The role of the financial market in the functioning of the economy. The role of the financial market in capital accumulation and production financing in Russia. The financial market also
Essence and structure of the financial market
Definition 1
The financial market is an organized trading system using financial instruments. They include money, credit, deposit, stock, insurance, currency, pension markets. In these markets, an important role is played by financial institutions that direct funds from the owner to the borrower, and the products are payment instruments and securities.
Like any other market, the financial market is designed to establish a direct connection between buyers and sellers of financial resources. If we consider the structure of financial markets, it will be special for each state.
Such a structure is able to most fully reflect the content and features of the financial market. In general, the financial market includes:
- currency market,
- capital market,
- market Money,
- gold market.
The foreign exchange market is represented by a market in which products are objects that have a currency value.
Foreign exchange, securities, precious metals, including platinum, gold and silver, are among the objects of the foreign exchange market.
The subjects of the foreign exchange market are a bank, an exporter and an importer, investment institutions, and a government organization.
In turn, the capital market is divided into the loan capital market and the equity securities market. This division can reflect the nature of the relationship of goods that are sold on this market by issuers of financial instruments.
When financial instruments are equity securities, then these relationships are ownership relationships, in other cases they are represented by credit relationships.
In the loan capital markets, there is a circulation of long-term financial instruments, which are provided on the terms of payment, repayment of urgency. These instruments include the long-term bank loan market and the debt assistance market.
In the markets, securities are issued, circulated and absorbed as their own securities and their substitutes, including certificates, coupons.
Participants in securities consist of issuers who issue securities to raise the necessary funds. Investors are persons who purchase securities for income, non-property or property rights.
The market is also represented by intermediaries - persons who provide services to issuers and investors in achieving their goals.
Remark 1
In the structure of the financial market, many Western economists also include the insurance market, the mortgage market, and the pension market. The market for pension accounts and the mortgage market are special markets with their own financial instruments and institutions, including savings institutions that operate on the basis of contracts. The importance of these markets is increasing every year.
Functions of the financial market
There are several functions that the financial market performs during its activities:
- Creation of conditions for a constant circulation of money when making payment transactions, which directly affects the money circulation and regulates its volumes.
- Attracting additional investors, providing chances for the resale of financial assets that the markets have.
- Creation of conditions for the movement and accumulation of resources, mobilization of internal sources of accumulation and attraction of new sources for financing.
- Implementation of the rapid distribution of resources in different areas and sectors of the state economy. This distribution can occur between the country and the enterprise, the population and the state.
- Implementation of the redistribution of capital between areas of the economy and sectors of the economy.
Thus, the main function of financial markets is to actively mobilize temporarily free funds from various sources. These funds can be mobilized from capital, which is in the form of savings, including monetary and other financial resources of the population, organizations, government agencies.
These funds can be spent on current consumption and real investments and are involved in the markets by individual participants for further effective use in the economic life of the state.
Financial markets effectively distribute the accumulated free capital among numerous end-users. With the help of the mechanism of functioning of the financial market, the volume and structure of demand for the relevant financial assets and the timely satisfaction of demand in the context of categories of consumers who temporarily need to attract capital from external sources are ensured and revealed.
Remark 2
Financial markets carry out qualified mediation between sellers and buyers of financial instruments. The financial market operates through special financial institutions that mediate.
The role of the financial market
With the help of financial markets, market prices are formed for the relevant financial instruments, which more objectively reflect the corresponding relationship between supply and demand.
The market mechanism helps to fully take into account the current relationship between supply and demand, in accordance with a variety of financial instruments, and an appropriate level of finance is formed, which is able to satisfy to the maximum extent possible. economic interests buyer and seller of financial assets.
Remark 3
Financial markets form the conditions for minimizing commercial and financial risks. The financial market is able to develop its own mechanism for insuring price risks that arise in the conditions of unstable development of the state.
The operation of financial markets makes it possible to reduce to a minimum the commercial and financial risk of the seller and buyer of financial assets, which is associated with changes. In addition, the financial market system includes the distribution of a variety of insurance services.
