Topic 7. Bank operations with securities

Goals and objectives The activities of banks in the securities market can be divided into four types, which reflect the different roles performed by banks: Activities related to traditional banking operations. Activities of banks as issuers. Activities of banks as investors. Activities of banks as professional participants in the securities market: dealer; brokerage; depositary; clearing; trust management. Each of these activities includes a wide range of diverse operations that mediate both the movement of the securities themselves and the exercise of rights arising from these securities. The purpose of this topic is to study objects, aspects, and characteristic features of each type of operation.

7.1. Traditional banking transactions with securities

Traditional banking operations with securities are operations related to core banking activities: raising and placing funds, performing payment functions.

This type of operation includes the following banking operations.

• Credit operations.

The bank provides loans to clients for transactions in the stock market. The bank can also use securities as collateral for a loan.

• REPO operations.

A repo is a repurchase agreement, i.e. an agreement under which the seller agrees to buy the security back from the buyer at a specified price on a specified date in the future. With repo, banks borrow short-term funds in exchange for providing the lender with securities with an obligation to buy them back.

From the borrower's point of view, such a transaction is called a “repo”. From the lender's perspective, this transaction is called a “reverse repo.”

The obligation to repurchase corresponds to the obligation to resell, which is assumed by the other party. The repurchase is carried out at a price different from the original sale price. The difference between the prices represents the income that the party acting as the buyer of securities (seller of funds) in the first part of the repo should receive. In practice, the income of the seller of funds corresponds to the loan rate.

• Bill of exchange loans.

Bill loans are divided into bill of exchange and bearer loans.

Bill of exchange loans are a loan agreement, according to which the borrower, as a loan, receives a package of the creditor bank’s own bills of exchange, issued by the bank to him for the total amount specified in the agreement.

There are two types of bearer bill loans: discounted and collateral.

Accounting bill credit (discounting bills) is the purchase of them by the bank. Since the holder of the bill, who presented the bill to the bank for accounting, receives payment on it immediately, i.e., before the expiration of the payment term on the bill, for him this actually means receiving a loan from the bank.

A secured bill of exchange loan (loans secured by bills of exchange) differs from bill of exchange accounting, firstly, in that ownership of the bill of exchange is not assigned to the bank, the bill of exchange is only pledged by the bill holder for a certain period with subsequent redemption after repayment of the loan.

• Guarantees for the placement of securities.

This is a kind of risk insurance for investment companies conducting securities placements.

Banks acting as guarantors for the issue of securities undertake an obligation to the investment company conducting the placement of securities that in the event of an incomplete placement of shares or bonds, they will accept them into their account at a pre-agreed rate. When a stock or loan is fully allocated, banks receive a commission and a risk reward.

Suppose Bank A, acting as an investment company, assumes the obligation to place bonds of enterprise X. Bank B acts as a guarantor for the placement of this bond issue. If the loan is not placed, then Bank B is obliged to accept the bonds not placed by Bank A at a pre-agreed price.

• Performing payment functions.

Banks act as payment agents for issuers and carry out settlements based on the results of transactions on the securities market.

7.2. Activities of banks as issuers

The activity of banks as issuers is the issue by banks of their own securities.

The bank's activities in this area include the following operations:

1. on the issue (issue) of own securities and their initial placement;
2. to ensure the implementation of investors' rights:
   • payment of interest and dividends;
   • repayment of debt securities when due;
   • creating conditions for the participation of shareholders in the management of the bank, including holding general meetings of shareholders;
   • provision of information on the activities of the issuing bank in accordance with current legislation.

Commercial banks, acting as issuers, issue the following securities:

1. emission - shares, bonds;
2. non-emission – certificates, fun.

Procedure for issuing shares

Commercial banks issue shares in order to form their own capital in the form of authorized capital if they are created in the form of a joint stock company.

The Bank of Russia has established uniform procedures for registration and issue of securities by credit institutions. These procedures provide, firstly, for state registration of all issues of securities, regardless of the size of the issue and the number of investors; secondly, registration of securities issues in the Licensing Department of the Bank of Russia or in territorial branches of the Bank of Russia.

The procedure for issuing securities includes the following stages:

1. making a decision on the placement of securities;
2. approval of the decision on the issue (additional issue) of securities;
3. state registration of the issue (additional issue) of securities;
4. placement of securities;
5. state registration of a report on the results of the issue (additional issue) of securities.

Credit organizations created in the form of joint-stock companies form their authorized capital from the nominal value of shares acquired by shareholders. Credit institutions can only issue registered shares in documentary and uncertificated form, ordinary and preferred shares.

Shares are considered registered if, in order to exercise the property rights associated with their ownership, it is necessary to register the name of the owner of the share in the books of account. When transferring a registered share from one owner to another, appropriate entries must be made in the register.

The first issue of shares must consist entirely of ordinary registered shares. The issue of preferred shares is not permitted. This situation is caused by the fact that in the first year of operation the bank may not provide payment of dividends on preferred shares in the established amount.

To increase the authorized capital, a joint-stock bank can issue shares only after full payment by the shareholders of all shares previously issued by the bank.

When increasing the authorized capital, banks have the right to issue both ordinary and preferred shares. The share of preferred shares should not exceed 25% of the authorized capital.

Procedure for issuing bonds

Commercial bank bonds are securities that certify a loan relationship between the bond owner (lender) and the bank (borrower), generating income for the owner.

Right to issue bonds

Banks are allowed to issue bonds only after they have fully paid their authorized capital.

Bonds are issued by decision of the bank's Board of Directors. The issue of bank bonds is carried out on the basis of a special prospectus, which must be published in print and registered with the Licensing Department of the Bank of Russia or at a territorial office of the Bank of Russia.

Banks can issue bonds:

• registered and bearer;
• interest and discount;
• with lump sum repayment and with repayment in series within certain periods;
• secured and unsecured; When issuing secured bonds, the security may be a pledge of the bank's own property or security provided to the bank for the purpose of issuing bonds by third parties. Unsecured bonds may be issued no earlier than the third year of the bank’s existence, subject to proper approval by that time of two annual balance sheets and in an amount not exceeding the size of the bank’s authorized capital. That is, security by third parties when issuing bank bonds is required in the following cases:

• the existence of a credit institution for less than two years (for the entire amount of the bond issue);
• the existence of a credit institution for more than two years when issuing bonds in an amount exceeding the amount of the authorized capital (the amount of security must be no less than the amount exceeding the amount of the authorized capital);
• convertible into other securities and non-convertible.

A credit organization created in the form of an open joint-stock company has the right to place bonds convertible into shares through open and closed subscription, and a credit organization created in the form of a closed joint-stock company - only in the form of a closed subscription. Shareholders of an issuing credit institution have a preemptive right to purchase bonds and other securities convertible into shares placed through an open issue. Moreover, these persons must be notified in advance by the credit institution of the possibility of exercising or pre-emptive right to purchase such bonds. A person who has a pre-emptive right to purchase bonds convertible into shares has the right to fully or partially exercise this right by submitting to the issuing bank a written application for the acquisition of such bonds and a document confirming their payment. At the end of the period valid for shareholders who have the right of pre-emption to purchase bonds convertible into shares, the issuing bank can place these bonds among another circle of persons - investors.

In the Russian Federation, the issue of bonds by joint-stock commercial banks is not widespread. In countries with developed market economies, banks issue a large number of bonds, which are widely popular among investors in the money market.

Procedure for issuing certificates

Bank certificates are securities that certify the amount of a deposit made to the bank and the right of the depositor (certificate holder) to receive, upon expiration of the established period, the amount of the deposit and the interest stipulated in the certificate from the bank that issued the certificate or from any branch of this bank.

A certificate of deposit can be issued only to legal entities, and a savings certificate - only to individuals.

Right to issue certificates

The Bank has the right to issue certificates under the following conditions:

• banking activity for at least two years;
• publication of annual reports confirmed by an audit firm;
• compliance with banking legislation and regulations of the Bank of Russia;
• compliance with mandatory economic standards established by the Bank of Russia;
• compliance with mandatory reserve requirements of the Bank of Russia;
• the presence of a reserve fund in the amount of at least 15% of the actually paid authorized capital.

Banks can issue certificates:

• deposit and savings

(certificates of deposit are issued for sale only to legal entities, savings certificates - only to individuals);

• one-off and in series

(one-time certificates are issued in isolated cases, for the needs of a specific client. Serial - as part of the bank’s deposit policy in order to attract funds in a certain market segment);

• registered and bearer.

Bank certificates cannot be used as a means of payment in payments for goods and services. They serve only as a means of accumulation. However, the owner of a bearer certificate may assign the rights of claim under the certificate to another person. For a bearer certificate, this assignment is carried out by simple delivery, and for a personal certificate - through an endorsement (assignment), which is drawn up on the back of the certificate form. This inscription represents a bilateral agreement between the person establishing his rights (assignor) and the person acquiring the rights thereby (assignee).

Commercial banks have the right to place their certificates after registering the conditions for their issue and circulation at the territorial office of the Bank of Russia.

Certificates issued by the bank must be printed.

Certificates of Russian banks can be issued only in the currency of the Russian Federation, and accordingly circulate only on its territory.

The issuance of certificates to legal entities and individuals is carried out only after they transfer the appropriate amount to special bank accounts intended for recording issued certificates.

Upon expiration of the certificate, the bank returns the deposit amount to its owner (holder) and pays income based on the established interest rate, term and amount of the deposit. The owner must present the certificate to the issuing bank along with an application for claiming funds under the certificate indicating the account to which they should be credited.

Advantages of bank certificates:

• transferable to another person;
• use as collateral when obtaining loans;
• expanding the circle of potential investors for the bank by attracting intermediaries for the sale of certificates.

Procedure for issuing bills

A bank bill is an unconditional written promissory note of a strictly established form, giving its owner (the holder of the bill) the indisputable right, upon maturity, to demand from the debtor payment of the amount indicated in the bill.

Banks issue bills of exchange on demand or with a due date.

In addition, there are interest-bearing, discount and interest-free bills. Interest bills give the right to the first bill holder or his successor to receive, upon presentation to the bank for redemption, the bill amount and the interest income due, discount bills - discount income, which is defined as the difference between the nominal amount of the bill at which it is repaid and the price at which it was sold to the first bill holder. By interest-free With a bill, the holder of the bill receives the face amount of the bill for which it was sold.

Signs of a bill as a monetary debt claim:

1. the bill of exchange claim is in the form of a security, i.e. it can only be exercised by the holder of the bill of exchange (the holder of the bill) and executed by the debtor only to the extent of this document;
2. the bill of exchange claim is abstract; it is detached from the specific property and legal relations that served as the reason for issuing the bill. A bill of exchange claim is based on the text of the bill of exchange document, and not on the legal fact (sale and purchase agreement, loan, etc.) that gave rise to the obligation of one person to pay another a certain amount of money. The bill is not secured by a mortgage, loan, or penalty;
3. a bill of exchange requirement is strictly formal; it arises only if the formal requirements imposed by law on the text of the bill of exchange document are met. The contents of the bill are strictly prescribed by law, and other terms are considered unwritten. It must contain mandatory details. The absence of at least one of them deprives the bill of legal force. Mandatory bill details:
   • bill mark - the name “bill” included in the text of the document and expressed in the language in which this document was drawn up;
   • a simple and unconditional offer to pay a certain amount - for bills of exchange. A simple and unconditional promise to pay a certain amount - for a promissory note;
   • the name of who must pay (payer) - only for a bill of exchange;
   • indication of the payment term;
   • indication of the place where payment should be made. A bill of exchange may be payable at the place of residence of the third party, or at the same place where the place of residence of the payer is, or at some other place;
   • the name of the person to whom or on whose order the payment is to be made. A bill of exchange can be issued by order of the drawer himself, to the drawer himself at the expense of a third party;
   • indication of the date and place of drawing up the bill of exchange;
   • the signature of the person issuing the bill (the drawer). The drawer is responsible for acceptance and payment.

