International securities as a term appeared to designate international securities that circulate in many countries at the same time.

The European securities market is one of the largest markets for international securities.

It accounts for more than 75% of the total volume of the entire securities market.

Eurobonds, Euroshares and Euronotes are among the Eurosecurities.

Eurobonds are bonds of states and companies denominated in Eurocurrencies.

It is necessary to distinguish between Eurobonds and bonds that are issued on national capital markets (domestic issues). These are different things. Domestic bonds are issued by an investor who is a resident of the country of issue. Such a bond issue is carried out in the currency of that country and placed in the country of issue. It may be placed in a foreign country, but in the currency of the issuer’s country; in addition, most of it will be placed in the issuer’s country.

Eurobonds are issued in a currency that differs from the currency of the issuer's country. The bonds will also be placed among international investors. The group for the placement of these securities will consist of representatives of international investment banks.

The name "euro" arose only because of the location of the two leading clearing and settlement houses that handle these issues.

The two main chambers are EURO-CLEAR (in Belgium, founded 1970) and CEDEL (Luxembourg, founded 1972). It is these organizations that carry out settlements and clearing for most Eurobonds. In addition, there is a so-called “electronic bridge”, with which you can make payments directly from the accounts of these two organizations.

Eurobonds are characterized by the following features:

These are bearer securities;

Issued for a period of 2 - 15 years;

They can be placed simultaneously on the markets of several countries;

Their nominal value has a dollar equivalent;

Interest on coupons is paid to the owner of Eurobonds in full without deducting tax at the source of income.

Most Eurobonds are represented by global or individual certificates. They are located in depository clearing houses and simply move through the accounts of clients or agents. Eurobond issues pay interest only once a year, and trading prices reflect net prices without accrued interest. Interest is calculated according to the American system, that is, based on 360 days a year.

Bonds are mostly issued in US dollars. It is in the US state that the main international investors are located, while the second large group of investors is located in Japan and willingly works with the main world currencies. Securities trading is regulated by the International Securities Market Association (ISMA). It consists of the largest European banks and investment houses. ISMA is recognized by many countries as a self-regulatory organization. The International Securities Market Association's primary concern is that trading rules are followed.

Euronotes are medium-term registered bonds that make up the main part of the Eurobond market and are in demand from mutual funds.

Euroshares are securities that are issued by transnational corporations, large banks, and investment funds to additionally attract investments into the European financial market.

They are often converted into Eurobonds or vice versa.

ADR, features of issue and circulation - An American depositary receipt is an American security indicating ownership of a certain number of shares of a foreign company deposited in the country of location of this company, which is issued in the United States and circulated both in the United States and in other countries .

An American depositary receipt is a form of indirect (mediated) ownership of shares of a foreign (for American investors) company.

ADR belongs to the class of secondary securities and is: perpetual; nominal; usually documentary; emission; shared; profitable.

The number of shares to which it grants rights is taken as its par value.

Depending on the initiator of the issue, ADRs are divided into: a) unsponsored ADRs - these are depository receipts that are issued at the initiative of individual shareholders of the company. The latter bear all costs associated with their release. This type of receipt has a simplified registration (issue) procedure, but does not have the right to trade on American exchanges. This makes them less attractive to market participants; b) sponsored ADRs are deposit receipts that are issued at the initiative of the company itself. The latter in this case has the right to conclude an agreement for their issue with only one American bank (from among those to whom such a right is granted), and all costs arising in this case are borne by the company itself in accordance with the concluded agreement. Release order. In practice, issuing American depositary receipts for Russian shares is a complex, lengthy and expensive process. In its most general form, it comes down to two groups of actions:

1) actions in Russia - an American intermediary bank deposits in our country in the name of its branch a certain number of shares of a Russian company, which it does not have the right to sell on the Russian stock market (i.e., these shares are, as it were, withdrawn from domestic circulation). These shares are held in Russia as the basis (collateral) for the issuance of American depositary receipts, being registered in the name of a given bank, which in this case is called the “depository” bank;

2) actions in the USA - the specified bank in its country issues an equivalent number of depositary receipts for Russian shares in compliance with the established rules (laws) of the American stock market. The depository bank in the United States becomes the issuer of these receipts.

The responsibilities of the depository bank include providing American investors with information about the Russian issuer, which the latter is obliged to provide to all its shareholders. Appeal. An American investor places an order with his broker to purchase a certain number of ADRs. The broker purchases them on the US secondary market, and the transaction is recorded by the depository of the issuing bank of these depositary receipts. If there is no offer to sell ADRs or the offer price is too high on the American market, an American broker can contact a colleague in Russia and place a purchase order at a price that suits him. (All these actions are performed only within the limits of the number of depositary receipts allowed for issue.) The Russian broker purchases the required number of shares on the Russian market. These shares are properly registered in the name of the American Depositary Bank branch (as the nominee holder of the Russian shares). The U.S. bank branch informs its U.S. headquarters that the required shares have been deposited. After this, the American bank issues an additional number of depositary receipts for these shares and transfers them to the American broker, who pays for them and registers them in the name of his client.

The sale of ADRs by an American investor occurs in the reverse order. On his behalf, the broker is trying to sell them on the US domestic market. The concluded transaction is formalized in the prescribed manner: the investor receives his money, and the depositary receipts are re-registered to the new American owner. If a broker cannot sell ADRs in the American market, then he can try to do so in the Russian market by contacting a Russian broker who is looking for a buyer in Russia. If one is found, then the depositary bank in the United States cancels the required number of ADRs issued by it, and in Russia the corresponding number of shares is written off from the account of the branch of the American bank as a nominal holder, and these shares are re-registered in the Russian register of shareholders to the new owner.

As for the circulation of ADRs in the US domestic market, investors pay the necessary commission expenses within the limits existing in the market. If a transaction with ADRs affects the Russian market, then, naturally, the composition and amount of these commission expenses expands significantly, since new intermediaries are involved in the transaction.

More on the topic International securities:

1. Government securities: goals and features of the issue
2. Chapter 19. Over-the-counter securities market. International securities market
3. Economic essence, classification and meaning of securities
4. 3. International credit: problems of import and export of capital
5. Accounting for repurchased own shares and valuation of retiring securities for accounting and tax purposes.
6. 61. International credit problems of import and export of capital.

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One of the areas of investing capital for the purpose of generating income or making settlements is 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. A security can only appear as a result of an issue. The issue of securities is a sequence of actions by the issuer to place issue-grade securities.

Issuer is a legal entity or executive authorities or local governments that bear, on their behalf, obligations to the owners of securities to exercise the rights assigned to them.

Owner - a person to whom securities belong by right of ownership or other proprietary right.

There are two types of securities:

Basic securities;

Derivatives;

Basic securities are securities that are based on property rights to any asset, as a rule, to goods, property, various kinds of resources, money, capital, etc.

Basic securities are divided into two subgroups: primary and secondary securities.

Primary securities are based on assets that do not include the securities themselves. These are, for example, stocks, bonds, bills, mortgages, etc.

Secondary securities are securities issued on the basis of primary securities; These are securities for the securities themselves: warrants for securities, depositary receipts, etc.

A derivative security is a non-documentary form of expression of a property right (obligation) arising in connection with a change in the price of the exchange asset underlying this security. If we simplify this definition somewhat and make it less strict, then we could say that a derivative security is a security for any price asset: for the prices of goods (usually, exchange-traded goods: grain, meat, oil, gold, etc. .P.); on prices of underlying securities (usually stock indices, bonds); on credit market prices (interest rates); on foreign exchange market prices (exchange rates), etc.

