The principal regulation of the securities market

In order to monitor and regulate the processes taking place on the market, regulation of the securities market is necessary to maintain order and create optimal conditions for the work of all actors on the market, as well as to protect all market participants from dishonest and fraudulent actions of individual participants. There are questions: who is involved, and by what laws does this regulation take place?

The process of regulation of the stock market

Regulation of the securities market is a process of streamlining the activities of all market entities and the transactions performed between them by the organizations authorized to these actions. Participants can be issuers, investors, professional fund intermediaries, market infrastructure organizations . There are external and internal regulation of market participants. In terms of external regulation, the organization's activities are subordinated to state regulatory acts, international agreements, acts of other organizations. Internal regulation determines the order of subordination of the organization's activities to internal regulatory documents that determine the activities of the units and the organization as a whole.

Regulation of the securities market determines all types of transactions and activities: investment; Intermediary; Emission; Collateral; Speculative; Trust and others. From the position of regulation of the authorized to perform the regulatory functions of organizations and bodies distinguish: state, regulation by professional participants or the self-regulation of the securities market, public regulation.

The essence of the securities market

The essence of the securities market and its regulation implies the following objectives:

Creating an open and free process for pricing based on supply and demand. Support of order in the market, provision of acceptable conditions for all participants. Protection against fraud and dishonesty of market participants.

Stimulation of entrepreneurial activity with adequate reward of risks

In certain cases, support and creation of necessary market structures, support of market innovations and undertakings. Impact on the market to achieve public goals (reducing unemployment, increasing the growth rate of the economy, etc.). The regulation and essence of the securities market is also the creation of a regulatory framework to ensure the work of the market, the development of laws, regulations, regulations, methodological provisions, rules and other regulations. In the selection of professionals of market participants. Not every organization can be a professional intermediary. To do this, you must meet the requirements of experience, knowledge, capital. In monitoring the implementation of norms and rules of the market by all its participants. In the system of sanctions for deviation from the rules and norms established in the market. Such sanctions include warnings, fines, exclusions from market participants, criminal penalties. The principles of regulation of the securities market largely depend on the economic and political conditions in the country, but they also reflect the practice of the global stock market.

Self-regulation of the securities market

In addition to the state, self-regulation of the securities market takes place, carried out by non-governmental, non-profit organizations created on a voluntary basis. Such organizations are engaged in the development of mandatory standards and rules, carry out professional training of personnel, establish mandatory for work in this market requirements, monitor the correct compliance with established regulations and rules, provide information activities, protect the interests of market participants.