   Procedure for paying the bill:

• upon presentation - payable on the day of presentation for payment. It must be submitted for payment within a year from the date of preparation;

In a bill of exchange that is payable upon sight or at such and such a time from sight, the drawer may stipulate that interest will accrue on the amount of the bill. In any other bill of exchange such a condition is considered unwritten;

• in such and such a time from presentation (the payment period is determined either by the date of acceptance or the date of protest);
• in so much time from compilation:

• after a certain number of days - the payment deadline is considered to have occurred on the last of these days, the day of statement is not taken into account;
• after a certain number of months - the payment period falls on the day of the last month that corresponds to the date of drawing up the bill, and if there is no such date in this last month, then on the last day of this month;
• on a specific day - on a specific date, or at the beginning, middle, end of the month. In the latter case, the payment period will be accordingly;

a bill of exchange claim is distinguished by its easy negotiability: it is transferred from one person to another in a simplified way by means of an endorsement (endorsement) on the back of the bill or on an additional sheet;

a bill of exchange claim has priority when satisfied in court.

Advantages of bank bills:

• lack of mandatory registration of terms and conditions of issue with the Bank of Russia;
• possibility of release in series and one-time order;
• use as a means of payment for goods and services by individuals and legal entities;
• transfer by endorsement without restrictions;
• use as collateral when obtaining a loan;
• increased liquidity provided by joint and several liability of endorsers;
• possibility of issuing in national and foreign currency.

7.3. Activities of banks as investors

The investment activities of a bank in the securities market are usually understood as its activities of investing funds in securities: on its own behalf, on its own initiative, at its own expense in order to obtain direct and indirect income.

The bank receives direct income in the form of dividends, interest or profit from resale.

Indirect income is generated by expanding the market share controlled by the bank through subsidiaries and affiliates, and strengthening their influence on clients through participation in corporate governance based on ownership of a block of their shares.

Investment activity involves:

1. carrying out transactions for the purchase and sale of securities in your portfolio;
2. raising loans secured by purchased securities;
3. receipt of interest, dividends and amounts due for redemption of securities;
4. participation in the management of the joint stock company - issuer;
5. participation in bankruptcy proceedings as a creditor or shareholder, receiving the due share of property in the event of liquidation of the company.

The objects of banking investment are a wide variety of securities. In Russian banking practice, depending on the investment instruments used to form one’s own portfolio for accounting purposes and reflected in the balance sheet, a distinction is made between investments in debt obligations (bonds, bills, certificates) and investments in shares.

When analyzing a bank's investments in shares, one should distinguish between direct and portfolio investments.

Direct investments take the form of investments in shares in the case when the bank acquires (or retains) a controlling stake in a company in the management of which it is directly involved, exercising the voting right on the shares it owns.

Portfolio investment in shares are carried out in the form of creating portfolios of shares of various issuers, managed as a single entity. The purpose of such bank investments is to make a profit based on the diversification of investments.

Portfolio is an accounting category that combines securities depending on the purpose of their acquisition and their quotation on the organized securities market. There are trading portfolios, investment portfolios and controlling participation portfolios.

1. Trading portfolio - quoted securities purchased with the aim of generating income from their sale (resale), as well as securities that are not intended to be held in the portfolio for more than 180 days and can be sold.

Quoted securities are securities that meet the following conditions:

• admission to trading on an open organized market or through a trade organizer that has an appropriate license from the Federal Securities Market Commission, and for foreign organized markets or trade organizers - a national authorized body;
• turnover for the last calendar month on the organized open market is at least 5 million rubles. (the amount established for inclusion of securities in the first level quotation list);
• information about the market price is publicly available, i.e. subject to disclosure, or access to it does not require special rights.

2. Investment portfolio - securities purchased for the purpose of receiving investment income (in the form of interest, coupon income, dividends, etc.), as well as with the expectation of the possibility of their value increasing in the long or indefinite future.
3. Portfolio of controlling participation - voting shares acquired in an amount that provides control over the management of the issuing organization or significant influence on it.

The investment portfolio provides the bank with profitability, and the trading portfolio provides liquidity. Banks independently determine the procedure for forming a trade and investment portfolio and disclose it in such internal documents as “Investment Policy of the Bank” and “Accounting Policy of the Bank.”

The most important component of a bank’s investment activity is managing its own securities portfolio in such a way as to ensure the creation of a liquidity reserve, collateral for obtaining short-term loans, the opportunity to participate in the management of enterprises (companies) and making a profit.

The main conditions for effective investment activity for banks are:

1. functioning of a developed stock market in the country;
2. the bank has highly professional specialists who form and manage the securities portfolio;
3. diversification of the investment portfolio by types, terms and issuers of securities.

One of the most important problems when forming an investment portfolio is assessing investment attractiveness. There are two approaches in banking practice. The first approach - “technical analysis” - is based on market conditions, i.e. the dynamics of exchange rates is studied; the second - “fundamental analysis” - is based on an analysis of the investment characteristics of a security, reflecting the financial and economic position of the issuer or the industry to which it belongs.

The portfolio management process can be divided into two levels: strategic and operational.

At the strategic level, based on macroeconomic forecasts and taking into account expert assessments, the main guidelines for investment are established: risk limits, restrictions on the portfolio structure, profitability plans, portfolio maturity, etc. Depending on the method of conducting operations, strategies are divided into:

1. active;
2. passive.

At the core active The strategy lies in forecasting the situation in various sectors of the financial market and the active use by bank specialists of forecasts to adjust the structure of the securities portfolio. Passive strategies, on the contrary, are more focused on the index method, i.e. the securities portfolio is structured depending on profitability. The yield of securities must correspond to a certain index and implies an even distribution of investments between issues of different maturities, i.e., a “ladder of terms” must be maintained. In this case, long-term securities provide the bank with higher income, and short-term securities provide liquidity.

At the operational level, based on the established restrictions and limits, the current management of the securities portfolio is carried out in accordance with the emerging economic situation.

The bank's investment operations are associated with certain market risks. To reduce losses from depreciation of securities, banks must create reserves. To do this, a revaluation is made at the market price on the last working day of the month.

To calculate economic standards, the Bank of Russia established risk ratios for investments in securities: for bonds of the Bank of Russia - 0%, for debt obligations of the Russian Federation and the “group of developed countries” - 10%, for debt obligations of countries not included in the “group of developed countries” , - 10%, in debt obligations of the constituent entities of the Russian Federation - 20%.

7.4. Activities of banks as professional participants in the securities market

All types of professional activities in the securities market are carried out on the basis of a special permit - a license, which is issued by the Federal Commission for the Securities Market (FCSM of Russia). The activities of professional securities market participants are licensed by three types of licenses:

1. license of a professional participant in the securities market;
2. a license to carry out register maintenance activities;
3. stock exchange license.

Banks can currently obtain a license of the first type, which is divided into types of professional activities in the securities market: brokerage; dealer; activities related to trust management of securities; depositary; clearing activities.

• Brokerage - the execution by a bank of civil transactions with securities as an attorney or commission agent acting on the basis of an agency or commission agreement, as well as a power of attorney to carry out such transactions in the absence of indications of the powers of the attorney or commission agent in the agreement.
• Dealership - the bank carries out transactions for the purchase and sale of securities on its own behalf and at its own expense by publicly announcing the purchase and/or sale prices of certain securities with the obligation to purchase and/or sell these securities at the prices announced by it.
• For securities management - the bank's implementation on its own behalf for a fee for a certain period of trust management of securities transferred to it into possession and owned by another person in the interests of this person; funds intended for investment in securities; cash and securities received in the process of securities management.
• Depository - provision of services for storing securities certificates and/or accounting and transfer of rights to securities.
• Clearing - activities to determine mutual obligations (collection, reconciliation, adjustment of information on transactions with securities and preparation of accounting documents for them) and their offset for the supply of securities and settlements on them.

The activities of banks as professional participants in the securities market are associated with the exchange securities market, which includes:

1. ORTSM (organizational securities market), i.e. the market for state (OFZ), municipal and federal subjects securities, as well as blue chip shares traded in the system of currency exchanges (MICEX, SPbVB);
2. the market for corporate securities traded mainly within the Russian Trading System (RTS), as well as through the Moscow Stock Exchange (MSF) and other (regional) stock exchanges.

The exchange securities market is characterized by clear rules for organizing trading, concluding and executing transactions for each type of securities listed above. It can conduct both the primary placement of these securities (in the form of auctions) and their secondary trading. This market is represented by trading, settlement and depository systems operating in a single complex, which provides dealers with a full range of services from concluding transactions to their execution:

• the trading system implements the very procedure for concluding purchase and sale transactions with securities;
• the settlement system ensures settlements and cash payments for these transactions;
• depository system - recording the rights of owners of securities accounts and their transfers to these accounts.

Moreover, the organizations included in these systems, which form the infrastructure of the exchange market, are interconnected by agreements for the provision of services. As a rule, only securities in electronic non-documentary form are allowed for trading on exchanges and within the RTS system, but they may have paper duplicates.

The principle of execution of transactions on the organized securities market - the procedure for fulfilling obligations for the supply of securities and cash settlements for transactions concluded during the trading day (session) is called the principle of execution. There is a distinction between the gross principle and the net principle:

1. The gross principle means that obligations for the delivery of securities and cash settlements are fulfilled for each transaction.
2. Net principle - the net position for the receipt/delivery of securities and the settlement balance, determined based on the results of the trading, are executed. Net position for delivery is the excess of obligations over requirements for the supply of securities. Net position to receive - the excess of claims over obligations to receive securities. Settlement balance is the difference between claims and obligations to pay/receive funds.

Accounting for the bank's investments in securities is carried out taking into account fluctuations in market conditions and risks of impairment. It is maintained at the acquisition price or at the market price:

• acquisition price accounting is an accounting method in which the book value of a security does not change while it is in the relevant portfolio. For securities accounted for at the purchase price, reserves for possible losses are formed in the manner established by regulations of the Bank of Russia;
• Mark-to-market accounting is an accounting method in which investments in securities are periodically revalued at market price. When applying this method, a reserve for impairment of securities and a reserve for possible losses are not created. The market price refers to the price of a security calculated by the trade organizer.

Cost of securities is the cost of investments in securities upon disposal based on the cost estimation method. The cost estimation method is the procedure for writing off securities upon their disposal.

• FIFO method - investments in the corresponding number of securities that were first credited in time are written off to cost.
• LIFO method - investments in the corresponding number of securities that were most recently credited are written off to cost.
• Average cost valuation method - investments are written off to cost, regardless of the order in which securities are credited.

Dealer Operations

Dealer activity is the carrying out of transactions for the purchase and sale of securities on one's own behalf and at one's own expense by publicly announcing the purchase and/or sale prices of these securities at announced prices.

In order to acquire dealer status and carry out dealer activities, credit organizations must simultaneously have licenses of a professional participant in the securities market in the field of dealer and brokerage activities, and often for depository activities, and also meet the requirements of the trading and settlement systems of the corresponding segment of the exchange market (ORTSM or RTS) . That is, a certain limited number of banks can be dealers in the securities market. Other banks, not included in their number, can carry out investment operations for themselves and their clients through these dealer banks on the basis of an order agreement, acting as principals (principals).

A bank-dealer, acting as an investor, carrying out investment operations for itself (on its own behalf and at its own expense), when announcing in the media an auction of certain securities (during their initial placement), can submit to the trading system (on the MICEX or RTS) applications for their purchase, transferring the corresponding amount to the exchange settlement system.

Applications for transactions are submitted electronically and are of two types: competitive and non-competitive:

1. The competitive application (offer) indicates the price at which the applicant is willing to buy securities and their quantity.
2. The non-competitive offer specifies the number of securities that the buyer is willing to purchase at the auction at a weighted average price.

First, competitive bids are satisfied at a price equal to or higher than the cut-off price, and then non-competitive bids are executed within a predetermined limit.