Derivative securities include: futures contracts (commodity, currency, interest, index, etc.) and freely traded options. By the type of securities we will understand such a set of them for which all the characteristics inherent in the securities are common and identical.

There are classifications of securities and classifications of types of securities.

The main types of securities in terms of their economic essence are:

A share is a single contribution to the authorized capital of a joint-stock company with the ensuing rights;

Bond - a single debt obligation to return the invested amount of money after a specified period with or without payment of a certain income;

A bill is a written monetary obligation of the debtor to repay the debt, the form and circulation of which are regulated by special legislation - bill law;

Bank certificate - a freely negotiable certificate of a deposit (savings) deposit in a bank with an obligation to make the final payment of this deposit and interest on it within a specified period;

A futures contract is a standard exchange agreement for the purchase and sale of an exchange-traded asset at a certain time in the future at a price set at the time of the transaction.

Bill of lading is a document (contract) of a standard (international) form for the carriage of cargo, certifying its loading, transportation and right to receive it;

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

An option is an agreement according to which one of the parties has the right, but not the obligation, to sell (buy) a corresponding asset from the other party within a certain period at a price established at the conclusion of the agreement, with payment for this right of a certain amount of money, called a premium ;

Warrant - a) a document issued by a warehouse and confirming ownership of the goods located in the warehouse; b) a document giving its owner a preemptive right to purchase shares or bonds of a company for a certain period of time at a set price;

Future securities are securities that have a lifespan established upon their issue. Typically, fixed-term securities are divided into three subtypes: short-term, with a maturity of up to 1 year; medium-term, having a maturity of more than 1 year within the range of 5-10 years; long-term, having a maturity of up to 20-30 years.

Perpetual securities are securities whose circulation period is not regulated in any way, i.e. they exist “forever” or until maturity, the date of which is not indicated in any way when the security is issued. The classic form of existence of a security is a paper form, in which the security exists in the form of a document. The development of the securities market requires the transition of many types of securities, primarily equity ones, to a non-documentary form of existence.

Investment (capital) securities - securities that are an object for capital investment (shares, bonds, futures contracts, etc.). Non-investment securities are securities that serve monetary settlements in commodity or other markets (bills, checks, bills of lading). Ownership of a security can be registered or bearer. A bearer security does not record the name of its owner, and its; circulation is carried out by simple transfer from one person to another. A registered security contains the name of its owner and, in addition, is registered in a special register. If a registered security is transferred to another person by making a transfer note (endorsement) on it, then it is called an order security.

Government securities are usually different types of bonds. Non-government securities are securities that are issued by corporations and even individuals. The main types of securities are marketable, i.e. can be freely bought and sold on the market. However, in a number of cases, the circulation of securities may be limited, and the security cannot be sold to anyone except the one who issued it, and then after a specified period. Such securities are non-marketable. From the point of view of profitability, securities are usually profitable, but they can also be non-income, when the amount of income to its owner is not specified when the security is issued.

The division of securities into debt and owner's equity basically reflects two possible ways of using funds: either for the acquisition of any asset in ownership, or for temporary use.

Issue-grade securities are usually issued in large series, in large quantities, and within each series all securities are completely identical. These are usually stocks and bonds. Non-issue securities are issued individually or in small series.

1. Check - a type of security, a monetary document of the form established by law, containing a written order from the owner of a current, current or other account (check drawer) to the credit institution in which the account is located to pay the check holder a certain amount of money specified in this document. Typically, the payer of a check is a bank. A bank may not honor a check if the signature on the check is not legible or if the check is drawn on an unsecured bank account. Usually the check is written on a special form received by the depositor from the bank.

There are several types of checks :

- bearer ( issued to bearer; its transfer is carried out by simple delivery);

- personal, issued to a specific person with the clause “not to order”, it cannot be transferred in the usual manner to another person;

- order- issued in favor of a specific person or on his order. Thus, the check holder has the opportunity to transfer it to the new owner by means of an endorsement on the reverse side. This is the most convenient and common type of check, because is transmitted in a simpler way than a personal check and at the same time guarantees that it cannot be used by a random person.

- traveler's (tourist) check- a payment document, a monetary obligation (order) to pay the amount of currency indicated on it to its owner. Traveler's checks are issued by large banks in national and foreign currencies of various denominations. A sample signature of the owner is affixed at the time the check is sold to him.

- Eurocheck- a check in eurocurrency - issued by the bank without a preliminary deposit of cash by the client and for larger amounts on account of a bank loan for a period of up to a month; paid in any country that is a party to the Eurocheck agreement (since 1968). A unified form of Eurochecks, their payment only if the owners present guarantee cards, and control over the processing of Eurochecks using a computer help improve settlements for international tourism.

According to the payment method, they are distinguished:

- simple check when payment is made in cash;

- settlement check- when using it, the amount of money is not paid in cash, but is transferred from account to account. Thanks to this, a settlement check provides security: it guarantees that only the organization for which the check amount was intended will receive the money. Therefore, a settlement check is very often used in business. Typically, a settlement check is crossed out on the front side with two oblique or transverse lines. Such checks are called crossed. Purpose of crossing– reducing the risk factor of erroneous payment of a check to the wrong person by limiting the circle of possible check holders who have the right to present it for payment only to banking institutions.

The check does not serve the purpose of financing, but is used in the non-cash payment system, therefore short deadlines for presenting the check are provided. A check is used not only as a means of payment within the country, but also for international payments. The procedure for issuing, paying and transferring a check as one of the means of international payments is regulated by the Geneva Check Convention of 1931, ratified by many countries.

Payments can also be made using a bill of exchange.

2. Solo bill (simple)- a simple and unconditional obligation of the drawer (debtor) carried out in writing to pay a certain amount of money at a certain time and in a certain place to the holder of the bill or his order.

In international payments, bills of exchange issued by the exporter to the importer are more often used. Draft (bill of exchange) - order of one person - drawer, addressed to another person - drawee, pay a certain amount to a third party within the appointed time - to the remitter.

In other words, draft - This is a written order from the lender to the borrower to pay the latter a certain amount of money to a third party. This means that the drawer is both a creditor in relation to the drawee and a debtor in relation to the remittor.

The drawee's obligation under this order begins to operate only from the moment when he confirms his agreement to pay on the document itself. The issuance of a bill of exchange aims to settle both debt claims.

The acceptor, who is the importer or the bank, is responsible for paying the bill. Drafts accepted by banks can easily be converted into cash by accounting. The form, details, conditions for issuing and paying drafts are regulated by bill of exchange legislation, which is based on Uniform Bill of Exchange Law, adopted by the Geneva Bill of Exchange Convention of 1930. The prototype of drafts was those that appeared in the 12th-13th centuries. covering letters requesting payment to the submitter (usually the merchant) of the appropriate amount in local currency. With the development of commodity-money relations and the internationalization of economic relations, the bill became a universal credit and settlement document.

The use of a draft in addition to collection and letter of credit gives the right to receive credit and foreign exchange earnings.

Bills of exchange as securities have negotiability.

The use of a bill of exchange as a means of payment presupposes that the first acquirer of the bill has the right to transfer its ownership to another person, and each subsequent acquirer has the same right. The transfer of a bill of exchange into ownership (as well as a check) is usually called endorsement; person transferring a bill of exchange to another - endorser, and the person to whom the bill passes - endorser.

The essence of the endorsement is that by placing an endorsement on the reverse side of the bill of exchange along with the bill of exchange, the right to receive payment is transferred to a third party. The act of transferring a bill of exchange is called endorsement (endorsement) bills.

