SPECIFICITIES AND PROSPECTS OF DEVELOPMENT OF CAPITAL MARKETS IN UKRAINE

Abstract

The article is devoted to the study of capital markets in Ukraine. It is noted that in accordance with the current legislation, domestic capital markets include money and stock markets, as well as derivatives markets. The study focuses on examining the specifics of each segment of the capital market, their functional purpose, and the features of the tools for attracting investment. In general, capital markets perform important economic and social functions, but each individual market segment has its own functional purpose. It is noted that the purpose of the money market is to provide its participants with short-term financing and liquidity support, and this determines the specifics of this market and its tools. An assessment of the use of money market instruments showed that the most relevant remain the NBU certificates of deposit (CD), which play the role of regulating excess liquidity in the banking sector under martial law. Other instruments have a certain potential for investment, but are not used enough, which is a challenge for the money market.
The stock market in Ukraine is functioning, has adapted to the challenges of martial law, but remains structurally limited. An assessment of the use of stock market instruments showed that the largest volume of transactions is concluded with government bonds, while the share of all other instruments remains insignificant. Investors attract capital only through government bonds, which is a specific feature of the domestic stock market. A challenge for the stock market of Ukraine is the imperfect activity of asset management companies (AMCs) and their management of CII. A positive aspect of the functioning of the stock market is the simplification and expansion of investors’ access to financial instruments through the introduction of digital technologies.
The most limited in Ukraine is the derivatives market, the purpose of which is to hedge risks and set prices for underlying assets. Swaps, which are used by participants to hedge currency risks, predominate among the instruments of this market. For the development of the market, significant changes in the current legislation and currency liberalization are necessary.
Promising directions for the development of capital markets in Ukraine are substantiated, including the harmonization of domestic legislation with EU standards and their digitalization.