publ., 2014, 569 p.
  29. Solt E. Dr. The Quest for the Stability of the Global Financial System. Procedia Economics and Finance, 2015, vol. 34, pp. 485–492. URL: Link01658-5
  30. Banwo O., Harrald P., Medda F. Understanding the Consequences of Diversification on Financial Stability. Journal of Economic Interaction and Coordination, 2019, vol. 14, iss. 2, pp. 273–292. URL: Link

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 25, Iss. 11
November 2019

Archive