Exists two types of endorsements:

1) personal signature – requires, in addition to the signature of the person transferring the bill, the name of the new purchaser of the bill (endorser).

2) blank signature - consists of only one signature of the person transferring the bill - the endorser.

In order to increase the reliability of bills of exchange, it is used promissory note - aval, which represents bank guarantee, expressed in the form of a signature on the front side of the bill. The avalist (who gives the instruction) is liable to the same extent as the person for whom he vouched.

If the drawer of a bill wants to ensure that the drawee will pay the payee when due, he presents the bill to the drawee or through the bank for acceptance. Thus, a bill of exchange as such does not have the force of legal tender, but is only a “representative” of real money, therefore, the debtor (drawee), confirming in writing his agreement to make payment on the bill, accepts the draft (writes the word “accepted” and signs and dates it). In this case, the drawee becomes the acceptor of the bill.

3. Since the 60s of the XX century. Credit cards are actively used in international payments. Credit card - a personal monetary document giving the owner the right to purchase goods and services using non-cash payments. Credit cards of American origin predominate (Visa-international, MasterCard, American-Express, etc.).

At the end of the 20th century. 21.6 thousand banks from approximately 200 countries and territories issued more than 300 million.

Visa credit cards, 29 thousand banks in more than 70 countries - 150 million. MasterCard, American-Express system services _______about 100 million credit cards around the world. Computer, electronic and space communications are used to process them. Computers in banks and shops are connected via telephone to the central computers of the system, which process information.

5. Payment system SWIFT

SWIFT- is a society for international interbank financial telecommunications. This system was created in 1973 in Brussels by representatives of 240 banks from 15 countries. The goal is to simplify and unify international payments, speed up the transfer of large volumes of information while reducing the likelihood of errors. Now there are more than 3,700 financial institutions from 92 countries in the system, the daily volume of transmitted information is about 2 million messages. Messages are delivered anywhere in the world in 5-20 minutes. The system is characterized by a high degree of confidentiality and reliability. General development strategy of SWIFT: multiprocessing; Possibility of integration into other networks; transmission of graphic information; modeling software; compliance with open systems standards.

In addition to the SWIFT system, there are also other payment systems:

"Fedwire" is a system for transferring funds and securities in large amounts. The system is owned and operated by the US Federal Reserve. This system connects 12 Federal Reserve Banks. Fedwire money transfers are used primarily to make payments related to interbank next business day loans, interbank settlement transactions, payments between corporations, and settlement of securities transactions.

CHIPS- a private computerized network for dollar transfers operating in “on line” mode. This system belongs to the New York Clearing House Association and has been operating since 1971. CHIPS, like Fedwire, is a credit transfer system. Unlike Fedwire, CHIPS payment transactions are settled on a multilateral basis and obligations are settled at the end of the day.

Western Union- American private money transfer system.

It was founded in 1851. Now the company provides services in 195 countries and territories of the world (including Russia). Western Union services are available to more than 80 percent of the world's population. For more than 130 years, millions of people have trusted Western Union to send money home every year - a Western Union partner will help make this transfer securely and quickly.

In Switzerland it operates 24 hours a day Swiss Interbank Clearing System (SICS) . It makes final and irrevocable payments using funds deposited with the Swiss National Bank. This system is the only system that makes payments electronically between Swiss banks. All payments are settled on participants' accounts on an individual basis. Purpose of operation of ShMKS:

Reducing credit risks;

Elimination of overdrafts on giro settlements (a type of non-cash payments through settlement checks) in the Swiss National Bank;

Speeding up settlements and making it easier for banks to manage cash.

In Japan since 1988 Bank of Japan Financial Network System (BJS-BNS)) for the purpose of carrying out electronic money transfers between financial institutions, including the Bank of Japan, which manages it. Remittances carried out by the FSB-YA are mainly credit transfers.

The most important component of international economic relations are currency relations, through which payment and settlement transactions are carried out in the global economy. The form of organization and regulation of currency relations is the currency system. The monetary system is a set of economic relations associated with the formation of currency and forms of their organization (the presence of appropriate institutions: organizations, institutions, legal norms).

The world monetary system is a form of organization of currency relations, determined by the development of the world economy, the strengthening of integration processes in the world and legally enshrined in interstate agreements.

The basis of the world monetary system is:

• national currencies, as well as collective reserve currency units, such as SDR, ECU, and now the euro; reserve currencies perform the function of a means of payment and reserve, and are also international liquid assets, i.e. means of payment accepted to pay off international obligations;
• currency parities and rates;
• conditions of mutual reversibility, convertibility of currencies;
• international payments and currency restrictions;
• foreign exchange markets and world gold markets;
• regulatory, control and management bodies represented by national and interstate organizations.

International monetary relations are based on national currencies. Currency refers to national monetary units used in international payment and settlement transactions. Currency relations have a significant impact on the national reproduction process, which in turn contributes to an increase in the volume of global currency trade and the emergence of new financial instruments and institutions.

The exchange rate is determined primarily by the purchasing power of the currency, which reflects the average national price levels for goods, services, investments, and the specific value of the exchange rate is determined by the rate of inflation, the difference in interest rates, and the state of the balance of payments. There are nominal and real exchange rates. A nominal rate is a certain specific “price” of a national currency expressed in a certain amount of foreign currency, and vice versa. The real exchange rate is calculated by multiplying the nominal rate by the ratio of the price levels of the two countries.

Currency exchange at the established rate is carried out on foreign exchange markets. The foreign exchange market is a set of relations that arise between the subjects of foreign exchange transactions. It is represented by commercial banks and other financial institutions that have the right to carry out transactions with currency. The formation of stable relations regarding the purchase and sale of currency and their legal consolidation led to the formation of first national, and then regional and international currency systems.

An important characteristic of the monetary system is the degree of currency convertibility. According to this criterion, a distinction is made between freely convertible currency, partially convertible and non-convertible currency. Convertibility is the connection between the domestic and world markets through the exchange rate of the national currency. The gold standard ensured absolute convertibility at the gold parity of currencies. Under all other conditions, convertibility is relative, i.e. The currency of one country is exchanged only for the currency of another country.

Relative convertibility can be complete or partial, i.e. the degree of convertibility is determined by the presence of currency restrictions. These restrictions can be economic, legal and organizational. Currently, fully convertible currencies are those of industrialized countries. Most other countries have some form of restriction. For Russia, ruble convertibility has been achieved for current transactions; full convertibility can be achieved with deep structural restructuring and restoration of economic potential in all determining areas of national economic development.

Evolution of the world monetary system

The formation of currency relations is a historically long and complex process. The first world monetary system was formed towards the end of the 19th century. This process was objectively determined by the development of world economic relations. Based on the decisions of the Paris Conference in 1867, the gold (gold coin) standard was adopted. Under the gold standard, gold was used as a monetary commodity. Each national currency had a gold content, according to which its parity with other currencies was established. The role of world money was recognized for gold, and free exchange of currencies for gold was carried out. At the end of the 19th and beginning of the 20th centuries, the conditions for the development of the world economy changed, perfect competition was replaced by imperfect competition, the uneven development of capitalist states increased, contradictions intensified, and the First World War led to the collapse of the previous monetary system.

In 1922, the Genoa Conference was held, which approved a new system of currency relations based on the gold exchange standard, i.e. Along with gold, foreign currencies were used in international payments. Within this system, gold parities and floating exchange rates were maintained, and countries such as the USA, Great Britain, and France used the gold bullion standard. This standard survived severe shocks associated with the economic crisis of 1929–1933.

During the Second World War, fundamental changes occurred in the balance of world economic forces. The United States had become a powerful world power, Britain and France were weak, and the economies of Germany and Japan were destroyed.

