Financial mechanism in the system of countering unfair practices in the securities market

Abstract

The subject of this study is the system of countering insider transactions and manipulation in the securities market in terms of its mechanisms. The purpose of this work is to determine the place of the financial mechanism of counteraction and its role in the system of combating unfair practices. The securities market is the most important element ensuring the development of the economy. Today, one of the main problems of its regulation in Russia is the search for effective mechanisms to combat illegal practices. As a result of such activities, the financial security of participants is put at risk, and confidence in the market is reduced. The issue of finding and implementing new mechanisms to improve the effectiveness of control over the activities of participants is becoming urgent. In order to increase the effectiveness of the market regulation system in terms of control over insider trading and manipulation, the author proposes the introduction of a financial mechanism to counter insider trading and manipulation in the securities market. The methods of modeling and analogy, classification, comparison, system analysis, synthesis and generalization were used in the work. A comparative analysis of counteraction systems in countries with the world's leading stock exchanges has been carried out. The results show that each of the considered systems has a financial mechanism of counteraction, expressed not only by strict fines related to the amount of damage caused, but also by additional amounts of compensation, which is absent in domestic practice. The author analyzes the existing system of regulation of the Russian securities market, identifies its components, and highlights the main disadvantages. In addition, the analysis of the system showed that such a component as a financial counteraction mechanism has not been fully formed to date. The existing measures do not ensure the effectiveness of the fight against illegal practices. The financial mechanism of counteraction in Russian practice is fragmented, and the existing fines have no economic justification and are directly related to the damage caused to the market. In addition, no other measures are provided to compensate the losses received by the participants. Thus, in this paper, the concept of a financial mechanism for countering insider and manipulative activities is proposed, and its place in the Russian securities market regulation system is determined.