INFRASTRUCTURE IMPROVEMENT OF FUTURE CONTRACTS ON AGRICULTURAL PRODUCTS FOR FINANCIAL RISK MANAGEMENT

Abstract

The article examines how the infrastructure of the futures market is being improved for agricultural products. It is proved that the regulation of the exchange market of agricultural products should include protection of the integrity of market prices, as the damage caused to the market is not limited to the loss of its direct participants, to maintain confidence, and confidence in the market for risk management makes it impossible to circumvent tax restrictions. It is determined that the components of an efficient infrastructure function harmoniously and smoothly. It is substantiated that an important problem of the exchange market infrastructure is the limited accredited elevators, which prevents the use of futures on agricultural products as a hedging tool. It is outlined that the infrastructure of the futures market for agricultural products largely depends on the infrastructure of the grain market as a whole, which is currently in poor condition. The current state of infrastructure and logistics of the grain market is highlighted and substantiated that a qualitative change in the current situation requires large-scale moderni-zation, reconstruction and construction of new facilities at all stages of agricultural production. The purpose of this study is to improve the infrastructure of the market of futures contracts for agricultural products to manage financial risks and prospects for their further development. Methods. The basis of the study is the current legal framework, legislation, regulations, instruct-tional materials, textbooks, special literature. The article used general scientific methods of analysis and synthesis, specific methods of analysis: grouping, comparison, systematic and others. Results. Based on the study, it is proved that the infrastructure of the futures market for agricul-tural products is a set of organizations and institutions that help this market to work effectively and should be inextricably linked with the commodity exchange. It is also studied and determined that the market infrastructure, as a system of institutions and organizations (banks, exchanges, fairs, insurance companies, consulting and information and marketing firms, etc.), providing free movement of goods and services in the market. Keywords: market infrastructure, futures, futures contracts, financial risks, financial risk management.