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Introduction 1. Financial market: essence and functions 2. The structure of the financial market. Characteristics of its elements 3. The role of the financial market in the development of the economy of modern Russia Conclusion Introduction It is known that the economic basis of any state is the movement of funds between economic entities. Each economic entity has its own rights, goals, tasks and responsibilities, but they are all participants in economic relations. Interacting with each other, these economic relations form a market. The functioning of any market is mediated by cash flows and is associated mainly with the relationships that arise in the process of cash flow. Unfortunately, for many decades in Russia, in essence, there was neither a financial market nor its infrastructure: private commercial and investment banks, stock exchanges, insurance companies, etc. Russia's transition from a rigidly centralized planned economy to a market economy requires the re-establishment of a financial market in the country with all the institutions serving it. This task is very complex and large-scale, but it needs to be addressed immediately. For many years, there was no competition in the country between producers of goods and services, including financial ones, which, as you know, is the engine of social progress. As a result, during the existence of the "planned economy" the volume and structure social production were separated from the scope and structure of the socially necessary needs of the population. As a result, a “deficit economy” was formed, which gave rise to a shortage of not only material, but also spiritual benefits. The transition to new, market methods of managing has become an objective necessity. A market economy requires the use of the potential of the financial market, which is the most important source of its growth. The scale of the financial market depends on the state and size of social production, the size of the economically active population. The financial markets of the USA, EU countries and Japan now have the greatest resources. It is hoped that the Russian financial market, when the transitional period of its development is over, will also have sufficient resources for it. The relevance of this topic lies in the fact that all parts of the financial system operate in a single market space, the most important element of which is the financial market. The purpose of this market is the accumulation of temporarily free funds and their efficient use. The purpose of this work is to reveal the essence of the financial market and its role in the economy. Based on the goal, the main tasks of the work are: To reveal the concept and functions of the financial market; Consider the structure of the financial market and its elements; Determine the role of the financial market in the development of the economy. When performing this work, the legislative and regulatory materials of the Russian Federation, the works of domestic and foreign experts on the problem, as well as statistical sources, periodicals and electronic resources were studied and used. 1. Financial market: essence and functions The financial market is the sphere of sale of financial assets and economic relations between sellers and buyers of these assets. Financial activities enterprises is inextricably linked with the functioning of the financial market, the development of its types and segments, the state of its conjuncture. In the most general view The financial market is a market in which a variety of financial instruments and financial services are the object of purchase and sale. The concept of "financial market" is to some extent collective, generalized. In real practice, it characterizes an extensive system of separate types of financial markets with various segments of each of these types, which are interconnected. Undoubtedly, the financial market is one of the most important structural components of the market as a whole. Therefore, on this concept extends the uncertainty that is inherent in the definition of the market as such. Now there is no single idea of the essence of the financial market, its structure, which means that there is no generally accepted understanding of it. The definitions of the financial market range from the most general to particular, tied to a specific phenomenon, and therefore narrowing the scope of the concept. Most authors believe that the essence of the financial market lies in the totality of economic relations and institutions that serve them, ensuring the transformation of money into capital through financial instruments. Like any other, the financial market is designed to establish direct contacts between buyers and sellers of financial resources. The financial market is a fairly complex structure that combines different kinds markets, each with its own segments. To reveal the essence of the financial market, we characterize its components. An analysis of the functioning of financial markets implies a certain segmentation, division, and the allocation of separate markets functioning according to their own rules. There are different approaches to the classification of financial markets. Classification - according to the period of circulation of financial assets (instruments). There are the following types of financial markets: money market and capital market. In the money market, market financial instruments and financial services of all previously considered types of financial markets are sold or bought with a circulation period of up to one year. The functioning of this short-term sector of financial markets allows enterprises to solve the problems of both filling the lack of monetary assets to ensure current solvency and the effective use of their temporarily free balance. Financial assets circulating in the money market are the most liquid; they have the lowest level of financial risk, and the pricing system for them is relatively simple. In the capital market, transactions are carried out similarly, only with a circulation period of more than one year. The functioning of the capital market allows enterprises to solve the problems of both the formation of investment resources for the implementation of real investment projects, and effective financial investment (implementation of long-term financial investments). As a rule, financial assets traded on the capital market are less liquid, they have the highest level of financial risk and, accordingly, a higher level of profitability. The classification of financial markets can also be carried out on a regional basis (Table 1.1). Table 1.1. Classification of financial markets by region
