Features of the functioning of the government securities market

Oleksii Tseluiko

Management and Business Articles, 2023, vol. 1, issue 1, 54-64

Abstract: The specific tasks of regulatory bodies in the emerging market are defined, including the following: strengthening the market of government obligations; finding an economically feasible proportion of state and corporate issues; control over the gradual implementation of the policy of liberalization of the state securities market and the need for its coordination with currency policy, control over the ratio of external and internal debt. It is noted that a feature of emerging markets is that national banks perform not only regulatory and control functions, but also act as direct organizers of the infrastructure of the state securities market. Being interested in the development of the secondary market, the central bank plays the main role in the process of formation and development of the secondary circulation of government securities in emerging markets. The National Bank, which is responsible for conducting monetary policy, is extremely interested in the development of the secondary market of government securities, which allows national banks to carry out operations on the open market for the purpose of monetary regulation. It is proposed to improve the structure of owners due to the activation of the attraction of private funds depositors Although in modern conditions market (freely negotiable) issues of government bonds absolutely dominate both in developed and in developing markets, based on the experience of developed countries (for example, the USA), the role of non-marketable securities designated specifically for the retail sector. It is noted that in emerging markets, there is not a sufficiently wide range of financial instruments, significant attention should be paid both to the issue of market series aimed at large investors and to special (market and non-market) issues of government securities designed for retail sale. Thus, when building a model of the market of government obligations under the conditions of a transitional economy, one should proceed from a high level of risk of a "debt trap" situation. First, when determining the maximum possible scale of indebtedness, one should remember the peculiarities of the organizational model of the financial market (the absence of a capacious financial market and the modest capabilities of its professional participants)

Keywords: government bond market; economic feasibility; government securities; market infrastructure organizers; monetary policy; financial instruments; government bonds; financialmarket models (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:bdw:emsesd:v:1:y:2023:i:1:p:54-64

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