Under US pressure, the gold dollar standard was adopted at the Bretton Woods Conference in 1944, i.e. The currency system was based on the connection between the dollar and gold. The dollar became the only currency convertible into gold, and only the central banks of countries could exchange the American dollar for gold. Within the framework of the Bretton Woods system, gold parities were preserved, a system of fixed exchange rates was adopted, i.e., the limits of currency fluctuations were determined, and gold could be used as a means of payment and reserve. Two monetary, financial and credit organizations were created: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD). The responsibilities of these organizations included:

• providing assistance to countries in the event of a balance of payments deficit and solving problems related to ensuring currency stability;
• monitoring compliance with obligations by participating countries.

Under this system, the United States almost completely determined the world supply of money, in addition, all countries had to maintain dollar parity with gold by devaluing or revaluing their currencies. After the weakening of the US economic position in the 1960s and 70s, the crisis of the Bretton Woods system began. In 1976, the Jamaica Conference was held in Kingston, which approved the fourth world monetary system. The decisions of the Jamaica Conference came into force in 1978.

The gold exchange standard was replaced by a system of floating exchange rates. The new system did not arise by chance. In the early 1960s, in response to inadequate growth in gold production, a debate arose about increasing international liquidity. In 1967, a scheme was proposed to use special drawing rights (SDRs) of international assets in the form of entries in special accounts with the IMF without any collateral. In 1969, an amendment was made to the IMF Regulations, allowing the use of SDRs. Their first placement occurred in 1970, subsequent issues were carried out in 1971, 1972, 1979, 1980 and 1981. The cost of 1 unit of SDR was determined on the basis of a currency basket that included the US dollar (39%), German mark (21%), Japanese yen (18%), British pound sterling (11%) and French franc (11%).

With the transition to the SDR standard, the process of demonetization of gold was legally completed and gold parities were abolished. But the introduction of the SDR was not as successful as the supporters of this system assumed. The Jamaica Agreement revised the assessment and scope of possible use of SDRs. IMF member countries received the right to choose any exchange rate regime.

Meanwhile, since the establishment of the paper standard in the world since the 1970s, IMF reforms in the world monetary system were not limited to the introduction of SDRs. In 1975, agreements were signed to increase contributions to the IMF by 32.5%, abolish the price of gold, and revalue gold reserves. In 1978, in order to completely remove gold from circulation, it was necessary to switch from fixed exchange rates to flexible or multifactor ones. And since 1992, the IMF has assumed the right to suspend SDRs of countries that do not fulfill their obligations. Consequently, the IMF, which appeared mainly to regulate the functioning of the world monetary system and to support poor countries with balance of payments problems, was reorganized depending on the problems of each stage: the fall of the Bretton Woods parity system, the oil crisis of the 1970s, the debt crisis of the 1980s , the turmoil in Asian young markets in the 1990s, and the transition of Eastern European economies to market relations.

Today, the IMF includes 184 countries. Despite many calling for its abolition, the IMF continues to be indispensable in some of its original functions. For example, the IMF continues to promote international monetary cooperation, facilitate balanced growth and development of international trade, promote monetary stability, help establish a multilateral payment system, and make the organization's resources available (with appropriate guarantees) to member countries with balance of payments difficulties.

In Western Europe, at the end of the 1970s, the regional European Monetary System (EMS) was legally adopted, the monetary unit became the ECU, the value of which was determined using the currency basket method, including the currencies of the European Union countries. In mid-December 1996, the EU countries decided to transition to a single currency, the euro, from January 1, 1999. Since 1999, the euro unit has been used in wholesale trade, and since 2003 in retail trade. In Russia, the currency system is at the stage of formation; after separation from other republics of the USSR, the ruble became a partially convertible currency for current transactions, while maintaining a number of currency restrictions.

International payments. Forms of international payments

International settlements are the organization and regulation of payments for monetary claims and obligations of a country. These requirements and obligations in currency arise during the formation of economic, scientific, technical, political, and cultural ties between countries. The national currency is used to repay the state's obligations to foreign legal entities and individuals. Foreign currency enters the country in the form of payments according to the requirements of our state.

International payments, as a rule, are carried out non-cash through banks by establishing correspondent (contractual) relations between credit institutions of different countries. Correspondent agreements are of two types: firstly, nostro - accounts of a given bank in other banks and, secondly, loro - accounts of other banks in a given bank. These agreements stipulate the calculation procedure, the amount of commission, and methods for replenishing the correspondent account as funds are spent.

Depending on the degree of currency convertibility, the positions of national and foreign currencies, and the terms of contracts, various forms of international payments are used, which include certain methods of payment and means of settlement. Payment methods include advance payments, letters of credit, collection, payments on an open account, payments immediately after shipment of goods.

Payment in the form of an advance payment is a payment after shipment of goods, which is made by the buyer (the amount can reach 1/3 of the total contract amount) after receiving a telegraphic or telex message from the seller describing the goods shipped. If payment is not received from the buyer, then the exporter has a certain guarantee of the safety of the cargo, since all the documents are in his possession. This payment method contains a certain risk, so it can be used between reliable partners.

A letter of credit is an order from the issuing bank to make, at the request of the client (buyer), payment for documents in favor of a third party - the exporter (beneficiary) if he fulfills certain conditions. The letter of credit form of payment is that the exporter and importer enter into a contract for the supply of goods or provision of services, indicating that payments will be made in the form of a letter of credit. The importer applies to his bank (issuing bank) with an application to open a letter of credit in favor of the exporter. The issuing bank sends a letter of credit to a bank in the exporter's country with which correspondent relations are maintained (advising bank). Having received copies of the letter of credit, the exporter ships the goods and submits the necessary documents to the advising bank. This bank forwards the documents to the issuing bank, which, after verifying the correctness of the documents, makes payment.

In international practice, a wide variety of types of letters of credit are used - transferable (transferable), standby, renewable (revolving), “early opened”, letters of credit with a “red clause”, compensatory letters of credit and letters of credit of priority, etc.

Transferable (transferable) letters of credit are increasingly used in international practice. It allows you to make payments from it not only in favor of the beneficiary, but also third parties - second beneficiaries. The transfer of a letter of credit in favor of third parties is carried out at the request of the beneficiary in whole or in part. A transferable letter of credit is usually used if the beneficiary is not the supplier of the goods or the delivery is made through an intermediary.

The disadvantage of the letter of credit form of payment is the complex workflow and delays in the movement of documents associated with the control of documents in banks and their transfer between banks.

Collection is a form of payment in which the bank, on behalf of the exporter, receives payments from the importer after the shipment of goods and provision of services. Payments received from the importer are credited to the client's (exporter's) bank account. Payments from the importer may be collected based on:

• only financial documents. This is simple, or pure collection;
• financial documents accompanied by commercial documents (so-called documentary collection).

Participants in the collection operation are:

• principal - a client who entrusts the collection operation to his bank;
• remitting bank - the bank to which the principal entrusts the collection operation;
• collecting bank - any bank that is not a remitting bank, participating in the operation to execute a collection order;
• presenting bank - the bank that directly receives the payment or acceptance, making the presentation of documents to the payer;
• payer - the person to whom documents must be presented in accordance with the collection order.

Calculations in the form of collection are constructed as follows. After concluding a contract in which the parties stipulate through which banks payments will be made, the exporter ships the goods in accordance with the terms of the concluded contract. Having received transport documents from the transport organization, the exporter prepares a set of documents, which includes commercial, and possibly also financial documents, and presents it to his bank (remitting bank) upon collection order.

