MAIN TRENDS OF DERIVATIVES' MARKET DEVELOPMENT IN CENTRAL AND EASTERN EUROPE

Kostiantyn Vozianov ()
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Kostiantyn Vozianov: Department of International Finance, Kyiv National Economic University named after Vadym Hetman, Ukraine

Baltic Journal of Economic Studies, 2015, vol. 1, issue 1

Abstract: The aim of the study is to examine the factors of formation and development of the derivatives market in Central and Eastern Europe (CEE), to analyze the features of the organization and functioning of these markets, as well as to identify modern trends of development of the derivatives markets of CEE. The methodological basis of the study are historical and logical and systematic approach to the analysis of economic phenomena and processes in national and global environment. The study was conducted using the methods: qualitative and quantitative comparison, factor and structural analysis. Results. The development of the CEE derivatives market is characterized by: rapid growth of derivatives trading for the past two decades; high concentration of trading volumes on the stock market; offering a wide range of derivative products allowing investors to effectively hedge risk or get exposure; exchange consolidation; tendency to increased use of modern telecommunication technologies etc. The key problems of CEE derivatives market are low liquidity and international profile of exchanges and the lack of domestic investors for achieving the desired depth of the market. Practical implications. Research of the derivatives market makes it possible to understand more about the mechanism of functioning of the modern financial sector. In our opinion, special attention should be paid to CEE countries, where the development of the derivatives market began in the 1990s. To date, they are understudied, although they have considerable growth potential and in the future can compete on equal terms with Western European and American markets. Moreover, the starting conditions of development of the derivatives market in the CEE countries are more similar to the market of Ukraine and could be useful in terms of adapting good practices.

Keywords: derivatives market; futures; options; stock exchanges in Central and Eastern Europe; exchange-traded derivatives; exchange consolidation; trading system (search for similar items in EconPapers)
JEL-codes: F29 F30 G10 (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:bal:journl:2256-0742:2015:1:1:9

DOI: 10.30525/2256-0742/2015-1-1-55-61

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