The main classification of the financial market is by types of circulating financial assets (instruments, services). The following components of the financial market are distinguished (Figure 1.1): Credit market; Securities market (or stock market); Currency market; Insurance market; Market precious metals. The credit market is a general designation of those markets where there is a supply and demand for various means of payment. Credit transactions are mediated, as a rule, by credit institutions (banks and others), which borrow and narrow money, or by the movement of various debt obligations, which are sold and bought on the securities market. Consequently, the credit market provides funds for investment at the disposal of enterprises and it is on it that money moves from those sectors of the economy where there is a surplus to those sectors that lack them. In the credit market, businesses borrow money to finance their investments; sometimes enterprises lend money, but, as a rule, the manufacturing sector takes more than it gives. Therefore, we can say that one of the main tasks of the credit market is to direct the savings of the population and free funds to intermediary persons for investments. The credit market contributes to the growth of production and trade, the movement of capital within the country, the transformation of monetary savings into investment, the implementation of the scientific and technological revolution, and the renewal of fixed capital. The economic role of the credit market lies in its ability to combine small, disparate funds in the interests of all capitalist accumulation. This allows the market to actively influence the concentration and centralization of production and capital. The securities market is a set of economic relations regarding the issuance and circulation of securities as tools for financing and developing the economy. Securities as an economic category are rights to resources that are separated from their basis and even have their own material form (for example, in the form of a paper certificate, account entries, etc.), and also have the following fundamental properties: negotiability; availability for civil circulation; standardization and seriality; documentation; regulation and recognition by the state; marketability; liquidity; risk. . The mechanism of functioning of this market makes it possible to carry out financial transactions on it in the most fast way and at fairer prices than in other types of financial markets. This market is most amenable to financial engineering - the process of targeted development of new financial instruments and new schemes for financial transactions. The securities market is divided into primary and secondary. Primary markets are those in which issued securities are first sold to buyers. Secondary markets trade in securities already owned. This distinction between them is very important. If a newly issued share of a company is sold, then that company receives the issued funds, and if a share issued and sold earlier is sold, then the issued funds go to its last owner. Secondary markets help corporations sell their newly issued stocks or bonds, increasing their liquidity. The stock market can be classified according to various criteria. Depending on the place of trade, the exchange and over-the-counter markets are distinguished. Accordingly, on the exchange securities are sold on the exchange, and off-exchange outside of it. Depending on the level of regulation, the market is divided into organized and unorganized. According to the timing of the execution of the transaction, cash (spot) and urgent are distinguished. In the spot market, purchase and payment are made simultaneously. In the futures market, instruments are derivative securities, that is, not the securities themselves, but contracts for their purchase or sale in the future. Depending on the type of securities, the stock market is divided into the market of equity, debt and derivative securities. Securities existing in modern world practice are divided into two classes: basic securities and derivative securities or derivatives. The foreign exchange market is a market where transactions are made with currency or with financial instruments, which are based on currency. The successful development of foreign exchange relations is possible if there is a foreign exchange market, where you can freely sell and buy currency. Without such an opportunity, economic counterparties would not be able to realize their currency relations - they would not have foreign currency to fulfill their external obligations, they could not turn the received foreign exchange earnings into national money to fulfill their internal obligations. In the foreign exchange market, people buy and sell currency not only for making payments, but also for other purposes: for speculative operations, currency risk hedging operations, and others. Moreover, these operations are becoming more and more widespread. According to its economic content, the foreign exchange market is a sector of the money market, in which demand and supply for such a specific product as currency are balanced. The insurance market characterizes the market in which the object of purchase and sale is insurance protection in the form of various insurance products offered. The need for the services of this market increases significantly with the development of market relations. The subjects of this market, offering insurance protection, contribute to the accumulation and effective redistribution of capital, widely using the accumulated funds for investment purposes. Even in crisis economic conditions, this market is developing at a high rate, significantly exceeding the rate of development of other types of financial markets. Mandatory conditions for the existence of the insurance market - the existence of a public need for insurance services and insurers able to meet this need. In this regard, the market of the insurer and the market of the insured are distinguished. By sectoral basis, the market for personal, property and liability insurance is distinguished. In turn, each of the markets can be divided into separate segments, for example, the accident insurance market, the home property insurance market, and others. In the precious metals market, transactions are carried out with valuable metals, primarily gold. The multifunctionality of the gold market is due to the fact that it is not only a generally recognized financial asset and the safest means of reserving free cash, but also a valuable commodity for a number of manufacturing enterprises. In our country, the gold market is the least developed type of financial market due to the lack of even the minimum necessary legal regulation. The gold market is a market that provides international settlements, industrial and domestic consumption, investments, risk insurance, and speculative transactions. According to the degree of organization, exchange