Having received documents from the principal, the remitting bank checks them according to the external signs indicated in the collection order, and then acts in accordance with the instructions of the principal contained in this instruction and the Uniform Rules. The remitting bank sends the documents to the collecting bank, which is usually the bank of the importing country.

Unfortunately, such a form of non-cash payments as collection is rarely used in Russia, not to mention its use in settlements with foreign partners. Ignoring the obvious advantages of collection payments occurs due to the complexity and imperfection of Russian legislation regulating these relations, as well as the low legal culture of Russian entrepreneurs in the field of both international and Russian legislation.

Open account settlements are periodic payments made by the importer to the exporter after receiving the goods. Upon completion of settlements, final reconciliation and repayment of the remaining debt are carried out. With this form of payment, the exporter does not have firm guarantees of receiving payment for the shipped goods. This form of payment assumes a high degree of trust between business partners.

The interests of exporters and importers do not coincide, which determines the choice of payment forms (payment methods). Thus, for an exporter, the most profitable form of payment is an advance payment, and the unfavorable form is settlement on an open account. For the importer, payment in the form of collection is more profitable, since the risk of payment for goods that have not yet been shipped is eliminated. The exporter seeks to receive payments from the importer as soon as possible, and the importer seeks to defer payment until the final sale of the goods. Forms of payment are always a compromise; they are carefully discussed: the economic positions of the partners, the economic situation, the political situation, etc. are taken into account.

Payment means include checks, bills of exchange, bank drafts, transfers in the form of postal, telegraphic/telex payment orders, as well as international payment orders, credit cards. In recent years, credit cards - personalized monetary documents that make it possible to use non-cash forms of payment - have become increasingly used in international payments. International payments and their regulation are carried out in accordance with the rules and customs developed by world practice. The main documents have been adopted by the International Chamber of Commerce and, in case of adherence to these rules, become mandatory for banks and their clients. It should be taken into account that it is not countries, but banks that join the main documents. The rules are periodically reviewed, their content and edition changing.

As scientific and technological advances are introduced into the practice of international payments, the role of electronic means increases, which helps reduce the degree of risk for participants in international transactions.

A summary expression of currency movements is reflected in the balance of payments. The balance of payments is the relationship, expressed in the currency of each country, between the amount of payments received by the country during a certain period of time and the amount of payments transferred abroad during the same period of time. The balance of payments reflects the movement of goods and capital and shows the net receipts of foreign exchange from all transactions.

Currency market. Types of foreign exchange transactions

The foreign exchange market is a system of stable economic and organizational relations that develop during transactions for the purchase and sale of foreign currency and payment documents in foreign currencies. The formation of foreign exchange markets dates back to the 19th century. The development of international trade and increased capital flows between countries contributed to the formation of the world foreign exchange market. Accelerated growth of foreign exchange markets has been observed since the collapse of the Bretton Woods system. The Jamaican system allowed freedom to choose the exchange rate regime. On the one hand, this gave greater opportunities for central banks to maneuver with exchange rates, and on the other hand, it increased the instability of exchange rates due to the increased scale of currency speculation. Currency speculation itself is assessed in two ways: it increases liquidity, and at the same time it can destabilize foreign exchange markets. To neutralize the negative impact of currency speculation, central banks resort to foreign exchange interventions.

Foreign exchange intervention is the purchase and sale of foreign currency by the central bank. Its volume is determined by the balance of payments and accumulated gold and foreign exchange reserves. Currency interventions are aimed at neutralizing the impact of currency speculation on economic relations both within the country and globally.

Within the framework of the global foreign exchange market, its own internal hierarchical system has developed. The top tier is occupied by three centers of the foreign exchange market: London, New York and Tokyo. Large regional foreign exchange markets are Frankfurt am Main, Zurich, Paris, Brussels in Europe, and Singapore and Hong Kong in Asia. Operations within the global foreign exchange market are unified. But the actions of global market entities are decentralized, communication between them is carried out on the basis of agreements, so there is a certain risk when conducting foreign exchange transactions. In modern conditions, with the development of electronic equipment, the time for conducting currency transactions is reduced, although this does not completely eliminate the problem of risk. The global foreign exchange market operates around the clock, but distances sometimes play a decisive role. The time difference between New York and Tokyo is 10 hours, between Tokyo and London – 9 hours, between London and New York – 5 hours. In a number of countries, currency exchanges play an important role, but as over-the-counter and interbank transactions develop, the volume of exchange transactions is declining.

The Russian foreign exchange market in the mid-1990s remained local and local. Its main segments were the exchange, over-the-counter (interbank) and futures markets. The exchange market played a decisive role in terms of the volume of transactions, but by the end of the 90s of the 20th century - the beginning of the 21st century, the over-the-counter market began to significantly exceed the indicators of the exchange segment.

Foreign exchange markets can be classified according to a number of criteria:

By area of ​​distribution, in relation to currency restrictions, by types of exchange rates, by degree of organization, types of foreign exchange markets are divided:

1) by scope: The international foreign exchange market covers the foreign exchange markets of all countries of the world. The international foreign exchange market is understood as a chain of world regional foreign exchange markets closely interconnected by a system of cable and satellite communications. There is a flow of funds between them, depending on current information and forecasts of leading market participants regarding the possible position of individual currencies. The domestic foreign exchange market is the foreign exchange market of one state, i.e. market operating within a given country.

2) in relation to currency restrictions, free and non-free currency markets can be distinguished. A foreign exchange market with foreign exchange restrictions is called a captive market, and in the absence of them - a free foreign exchange market.

3) by types of exchange rates applied:

A market with one regime is a foreign exchange market with free exchange rates, i.e. with floating exchange rates, the quotation of which is established at exchange trading.

In Russia, fixing is carried out by the Central Bank of Russia on the Moscow Interbank Currency Exchange (MICEX) and is the determination of the US dollar to ruble exchange rate.

A dual regime foreign exchange market is a market with simultaneous use of fixed and floating exchange rates. The introduction of a dual currency market is used by the state as a measure to regulate the movement of capital between the national and international loan capital markets. This measure is intended to limit and control the influence of the international loan capital market on the economy of a given state.

4) according to the degree of organization:

The exchange foreign exchange market is an organized market, which is represented by a foreign exchange exchange. A foreign exchange exchange is an enterprise that organizes trading in currencies and securities in foreign currency. The exchange is not a commercial enterprise. Its main function is not to obtain high profits, but to mobilize temporarily free funds through the sale of currency and securities in foreign currency and to set the exchange rate, i.e. its market value.

The exchange foreign exchange market has a number of advantages: it is the cheapest source of currency and foreign exchange funds; applications submitted for exchange trading have absolute liquidity.

The over-the-counter foreign exchange market is organized by dealers who may or may not be members of the foreign exchange exchange and conduct it by telephone, fax, and computer networks.

5) when classifying the types of foreign exchange markets, one should highlight the markets for Eurocurrencies, Eurobonds, Eurodeposits, Eurocredits, as well as “black” and “gray” markets.

The Eurocurrency market is an international market for the currencies of Western European countries, where transactions are carried out in the currencies of these countries. The functioning of the Eurocurrency market is associated with the use of currencies in non-cash deposit and loan transactions outside the countries issuing these currencies.

The Eurobond market expresses financial relations on debt obligations with long-term loans in Eurocurrencies, issued in the form of bonds of borrowers. The bond contains information about the amount of debt, the terms and conditions of its repayment, and the procedure for receiving interest in accordance with coupons.

The Eurodeposit market expresses stable financial relations for the formation of foreign currency deposits in commercial banks of foreign countries at the expense of funds circulating in the Eurocurrency market.

