DERIVATIVES AS FINANCIAL INNOVATIONS OF FIXED CAPITAL
Abstract
The article considers the economic nature of derivatives as financial innovations of fictitious capital. Their essence and various classification forms are characterized. It is determined that derivatives are used mainly for risk hedging, as well as for the implementation of investment strategy. Derivatives as innovative financial products are formed as a result of specific relations of economic entities in the process of their innovative activity in the financial market. These relationships allow to meet the needs associated with the search for sources of funding, involve virtually unlimited opportunities for variation in the amount of risk and its redistribution, provide liquidity and increase the final financial results. By setting future prices, participants in futures contracts can plan their activities in the future. Prices in this market are a kind of indicator of the future state of the economy. The development of the derivatives market in Ukraine is slow, and is accompanied by low trading volumes and a rather limited range of derivative securities used as a hedging instrument, so it is important to study global trends in its operation at the present stage. In the context of financial globalization, derivatives are an integral part of global capital markets, and derivatives help a wide range of end users to manage risk and improve profits. Participants in the global derivatives market say that their liquidity remains unchanged or improves in 2019, with more than 80% expecting the same in 2020. Such positive sentiment from end consumers, investors, clearing companies, brokers, traders and exchanges, participating in global derivatives markets is an indicator of high confidence. The analysis of the functioning of the world derivatives market and the development of the derivatives market in Ukraine is carried out. Positive and negative tendencies of development of this market are revealed. The main problematic aspects that hinder the effective operation of the domestic derivatives market are outlined. Based on the analysis of the state and dynamics of the derivatives market in Ukraine, the main directions of its development are proposed.
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