Home  Journals  Finance and Credit  8(812) - 2021 August

Derivatives: Classification and Regulatory Issues

Received: 10 May 2021

Received in revised form: 24 May 2021

Accepted: 7 June 2021

Available online: 30 August 2021

Subject Heading: Banking

JEL Classification: E41, E51, G21

Pages: 1813–1827

https://doi.org/10.24891/fc.27.8.1813

Subject. We investigate problems of development and regulation of derivative financial instruments (DFI) in Russia.
Objectives. The purpose is to consider trends in the regulation of derivatives.
Methods. The study draws on general scientific methods.
Results. Based on the analysis of best practices, we confirm the need to regulate derivative financial instruments and identify major requirements for the regulation. The paper describes the history and current state of DFI regulation in Russia, analyzes the opinions of researchers and experts regarding the government intervention in the DFI market functioning. Approaches to regulation are linked to the goals and objectives of market participants and macroeconomic functions of the market. The paper also shows mechanisms by which derivatives affect the level of systemic risk in the economy and proves the importance of organizational and economic transformations in the field of DFI.
Conclusions. The paper states priority tasks and practical steps in the regulation of DFI in Russia.

Keywords: derivative, market regulation, securities, futures, hedging

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