The Eurocredit market expresses stable credit ties and financial relations for the provision of international loans in Eurocurrency by commercial banks of foreign countries.

The foreign exchange market is a sphere of relations regarding the purchase and sale of goods and foreign currency by various countries and market entities located in different states. Residents have the right to buy and sell currency on the Russian domestic foreign exchange market only through authorized banks.

Currency purchase and sale transactions can be carried out directly between authorized banks, as well as through currency exchanges. Payments in foreign currency and servicing international trade are carried out through interbank transactions. The specifics of banking operations with foreign currency determine the special procedure for licensing this activity.

The main participants in the foreign exchange market are:

Central banks. Their function is to manage government foreign exchange reserves and ensure exchange rate stability. To achieve these tasks, both direct foreign exchange interventions and indirect influence can be carried out - through regulating the level of the refinancing rate, reserve standards, etc.

Commercial banks. They conduct the bulk of foreign exchange transactions. Other market participants hold accounts in banks and carry out through them the conversion and deposit and credit operations necessary for their purposes. Banks concentrate the aggregate needs of commodity and stock markets in currency exchange, as well as in attracting/placing funds. In addition to satisfying customer requests, banks can conduct operations independently at their own expense. Ultimately, the international foreign exchange market (forex) is a market for interbank transactions. The largest influence is exerted by large international banks, whose daily transaction volume reaches billions of dollars. The volume of one interbank contract with real delivery of currency on the second business day (spot market) is usually about 5 million US dollars or its equivalent. The cost of one conversion payment ranges from 60 to 300 dollars. In addition, you have to incur costs of up to 6 thousand dollars per month for an interbank information and trading terminal. Due to these conditions, conversions of small amounts are not carried out on Forex. To do this, it is cheaper to contact financial intermediaries (a bank or a foreign exchange broker), who will carry out the conversion for a certain percentage of the transaction amount. With a large number of clients and multidirectional orders, an internal clearing situation regularly arises, when the intermediary does not need to contact a third-party counterparty (there is no need to carry out a real conversion through Forex). But intermediaries always receive their commissions from clients. It is precisely because not all client requests are received on Forex that intermediaries can offer clients commissions that are significantly lower than the cost of direct Forex transactions. At the same time, if intermediaries are eliminated, the cost of conversion for the end client will inevitably increase.

Firms carrying out foreign trade operations. Total requests from importers form a stable demand for foreign currency, and from exporters - its supply, including in the form of foreign currency deposits (temporarily free balances in foreign currency accounts). As a rule, firms do not have direct access to the foreign exchange market and conduct conversion and deposit operations through commercial banks.

International investment companies, pension and hedge funds, insurance companies. Their main task is diversified asset portfolio management, which is achieved by placing funds in securities of governments and corporations of various countries. In dealer slang they are simply called funds. This type can also include large transnational corporations that make foreign industrial investments: the creation of branches, joint ventures, etc.

Currency exchanges. In a number of countries, national currency exchanges operate, the functions of which include exchanging currencies for legal entities and forming a market exchange rate. The state usually actively regulates the level of the exchange rate, taking advantage of the compactness of the local exchange market.

Currency brokers. Their function is to bring together the buyer and seller of foreign currency and carry out conversion or loan-deposit operations between them. For their intermediation, brokerage firms charge a brokerage commission as a percentage of the transaction amount. But the amount of this commission is often less than the difference between the bank's loan interest and the bank deposit rate. Banks can also perform this function. In this case, they do not issue a loan and do not bear the corresponding risks.

Private individuals. Citizens carry out a wide range of operations, each of which is small, but in total they can create significant additional demand or supply: payment for foreign tourism; money transfers of wages, pensions, fees; purchases/sales of cash currency as a store of value; speculative currency transactions.

Licenses for commercial banks are issued by the Central Bank of Russia and are divided into general, internal and one-time. The general license gives commercial banks the right to carry out all banking operations in foreign currency both in Russia and abroad. An internal license provides the right for commercial banks to carry out banking operations in foreign currency on the territory of Russia. A one-time license provides the right to conduct a specific banking transaction in foreign currency. A bank that has received a general or internal license is called an authorized bank and performs the functions of a currency control agent for the transactions of its clients.

Different types of foreign exchange transactions are carried out in foreign exchange markets. Currency transactions are transactions for the purchase and sale of currency, as a result of which there is a change in the ownership of national or foreign currency, or two foreign currencies; This also includes operations to provide loans and make payments in foreign currency.

The main types of foreign exchange transactions are spot and forward. Spot is cash transactions with cash currency, the delivery time of which is two business days from the date of conclusion of the transaction.

The spot rate – the base rate of the foreign exchange market – is used to settle current trading and non-trading transactions.

Forward is a forward transaction in which currency is delivered after a certain time (a month or more) on a fixed date at the rate agreed upon at the time of the transaction. On currency exchanges, futures transactions are used, in which payments are made within a specified period (from a week to five years) at the rate at the time the contract is concluded. Forward (futures) transactions can be carried out for speculative purposes and for the purpose of insuring currency risks over time and in different markets.

Hedging (insurance) of currency risks is aimed at preventing either net assets or net liabilities, i.e., avoiding losses. In financial terms, these are the actions of liquidating open positions in foreign currency. There are two types of open positions: “long” (net assets in foreign currency) - this is a position where claims exceed our obligations; “short” (net liabilities) – when liabilities exceed requirements in a given currency. In any case, the future dynamics of exchange rates is taken into account. The volume of other types of transactions has increased in recent years.

Currency arbitrage is the purchase and sale of foreign currency followed by a reverse transaction in order to profit from the difference in exchange rates over time. This is the so-called temporary currency arbitrage. If this transaction takes advantage of differences in the exchange rate of a given currency in different markets, then spatial arbitrage is used. It can be carried out with two or more currencies.

An outright is a simple forward foreign exchange transaction that provides for payments at the forward rate within the terms strictly stipulated by the parties to the transaction.

An option is a fixed-term transaction with a preliminary bonus that gives the right to choose the terms of the contract on an alternative basis. It is binding if the other party complies with the terms.

A swap is an operation carried out by central banks to exchange national currency for foreign currency with the obligation of reverse exchange on a mutually beneficial basis after a certain period on spot conditions. A swap is an agreement, executed in one document, under which both parties make periodic payments to each other, taking into account the comparative advantages in the market of one of the currencies. A currency swap can be carried out in the form of two conversion transactions on terms of both immediate delivery - spot, and delivery of currency in the future - forward.

Currency intervention is a targeted operation for the purchase and sale of foreign currency to limit the dynamics of the national currency exchange rate to certain limits: an increase in the exchange rate of the national currency or its depreciation.

Currency speculation is the operation of banking institutions, legal entities and individuals in order to make a profit from changes in exchange rates over time or in different markets.

There is also a type of foreign exchange transactions of entrepreneurs associated with the manipulation of payment terms to obtain economic benefits. This type is often used when exchange rates increase or decrease, or when interest rates fluctuate significantly, in order to reduce the degree of risk.

In recent decades, the structure of foreign exchange transactions has changed significantly. The share of spot transactions has decreased significantly and the level of transactions such as swaps, options, futures, and currency speculation has increased significantly. Such dynamics, on the one hand, characterize the desire to reduce currency risk, and on the other hand, it gives rise to new problems associated with the instability of the foreign exchange market. This is the main trend in the development of the foreign exchange market at the present stage.