and over-the-counter gold markets are distinguished. Gold is an object stock trading, along with other commodities and financial assets. The gold exchange market is an organized market represented by exchanges of precious metals and precious stones. OTC gold markets are consortiums of several banks authorized to transact gold. Banks carry out intermediary operations between buyers and sellers, fix the average market price level, and are also engaged in cleaning, storing gold, and making bullion. World centers include markets in London, Zurich, New York, Chicago. Domestic free markets are those in Paris, Vienna, Istanbul, Milan and others; not free (local, controlled) - in Athens and Cairo. Unlike international markets with a small number of participants, domestic markets are subject to more or less government regulation. The means of regulation are economic measures - quotas, tariffs and taxes, intervention in pricing. Free domestic markets are more leniently regulated, usually through taxation methods. Such a policy does not formally prevent gold from moving from state to state. Regulated markets are more tightly controlled. They are subject to methods such as tax manipulation, licensing, direct intervention and pricing. Consider the functions performed by the financial market. The financial market consists of different segments, therefore, the functions of these different segments are also different. At the same time, all segments of this market also perform a number of functions that most generally reflect the essence of the financial market as a whole. These general functions include the following: Risk insurance. Through the financial market, the accumulation of free funds is carried out, their distribution and redistribution between sectors of the economy, countries and regions on a global scale; acceleration and growth of production efficiency. The financial market regulates relations between its participants, as well as monitors compliance with legal norms, trading rules, and ethical standards by its participants. The financial market motivates legal and individuals to participate in it, by granting the subjects the right to participate in the management of enterprises, the right to receive income, the right to own property, the possibility of capital accumulation, thereby acting as a powerful stimulator of the investment process. The information function of the financial market is to bring to economic entities market information about the objects of trade and its participants. Thus, the national financial market consists of five fundamental segments: the credit market, the securities market, the foreign exchange market, the insurance market, and the precious metals market. In general, the financial market has a complex structure. The role of the financial market is very great, both in the development of a particular region and country, and in the development of the world economy as a whole. 2. The structure of the financial market. Characteristics of its elements The term structure (from Latin structūra - structure) has a whole range of meanings that are found both in scientific and in everyday vocabulary. Can be synonymous with system, form, model, organization. In its basic meaning, structure is the internal structure of something. The internal structure is connected with the categories of the whole and its parts. The identification of connections, the study of the interaction and subordination of the constituent parts of objects that are different in nature, makes it possible to identify analogies in their organization and study structures abstractly without connection with real objects. The structure of the financial market is an interconnection between the credit, stock, currency, insurance and precious metals markets (Fig. 2.1). In turn, each of these components has its own complex structure and structure. The components of the financial market are its elements: Market objects; Market entities; Market infrastructure; Regulatory and supervisory bodies.
Rice. 1.1 Segments of the financial market Objects of the financial market - financial assets circulating in this market. Financial assets mean money in national or foreign currency, securities, real estate, precious metals, deposits and credit capital. Financial market entities are sellers and buyers of financial assets traded on the financial market. The subjects can be the state, population and organizations. Financial market infrastructure is a set of organizational and legal forms that mediate the movement of financial market objects, a set of institutions, systems, services, enterprises that serve the financial market and ensure its normal functioning. More in simple terms, the infrastructure of the financial market is a complex of institutions and enterprises that serve its direct participants in order to increase the efficiency of their operations. The efficiency of the financial market is largely determined by the level of development of its infrastructure and the quality of organization of interaction between financial market operators and institutional investors with its elements. The development of the financial market is ultimately carried out on the basis of its infrastructure and as it develops. The regulation of the financial market is the streamlining of the activities of all its participants and transactions between them. Regulation of the financial market is carried out by bodies or organizations authorized to perform regulatory functions. Financial market regulation usually has the following objectives: Maintaining order in the market, creating normal conditions for the work of all market participants; Protection of market participants from dishonesty and fraud of efficient persons or organizations, from criminal organizations and criminals in general; Ensuring a free and open pricing process for securities based on supply and demand; Creation of an efficient market in which there are always incentives for entrepreneurial activity and in which every risk is adequately rewarded; In certain cases - the creation of new markets, support for the markets and market structures necessary for society, market initiatives and innovations, and others; Influencing the market in order to achieve any public goals (for example, to increase the rate of economic growth, reduce unemployment); and protecting the public interest in the marketplace. The regulation of the financial market is carried out by federal executive bodies - services specially created for this purpose. federal Service for Financial Markets (FFMS) performs the functions of adopting regulatory legal acts, control and supervision in the field of financial markets (with the exception of insurance and banking). The FFMS of Russia is directly subordinate to the Government Russian Federation. The main