To participate in secondary trading for the purchase and sale of securities already in circulation, on the days of trading sessions, the dealer bank submits its orders to the trading system indicating their direction (purchase or sale). Each trading participant is assigned monetary positions and securities positions before they begin. Cash positions are determined based on data on the amount of funds reserved by the participant in the corresponding account in the exchange settlement system. Positions on securities are established based on the number of securities deposited by the participant in the relevant securities accounts with the Authorized Depository. In the future, during trading, this makes it possible to ensure control over the sufficiency of collateral to comply with the basic principle of exchange trading: “delivery versus payment”, and, therefore, protect banks participating in the stock market and their clients from the risk of loss of funds and securities.

The conclusion of a transaction in the secondary trading system occurs automatically when the following conditions of two opposite directions of orders coincide: name of securities, number of securities, price per security, fixed compensation rate, transaction settlement code (TO, VO-VZO).

In another option, the order is executed depending on its type: limited or market.

1. A limited order indicates an agreement to buy a certain number of securities (or lots) at a price not higher than that specified in it or to sell at a price not lower than the minimum sale price specified in such an application.
2. A market order expresses an agreement to buy or sell a certain number of securities (or lots) at the best prices or at the electronic fixing rate.

A document confirming the submission by a member bank of the stock exchange section of an application to conclude a transaction is extract from the tender protocol, which reflects all orders submitted by a member bank of the section during the trading day.

A document confirming the conclusion of a transaction by a member bank of the stock exchange section is extract from the register, which reflects all transactions concluded by a section member during the trading day.

Brokerage

Brokerage activity is the performance of civil transactions with securities as an attorney or commission agent acting on the basis of an agency or commission agreement, as well as a power of attorney to carry out such transactions in the absence of indications of the powers of the attorney or commission agent in the agreement.

According to the contract of assignment a broker (attorney) for a fee carries out transactions for the purchase and sale of securities on behalf and at the expense of the client (principal). Under the commission agreement, the broker (commission agent) carries out the specified transactions at the expense of the client (principal), but on his own behalf.

Banks as brokers perform the following operations (transactions) for their investor clients on the securities market:

1. purchasing securities at auctions and secondary trading;
2. sale of securities at secondary auctions;
3. trust management of securities portfolios.

The conditions for such work between investors and a broker bank are the conclusion of an appropriate agreement between them, as well as the execution of a number of other documents, including those necessary for opening a securities account for a client on the stock exchange. All transactions concluded by the broker bank with the investor client are carried out only on the basis of his instructions. Client orders can be issued in various ways: in the form of an application in the established form, a message in electronic form, a fax document, etc. In most cases, personal applications are used. If this order is given for the purchase of securities, then it must be accompanied by a transfer of funds by the investor to a separate bank account, and if for the sale of securities, then the application must indicate the client’s account to which the bank must transfer the funds due to him (minus commissions). ) facilities. Brokers are required to regularly provide clients with reports on the results of transactions in securities, as well as on transactions using client funds for the reporting period (month).

Trust management of client securities

According to the trust management agreement, one party (the management founder) transfers property to trust management for a certain period of time to the other party (the trustee), and the other party undertakes to manage this property in the interests of the management founder or the person specified by him (the beneficiary). At the same time, the transfer of property into trust management does not entail the transfer of ownership of it to the trustee. In accordance with Art. 5 and 6 of the Federal Law “On Banks and Banking Activities”, credit organizations can also act as trustees.

The emergence in global banking practice of trust transactions as a type of commission and intermediary services provided by commercial banks to their clients, and their rapid development, were caused by a number of objective reasons.

Firstly, this is the problem of banking liquidity and a decrease in the profitability of traditional types of loan banking operations, as well as the desire of banks to ensure the fulfillment of one of the key tasks - increasing the profitability of operations while maintaining a favorable level of liquidity.

Secondly, the growing interest of banking clients, especially industrial enterprises, in receiving an increasingly wider range of services from the bank.

Third, increased competition in the loan capital market, the struggle of banks to attract clients; the emergence and development of new types of services offered to both individuals and legal entities.

The advantages of trust operations for banks compared to other types of activities are as follows:

1. unlimited opportunities for raising funds; when conducting operations at its own expense, the bank is limited to certain limits, since its own resources are not unlimited, just as potential loans are not unlimited, and when servicing clients on the basis of a trust, the number of the latter is extremely large, and, therefore, the bank’s income grows with increasing number of clients;
2. clear structuring in the bank’s work: all customer service operations are not dispersed among different departments, but are collected in one functional unit (department, department, etc.);
3. relatively low banking costs for conducting trust transactions;
4. expanding the bank's correspondent relations, improving its position in the interbank market, increasing its reputation.

Founders of trust management Only residents of the Russian Federation can be: both legal entities and individuals (owners of property, guardians, trustees, executors of wills, etc.).

Trustee- credit organisation. In the case where a credit organization itself acts as a founder of trust management of property, then another credit organization, as well as an individual entrepreneur or a commercial organization (with the exception of a unitary enterprise) can act as a trustee.

Beneficiary- the person in whose interests the trustee manages the property. The beneficiary may be the founder of the management or a third party.

Objects of trust management for a credit institution acting as a trustee, there may be: cash (in Russian currency and foreign currency), securities, natural precious stones and precious metals, derivative financial instruments owned by residents of the Russian Federation only as property. Currently, in the Russian Federation, mainly securities and funds intended for investment in securities are transferred to trust management.

In accordance with Art. 1012 of the Civil Code of the Russian Federation for the implementation of trust management of property, the parties (the management founder and the trustee-credit organization) conclude in writing management agreement for a period not exceeding 5 years (unless other deadlines are established by the laws of the Russian Federation). Trust management of securities and funds intended for investment in securities can be carried out by credit institutions either under an individual agreement or on the basis of a collective agreement.

Individual contracts trust management agreements are concluded by the credit institution-trustee with each individual trust management founder on personal terms for each. The property trust management agreement must reflect for what period and what property one party transfers to the other for trust management, the organization of work, the procedure for settlements, confidentiality conditions, technical communication conditions, the rights and obligations of the parties, their mutual responsibility, as well as stipulated in the agreement restrictions on individual actions of the trustee in property management.

The property transferred by the management founder to the trustee must be separated both from the other property of the management founder and from the property of the trustee. Trust management operations in credit institutions-trust managers are accounted for in a separate balance sheet (on trust management accounts) compiled for each trust management agreement. Based on individual balance sheets under trust management agreements, a summary (consolidated) balance sheet for the bank as a whole is compiled, which is submitted to the Bank of Russia along with the main balance sheet.

Collective agreement on trust management consists in the case of the creation in a bank, by decision of its board or other executive and administrative body, of a general fund for banking management - OFBU - by combining, on the basis of the right of common shared ownership, property (cash and securities) of various founders of management and carrying out subsequent trust management of it in their interests on the part of the credit institution-trustee. The trustee is obliged to issue each founder of the OFBU a share participation certificate for the amount of contributed property, which is not property and cannot be the subject of purchase and sale.

A credit organization can form several OFBU (by types of trust management founders, by types of managed property, etc.), operations and accounting for which are maintained separately.

The credit organization-trustee must submit reporting information to each management founder at least once a year.

In the event of termination of the activities of the OFBU, the founders of trust management have the right to exchange their existing certificates of equity participation for cash in the amount of the existing share in the managed property.

Income (minus the remuneration due to the trustee and compensation for the manager's expenses for managing the OFBU) is divided in proportion to the share of each trustee in the property of the OFBU.

Features of trust management of securities both under an individual agreement between the bank and the management founder, and within the framework of the established OFBUs, the fact is that the legislation on the securities market contains a number of restrictions on this type of activity. Thus, the manager, in the process of fulfilling his duties under the trust management agreement, does not have the right to enter into the following transactions:

1. purchase securities at the expense of funds under his management:
   • being in his property, in the property of his founders;
   • issued by its founders;
   • organizations in the process of liquidation;
2. alienate securities under its management:
   • into its own property, into the property of its founders;
   • under contracts providing for deferred or installment payment for more than 30 calendar days;
3. exchange the securities under his management for the securities specified in the previous paragraphs;
4. pledge the securities under its management to ensure the fulfillment of its own obligations;
5. transfer the securities under his management for storage with the designation of a third party as the manager and/or recipient of the deposit.

Depository operations

Depository activities consist of providing clients with securities storage services; on accounting and certification of rights to securities and transfer of securities, including cases of encumbering securities with obligations.

A professional participant in the securities market carrying out depository activities is called depositary. A person using the services of a depository is called depositor. Depositors, i.e. clients of the depository, can be not only owners of securities, but also other depositories, issuers that place securities through the depository, holders of securities as collateral, and trustees of securities.

Objects of depository activities There can be securities of any form of issue (certificate, uncertificated), issued by both residents of the Russian Federation and non-residents.

In order to carry out depository activities, the depositary is obliged to approve the conditions for its implementation. They must contain information relating to the operations performed by the depository; the procedure for the actions of depositors and depository personnel when performing these operations; reasons for carrying out operations; sample documents to be filled out by depository participants; samples of documents that depositors receive in their hands; timing of operations; tariffs for depository services; procedures for accepting servicing and termination of servicing the issue of securities by the depositary; the procedure for providing depositors with statements from their accounts; the procedure and timing for providing depositors with reports on transactions performed, as well as the procedure and timing for providing depositors with documents certifying the rights to securities. The conditions for carrying out depository activities are open in nature and are provided at the request of all interested parties.

Depository operations in a bank are carried out by a special division for which depository activities must be exclusive. For this purpose, the bank must develop and approve procedures that prevent the use of information obtained in the course of depository activities for other purposes not related to this activity.

Based on the agreement concluded between the depositor and the depository for the provision of depository services, the depositary opens a separate securities account for each depositor to record the rights to the securities it owns. Accounting is carried out in pieces. Transactions on securities accounts are carried out in the depository only by order of the account owner (depositor) or persons authorized by him. The basis for making entries in securities accounts are client orders for the execution of depository operations, executed on paper, as well as documents confirming the transfer of rights to securities in accordance with current legislation.

Self-test questions

1. Name the types of securities transactions performed by banks.
2. List the types of securities issued by a commercial bank.
3. Compare the procedure for banks to issue bonds and certificates.
4. What are the advantages of bills issued by commercial banks?
5. Procedure for managing bank securities portfolios.
6. What licenses should a commercial bank in the Russian Federation obtain to operate in the securities market?
7. Difference between dealer, brokerage and securities trust management activities.
8. What is the essence of a bank's depository activities in the securities market?
9. Summarize the need for repo transactions for a commercial bank.

Bibliography

1. Civil Code of the Russian Federation. Chapter 53. Trust management of property.
2. Federal Law of April 22, 1996 No. 39-FZ “On the Securities Market”.
3. Federal Law of March 11, 1997 No. 48-FZ “On promissory notes and bills of exchange.”
4. Resolution of the Central Executive Committee and Council of People's Commissars of the USSR dated 08/07/1937 No. 104/1341 “On the implementation of the provision on promissory notes and bills of exchange.”
5. Instruction of the Bank of Russia dated July 22, 2002 No. 102-I “On the rules for the issuance and registration of securities by credit institutions on the territory of the Russian Federation.”
6. Letter of the Bank of Russia dated February 10, 1992 No. 14-3-20 “Regulations on savings and deposit certificates of credit institutions.”
7. Resolution of the Federal Securities Commission of Russia dated October 11, 1999 No. 9 “On approval of the Rules for the implementation of brokerage and dealer activities in the securities market of the Russian Federation.”
8. Banking: Textbook / Ed. G.N. Beloglazova. L.P. Krolivetskaya. M.: Finance and Statistics, 2005.
9. Banking: Textbook / Ed. O.I. Lavrushin. M.: KNORUS, 2005.
10. Banking: basic operations for clients: Textbook. allowance / Ed. A.M. Tavasieva. M.: Finance and Statistics, 2005.

annotation

Security– a financial instrument that provides its owner with the right to receive income in the form and manner established by law.

