The securities market allows the fair pricing of financial instruments. A modern stock market also includes a derivatives market.
The securities market includes trade and settlement and accounting infrastructures, financial intermediaries, dealers, information and analytical agencies, investors and issuers.
Investors can generally enter the securities market through financial intermediaries, i.e. professional securities market participants. Professional securities market participants are brokers, dealers, trust managers, investment advisers, registrars and depositories. As of the end of 2022 Q3, there were 524 professional participants in the Russian securities market, including 188 credit institutions, 247 non-bank financial institutions, and 89 investment advisers that are individual entrepreneurs.
The securities market is evolving, offering investors multiple modes and forms of participation. One of the newly emerged investment instruments in the Russian securities market is the individual investment account (IIA) which allows investors to differentiate their investments and receive tax deductions.
The Bank of Russia ensures the sustainable development of the securities market, regulates the activity of professional securities market participants, controls and supervises them, protects investors’ rights and lawful interests in the securities market, for which purposes it counters unfair practices, the unlawful use of insider information and market manipulation, among other things.
Additionally, the Bank of Russia regulates the admission of securities to the financial market and compiles registers of financial instruments. The Bank of Russia is focused on the development of corporate relations and the improvement of corporate governance in Russian public companies, thereby promoting the development of equity financing.