powers of the FFMS: Regulation of the issue and circulation of emissive securities, including the implementation of state registration of issues of securities and reports on the results of the issue of securities, as well as registration of prospectuses of securities; Control and supervision in relation to issuers, professional participants in the securities market and their self-regulatory organizations, Generalization of the application of legislation and submission to the Government of the Russian Federation of proposals for its improvement and development of draft laws and other regulatory legal acts; Ensuring the disclosure of information on the securities market in accordance with the legislation of the Russian Federation; Organization of research on the development of financial markets. In the field of insurance, the supervisory function is performed by the Federal Insurance Supervision Service (FSSN). The FSIS performs the functions of control and supervision in the field of insurance activities, which is under the jurisdiction of the Ministry of Finance. The main functions of the FSSN: Making decisions on issuing or refusing to issue licenses, on cancellation, restriction, suspension, restoration of validity and revocation of licenses to insurance companies; Maintaining a unified state register of subjects of the insurance business and a register of associations of subjects of the insurance business; Implementation of control over the observance by the subjects of the insurance business of the insurance legislation, including by conducting inspections of their activities; Filing, in cases provided for by law, to the court with claims for the liquidation of the subject of the insurance business - a legal entity or for the termination by the subject of the insurance business - an individual of the activity as an individual entrepreneur; Generalization of the practice of insurance supervision, development and submission, in accordance with the established procedure, of proposals for improving the insurance legislation governing the implementation of insurance supervision. The Federal Financial Monitoring Service (FSFM) performs the functions of countering the legalization (laundering) of proceeds from crime and the financing of terrorism, as well as developing public policy, legal regulation and coordination of activities in this area of other federal executive bodies. The Federal Antimonopoly Service (FAS) is responsible for maintaining competition in the financial services market. Regulation and supervision in banking activities is carried out by the Central Bank. Through all of the above bodies, state regulation of the financial market takes place. It should be noted that in the structure of the financial market there is such an element as self-regulatory organizations(SRO). SRO of professional participants of the securities market - non-profit organization, based on the membership of professional participants in the securities market, operating on the basis of a license issued by the Federal Financial Markets Service. The largest SROs in Russia are the National Association of Stock Market Participants (NAUFOR) and the Professional Association of Registrars, Transfer Agents and Depositories (PARTAD). Tasks of self-regulatory organizations: Ensuring the conditions for professional activity in the securities market; Compliance with professional ethics standards; Protecting the interests of securities holders and other clients of professional participants in the securities market; Establishment of rules and standards for conducting transactions with securities that ensure efficient operation in the securities market. In the securities market, the object of purchase and sale (financial asset) are all types of securities issued by enterprises, various financial institutions and the state. In accordance with Article 142 of the Civil Code of the Russian Federation, a security is a document certifying, in compliance with the established form and mandatory details, property rights, the exercise or transfer of which is possible only upon its presentation. According to the law "On the Securities Market", the following types of securities are: shares, government bonds, bonds, promissory notes, checks, certificates of deposit and savings, bank savings book to bearer, bill of lading, privatization securities. During the initial issue and placement of securities, their prices are set by the issuers. Further, prices are set at exchange auctions, by concluding transactions for the purchase and sale of securities. The price of this financial asset corresponds to the price of the last transaction. In the foreign exchange and precious metals markets, pricing occurs in a similar way. The subjects of the stock market are investors and issuers. In the financial market, issuers act solely as a seller of securities with an obligation to comply with all requirements arising from the terms of their issue. Issuers of securities may be the state and legal entities, established, as a rule, in the form joint-stock companies. In addition, securities issued by non-residents may circulate on the national financial market. Investors are financial market entities that invest their money in various types of securities in order to generate income. This income is formed due to the receipt by investors of interest, dividends and an increase in the market value of securities. Investors operating in the financial market are classified according to a number of criteria. According to their status, they are divided into individual and institutional investors. According to the purposes of investment, strategic (acquiring a controlling stake for the implementation of strategic management of the enterprise) and portfolio investors (acquiring certain types of securities solely for the purpose of generating income) are distinguished. By belonging to residents in the national financial market, domestic and foreign investors are distinguished. Within the infrastructure of the financial market (and the stock market in particular), its main components can be distinguished (Figure 2.2): The trading system as a set of infrastructure elements, including exchanges and other trade organizers that provide the purchase / sale of financial instruments; Settlement system as a set of infrastructure elements, including banks and non-bank credit and clearing organizations, providing clearing of transactions with financial instruments, maintenance of cash accounts of participants in trading in financial instruments and their clients and settlements based on its results; An accounting system as a set of infrastructure elements, including registrars and depositories, which ensures the recording and accounting of the transfer of ownership of financial instruments as a result of their circulation.