Banks conduct the following types of professional activities in the securities market:

1) brokerage activity – carrying out transactions with securities as an attorney or commission agent on the basis of an agreement (at the expense of the client). A broker can be an individual or a legal entity;

2) dealer activity – carrying out transactions for the purchase and sale of securities in one’s own name and at one’s own expense. It is permitted only to legal entities;

3) management activities – management of securities transferred to the manager and owned by another person in the interests of this person for a fee;

4) clearing activities – activities to determine mutual obligations;

5) depository activities – provision of services for storing securities certificates or recording and transferring rights to securities;

6) maintaining registers of securities owners – collection, recording, processing, storage and provision of data that makes up the system for maintaining registers of securities holders;

7) organizational activities – provision of services that directly facilitate the conclusion of transactions in securities between participants in the securities market.

In addition to the above activities, banks issue issue-grade and non-issue securities.

Credit institutions can issue their own securities and issue securities for third parties.

Banks issue securities of the following forms:

1) registered documentary;

2) registered undocumented;

3) documentary securities payable to bearer.

The Bank issues:

a) ordinary and preferred shares;

b) bonds (registered and bearer);

c) convertible securities.

All bank operations with client securities are classified according to the purpose of the operations:

1. Formation and increase of capital:

a) formation of equity capital – 1st issue (ordinary shares);

b) increase in equity capital – 2nd ... nth issue of shares;

c) issue of preferred shares;

d) formation of borrowed capital, issue of bonds;

2. Receiving cash income from the operation:

a) operations to service the issuing activities of clients;

b) brokerage operations on the secondary market;

c) formation of a client portfolio of securities;

d) interest transactions, trust management;

e) servicing client transactions with securities;

3. Receiving profit from investments in securities:

a) speculative operations;

b) formation of a securities portfolio;

4. Raising borrowed funds for use in active operations:

a) issue of bills;

b) issue of income and savings certificates;

c) “reno” operations;

5. Participation in the authorized capital for control over property:

a) purchase of shares through subsidiaries;

b) participation in auctions;

6. Use of securities in other transactions, incl. lending secured by securities.

The bank's own transactions with securities are divided into transactions carried out on passive operations and transactions carried out on active operations.

Passive Operations:

· issue of securities;

· issue of non-equity securities (bills, certificates).

Resources received through passive transactions with securities are stable, urgent resources and, in addition, attractive to investors in the presence of profit tax and income tax benefits.

Active transactions with securities include:

· acquisition of securities of other issuers for the purpose of obtaining speculative profit;

· acquisition of government debt;

· accounting of bills of exchange of enterprises and organizations;

· investing in shares of enterprises in order to participate in the management of their activities and receive dividends.

Security questions on the topic

1. In what ways can funds be transferred through the Russian banking system?

2. What is the procedure for opening a bank account?

3. The following people contacted the bank to open an account:

a) a sports children's school financed from the local budget;

b) private dental company;

c) religious organization;

d) commercial store.

What types of ruble accounts will be opened for these enterprises and organizations?

4. What is meant by electronic money?

5. What is clearing?

6. What is the procedure for concluding a loan agreement?

7. Is the loan agreement the basis for the bank to check the borrower’s creditworthiness?

8. What is the difference between a pledge, a guarantee and a surety?

9. What is the most reliable form of non-cash payments?

10. What is the essence of a current loan?

11. Explain the essence of trust transactions?

12. What are the features of the Russian securities market?

13. What operations with client securities do Russian commercial banks carry out?

14. What role can banks play in the securities market?

15. What is the bank’s currency position and what could it be?

16. What types of foreign exchange transactions are carried out by commercial banks?

17. What is the transit account used for?

Banking operations of banks with securities can be either active or passive.

Russian banks have the right to carry out stock and trust transactions. These operations include: issue and placement of newly issued securities;

lending secured by securities;

purchase and sale of securities for one’s own account and on behalf and at the expense of the client;

storage and management of client securities.

Thus, depending on their operations, commercial banks can act in the market as an issuer of securities, a financial investor, and an intermediary in relations between third-party issuers and investors. The object of these operations are securities.

Let's consider the investment activities of a commercial bank. Investments by commercial banks differ from lending operations in a number of ways. Credit loans involve the use of funds for a certain relatively short period of time, subject to their repayment within a specified period of time with payment of interest on the loan. Investments involve investing bank funds for a long-term period of time before these funds return to their owner. In bank lending, the loan originator is the borrower. When investing, the initiative belongs to a commercial bank, which seeks to buy assets on the securities market.

Bank lending is directly related to the bank-borrower relationship. Investment is an impersonal activity of the bank.

The key factors that determine the purpose of investment activities of commercial banks are the need to generate income and the need to ensure liquidity for a certain group of their assets.

The most fully presented on the market are certificates for shares - documents certifying the size of the shareholder's property: - banking - written certificates from the bank about the deposit of funds and the right to receive the deposit amount within a specified period; - insurance - for insurance against accidents.

The operations of a commercial bank related to the placement of resources in securities (CS) form its portfolio of securities, which, depending on the purpose of the acquisition and quoted on the organized securities market, is divided into a trading portfolio, investment portfolios and a portfolio of controlling participation.

The trading portfolio includes quoted securities purchased with the aim of generating income from their sale (resale), as well as securities that are not intended to be held in the portfolio for more than 180 days and can be sold. An investment portfolio consists of securities purchased with the aim of obtaining investment income, as well as with the expectation of the possibility of an increase in their value in the long or indefinite future. A controlling interest portfolio includes securities acquired in quantities that provide control over or significant influence over the management of the issuing entity. Such securities are shares that give the right to participate in the management of the affairs of the joint-stock company, hereinafter referred to as voting shares.

Securities of the same type, issued by the same issuer, having equal volumes of vested rights, are called equivalent.

The basis of the trading portfolio is made up of quoted securities, which must meet the following conditions: they must be admitted to circulation on an open organized market or through a trade organizer on the securities market (including foreign open organized markets or trade organizers) that has the appropriate license from the Federal Commission for the Securities Market securities (FCSM), and for foreign organized markets or trade organizers - the national authorized body;

their turnover for the last calendar month on the above-mentioned organized open market or through a trade organizer is no less than the average amount of transactions for the month, which, in accordance with the requirements of the Federal Securities Commission, is established for the inclusion of securities in the first-level copy sheet;

information about the market price of these securities is publicly available, i.e. is subject to disclosure in accordance with Russian and foreign legislation on the securities market, or access to it does not require the user to have special rights (privileges). Any securities that do not meet the conditions stated above will not be listed.

The securities portfolio of a commercial bank is presented in Figure 2.16.

Income from a security in the form of a discount, interest (coupon) income, or dividends is called investment income.

If in the balance sheet of a credit institution securities are recorded at market price, then investments in the Central Bank are periodically revalued at market price. When applying this method, reserves for the depreciation of securities and for possible losses are not created. Revaluation of securities is carried out in order to determine the book value of securities that are in the bank's portfolio as of the end of the working day by multiplying their quantity by their market price. The market price of the security calculated by the trade organizer in accordance with the requirements of the Federal Securities Commission is recognized as the market price.

For securities accounted for at purchase price, reserves for impairment and/or reserves for possible losses are formed in the manner established by the Bank of Russia.

On an organized securities market, the trade organizer can establish different procedures for fulfilling obligations for the supply of securities and cash settlements for transactions concluded during the trading day (session) - the so-called principle of transaction execution. The following are options for implementing this principle: gross principle - obligations for the delivery of securities and cash settlements are fulfilled for each transaction;

net principle - a net position is executed for the receipt/delivery of securities and the settlement balance, determined based on the results of trading. The principle of forming a net position is reflected in Diagram 2.17.

Net position - the difference between requirements and obligations for the supply/receipt of securities of one issue, calculated based on the results of trading: net position for delivery - the excess of obligations over requirements for the supply of securities of one issue, calculated based on the results of trading;

net position to receive - the excess of requirements over obligations to receive securities of one issue; calculated based on the results of the auction;

To attract resources, banks can issue deposit and savings certificates. For these types of securities, the bank must register and approve in the territorial branch of the Bank of Russia the conditions for their issue and circulation. These certificates must be denominated in rubles, printed on special forms of the established form and must provide for certain deadlines for circulation.

Certificates can be personal and bearer, owned by residents and non-residents, issued in series and on a one-time basis. The owner of the certificate can transfer it to another person by formalizing an assignment of the claim - assignment.

A savings certificate is a security for attracting deposits from the public, therefore payments on it can be made both in cash and in non-cash forms. A certificate of deposit is a security issued by banks to attract resources from legal entities, and therefore settlements on it are made only in non-cash form.

In addition to those listed by the Central Bank, commercial banks actively work with bills of exchange. A promissory note is a debt security that has a written form strictly established by law, which represents a financial obligation (often of a long-term nature) confirming the investment or issue of financial resources for a certain period of time. It is on the basis of this definition that the bill of exchange should be considered as a universal credit and settlement document that performs several functions.

One of them is the security function, i.e. payment for goods supplied on credit, work performed and services provided, guaranteed by a bill of exchange. In this case, the bill of exchange obligation is secondary in relation to the supply agreement and ensures proper execution. The second important function is payment and accounting.

The bill becomes an object of bank accounting and payment is made against it before the due date of the bill of exchange.

If the bill is interest-bearing, then it is purchased at face value (bill amount), and interest on it is accrued and paid only when it is repaid. If the bill is discounted, then the bill discount is the discount interest charged by the bank when discounting them, on the basis of which the difference in price between the face value and the amount paid by the bank when purchasing the bill is determined. The discount charged by the Bank of Russia from banks when rediscounting commercial bills is the official discount rate.

Bills of exchange can be simple and transferable (draft). A promissory note is an obligation issued in the name of the creditor. A bill of exchange is intended to transfer values ​​from the disposal of one person to the disposal of another. Draft - a written order from the creditor (drawer) to the borrower (payer-drawee) to pay a certain amount of money to a third party - the bearer of the bill (remitee).

If we consider bills of exchange depending on the purposes of the issue and the status of the issuer, then it is necessary to distinguish the following types: - commercial bill - issued by the borrower against the security of goods in trade transactions; can be accepted by banks as collateral for a loan; - banking - draft, issued by banks of one country to their correspondents from other countries; - treasury bill - issued by the state to cover its expenses; - financial bill - banks issue and place it; - security bill - stored in the borrower’s deposited account, used in the event of a long-term debt of an unreliable borrower, etc.

During the circulation process, a bill of exchange is transferred from one person to another through an endorsement - an endorsement. There are several types of endorsements: full, blank, collection. Full is a personal endorsement indicating the person to whom or by whose order the payment is to be made; blank - this is a bearer endorsement; collection endorsement - an endorsement according to which the person accepting the bill of exchange has the right to carry out collection only on the bill of exchange. Based on such an inscription, bills of exchange are accepted by banks for collection, i.e. to provide services for collecting payments in favor of clients on accepted bills of exchange. In addition to those listed, there is also a collateral endorsement, according to which the bill of exchange is transferred as collateral for a claim against the person transferring the bill.

If the payer agrees to pay the bill of exchange, then he accepts it. Upon acceptance, the date must be indicated. The payer can accept only part of the bill amount.

If there is a person who assumes responsibility for fulfilling bill obligations, then he must issue an aval - a special bill guarantee, through which payment is fully or partially guaranteed. Such a person is called an avalist. The portfolio of a commercial bank may contain bills of exchange issued or endorsed by federal authorities, authorities of constituent entities of the Russian Federation, local authorities, as well as bills issued or endorsed by state or local authorities of other countries.

Thus, based on the analysis of the main functions of a bill of exchange, a conclusion should be drawn: a bill of exchange can be used as a means of payment, as security for bank loans, as a way to attract bank resources (by issuing and selling their own bills of exchange) and as an instrument for investing resources in order to generate income through accounting other people's bills.

Commercial banks can act as an agent for the preparation, issue and placement of regional bonds.

