International Legal Regulation of the Securities Market Regulation of the securities market is an ordering activity of all its participants and transactions.

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Presentation transcript:

International Legal Regulation of the Securities Market Regulation of the securities market is an ordering activity of all its participants and transactions between them on the part of organizations authorized to these actions by society.

Regulation of market participants can be external and internal Domestic regulation is subordinate activities of the organization with its own regulations: regulations, rules and other internal regulations. External regulation is the subordination of the regulations of the organization of the state, other organizations, international agreements.

Securities market regulation by bodies or organizations is authorized to perform control functions.

There are the following points from this distinction: State regulation of the market, carried out by public authorities; regulation of the professional participants of the securities market, or self-regulation of the market; public regulation or control over public opinion.

Objectives of Securities Regulation: 1) Support for the order in the market, creating normal conditions for all market participants; 2) to protect market participants from unfair practices of individuals or organizations; 3) provision of a free and open process of price formation in securities on the basis of supply and demand;

4) establishment of an efficient market in which there are always incentives for business and on which each risk adequately rewarded;

5) in some cases, the creation of new markets, supporting the necessary public markets and market structures, market initiatives and innovations, and so on; 6) the impact on the market in order to achieve certain social objectives

The regulatory process in the securities market includes: creation of a regulatory framework for the functioning of the market; selection of professional market participants;

monitoring compliance with the implementation of all market participants norms and rules of functioning of the market; a system of sanctions for deviations from the rules and regulations established by the market.

Principles for the regulation of the securities market: separation approaches to the regulation of relations between the issuer and the investor, on the one hand, and the relationship with the professional participants of the market - on the other; allocation of all kinds of securities so- called investment;

maximize the use of procedures for disclosure of all market participants - issuers, large investors and professional participants; the need to ensure fair competition as a mechanism for improving the quality of services and reduce the cost;

the separation of powers between the regulatory bodies should be understood that the rule-making and should not be combined with the norms for one person; ensuring public rulemaking, broad public debate solutions to the problems of the market. This principle of law-making and improve the quality of its objectivity;

It is inefficient to begin to build a new system of regulation of the market "with the center of the field without taking into account the practical experience of the world market, efficiently process and use the successful regulatory decisions.