Rice. 2.2 Generalized scheme of organization of the financial market [ 15, p. 231] Exchanges occupy a key place in the infrastructure of the stock, currency and gold markets. As the original regulators of the markets, classical stock exchanges are historically the forerunners of organs state regulation in the capital markets. In fact, the regulation of all organized trading in financial instruments was initially concentrated in the hands of exchanges. Subsequently, in an effort to reassure investors that they were protected from the abuse of listed corporations, stock exchanges introduced corporate governance standards for listed companies. Exchanges have established their own regulations governing how financial instruments are traded by offering standardized trading contract formats to brokers and investors. The tasks of the stock exchange: Provision of a centralized place where both the sale of securities to their first owners and their secondary resale can take place; Identification of the equilibrium exchange price; Accumulating temporarily free funds and facilitating the transfer of ownership; Ensuring publicity, openness of exchange trading; Ensuring arbitration; Providing guarantees for the execution of transactions concluded on the stock exchange; The largest stock exchanges are located in New York, London, Frankfurt, Shanghai, and Singapore. In Russia, the main trading in securities takes place on the Moscow Interbank Currency Exchange (MICEX) and the stock exchange of the Russian Trading System (RTS); Depository of securities - entity, which provides services to the main participants of the stock market for the storage of securities, regardless of the form of their issue, with the appropriate deposit accounting for the transfer of ownership of them. The relationship between the securities depository and the depositor is governed by the relevant legal norms and the terms of the depository agreement. The activities of a securities depository are subject to mandatory state licensing. Registrar of securities (or holder of their register). It is a legal entity that collects, fixes, processes, stores and provides data on the register of holders of the issuer's securities. This register represents all registered holders, indicating the number, par value and category of securities they hold on a given date. Settlement and clearing centers. They are institutions whose service activity consists in collecting, reconciling and correcting information on concluded transactions with securities, as well as in offsetting their deliveries and settlements on them. Such centers are usually created at stock and commodity exchanges. Investment Dealers or Underwriters - Special banking institutions or companies engaged in the primary sale of issued shares and bonds by purchasing their new issues and arranging the subscription (sale) of them to participants in the secondary stock market in small lots. Information and advisory centers - they serve the main participants in all types of financial markets, both individual and institutional. Such centers include qualified marketers, lawyers, financial experts, investment consultants and other specialists in financial market operations. The system of such centers has been widely developed in countries with developed market economies (in our country such services are provided mainly by financial intermediaries). A financial asset in the foreign exchange market (forex) is a foreign currency and financial instruments servicing transactions with it. The subjects of the foreign exchange market are sellers and buyers of currency. They are the state, banks, organizations and individuals. The main infrastructural elements of the foreign exchange market are banks, brokerage companies, and currency exchanges. The leading place among the intermediaries of the foreign exchange market is occupied by banks. Since they maintain accounts (national and foreign exchange) and have developed telecommunications systems, it is very convenient for them to fulfill clients' orders for the purchase and sale of currency. Banks constantly trade currencies within the country and abroad, both directly one-on-one and through currency exchanges. To do this, banks must obtain a license from the central bank. The foreign exchange market has its own structure, which includes national (local) markets, international markets and the world market. They differ in the scale and nature of foreign exchange transactions, the number of currencies, the level of legal regulation, and others. In the precious metals market, gold or other precious metals and stones act as a financial asset. The subjects and infrastructure of this market is similar to the foreign exchange market. The object of economic relations in the credit market is credit resources, as well as financial documents, the circulation of which implies the condition of repayment and payment. The subjects in this market are borrowers and lenders. Lenders provide a loan for temporary use for a certain percentage. The main function of creditors is the sale of monetary assets (both own and borrowed) to meet the various needs of borrowers in financial resources. Lenders in the financial market can be: the state, commercial banks, non-bank financial institutions. Borrowers receive loans from lenders under certain guarantees of repayment and for a certain fee in the form of interest. The main borrowers of monetary assets in the financial market are the state, commercial banks, enterprises and the population. The credit market is a general designation of those markets where there is a supply and demand for various means of payment. Credit transactions are mediated, as a rule, by credit institutions (banks and others), which borrow and narrow money, or by the movement of various debt obligations, which are sold and bought on the securities market. Consequently, the credit market provides funds for investment at the disposal of enterprises and it is on it that money moves from those sectors of the economy where there is a surplus to those sectors that lack them. In the credit market, businesses borrow money to finance their investments; sometimes enterprises lend money, but, as a rule, the manufacturing sector takes more than it gives. Therefore, we can say that one of the main tasks of the credit market is to direct the savings of the population and free funds to intermediary persons for investments. And banks are the main infrastructure institutions and contribute to the effective functioning of both the credit and financial markets as a whole. The price for the granted loan is the interest on payment for the loan. Interest is set by banks