For example, Rosbank and the Trust and Investment Bank (DIB) entered into an agreement with the government of the Moscow region on the preparation of the Moscow regional internal loan. The bond issue prospectus will be sent to the Ministry of Finance in September. The loan amount will be 1.9 billion rubles, the nominal value of the bonds is 1000 rubles, the maturity is 18 months, the yield is 23%.

In this way, banks attract the resources necessary for the development of the region.

Commercial banks also carry out urgent transactions with securities, among which the following should be mentioned: warrant (order) - the holder’s right to purchase a certain number of shares at a certain price; option - a security that allows its owner to buy or sell a specified number of shares at a specified price during a specific period of time or on a specific date. That is, the buyer of an option acquires the right to buy or sell a commodity (real commodity, insurance, contract, etc.) under certain conditions in exchange for paying the appropriate premium (price). In addition, banks enter into futures contracts to buy or sell securities after a certain time at a specified price. These transactions are similar to the currency futures contracts described in the section on banks' foreign exchange transactions.

As economic conditions change, the bank's securities policies are reviewed and updated based on periodic reports and forecasts.

Issuance operations are operations involving the issuance by the bank of its own securities and their initial placement on the market. The purposes of such bank operations are:

• raising funds to form or increase the authorized capital of the bank;
• formation of the resource base of banks through the issuance of debt securities;
• increasing bank liquidity and bank balance sheet;
• registration of the bank’s organizational and legal status as a joint-stock company;
• provision of additional services to clients based on the issuance of tradable securities market instruments that expand investment opportunities;
• securitization of assets.

As already noted, such operations are classified as passive operations that allow increasing the bank’s capital, both own and borrowed. A commercial bank can issue equity securities, such as:

• ordinary and preferred shares. At the same time, ordinary shares, regardless of the serial number and time of issue, must have the same par value and provide their owners with the same amount of rights; the par value of the issued preferred shares must not exceed 25% of the registered authorized capital of the credit institution;
• registered and bearer bonds, secured by the pledge of one's own property, or bonds secured by third parties, unsecured bonds, interest-bearing and discount bonds, convertible into shares, with a lump sum maturity or bonds with a maturity date of series at certain dates.

The rules for issuing such securities are regulated by Bank of Russia Instruction No. 102-I dated July 22, 2002 “On the rules for issuing and registering securities by credit institutions on the territory of the Russian Federation.”

The issue of securities by a bank has a number of features: firstly, it is necessary to have a savings account to concentrate the issuer’s funds on it before registering the results of the issue, secondly, additional requirements are imposed on banks as issuers that determine the satisfactoryness of their financial condition and, thirdly, The Bank of Russia and its institutions act as the registration authority. The Department of Licensing Activities and Financial Recovery of Credit Institutions of the Bank of Russia registers issues of shares of banks with an authorized capital of 700 million rubles. or more (including the estimated results of the issue in the calculation) or with a share of foreign participation (including individuals and legal entities from the CIS countries) over 50%, bank bond issues in the amount of 200 million rubles. and above, issues of securities during the reorganization of banks. The remaining issues of securities are registered in the territorial branches of the Bank of Russia.

The issuing activity of commercial banks includes a number of stages.

First stage- a decision on the issue of securities, which is made by a credit institution (general meeting of shareholders or supervisory board of the bank). To obtain the right to issue shares, the bank must break even during the last three completed financial years (or from the date of formation, if this period is less than three years), and not be subject to sanctions from government authorities for violating current legislation for three years (or from the date of formation), not have overdue debts to creditors and payments to the budget and a debit balance on correspondent accounts with the Central Bank of the Russian Federation, including sub-accounts of its branches, ensure the completeness and reliability of disclosure of information about the issuer and the issue of securities. The placement of bonds is allowed only after full payment of the authorized capital. In addition, the nominal value of all bonds issued by the bank must not exceed the amount of the authorized capital or the amount of security provided to the bank by third parties for the purpose of issuing bonds. The bank may issue bonds without collateral no earlier than the third year of the credit institution’s existence, provided that two annual balance sheets are properly approved by that time and for an amount not exceeding the authorized capital of the credit institution.

Second phase - preparation of the issue prospectus. The issue prospectus is prepared and approved by the board or other authorized body of the bank. In this case, the issue prospectus must contain the information provided for in Instruction No. 102-I, in particular:

• 1. General information about securities:
  • type of securities issued (shares, bonds);
  • form of issued securities (certificate registered, uncertificated registered, documentary bearer);
  • the procedure for certification, assignment and exercise of rights secured by an issue-grade security;
  • par value of one security;
  • volume of issue (at nominal value);
  • number of issued securities (pcs.);
  • the rights of owners of securities defined in the charter of the credit institution - issuer for a given category (type) of securities.
• 2. Data on the issue of securities:
  • date of decision on release;
  • name of the authority that made the decision on release;
  • place/places where potential owners can purchase securities (including addresses);
  • start date of placement of securities;
  • end date of placement of securities.
• 3. Data on prices and payment procedures for securities purchased by owners and other data that, in the opinion of the issuing bank, should be communicated to investors.

The Bank and the persons who signed the prospectus are responsible for the accuracy of the information included in the prospectus. If during the issuance process or after its completion it is established that false information was included in the issue prospectus, investors have the right to demand from the bank the return of all funds paid by them in the process of acquiring securities.

Third stage- registration of securities issue. Registration of the issue of bank shares is accompanied by registration of the issue prospectus if at least one of the following conditions is met: firstly, the placement of securities is carried out among an unlimited circle of persons or a previously known circle of persons, the number of which exceeds 500, and secondly, if the total volume of the issue exceeds 50 thousand minimum wages; thirdly, an important provision is that preliminary consent to the acquisition of more than 20% of the bank’s shares must be obtained before concluding transactions related to the acquisition of shares in a credit institution.

For registration, the issuing bank submits to the territorial office of the Bank of Russia a prepared prospectus and a number of other documents specified by Bank of Russia Instruction No. 102-I dated July 22, 2002, which are reviewed within 30 calendar days. In case of a positive decision, the issuing bank opens a special savings account to collect funds received in payment for securities, which are blocked until the results of the issue are registered.

Fourth stage- publication of the issue prospectus. The issuing bank is obliged to report through the media about its issue of securities, providing the following necessary information:

• type, categories, types and forms of securities placed, indicating the total volume of the issue;
• rights granted for each issue of placed securities;
• start and completion dates for placement of securities;
• circle of potential buyers of securities;
• places where potential buyers can purchase securities of this issue and familiarize themselves with the contents of the prospectus;
• the size of the registered authorized capital of the credit organization.

Fifth stage - sale (placement) of issued securities, which begins after registration and publication of the issue prospectus and can be carried out:

• by selling a certain number of shares for rubles;
• through contributions from shareholders to the capital of the bank of tangible assets, intangible assets, and foreign currency. At the same time, only those assets that can be used in the direct activities of the bank should be accepted as payment for the authorized capital, and their share in the structure of the authorized capital should not exceed 20% at the time of the creation of the bank. Subsequently, it should be increased to 10% (excluding the cost of buildings);
• by capitalizing the bank's own funds with the distribution of the corresponding number of shares among shareholders and making changes to the register of shareholders. In particular, funds from the bank's reserve fund, balances of economic incentive funds at the end of the year, fixed assets acquired at the expense of FES funds, dividends accrued but not paid to shareholders, retained earnings at the end of the year can be used for capitalization;
• by re-registration of previously contributed shares into shares - when transforming the bank from a share bank to a joint stock bank;
• by replacing securities previously issued by the bank, as well as by consolidating and splitting shares.

The placement of shares of the first issue must be completed no later than 30 days after the registration of the credit organization, and shares of additional issue and bonds - after one year from the date of the start of the issue. Within these deadlines, full payment for the placed securities must be made with appropriate reflection in the credit institution’s records.

The number of placed securities must not exceed the number (in pieces) specified in the registered issue documents. In the case of placement of securities in excess of the quantity specified in the registered issue documents, the issuing bank is obliged to ensure, within two months, the repurchase and redemption of securities issued in excess of the quantity announced for issue.

During the placement process, a smaller number of securities may be placed compared to what was expected and indicated in the registration documents of the issue (in pieces).

An issue of shares by a bank is considered successful if the bank has placed at least 75% of the shares (bonds) of the issue.

Sixth stage - registration of release results. No later than 30 days after the completion of the securities placement process, the issuing bank analyzes the results of the issue and draws up a report on the results of the issue, which the Bank of Russia must register within two weeks. The documents reflected in Instruction No. 102-I are attached to the report on the issue of shares prepared by the bank. In case of refusal to register the results of an issue of securities, the State Central Bank notifies the issuing bank in a letter, which must clearly state the reasons for the refusal, in particular, violation of the current legislation, banking rules, the procedure for drawing up and executing the issue prospectus, at least one of the documents necessary for registration of the issue , the presence of inaccurate information in them.

Seventh stage - publication of the results of the securities issue.

Issuing shares and bonds by a bank is a rather risky and costly way to increase capital.

In addition to emission securities, banks can issue non-equity securities, such as certificates of deposit and savings certificates, bills, as well as derivative securities (options, futures contracts, warrants). A bank certificate is a security certifying the amount of a deposit made to a bank and the rights of the depositor (certificate holder) to receive, upon expiration of a specified period, the amount of the deposit and interest from the bank that issued the certificate or from any branch of this bank. The issue of bank certificates is carried out on the basis of the conditions for the issue and circulation of bank certificates approved by the board of the bank and approved in the prescribed manner by the Bank of Russia. Certificates are issued in rubles and foreign currency with a circulation period of one year for deposit certificates, and up to three years for savings certificates. If the deadline for receiving a deposit under a certificate is overdue, the certificate becomes a demand document.

The placement of certificates is possible only after registration of the conditions for their issuance and circulation at the territorial office of the Bank of Russia. To do this, the credit institution must provide the following documents:

• conditions for issuing and circulation of certificates;
• layout of the certificate form;
• a notarized copy of the credit institution’s license;
• certificate of state registration of the bank;
• balance and calculation of mandatory economic standards as of the last reporting date before making a decision on the issue of certificates.

A bill of exchange is a security certifying the unconditional monetary obligation of the drawer to pay, upon the maturity date specified on the bill of exchange, in a certain place, a certain amount of money to the owner of the bill of exchange (the holder of the bill) or to his order. Banks issue the following types of promissory notes:

• bills of exchange with interest accruing on the bill amount (face value) at the rate specified in the bill of exchange (interest-bearing bills);
• bills with interest included in the face value of the bill (discount bills);
• bills without interest (interest-free bills).

Promissory notes of Russian banks are denominated in rubles and foreign currency and are issued to legal entities and individuals, residents of the Russian Federation and non-residents of the Russian Federation who have ruble accounts with an authorized bank. The bill is issued on a form and contains a number of mandatory details, in particular a certain amount of money indicated in numbers and words, the date and place of drawing up the bill, the name of the first bill holder, the term and place of payment, the signatures of two authorized persons and the round seal of the bank. Bills of exchange are issued based on the client’s application, signed by the manager, and the receipt of funds into the bank account.

The bank’s operation to issue its own bills includes the following procedures:

• the securities department enters into a bill of exchange purchase and sale agreement, while simultaneously agreeing on the balance account number for the transfer of funds with the securities transactions accounting department;
• the agreement is entered into the correspondent account position in the treasury;
• the operating department credits the received funds;
• the department for accounting for transactions with securities, on the basis of an agreement, issues a memorial order for the issuance of valuables to remove blanks of bills of exchange from storage and places the bills of exchange on the bank’s balance sheet;
• The securities department removes the forms of bills of exchange from storage, draws them up, and then, based on the act of acceptance and transfer of securities, transfers the bills of exchange to the buyer.

Repayment of bills (payment on a bill) is made against the bill itself. The bank may accept bills of exchange for payment before the due date under early accounting conditions. If the bank does not plan to re-place the redeemed bills in the future, they are canceled.