Credit market. Global credit market

The global credit market is a specific area of ​​market relations, where the movement of money capital between countries takes place on the terms of repayment and payment of interest, and demand and supply are formed. In the 1980–90s, the global credit market underwent major changes associated with the search for a compromise in the face of instability in exchange rates during this period. In addition, the debt of developing countries grew at a significant rate.

Traditionally, a distinction has been made between the market for short-term loans (money market) and the market for medium- and long-term loans (capital market). This distinction gradually lost its significance, since in practice there is a mutual flow of capital, short-term investments are transformed into medium- and long-term loans (usually with the help of bank and government guarantees).

The object of the transaction in the global credit market is capital transferred as a loan to legal entities and individuals and citizens of foreign countries. From a functional point of view, this is a system of market relations that ensures the accumulation and redistribution of loan capital between countries in order to ensure the continuity of the reproduction process. Historically, the world credit market arose on the basis of international operations of national loan capital markets, then formed on the basis of their internationalization.

An attribute of the global credit market is the direction of national loan capital abroad, at the disposal of a foreign bank or the attraction of foreign capital. Classic foreign credits and loans are based on the principle of the unity of the place of borrowing and the unity of the currency (usually the currency of the loan). Loan terms can range from one day to ten years, and interest rates are linked to those on the London interbank deposit market. The gap between interest rates on deposits and loans is small because the volume of banking transactions is very large and costs are low.

The global credit market is connected in its activities with the financial market, which specializes mainly in the issue of securities and their circulation. The financial market issues foreign and international bonds. In recent years, the volume of purchase and sale of bonds has been growing rapidly.

Integration processes and qualitative changes in the forms of economic relations led to the improvement of forms and methods of mutual settlements and to the formation of a loan capital market. It has become international in its essence and global in its scope. This increases the efficiency of transactions, on the one hand, but on the other hand, the degree of risk increases significantly. In the new conditions of development of the credit market, the importance of international monetary and financial organizations and institutions is increasing.

The literature identifies the following features of the global credit market:

• Huge scale.
• Lack of clear spatial and temporal boundaries.
• Predominance of banks and other financial institutions.
• Limited and differentiated access of borrowers to the market.
• Using convertible currencies of leading countries and the euro as currencies for credit transactions.
• Market versatility.
• A simplified, standardized transaction procedure using the latest computer technology.
• Higher profitability of transactions in eurocurrencies than in national currencies.
• Diversification of market sectors, including the European market.

The credit market directly affects the growth of production and trade turnover, the movement of capital within the country, the transformation of savings into capital investments, scientific and technological progress and the renewal of fixed capital. Thus, the credit market is the so-called support of the financial sphere of production. Its main role is to combine small, scattered funds. In addition, the credit market plays a large role in the structural restructuring of capitalist economies, especially in industrialized countries such as the United States, Western European countries and Japan.

There are five main functions of the credit market:

• servicing commodity circulation through credit;
• accumulation or collection of monetary savings (accumulations) of enterprises, the population, the state, as well as foreign clients;
• transformation of monetary funds directly into loan capital and its use in the form of investments to service the production process;
• serving the state and population as sources of capital to cover government and consumer expenses;
• accelerating the concentration and centralization of capital, promoting the formation of powerful financial and industrial groups.

These functions of the credit market are aimed at maintaining the capitalist mode of production and ensuring the functioning of the economic system of state-monopoly capitalism.

Reflecting the accumulation and movement of monetary capital, the credit market is organically connected with the movement of value in its monetary form, with the formation and use of various monetary funds in the form of credit resources and securities. Through the market it is possible to measure and determine the movement, volume, direction of funds going towards the development of capitalist social reproduction, its impact on socio-economic relations.

Financial instruments of the credit market are:

• monetary assets (the main object of credit relations between the lender and the borrower)
• letters of credit
• bills
• collateral documents
• other financial instruments of the credit market. These include slogans, bills of lading, etc.

The relationship between the global credit market and the global financial market is intensifying due to the trend of securitization, i.e. replacing traditional forms of bank credit with the issuance of securities. Their issue is secured by a package of obligations of bank clients for loans of a similar nature received by them. The bank pays interest and repays these securities from funds received from borrowers to repay loans. In order to avoid the legal clause of “turnover to the issuing bank” when selling securities (these assets remain on its balance sheet), banks use stand-by letters of credit.

Stand-by conditions are the bank’s obligation to provide the borrower with a specified amount for the entire contractual period of use, which is divided into short periods (3, 6, 9, 12 months). For each period, a floating interest rate is established, which is revised taking into account the dynamics of LIBOR. This makes it possible to provide medium- and even long-term loans using short-term resources.

The largest borrower is the United States and other developed countries. The main creditors in the global credit market are also industrialized countries, among which Switzerland, the Netherlands, and Germany stand out. In recent years, China has become one of the world's largest creditors.

Source - World Economy: textbook / E.G. Guzhva, M.I. Lesnaya, A.V. Kondratyev, A.N. Egorov; SPbGASU. – St. Petersburg, 2009. – 116 p.

SECURITIES MARKET AND ITS PARTICIPANTS 3

1 Essence, objectives and functions of the securities market 3

2 Types of securities market 6

3 Structure of the securities market 9

4 Securities market participants 10

SECURITIES. OPERATIONS ON THE SECURITIES MARKET 16

1 Essence and types of securities 16

2 Transactions with securities 21

1 Concept and fundamental properties of shares 25

2. Stock valuation 28

3. Acquisition and repurchase of shares 31

BONDS 34

1 Classification of bonds 36

2 Bond pricing 37

Interest rate structure 39

Construction of the interest rate curve 39

3 Risks of bonds. Duration and convexity 40

Duration and convexity 41

GOVERNMENT SECURITIES 42

1 Types of government bonds 44

2 Participants in the government bond market. Market infrastructure 50

3 Operations on the government bond market 52

INTERNATIONAL SECURITIES 55

1 The essence of international securities and their types 56

2 Organization of the issue of Eurobonds 59

SHORT-TERM FINANCIAL INSTRUMENTS 63

1. Deposit and savings certificates.

2. Bills of exchange. Price and yield of bill 66

3. Commercial securities. Exchange bonds 68

DERIVATIVE SECURITIES 70

1. Subscription rights and warrants 70

2. Options 72

Option cost 74

Using options 75

Issue of options 75

3. Futures contracts 76

BASICS OF MANAGEMENT OF INVESTMENT PORTFOLIO OF SECURITIES 79

1 The concept of a securities portfolio. Types of portfolios 79

2 Securities portfolio management 81

FUNDAMENTAL ANALYSIS OF INVESTMENT ATTRACTIVENESS OF SECURITIES 84

TECHNICAL ANALYSIS IN THE SECURITIES MARKET 87

1 Technical analysis. General provisions 87

2 Graphical analysis 89

3 Eliot Wave Theory 99

1 The essence of international securities and their types 53

2 Organization of the issue of Eurobonds 56

1 The essence of international securities and their types

The official definition of European securities is given in the Directive of the Commission of the European Communities of March 17, 1989, regulating the procedure for offering new issues on the European market.

In accordance with this Directive, Eurosecurities are tradable securities with the following characteristic features, namely:

They undergo underwriting and are placed through a syndicate, at least two of whose participants are registered in different states;

are offered in significant quantities in one or more countries other than the country of registration of the issuer;

They can be initially acquired only through the intermediary of a credit institution or other financial institution.

European securities include:

Euronotes(medium-term euronotes, EMTNs) - medium-term registered bonds, which are usually issued for a specific investor. The main advantage of euronotes is the ability to organize their issue in a few days or even hours. Thanks to this, as well as low issuance costs, the euronote sector has tripled in size over the past six years. True, the central banks of major European countries impose serious restrictions on their release.