independently. Interest on loans and deposits should be tied to the refinancing rate set by the Central Bank. But in practice, we see that banks set interest rates many times higher than this discount rate. Insurance market - the financial asset here is insurance protection in the form of various insurance products. This is a very peculiar object of financial relations. Only he has such features as the creation of special monetary funds, their use only in the event of the occurrence of the indicated events, the probable nature of these events. Opinions of different authors disagree about this link. Some of them consider the insurance market as an infrastructure of the financial market, and some do not single out the insurance market at all as a separate segment of the financial market. Nevertheless, it is generally accepted to single out this market as a separate segment. In the insurance market, the main subjects are insurers and policyholders. Insurers sell various types of insurance services (insurance products). The main function of insurers in the financial market is the implementation of all types and forms of insurance by taking on various types of risks for a fee with the obligation to compensate the subject of insurance for losses upon the occurrence of an insured event. The main insurers are: insurance firms and open-ended companies (providing insurance services to all categories of insurance entities); captive insurance firms and companies - a subsidiary of a holding company (financial-industrial group), created for the purpose of insuring primarily business entities that are part of it; risk reinsurance companies (reinsurers) that accept part (or the entire amount) of risk from other insurance companies (the main purpose of reinsurance operations is to split large risks in order to reduce the amount of indemnified loss by the primary insurer upon the occurrence of an insured event). Insurers are financial market entities that buy insurance services from insurance companies and firms in order to minimize their financial losses in the event of an insured event. The insurers are both legal entities and individuals. Pricing in the insurance market differs significantly from other segments. Prices for insurance services are set based on the probability of an insured event and other factors. Of the infrastructure entities, insurance brokers (agents) can be distinguished. The basis of income of insurance brokers is commission payments from the amount of transactions concluded by them. Thus, various participants operate in the financial market, whose functions are determined by the goals of their activities and the degree of participation in the commission of individual transactions. The composition of the main participants in the financial market is differentiated depending on the forms of transactions, which are divided into direct and indirect. 3. The role of the financial market in the development of the economy of modern Russia The current global financial crisis is the most significant in the last 70 years, after which the markets will have a fundamentally different structure and growth pattern. We can say that the history of financial markets is divided into two parts: before the crisis and after. There is hardly anything more subject to uncertainty than the state of financial markets. The financial sphere largely depends on the degree of trust or distrust in it and always enhances the effect of the factor that prevails. This is what makes financial markets dangerous. Russian financial market participants in the first half of 2008 took a number of measures aimed at reducing the risks associated with the global financial crisis. For example, some banks have begun to reduce their net external borrowings. The growing cost of borrowing in the domestic deposit market, combined with unclear prospects for attracting external borrowing, led to higher rates on bank loans and corporate bond yields. However, the changes affected only certain segments of the Russian financial sector and not all of its participants. In the financial market until the beginning of August 2008, the main trends that developed during the period of favorable conjuncture on foreign markets persisted. At the same time, the risks associated with these trends continued to grow. In the second half of 2008, the situation in the world economy, and especially in the financial sector, deteriorated sharply. In the face of an increased shortage of liquid funds, participants in the global financial market reduced their investments in the economies of countries with emerging markets, in particular, in Russia. Thus, we can conclude that the destabilization of the global financial market in 2007-2008. led to a significant deterioration in the situation Russian market due to the decrease and rise in the cost of external funding, the outflow of private capital from the Russian market and the decrease in mutual trust of financial market participants. To one degree or another, these factors affected all segments of the Russian market, leading to a decrease in securities quotations and an increase in rates in all segments of the market. In the first half of 2009, the Russian financial market began a gradual recovery, overcoming the consequences of the global financial and economic crisis in the second half of 2008. The total volume of the main segments of the Russian financial market, which had fallen sharply during the crisis, began to increase. As a result, at the end of June 2009, it exceeded the country's GDP (Fig. 3). The main contribution to the dynamics of the total volume of market resources in the period under review was made, as before, by the stock market. Equity market capitalization at the end of the first half of 2009 was estimated to have reached 42% of GDP, non-financial sector debt on bank loans amounted to 41% of GDP, and the volume of debt securities in circulation - 20% of GDP. .
Rice. 3. Dynamics of volume indicators of the Russian financial market. Recovery began after the end of January - mid-February 2009, the currency, monetary and stock markets reached their maximum fall. The minimum values of the ruble exchange rate against the dual-currency basket, the dollar and the euro, the maximum money market rates in recent years, the minimum quotations of corporate securities and the volume of transactions in the primary and secondary segments of the stock market were recorded. At the same time, banks' lending and deposit rates remained high on key transactions with non-financial organizations and households against the backdrop of low activity in the segment of lending to non-financial borrowers (Chart 4) .
