After transformation processes in eastern Europe as a result of the decline of soviet power, markets were introduced to eastern European countries. Especially, security markets did mean and still mean great opportunities for investors from foreign countries. High volatility as basic feature of developing markets is also an important one for these three countries. However, there are a lot if differences between the security markets of Belarus, Ukraine and Russia.
Table of Contents
1. Introduction
2. Securities Market of Belarus
3. Securities Market of Ukraine
4. Securities Market of Russia
5. Conclusion
Research Objectives and Key Topics
The primary objective of this seminar paper is to analyze the security markets (SMs) of Belarus, Ukraine, and the Russian Federation, evaluating whether the classification of these nations as emerging markets characterized by both high potential profits and high investment risks holds true when compared to developed western markets.
- Examination of the structural development of security markets in Eastern Europe.
- Comparative analysis of trading volumes and market volatility.
- Evaluation of the influence of domestic political and regulatory environments.
- Review of the impact of global financial crises on local stock indices.
- Assessment of the role of market infrastructure and available financial instruments.
Excerpt from the Book
2. Securities Market of Belarus
The Belarusian Currency and Stock Exchange (BCSE) is a quite young stock exchange compared to western ones. BCSE was founded in 1998 on behalf of the president of the Republic of BL and is situated in Minsk. BCSE is the only market platform for trading in foreign currencies and the only institutional stock exchange of the country. Tradable securities are shares and bonds of legal Belarusian entities, municipal loan bonds and bills of exchange. The lattest are represented by bills of BelTransGaz, a Belorusian-Russian energy-provider, without exception. These days, BCSE also installs the first legal futures-market, which will not be discussed in this paper, because futures represent a kind of contract to trade financial instruments like securities, for instance and so futures are no securities.
Belarusian SM grew in recent years, as table 1 shows. The table shows a total growth of 278% of the trade volume from 2006 to 2008. This number is explained by the exorbitant increase of state securities on the secondary market. But also remarkable is the sudden rise of corporation financing - shares and bonds in this case. The main explanation for that is a slow ending of the "moratorium on privatised equity carve-out" in BL. This moratorium mainly prohibited the foundation of new subsidiaries and then offer them to the public (IPO).
Chapter Summaries
1. Introduction: The introduction establishes the definition of securities and outlines the scope of the paper, identifying Belarus, Ukraine, and Russia as emerging markets to be analyzed against western standards.
2. Securities Market of Belarus: This chapter provides an overview of the Belarusian Currency and Stock Exchange, highlighting its youth, reliance on state securities, and recent growth trends in corporate financing.
3. Securities Market of Ukraine: This section examines the fragmented Ukrainian market, identifying the First Securities Trading System (PFTS) as the dominant exchange and discussing the impact of the financial crisis on market volatility.
4. Securities Market of Russia: This chapter analyzes the Moscow Interbank Currency Exchange (MICEX) as the most liquid market in the region and discusses the performance of the Russian Trading Standard (RTS) index in relation to historical economic crises.
5. Conclusion: The conclusion summarizes the developmental stages of the three markets, noting that Russia offers the most liquid market while Ukraine and Belarus are encouraged to pursue further deregulation and integration.
Keywords
Securities Market, Emerging Markets, Belarus, Ukraine, Russia, BCSE, PFTS, MICEX, RTS, Investment Risk, Market Volatility, Corporate Bonds, Financial Crisis, Equity, Privatization
Frequently Asked Questions
What is the core subject of this paper?
The paper focuses on the development and performance of security markets in three specific Eastern European countries: Belarus, Ukraine, and the Russian Federation.
What are the central themes of the analysis?
The central themes include market infrastructure, liquidity, trading volumes, the impact of national legislation, and the susceptibility of these markets to global and local economic crises.
What is the primary research goal?
The paper aims to test the validity of the assumption that emerging markets in Eastern Europe offer higher profit opportunities alongside higher risks compared to developed western stock exchanges.
Which scientific methods are employed?
The author utilizes a comparative analysis approach, relying on empirical data from annual reports of national stock exchanges, economic indicators, and historical index performance benchmarks.
What is covered in the main body of the paper?
The main body provides detailed, country-specific analysis of the stock exchanges in Belarus, Ukraine, and Russia, supported by tables and figures representing trading volumes, risk measures, and index trajectories.
Which keywords characterize this work?
Key terms include Emerging Markets, Security Markets, Market Capitalization, Volatility, and specific regional indices such as the BCSE, PFTS, and RTS.
How does the Belarusian market differ from the others?
The Belarusian market is identified as particularly young and stable due to its heavy focus on domestic government securities and a lack of integration with international financial systems.
What is the significance of the "Russian Crisis" for the Russian market analysis?
The 1998 Russian Crisis serves as a critical historical turning point that explains the subsequent shift in trading currency and the later recovery trajectory reflected in the RTS index.
- Quote paper
- David Busse (Author), 2010, Security Markets: Belarus, Ukraine and Russia, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/177070