Eurobills(euro-commercial paper, ECP) ​​- unsecured obligations that are not intended for public placement and are not traded on the secondary market. As a rule, Euro bills are issued for a period of one to five years by companies whose solvency is beyond doubt. International bonds.

The latter, in turn, are divided into:

eurobonds;

foreign bonds foreigh bonds;

global bonds global bonds;

parallel bonds parallel bonds.

Eurobonds. Eurobonds are considered to be bonds that are not denominated in the currency of the issuer’s host country and that are placed both outside the issuer’s host country and outside the country in whose currency they are denominated. Typically, Eurobonds are placed on international bond markets.

There are several characteristic features that distinguish Eurobonds from other forms of borrowing:

Eurobonds are placed simultaneously on the markets of several countries, and the currency of the Eurobond loan is not necessarily national, both for the lender and for the borrower.

The placement is carried out by an issuing syndicate, which, as a rule, represents banks registered in different countries.

The issue and circulation of Eurobonds is carried out in accordance with the rules and standards established in the market. The majority of Eurobond issues are made without collateral, although in some cases collateral may be provided in the form of a guarantee from third parties or the issuer's property. The issue of Eurobonds is accompanied by a number of additional conditions and clauses designed to reduce risks for security holders. The most common are the so-called. “negative pledge” (the terms of the issue provide for the issuer’s obligation not to issue any more securities that have a priority right of redemption). In the event of a technical default (non-payment) on any one issue of Eurobonds, a cross-default is provided - early repayment of all issues of Eurobonds in circulation. The issue of bonds is usually conditioned by the issuer's obligations to maintain a certain ratio of equity and debt capital, limiting the issuance of other debt obligations during a specified period of time.

Eurobonds are usually bearer bonds.

Income on Eurobonds is paid in full without withholding tax in the country of the issuer. If local legislation provides for withholding tax on the interest paid by the borrower, the latter is obliged to bring the amount of interest payments to a level that provides the investor with interest income equal to the nominal coupon.

A type of Eurobonds are dragon bonds - Euro-dollar bonds placed on the Asian (primarily Japanese) market and listed on any Asian exchange, usually in Singapore or Hong Kong.

The share of Eurobonds in the Eurobond market is more than 90%. Currently, the total value of outstanding Eurobonds is approximately 4 trillion. dollars, which is approximately 10% of the global bond market.

The prefix “euro” is currently a tribute to tradition, since the first Eurobonds appeared in Europe, and they are traded mainly there.

The issuer can place bonds both within the country and abroad. Bonds placed by the issuer outside the country of origin of the issuer are called international bonds. There are such varieties of these bonds as foreign bonds and Eurobonds.

Foreign or foreign bonds are placed by the issuer outside the country in which the issuer is located, in the currency of the country of placement. Such bonds often receive specific names. Thus, foreign bonds placed in the United States and denominated in US dollars are called “Yankee bonds”. Bonds issued by non-residents in the UK are called “bulldogs bonds”, in Japan – “samurai”.

Global bonds are bonds placed simultaneously on the Eurobond market and on one or more national markets.

Parallel bonds parallel bonds are bonds of the same issue, placed simultaneously in several countries in the currency of these countries.

The term “international bonds” is used in a broad and narrow sense. In a broad sense, this concept includes all major debt instruments placed on foreign markets, that is, these are long-term debt instruments or, in fact, bonds (bonds), and medium-term debt instruments (notes).

The development of the international bond market is associated with the growth of transnational corporations and the internationalization of economic life. The issue of international bonds allows individual states and large companies to meet their capital needs by attracting it in the markets of other countries.

The point of purchasing foreign bonds for an investor is that he gets the opportunity to internationally diversify the risk of non-payment on his investments and reduce the risk from possible fluctuations in exchange rates. For example, a French investor may purchase bonds of an American corporation denominated in dollars. Let’s assume that at the time of purchasing the bonds, the dollar to euro exchange rate was 1: 1. After some time, at the time of interest payment, the dollar to euro exchange rate was, for example, 1.2: 1. The investor must convert interest income into euros at the current rate, therefore, he will suffer losses. If an investor purchases bonds of an American company denominated in euros, then he will not have to worry about the exchange rate.

The first more or less significant issues of foreign bonds placed by foreign issuers in Western Europe and North America appeared in the second half of the 40s. XX century, but the most active process of issuing foreign bonds began to develop in the early 60s.

The issue of foreign bonds must be carried out in accordance with the rules of the country where the bonds are issued. However, in terms of taxation and circulation on the secondary market, foreign bonds are very close to Eurobonds.

The emergence of the Eurobond market is usually attributed to 1963, when the Italian company Concessioni e Costruzioni Autosfade issued a loan for $15 million, although several similar loans were made earlier. Since the late 60s. rapid growth of Euroloan issues begins. If in the 70s. the volume of Eurobond issues was approximately equal to the volume of foreign bond issues, then, starting from 1982, Eurobond issues began to overtake foreign bond issues, and in the 90s. The volume of Eurobond issues was already several times higher than the volume of foreign bond issue.

As statistics show, from half to 2/3 of all Eurobonds are issued by corporations, and the rest, in approximately equal shares, is issued by the governments of various states and international organizations. To successfully place bonds on international markets, the issuer should obtain a rating from at least one of the rating agencies (or preferably several), such as Standard and Poor’s, Moody’s, etc.

Eurobonds are divided into long-term securities - Eurobonds (eurobonds) and medium-term debt securities - Euronotes (euronotes). In addition, European securities also include short-term securities - the so-called Eurocommercial bills. But these short-term instruments are usually not included in the concept of Eurobonds.

The difference between Eurobonds and Euronotes is quite arbitrary. They differ only in their expiration dates. However, some issues of Eurobonds and Euronotes do not even have these differences. The issue of Eurobonds provides advantages for both issuers and investors. The issuer usually does not pay any taxes for issuing Eurobonds. Interest income on bonds is paid to the investor in full, who pays tax according to the laws of the country in which he is a resident. Eurobonds are usually issued in bearer form with tear-off coupons. Repayment is made in a single payment or over a period of time from a sinking fund. In the latter case, the issuer either repurchases the bonds on the open market or conducts periodic redemption runs at par. The following types of Eurobonds can be distinguished.

Fixed Interest Bonds(fixed rate bonds). The amount of coupon income does not change during the entire validity period. These bonds are issued by issuers with high credit ratings (states, corporations, financial institutions). These bonds account for about 80% of all issued Eurobonds. Some of these bonds are callable.

Variable rate bonds characterized by the fact that interest income on them varies depending on the state of the financial market. The interest rate on them is tied, for example, to the Libor rate or to the level of yield on US Treasury bills, with some premium to these values. The coupon period for such bonds is usually 3 or 6 months.

Zero coupon bonds are characterized by the fact that the investor’s income is generated by the difference between the redemption price and the issue price. At the same time, some bonds (growth bonds) are placed at par and are redeemed at a price above par. For example, Dentsche Bank Finance NK issued ten-year bonds in 1985, which were redeemed in 1995 at a price equal to 287% of par. Deep discount bonds are sold below par and redeemed at par. For example, in 1997 the World Bank issued bonds in Italian lira at a price of 51.7% of par with maturity in 2007 at par.

Convertible Eurobonds characterized by the fact that after a certain period of time they can be exchanged for ordinary shares of the issuing company at a certain rate.

Eurobonds can be issued in different currencies. Until the beginning of the 80s. The main currency (up to 80% of all issues) was the US dollar. To date, the share of Eurobonds in US dollars has decreased to one third.