Issuing non-issue securities is less costly and risky, which gives the bank more opportunities to attract short-term capital.

A commercial bank can issue not only its own securities, but also operations to place securities on the primary market on underwriting terms. In this case, the bank acts as an intermediary between the issuer of securities and the investor. There are two types of such operations. A NIF operation is a medium-term agreement, usually for 3-5 years, between a bank and an issuer of securities that, in the event of difficulties with the sale of securities, the bank undertakes the obligation to purchase them or provide an equivalent loan; in addition, the same bank can engage in placement valuable papers. The bank buys securities at par value and places them at the exchange rate. The company quickly receives money and puts it into circulation. If there is no prohibition by law, the bank can keep these securities and become a founder. The RUF operation is a medium-term agreement that does not provide for the bank’s investment functions in connection with the issue of securities. Banks have the right to transfer their bonds to other banks; banks do not buy back securities, but provide loans. Banks receive a commission for these transactions.

• Ordinary shares are shares that give the right to vote at a meeting of shareholders, the income on them depends on the company's profits. Preferred shares are shares that do not give the right to vote at a meeting of shareholders, but provide a fixed income (dividends) that does not depend on the company's profits.

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Introduction

The securities market is an integral part of the state's financial system, characterized by industrial and organizational-functional specifics. The importance of banks in the securities market is not in doubt. In most countries, banks play a vital key role in the securities market. This work examines a number of issues related to the activities of banks in the securities market.

The securities market can be defined as a set of relations associated with the purchase, sale and circulation of securities. Thus, the securities market is a fairly broad concept. Banks, being credit institutions that attract and place funds, can also be participants in the securities market. They act as issuers, investors, intermediaries. To carry out investment and intermediary activities in the securities market, banks need, in addition to the main license, a license of a professional participant in the securities market, which is issued to banks by the Central Bank of Russia.

The purpose of this work is to consider banking operations with securities.

1 . Types of securities

A security is a document certifying, in compliance with the established form and required details, property rights, the exercise or transfer of which is possible only upon presentation. With the transfer of a security, all rights certified by it are transferred in the aggregate. Art. 142.Civil Code of the Russian Federation.

It is necessary to distinguish between two types of rights associated with a security. On the one hand, paper is a property (thing), an object of transactions, and property rights or other proprietary rights (economic management, operational management) may arise on it, this is the so-called “right to paper”. On the other hand, a security defines and fixes the rights of the owner of the security (creditor) in relation to the person who issued the security, this is called the right from the security. The right certified by a security can be assigned to another person by transferring it.

A security has a certain set of characteristics:

Classification feature	Types of securities
Lifespan	Indefinite
Origin	Primary Secondary
Form of existence	Paper (documentary) Paperless (undocumented)
Nationality	Domestic Foreign
Type of use	Investment Non-investment
Tenure	Bearer
Release form	Emission Non-emission
Type of ownership	State Non-state
Nature of appeal	Market Non-market
Availability of income	Profitable No income
Investment form	Debt Ownership shares
Economic essence (type of rights)	Bonds
Risk level	Risky Risk-free and low-risk

Most types of securities (documentary), as a rule, are drawn up on standard forms of strict reporting and must contain the mandatory details established by the relevant laws, which include the following:

1. Name of the security;

2. Date of registration of the security (deposit of funds);

3. Full name and location of the legal entity - issuer;

4. Nominal value of the security;

5. Name of the holder (owner), only for registered securities;

6. Deadline for payment (claim) of the amount;

7. Type of return on a security - interest rate, which indicates the interest rate and the amount of interest due; discount; interest-free.

8. Other details depending on the type and purpose of the security

The main types of securities listed in Article 143 of Chapter 7 of the Civil Code of the Russian Federation include:

· Government securities;

· Bonds;

· Bills of exchange;

· Deposit and savings certificates;

· Bank savings books to bearer;

· Bill of lading;

1.1

Government securities- this is the form of existence of state internal debt. These are debt securities issued by the state.

Depending on the criterion, several groups are distinguished:

By type of issuer:

- ts central government securities;

Municipal securities;

Government securities;

Securities that have been given state status.

According to the application form:

- R marketable securities that can be freely resold after their initial placement;

Non-marketable, which cannot be resold to their holders, but can be returned to the issuer after a certain period of time.

By application deadline:

- TO short-term (up to 1 year);

Medium-term (from 1 to 5-10 years);

Long-term (over 10-15 years).

By method of payment of income:

- P interest-bearing securities (the interest rate can be: fixed, floating, stepped);

Discount securities that are issued at a price below par, and this difference forms the income on the bond;

Indexed bonds, the nominal value of which increases, for example, by the inflation index;

Winning ones, the income for which is paid in the form of winnings;

Combined bonds, for which income is generated through a combination of the previously listed methods.

1.2 Bond

Bond - This is a security, which is a debt obligation issued by the state or an enterprise under certain conditions when they issue an internal loan and gives its holder income in the form of a fixed percentage of its face value.

Thus, a bond is a certificate of debt, which certainly includes two main elements:

The obligation of the issuer to return to the bondholder after the agreed period the amount indicated on the title (front side) of the bond;

The issuer's obligation to pay the bondholder a fixed income in the form of a percentage of the face value or other property equivalent.

A bond generates income only for a specified period and loses its use value at maturity. The income from the bond does not depend on the results of the financial and economic activities of the enterprise.

Depending on the issuer, i.e. the person who issued the security, Bonds are divided into the following types:

1. By issuer:

Government bonds, which are issued on the basis of the Law of the Russian Federation of November 13, 1992. “On the state internal debt of the Russian Federation”,

Municipal bonds, which are issued on the basis of the Law on General Principles of Organization of Local Self-Government,

Commercial bonds of legal entities that are regulated by the Law on Joint Stock Companies.

2. By method of income payment:

With a fixed coupon rate;

With a “floating” or moving coupon rate;

With an increasing coupon rate;

No coupon;

With mini coupon;

With payment at your option;

Mixed type.

3. By type:

Extension Bonds;

Bonds with tapering.

4. By reversibility:

Reversible;

Irreversible.

5. By the right of early redemption by the issuer:

Redemption;

Unredeemable.

6. According to the method of securing the loan:

Secured bonds (bonds with collateral);

Unsecured (bonds without collateral).

7. By method of provision:

With property collateral;

With pledge of financial assets;

With a pledge of equipment;

With a pledge of vehicles;

With a pledge of future tax payments;

With collateral in the form of income from the project;

With warranty;

Reorganization bonds.

8. By loan term:

Short-term (from 1-3 years);

Medium-term (from 3-10 years);

Long-term (from 10-30 years);

Perpetual, issued by the government for a period of more than 30 years.

1.3 Bill of exchange

Bill of exchange - a monetary document with a strictly defined set of details. This means that a bill of exchange is only a document that contains all the necessary details of the bill, formulated in accordance with the Regulations on bills of exchange and promissory notes dated June 24, 1991.

The bill certifies the unconditional obligation of the drawer or another payer specified in it to pay the stipulated amount to the bill holder upon the arrival of the stipulated period.

The subject of a bill of exchange can only be money. Bills of exchange are divided into two types: simple and transferable. A promissory note means the obligation of the drawer to pay the agreed amount within a specified period to the holder of the bill, or to whomever he names. A bill of exchange (draft) is more widely used - this is a document regulating the bill of exchange relations of three parties: the creditor (drawee), the debtor (drawee) and the payee (remitee).

The bill of exchange contains the following details:

Bill marks;

Bill amount;

Name of the payee;

Place of payment;

Indication of the place and date of compilation;

Signature of the drawer.

A promissory note contains the following details:

The name of the “bill” included in the text of the document and written in the language of the document;

An obligation to pay a certain amount of money;

Indication of the payment term;

Indication of the place of payment;

The name of the recipient of the payment to whom or whose order it is to be made.

The bill can be transferred by endorsement.

Endorsement - endorsement on the reverse side of the bill. An endorsement records the transfer of the right of claim under a bill of exchange from one person to another. Transfer of part of the bill amount is not allowed, i.e. partial endorsement. The endorser is responsible for acceptance (acceptance is the agreement to pay the bill in favor of the holder of the bill who presented the bill for payment) and payment. However, he can also relieve himself of responsibility if the bill is endorsed with the clause “without negotiability on me.”

Endorsements can be of the following types:

Collection endorsement is an endorsement in favor of a bank, authorizing the latter to receive payment on a bill.

Blank endorsement differs from the others in that it does not contain an endorser and such a bill is bearer.

Personal endorsement - records the transfer of ownership of a bill of exchange from one person to another.

Collateral endorsement is done when the holder of the bill transfers the bill to the lender as collateral for the loan issued.

Payment on a bill of exchange can be secured in full or in part of the bill of exchange amount through an aval - a guarantee on a bill of exchange obligation. The avalist is responsible for the payment of the bill to any legal holder of the bill. The avalist and the person for whom he guarantees are jointly and severally liable (joint and several liability is the full liability of each person obligated under the bill of exchange to the legal holder of the bill of exchange) for payment of the bill of exchange. If the person for whom the guarantee was given is unable to pay the bill, the obligation to pay on the bill falls on the avalist. Most often in practice, avalists are banks that provide guarantees for persons whose financial situation is under their control.

1.4 Check

Check - a written order from the drawer of the check to the bank to pay the recipient of the check the amount of money specified in it.

The drawer of the check is a person who has funds in the bank, which he has the right to dispose of by issuing checks; the holder of the check is the legal entity in whose favor the check is issued. Only the bank where the drawer has funds can be named as the payer of a check. Which he has the right to dispose of by issuing checks. The issuance of checks is carried out on the basis of an agreement (check agreement) between the drawer and the payer, according to which the paying bank undertakes to pay the check if there are funds in the drawer’s account.

Required details:

Name "Check";

Instructing the bank to pay the drawer the amount of money indicated on the check;

The name of the payer of the check and the account number from which the payment should be made;

Signature of the drawer;

Indication of payment currency;

Date and place of issue of the check.

The check has several types:

Personalized check - issued to a specific person.

Order check - is issued to a specific person, but further transfer of the check is possible by means of a transfer signature - endorsement.

Bearer's check - is issued to the bearer and can be transferred from one person to another by simple delivery.

Payment check - it allows payment in cash.

Cash check - designed to receive cash from a bank.

1.5

Certificates of Deposit and Savings - securities, the right to issue which is granted only to commercial banks. Deposit (savings) certificate is a security certifying the amount of the deposit made to the bank, and the right of the depositor (certificate holder) to receive, upon expiration of the established period, the amount of the deposit and the interest stipulated in the certificate from the bank that issued the certificate. If a legal entity acts as a depositor, then a certificate of deposit is issued, if an individual - a savings certificate.

The peculiarity of a certificate as a security is that it can only be issued in documentary form. In this case, the certificate can be personal or bearer.

The certificate form must contain the following mandatory details:

Name “Deposit (savings) certificate”;

An indication of the reason for issuing the certificate;

Date of making the deposit or savings deposit;

The amount of the deposit or savings deposit issued by the certificate;

An unconditional obligation of the bank to return the amount deposited or deposited;

Date of claim by the depositor of the amount under the certificate;

Interest rate for using a deposit or deposit;

The amount of interest due;

Names and addresses of the issuing bank and, for a personal certificate, the beneficiary (depositor);

Signatures of two persons authorized by the bank to sign such obligations, secured by the seal of the bank.

The absence of any of the required details in the text of the certificate form makes this certificate invalid.

Each certificate has a tear-off coupon (spoof), which is filled out by a bank employee and has the following details:

Certificate registration number;

Deposit amount (savings deposit);

Date of issue;

Return period;

Name of the issuing bank;

The owner's signature confirming receipt of the certificate.

The coupons remain with the credit institution and are intended for keeping records of issued certificates.

