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.
As a rule, investors can enter the securities market through financial intermediaries — professional securities market participants. Professional securities market participants include brokers, dealers, trust managers, investment advisers, registrars and depositories. As of the beginning of the second half of 2019, there were 506 organisations operating in the Russian securities market, 45% of which were credit institutions and 55% of which were non-bank financial institutions.
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.