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The role of state securities regulators to stabilize the international financial system


The article conducted a study to identify the role of state regulators of securities markets in the stabilization of the international financial system. The features of state regulation of the securities market in the EU, USA, Eastern European countries and China. Analysis of current trends in global capital markets has shown that private capital primarily determines at present the situation in the global financial market and the ability of national governments significantly narrowed. The speculative nature of the modern world of the stock market is associated with significant «infusion» of liquidity in the stock markets, which largely increase the speculation and earnings of major investment banks, the cost of raw materials artificially increases at times without the market mechanism of supply and demand in the most effective redistribution of the industry does not always happen effectively. In addition, certain categories of participants identified in the international movement of capital, which state regulators have no effect, or only a limited effect: 1) the transnational corporations and banks; 2) the private capital of individuals and entities who invested and reinvested in international financial markets; 3) public funds of foreign investment; 4) hedge funds; 5) large international private equity and pension funds. Therefore, the leading role in the stabilization of international finance should play supranational formations. Present situation of international finance cannot be controlled only by national state regulators, due to their limited influence. The author’s opinion, it is advisable to create a supranational body overseeing the activities of the world stock exchanges with relevant monitoring Committee. This international institution would carry out a policy of intervention to stabilize the financial and economic situation in a particular region would provide investment and financial assistance would require compliance with international standards and norms for the functioning of modern stock exchanges and their infrastructure. Also, this body could deal with systemic risk reduction in world stock markets. The existing situation is not fully effective, the International Monetary Fund experts perform such a role is limited and unproductive.

Author, given the successful experience of different countries in the world, formed a series of proposals to stabilize the international financial system and founded a number of measures to minimize the negative impact on the domestic financial markets. The article presents the main approaches and particulars concerning state regulation to minimize the impact of financial crisis and destabilization of the national financial system. Their effectiveness is manifested by a combination and interaction: transparent government regulation, developed infrastructure market participants, stock differentiated national capital and state reserves.


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Keywords:  government securities market regulator, the Stock Exchange, the international financial system

MACROECONOMICS

Redziuk Yevhenii
PhD, Associate Professor, Senior Research Fellow at the Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine

 

 

 

 

 

 

 

 

 

 

 

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