In order to issue certificates of deposit (savings), the bank must approve the conditions for their issue and circulation. To do this, they must submit them in 3 copies to the Main Territorial Administration of the Central Bank of the Russian Federation, the National Bank of the Republics within the Russian Federation at the location of the correspondent account within 10 days from the date of the decision on issue.

At the moment, there are certain restrictions on the subject composition of commercial banks that can issue savings certificates:

Carrying out banking activities for at least 1 year;

Complying with banking legislation and regulations of the Bank of Russia;

Having reserves for possible loan losses in accordance with the requirements of the Bank of Russia;

Having a reserve fund in the amount of 15% of the actually paid - authorized fund.

The circulation of deposit and savings certificates is carried out on the basis of general rules of civil law. The circulation period of a certificate of deposit cannot exceed 1 year, and a savings certificate - 3 years. At the same time, certificates cannot serve as a means of payment or payment for goods sold or services provided.

The assignment of the right of claim under bearer certificates is carried out by simple delivery of this certificate. The assignment of rights under a personal certificate is formalized by a bilateral agreement between the person assigning his rights and the person acquiring these rights.

1.6

Bearer savings book- this is a security that certifies the deposit of a sum of money into a banking institution and the right of its owner to receive this amount in accordance with the terms of the cash deposit. The issuance of a bearer savings book is carried out in cases where this is provided for in the bank deposit agreement, and only citizens can be the owners of such a security. Operations involving the placement of funds of a certain size into deposits with the registration of a bearer savings book are subject to mandatory control in accordance with Federal Law No. 115 of 08/07/2001 “On combating the legalization (laundering) of proceeds from crime.”

1.7 Bill of lading

Bill of lading- This is a transport document, which is a security that contains the terms of the contract of carriage by sea and expresses ownership of the specific goods specified in it.

A bill of lading is a document the holder of which receives the right to dispose of the cargo. The bill of lading is issued by the carrier to the sender after acceptance of the cargo and certifies the fact of conclusion of the contract. A bill of lading is issued for any cargo, regardless of how the transportation is carried out: with the provision of the entire ship, individual ship premises, or without such a condition. According to the bill of lading, the delivery of goods by water is carried out in accordance with the Hague Rules contained in the international convention on the unification of the conditions of bills of lading dated August 25, 1924, unless any other state law applies.

Types of bills of lading:

Line bill of lading is a document that sets out the will of the sender aimed at concluding a contract for the carriage of goods. A line bill of lading defines the relationship between the carrier and a third party - the bona fide holder of the bill of lading. A bill of lading is a receipt issued by the carrier to the sender confirming acceptance of cargo for carriage by sea, as well as a document of title. In this case, the contract for the purchase and sale of goods, as well as other transactions in relation to the goods, are carried out through a bill of lading without the physical transfer of one’s own goods.

Charter bill of lading is a document issued as confirmation of acceptance of cargo transported under a charter. A charter is a charter agreement, i.e. an agreement to hire a vessel for a voyage or for a specified period of time. The charter bill of lading does not serve as a document for the execution of a contract of sea transportation, since in this case a separate contract for the charter of the vessel is concluded in the form of a charter. The charter bill of lading defines the relationship between the carrier and the third party. A bill of lading is a receipt issued by the carrier to the sender confirming the acceptance of cargo for carriage by sea, as well as an administrative document. In this case, the purchase and sale contract, as well as other transactions in relation to the goods, are carried out through a bill of lading without the physical transfer of the goods themselves.

A shore bill of lading is a document issued to confirm the acceptance of cargo from the sender on shore, usually at the carrier's warehouse. When cargo is accepted on board a ship for which a shore bill of lading has been issued, a note is made in it about the loading of the goods on the ship and the date of loading and other marks are indicated. Sometimes, when cargo is accepted on board a ship, the shore bill of lading is replaced with an onboard bill of lading.

On-Board Bill of Lading is a document issued when goods are loaded onto a ship.

The bill of lading, like a security document, must contain certain details and information about the cargo:

Name of the vessel;

Name of the carrier company;

Cargo acceptance place;

Name of the shipper;

Name of the recipient of the cargo;

Name of the cargo and its main characteristics;

Time and place of issue of the bill of lading;

Signature of the ship's captain.

The absence of any details in the bill of lading deprives the bill of lading of the functions of a document of title, and it ceases to be a security. The bill of lading is issued in several copies, one of which is handed over to the shipper. When the cargo is issued according to one of the copies, all other copies become invalid.

The consignee is identified in the bill of lading in three ways. Depending on this, bills of lading differ in:

Registered - a security that indicates the name of a specific recipient;

Order - a security under which the cargo is issued either by order of the sender or recipient, or by order of the bank. An order bill of lading is the most common in maritime transport practice.

To bearer - a document indicating that it is issued to the bearer, i.e. it does not contain any specific information regarding the person entitled to receive the goods, and therefore the goods at the port of destination must be released to any person presenting it.

1.8 Promotion

Promotion- an issue-grade security that secures the rights of its holder (shareholder) to receive part of the profit of the joint-stock company in the form of dividends, to participate in management and to part of the property remaining after its liquidation.

A share is usually understood as a security that is issued by a joint-stock company upon its creation (establishment), upon the transformation of an enterprise or organization into a joint-stock company, upon the merger (absorption) of two or more joint-stock companies, as well as to raise funds when increasing the existing authorized capital. Therefore, a share can be considered evidence of the contribution of a certain share to the authorized capital of a joint-stock company.

Holders (shareholders) can be divided into:

Physical (private, individual);

Collective (institutional);

Corporate.

The issuer's shares are subject to the following provisions:

A joint stock company is not obliged to return to investors their capital invested in the purchase of shares. Their purchase of shares is considered as long-term financing of the issuer's costs by shareholders.

Payment of dividends is not guaranteed.

The size of dividends can be set arbitrarily regardless of profit. Even if there is a net profit, a joint stock company can use all profits to develop production and not pay dividends.

Having received funds through the placement of issued shares, the issuer has the opportunity to use them to form production and non-production fixed and working capital.

Investors in stocks are attracted by the following:

Right to income, i.e. to receive part of the net profit of the joint-stock company in the form of dividends.

Capital gains associated with a possible increase in the price of shares in the market. In fact, this is the main motive for purchasing shares.

Additional benefits that a joint stock company can provide to its shareholders. They take the form of discounts when purchasing products produced by a joint-stock company or using services (preferential travel, preferential prices for hotel accommodation, etc.).

Right of first refusal to purchase new issues of shares.

The right to part of the property of a joint-stock company remaining after its liquidation and settlements with all other creditors.

Shares have the following properties:

A share is a title of ownership, i.e. the holder of the share is a co-owner of the joint-stock company with the ensuing rights;

It does not have a lifetime, i.e. the rights of the shareholder are retained as long as the joint stock company exists;

It is characterized by limited liability, since the shareholder is not liable for the obligations of the joint-stock company. Therefore, in case of bankruptcy, the investor will not lose more than what he invested in the stock;

The action is characterized by indivisibility, i.e. joint ownership of shares is not associated with the division of rights between the owners, all of them together act as one person;

Shares may be split and consolidated. When splitting, one share turns into several. With a nominal value of 1000 rubles. 4 new ones are issued, so the par value of the new shares becomes equal to 250 rubles. Old certificates are confiscated from shareholders and new ones are issued, indicating that they own more shares.

During consolidation, the number of shares decreases, which can lead to an increase in their market price. But the minimum cost increases, and the size of the authorized capital remains the same. Shareholders will also receive new replacement certificates containing fewer new shares.

Principles of stock classification:

By method of income calculation:

simple with non-fixed income, depending on the size of the enterprise’s net profit,

preferred with fixed income.

By convertibility into other securities: convertible shares that are exchanged in appropriate proportions for securities of another type (for example, bonds),

irreversible (non-convertible) shares that cannot be exchanged for securities of another type.

According to the ability to maintain dividends: preferred shares can be

cumulative (to guarantee the payment of previously unpaid dividends),

non-cumulative (do not guarantee the payment of previously unpaid dividends).

By method of dividend payment:

shares with an adjustable dividend, which may change taking into account changes in rates on government short-term bonds or interest rates on bank loans;

shares with an unadjusted dividend, the amount of which does not change depending on changes in the yield on government short-term bonds or interest rates.

The circulation of shares is regulated by the Regulations on the issue and circulation of securities on stock exchanges of the RSFSR. According to this act, when establishing a JSC, all shares must be distributed only among the founders of both closed and open JSC. An additional issue of shares is possible if all shares previously issued by the company are fully paid. Each issue of shares is possible only upon registration of this issue and its prospectus.

2. Operationsbanks with securities

In accordance with the Law of the Russian Federation “On Banks and Banking Activities,” Banks in Russia act as universal credit institutions that carry out a wide range of operations in the financial market: providing loans of various types and terms, purchasing and selling and storing securities, foreign currency, raising funds in deposits, making payments, issuing guarantees, sureties and other obligations for third parties, intermediary and trust transactions.

Commercial banks in Russia can act as issuers in order to form their own authorized capital, redeem their own debt obligations - bonds and other securities, including derivatives. In an effort to attract customers, they are forced to constantly compete, expanding the range of services and reducing their costs. At the same time, banks are not always given the opportunity to maintain stability and reliability.

According to the Russian Law “On Banks and Banking Activities,” commercial banks are allowed to:

Issue, buy, sell, store securities, and carry out other transactions with them;

Provide brokerage and consulting services;

Carry out settlements on behalf of clients, including transactions with securities;

Manage securities on behalf of clients (trust or trust operations).

These types of activities cover a wide range of possible transactions with securities. At the same time, due to the absence of restrictions for Russian banks on conducting operations on the stock market, they can carry out certain types of business activities:

· - brokerage activities;

· - dealer activities;

· - depository activities;

· - settlement and clearing activities for the transfer of securities and funds in connection with transactions with securities;

· - activities related to maintaining and storing the register of shareholders;

· - activities related to organizing trading in securities.

All types of bank operations with securities can be classified according to a number of criteria, reflecting both the interest of the bank itself and its counterparties.

The following operations of banks with securities are distinguished:

Issue of monetary securities;

Purchase and sale of securities of other issuers;

Custody of securities;

Management of securities on behalf of clients, etc.

2. 1 Issue of monetary securities

The standard issue of securities offers the following stages:

1. Making a decision on the placement of equity securities;

2. Approval of the decision to issue equity securities;

3. State registration of the issue of issue-grade securities;

4. Placement of issue-grade securities (that is, transfer of securities to the primary owners);

5. State registration of a report on the results of the issue of issue-grade securities or provision of a notification to the registration authority on the results of the issue of issue-grade securities.

The instruction regulates the issue of securities, which a joint-stock bank can carry out in 3 cases:

at its establishment;

when increasing the size of the bank's initial authorized capital by issuing shares;

when a bank attracts borrowed capital by issuing bonds or other debt obligations.

To attract funds to replenish resources or finance investment projects, individual events, etc. the bank can issue shares and bonds. When issuing shares, the bank first acts as a seller, and then as an object of shared ownership of shareholders. If a bank issues bonds, then it is first the seller and then the debtor. Buyers of bonds act as creditors. The bank’s issue of its own shares or bonds allows it to obtain, at minimal cost, the necessary financial resources to expand the scope and volume of services provided.

Based on the issue of shares and bonds, the bank's own and borrowed capital is formed. Among bank shares, ordinary shares are the most common. Preferred shares are issued less frequently. The Civil Code of the Russian Federation (Article 102, paragraph 4) imposes restrictions on the issue of preferred shares, the share of which in the total volume should not exceed 25%. Bank bonds are even less popular than preferred shares, although in world practice bank bonds occupy a significant place in financial market.

The repeated issue of shares in order to increase the authorized capital of a joint-stock bank is permitted only after the shareholders have paid for all previously issued shares. It may contain both ordinary and preferred shares.

The issue of bonds by a bank to attract borrowed funds can only be carried out under the condition of full payment of all shares issued by this bank (if the bank is a joint-stock bank) or full payment to shareholders of their shares in the authorized capital (if the bank is a share bank) and in an amount not exceeding the bank’s equity capital.