Rice. 4. Dynamics of individual price indicators of the Russian financial market The stabilizing effect on the Russian financial market was exerted by prompt and large-scale anti-crisis measures taken in late 2008 - early 2009 by the Government of the Russian Federation and the Bank of Russia, which made it possible to mitigate the most acute phase of the crisis. At the same time, the effect of the measures taken central banks leading foreign countries. From the second half of February 2009 the world financial markets began to gradually stabilize, there were signs of recovery in prices on the world energy market. In the following months, the improvement in the situation on the world commodity markets, the growth of major foreign stock indices, the stabilization of the situation in the domestic currency and money markets, and the net inflow of private capital into Russia that began in April-May weakened the impact of negative factors, contributing to an improvement in the Russian financial market. In particular, the relatively high level of interest rates in the Russian economy against the background of the nominal strengthening of the ruble against the dual-currency basket contributed to the resumption of the inflow of speculative capital into the Russian stock market. Weaker devaluation expectations for the ruble, slower inflation, and a halt in the outflow of private capital allowed the Bank of Russia to start lowering rates on its operations in April in order to help reduce rates in the economy, increase bank lending activity, and overcome the decline in production. By the end of the first half of the year, the first positive symptoms appeared on the credit and deposit market. The recovery of the domestic financial market was accompanied by a change in the significance of certain types of risks in its various segments. In the money market, the liquidity crisis was largely overcome, as evidenced by the reduction in interest rates on ruble interbank loans and REPO transactions, as well as the reduction in banks' demand for Bank of Russia refinancing instruments. However, credit risks have increased in the debt market, which manifested itself in a steady increase in overdue debt on bank loans to the non-financial sector and a rapid increase in the number of defaults on corporate bonds. At the same time, the differentiation of borrowers (banks and non-financial organizations) in terms of their credit quality increased. The Russian financial market continues to perform its inherent functions. The relationship between the financial sector and the real sector of the Russian economy has been preserved, although somewhat weakened. The financial market still allows realizing the function of transforming savings into investments, but on a limited scale compared to the pre-crisis period. The weakening of the connection between the financial and real sectors was manifested, first of all, in the difficulty of access to the credit and stock markets of corporate borrowers who do not belong to the category of first-class ones. Under these conditions, the measures of state support for systemically important enterprises in various sectors of the economy have become increasingly important. In the first half of 2009, close ties remained between segments of the Russian financial market. Despite the very high volatility of price and volume indicators in all market segments, the dynamics of these indicators was quite consistent throughout the period under review. Thus, in the first half of 2009, the Russian financial market as a whole withstood the economic hardships of the financial crisis and began to recover. The main participants in the financial market continued to carry out their operations, the market infrastructure functioned smoothly. Further development Russian financial market depends on the interaction of many external and internal factors. Conclusion The financial market is a set of economic relations for the mobilization, distribution, sale and effective use of temporarily free funds of legal entities and individuals, as well as for the transformation of these funds into the capital of enterprises and organizations. The financial market is designed to perform the following functions: Transformation of savings into investments; Assessment of the market value of financial assets; Ensuring liquidity of financial assets; Creation of infrastructure for the exchange of financial assets; Risk insurance. The main function of the financial market is to mobilize depositors' funds for the purpose of organizing and expanding production. As world experience shows, the effective functioning of the financial market is impossible without the regulatory and supervisory activities of state bodies. In the conditions of the formation of the financial market (and the securities market in particular), the functioning of such structures becomes of exceptional importance. The national financial market consists of five fundamental segments: the credit market, the securities market, the foreign exchange market, the insurance market, and the precious metals market. In general, the financial market has a complex structure. The main subjects in the financial market are sellers and buyers of financial assets. Participants performing auxiliary functions in the financial market are represented by numerous subjects of its infrastructure. The infrastructure of the financial market is a complex of institutions and enterprises serving its direct participants in order to increase the efficiency of their operations. A commodity in the financial market is a financial asset. These objects are not homogeneous and specific to each of the segments. The infrastructure system and the main institutions of the financial market operate in close cooperation. Exchanges occupy a key place in the trading system and in general in the infrastructure of the financial market. The main features of a developed financial market are: stability of the regulatory framework; information transparency of operations and market participants; a sufficiently large circle of participants and highly technical infrastructure. The presence of these features provides commercial organizations with a quick and efficient attraction of funds. At present, the Russian financial market does not meet the definition of an efficient financial market, that is, among its properties there are no full-fledged performance of macroeconomic functions, sufficient capacity, freedom and justice. As a result, the domestic financial market is unable to properly perform the functions of transforming savings into investments, creating and distributing investment funds, redistributing risks and insuring them, redistributing property and capital, determining the prices of financial assets, providing a mechanism for making transactions with financial assets, and reducing transaction costs. market participants, promote financial stability. List of sources used1. Civil Code of the Russian Federation as of September 10, 2008 - M.: Prospect, 2008. 2. On the securities market: Federal Law of April 22, 1996, N 39-FZ. (amended on July 19, 2009, No. 205-FZ) // Inform.-Pravov. "Expert-Garant" system. - Version dated 20.08.09. 3. 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