Competitive environment in international trade of securities...

Competitive environment in international securities trading and criteria for assessing the market situation

The study of the subject matter of the competitive environment in international trade in securities introduces its own corrections in understanding the generators of the principles and the factors that affect it. The evaluation of the competitive environment is characterized by the presence of a variety of parameters, among which there are: key participants; degree of monopolization; investment risks; resource availability; key areas of competition; profitability indicators; taxation of non-residents.

Mutual funds, pension funds, joint-stock companies, hedge funds, mixed funds, the state as a seller of government bonds, banks, investment companies and individual investors are singled out as the main participants in the sphere of international trade in securities.

The degree of monopolization on the international securities market is reflected in the presence of a large number of market participants offering investment products for a different consumer taste. The number of players selling identical investment products on the market is large. For example, in 2011, the global number of bond issuers amounted to 15,846, and the number of companies whose shares are listed on the world's stock markets in January 2013 was 46275. For new entrants, entry into the market is due to the financial capabilities of the business organization.

The level of monopolization can be estimated through the prism of ranking stock exchanges in the world for 10 campaigns with the highest capitalization and the largest value of turnover (Table 11.1).

The ratio of the shares of the ten companies with the largest capitalization and the largest value of turnover in terms of market capitalization and the value of turnover in world stock markets shows that in order for the company's securities to be acquired, it is necessary to make sufficient efforts to form their attractiveness of securities in the eyes potential investors.

Table 11.1

The market concentration of the ten most capitalized and most traded domestic companies (in % of the total volume)

Time Zone

2010

2011

Market capitalization of the 10 largest joint-stock companies

Cost of turnover of the 10 largest joint-stock companies

Market capitalization of the 10 largest joint-stock companies

Cost of turnover of the 10 largest joint-stock companies

Columbia

79.3

86.6

79.1

68.7

Mexican

66.1

60.6

65.9

62.1

New York

19.2

20.4

18.0

24.4

Australian

41.7

42.7

43.6

41.8

Malaysian

37.0

37.4

37.1

36.5

Hong Kong

36.9

29.6

37.3

30.5

Shanghai

36.0

9.6

39.7

9.1

Tokyo

17.1

18.2

17.0

16.6

German

45.6

48.8

45.1

50.8

Irish

77.7

85.0

88.0

89.0

London

32.9

37.8

35.1

35.8

Tel Aviv

52.2

48.1

54.5

55.6

Vienna

64.2

78.6

61.7

78.1

Source : WFE. Annual Report 2011. Market concentration - 10% of the most capitalized and most traded domestic companies. Paris, 2011. P. 106.

Investment risks in the international securities trading market are most equated with such instruments of portfolio investment as shares of new companies of the growth stage. When referring to the debt of the last line of repayment of available financial opportunities, the shares constantly change the price benchmarks in the stock market and it is possible that, having received some profit from investing in such securities, you will later incur tangible losses. This reason and attribution of shares not to a specific monetary obligation, but to the "title" property fixes the increased riskiness of investments in shares in comparison with bonds.

Resource availability of the market of international securities trading is characterized by relative saturation, which is due to a number of reasons. First, there are a large number of organizations in the world that sell securities. The cost volumes of traded financial instruments are different for countries. If in the developed countries of the world stock market, such as the United States, Japan, Britain, France, Germany, the cost of market capitalization is high, then in developing countries, capitalization is relatively low. Secondly, in the world there are new enterprises replenishing the volume of proposals for investment goods. In 2011, the global figure for the number of new listed companies was 2787 of these organizations.

The key areas of competition are outlined in various ways to organize trading activities in the struggle for the client. These include: improving stock exchanges in order to attract more customers; the emergence of new alternative trading systems operating outside regulated markets; development of systems dealing with brokerage and dealer activities, selling and buying securities for the benefit of the client or in personal interests.

Indicators of profitability of the international securities market.

Shares are among the most priority stock instruments for obtaining entrepreneurial capital in the stock market. Many receive additional sources of capital by conducting a public offering of capital through the sale of shares of their companies.

Young companies receive investment funds for business development in the stock market, usually through an initial open offer. The analysis shows that the market for international trade in securities in the world as a whole is about 48% of the total amount received from the initial open supply.

Taxation of non-residents in the sphere of international trade in securities. In most countries of the world there are privileges for non-residents as participants in the domestic securities market. For example, where the rate for a resident is 15% of income tax, there is an easing of up to 10% for a non-resident. Often in the world's tax codes there is a record of the treaty on avoidance of double taxation.

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