During the initial placement of shares, the issuing bank does not have the right to purchase them at its own expense; in the secondary market, banks can act as their own shares, but in strictly prescribed cases by law. Many joint-stock banks, in order to maintain the market price of their own shares, are highly active in the secondary market of their own shares.

It is known that the market price of shares reflects the bank’s position in the market, its stability and profitability. A fall in the exchange rate serves as a signal of emerging unfavorable trends in the development of a given bank and can provoke not only the dumping of its shares by shareholders, but also a massive outflow of deposits from the bank, which will have a detrimental effect on it. Therefore, in the event of a decline in stock prices, banks not directly, but through investment companies, actively buy them on the secondary market, which leads to an artificial increase in their rate and creates the appearance of strengthening the bank’s market position.

Russian banks are actively developing the issuance of promissory notes as short-term debt obligations. It should be noted that although the issue of bills is an issuance operation, the bills themselves are issued without registration of the issue prospectus, therefore, this operation can be rightfully characterized as the issue of bills. Banks use the issuance of bills primarily to raise funds for the active operations of the bank at the lowest possible cost and with the lowest overhead costs compared to the use of traditional credit and deposit forms of investment.

Reducing overhead costs is achieved due to the fact that, performing the same function as a certificate of deposit, the bill of exchange has a simplified issuance procedure - there is no registration procedure with the Bank of Russia. The current rules only require notification of the Main Territorial Administration
The Central Bank of the Russian Federation on the issue of bills by the bank. At the same time, the current bill of exchange legislation allows issuers the opportunity to independently establish rules for issuing bills of exchange that do not contradict this legislation, which makes bills of exchange the most attractive for banks.

Banks can issue bills either in series or on a one-time basis.

The attractiveness of a single bill is that the terms of its issue and circulation can be determined taking into account the interests of a particular investor.

Banks give a clear preference to the serial issue of bills of exchange, since in this case they attract a large number of investors and a significant amount of resources.

Initially, banks began to issue bills at a discount. The buyer's income in this case is the difference between the face value of the bill and its purchase price. But later it turned out that interest-bearing bills were more convenient and profitable for both banks and clients.

When raising funds by issuing bills, banks must contribute a certain percentage of their amount to the required reserve fund of the Central Bank of the Russian Federation. Thus, by issuing an interest-bearing bill, the bank immediately receives at its disposal an amount equivalent to the face value of the bill, from which the reservation is made.

When issuing a discount bill, the bank receives an amount less than the face value, but is obliged to make a reservation from the full amount of its obligation.

The issue of deposit and savings certificates can be carried out exclusively by banking institutions, pursuing the following goals:

· Attracting deposit resources for active operations. Russian banks set flexible terms for certificates of deposit from 1 day to 1 year. This is due to the fact that, unlike bills of exchange, certificates of deposit can only be fixed-term; the maximum circulation period for certificates of deposit is 1 year, for savings certificates - 3 years.

· Expanding the bank's clientele by diversifying the services provided to the client.

· Reduced liquidity risk. By issuing certificates of deposit, the bank receives liabilities with a fixed period, which allows it to reduce liquidity risk.

The procedure for issuing certificates of deposit and savings certificates of commercial banks is less formalized than issuing shares and bonds.

For the initial placement of certificates of deposit, the auction method has proven itself to be an effective method. When conducting it, the bank offers investors limits on the interest rates at which certificates of deposit are offered for placement. First of all, applications for the purchase of certificates are satisfied, which indicate the best conditions from the bank’s position - the minimum percentage of placement.

The secondary market may be maintained by the issuing bank. In this case, he must deal with certificates, offering two-way quotes.

Redemption when interest rates fall is an effective operation for the bank, but economically unprofitable from the investor’s position. That is why certificates sell well during the period of struggle to reduce inflation, accompanied by a fall in market interest. During the period of gradual inflation, it is advisable for banks to abandon certificates in favor of more convenient bills.

The price that the bank sets for the sale of previously redeemed certificates is determined based on the time until its redemption and the interest rates that will allow the bank to sell the certificate.

Banks can also buy back their own previously issued securities in order to:

1. maintaining the market rate of their securities (i.e., to maintain or stabilize their market rate, as well as for their subsequent profitable resale);

2. subsequent preferential resale to its employees (in order to encourage or attract them to manage the bank);

3. subsequent redemption of shares

4. early redemption of redemption bonds (early redemption of securities is beneficial to the bank and is not always beneficial to bondholders, since instead of lost interest they can receive only a small reward);

5. Exchange for own securities of another type (such an exchange occurs at the initiative of the investor, if the possibility of exchange is provided for by the terms of circulation of securities and the yield on previously acquired securities is lower than on securities of another type).

2.2 Purchase and sale of securities of other issuers

Banks' operations with securities of other issuers are more diverse than in the case of operations with their own. Banks are engaged in their placement both in the primary and secondary markets, while making transactions both on their own behalf and at their own expense, and on behalf of and at the client’s expense. Banks also act as intermediaries between sellers and buyers of securities and receive a remuneration from the client for their intermediation, which depends on the volume.

During initial public offerings of securities, banks act as intermediaries between issuers of securities and investors. Intermediation consists of distributing the issuer's securities among investors, which is carried out using various methods. In this case, banks can:

1. buy at your own expense the entire issue of securities or a certain part of it, in order to then resell at a premium;

2. distribute securities among investors, guaranteeing the issuer to buy back the unsold part of the issue (“distribution with a buyback guarantee”);

3. distribute securities among investors without a guarantee of redemption of the unsold part of the issue (“without a guarantee of redemption”).

In case of repurchase of the entire issue, banks act as a buyer for the issuer of securities and as a seller for the investor. In the case of distribution with a repurchase guarantee, the bank is a commission agent or attorney for the issuer and a seller for the investor, and in the case of a repurchase of the balance of the issue, it is a buyer for the issuer. In the case of distribution without a redemption guarantee, the bank acts as a commission agent and attorney for the issuer. Banks' counterparties when performing operations on the initial placement of securities are issuers and investors. Banks can perform these operations in-house or with the help of intermediaries.

The technology for banks to carry out transactions with securities of other issuers on the secondary market can also be different:

1. the bank enters into a commission agreement with the client for the purchase or sale of securities on behalf of the client, on the basis of which it enters into a purchase and sale transaction with a third party on its own behalf (the bank acts as a commission agent in relation to the client, and the client acts as a committent in relation to the bank. The third party is buyer or seller of securities);

2. the bank enters into an agreement with the client for the purchase or sale of securities, on the basis of which it enters into a purchase and sale transaction with a third party on behalf of the client (the bank acts as an attorney in relation to the client, and as a representative of the client in relation to the third party. The client acts as in relation to the bank, the third party is the buyer or seller, respectively);

3. the bank enters into an agency agreement with both the seller and the buyer of securities, on the basis of which the buyer and seller enter into an agreement for the purchase and sale of securities among themselves (the bank acts as a principal in relation to both the buyer and the seller of securities. Buyer and seller securities act as principals in relation to the bank).

Clients turn to the bank for mediation in order to quickly conclude a transaction on the most favorable terms for themselves. Banks can enter into transactions for the purchase and sale of securities on their own behalf and at their own expense in order to receive income from these transactions. At the same time, the tasks of banks may be different:

· formation and maintenance of a securities portfolio that meets the bank’s investment goals;

· speculation with securities in order to attract profit due to exchange rate differences;

· “quotations” of certain securities, in which the bank acts as a seller or buyer for anyone wishing to purchase or sell these securities.

Speculative transactions with securities, as well as with other financial assets in other financial markets, are carried out with the aim of making a profit due to changes in the price of a given asset over time and in different markets. The bank, as a rule, works with permanent counterparties and plays on short-term market conditions.

In the case of “quotes,” the bank responds to any request from market participants to conclude a purchase and sale transaction by stipulating the price of the securities in advance.

2.3 Custody of securities

The bank may organize the storage and accounting of securities in its vault or the vaults of other credit and financial institutions. The bank can also, on behalf of clients, organize multilateral settlements for securities transactions concluded by clients, provide additional services: clearing, lending, insurance, etc. The bank’s interest in this case is to receive the maximum remuneration for servicing clients, including maintaining a “depo” account and organizing settlements for securities.

Banks can carry out the following operations for storing securities:

· store and maintain records of clients’ securities on their behalf;

· store and keep records of securities purchased at your own expense;

· maintain off-balance sheet “depo” accounts.

The purpose of these operations is:

· ensuring reliable storage and accurate accounting of securities;

· fast customer service when accepting and issuing securities;

· transfer of securities from account to account on behalf of the client.

To achieve these goals, the bank must organize:

· storage of securities certificates (forms) in your vault or in the vault of another credit institution;

· accounting of securities deposited in documentary form;

· accounting for uncertificated securities, for which off-balance sheet “depo” accounts are opened;

· acceptance, issuance, transfer and transfer of securities from account to account and from vault to vault.

The bank's counterparties in these operations are:

· owners of securities who deposited them;

· principals for organizing multilateral settlements;

· buyers of bank services;

· participants in insurance transactions.

2.4 Management of securities on behalf of the client

Operations for the purchase and sale of securities on behalf of the client provide for the conclusion of an appropriate agreement between the client and the bank, under which the bank undertakes to either buy securities or sell them on the terms specified by the client. Why does the client provide the bank with a certain amount of money or a package of securities intended for sale?

To provide clients with services that ensure their execution in the best possible way, banks can create special divisions for managing clients' securities.

The functions of these divisions include:

1. collection of income from securities;

2. collection of repayable amounts on debt obligations;

3. exchange of certificates and coupon sheets;

4. exchange of shares upon merger of joint stock companies;

5. replacement of some types of securities with others;

6. informing clients about regular meetings of shareholders, about the issue of new shares in which clients have preferential rights to purchase;

7. representing the interests of clients on their behalf at shareholder meetings, voting on behalf of clients, etc. Clients are interested in receiving comprehensive services related to holding securities.

The bank, taking into account the funds received from clients and issuing certificates, can use these funds exclusively for the purchase of securities of the joint funds being created.

Thus, banks can carry out a full range of stock transactions, acting on the market as an issuer of securities, an investor and intermediary in relations between third-party issuers and investors, providing depository and settlement and clearing services, as well as providing trust services.

Conclusion

In this work, the basic concepts of the securities market and the operations of banks in the securities market were examined. These concepts are inseparable from each other in the Russian economy, since the main participants in the securities market are banks.

The interest of commercial banks in issuing their own shares and placing them on the open market can be explained by a number of circumstances. First of all, this is inflation, which constantly depreciates the bank’s own capital. Inflation makes it impossible for banks to attract long-term deposits, so to make relatively long-term investments, banks must use their own capital.

High quotations of banking shares are considered by banks as a way to strengthen their positions in the market. Expand your sphere of influence and attract new clients. Therefore, in the event of a decline in stock prices, banks, through investment companies, actively buy them on the secondary market, which leads to an artificial increase in the rate and creates the appearance of strengthening the bank’s market position.

Bank bonds are not very popular, since investors are not yet able to invest funds for a long time.
The advantage of bonds is that they can be used as a means of payment.

Considering today's market for bank bills, all bill issuers can be divided into two groups. On the one hand, many banks issue purely financial bills, using them as an analogue of a deposit loan for profit. On the other hand, there is an already established circle of banks and financial organizations that use bills of exchange to carry out a variety of trade and financial transactions.

There are different securities with different characteristics traded in the securities market, but the most important indicator is the risk-return ratio. These quantities are directly proportional. A feature of the investment policy of banks is the determination of this ratio and profitable investment of funds in securities.

Although the Russian securities market is just developing, it depends on the world securities market, but also has its own distinctive features in the field of taxation, government regulation, and industrial production. It should be noted that today the Russian securities market faces a number of problems, a quick and effective solution to which will serve as an impetus for its further development and increased activity of securities market participants - banks.

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