In order to monitor and regulate processes taking place in the market to support the order and create optimal conditions for all actors in the market, and to protect all market participants from unfair and fraudulent actions of its individual members must be regulation of the securitiessecurities.Questions arise: who is involved, and how the laws of this regulation is carried out?
process of stock market regulation
securities market regulation is the process of streamlining the activities of all subjects of the market and made between operations authorized by this action organizations.Participants may be issuers, investors, professional stock brokers, market infrastructure organizations.There are external and internal regulation of market participants.In external control activities of the organization is subject to state regulations, international agreements and acts of others.The internal regulation defines the chain of command of the organization internal regulations that define the activity of units and the organization as a whole.
securities market regulation defines all types of operations and activities: investment;mediation;equity;pledge;speculative;Trust and others.From a position of control authorized to perform the regulatory functions of the organizations and bodies are distinguished: government, regulation or self-regulation by professional participants of the securities market, public regulation.
Essence Securities Market
essence of the securities market and its regulation involves the following objectives:
Creating a free and open process of pricing based on supply and demand.Support of order in the market, to ensure acceptable conditions for all participants.Protection against fraud and unfair market participants.
Stimulating entrepreneurship with adequate risk reward
In certain cases, the establishment of the necessary support and market structures, support for innovation and market initiatives.The impact on the market to achieve social goals (reduction of unemployment, an increase in the rate of growth of the economy, etc.).Regulation and the nature of the securities market is also in the creation of a regulatory framework for the operation of the market, in the development of laws, regulations, decrees, methodical regulations, rules and regulations.In the selection of professional market participants.Not every organization can be a professional mediator.To do this, you need to meet the requirements of experience, knowledge and capital.Monitor the implementation of the rules and regulations of the market activity of all participants.The system of penalties for deviation from the rules and regulations set by the market.Such sanctions include warnings, fines, exclusion from the number of market participants, criminal penalties.Principles of Securities Regulation largely depend on the country's existing economic and political conditions, but they also reflect the practices of the global stock market.
Self-regulation of the securities market
Besides the state and self-regulation occurs in the securities market, non-state, non-profit organizations established on a voluntary basis.Such organizations are developing the required standards and regulations, carry out professional training, establish mandatory to work on this market demand, control the correct observance of the established norms and rules provide outreach activities, protect the interests of market participants.
