Trends and prospects for the development of the derivatives market in Russia under sanctions

Aim. To analyze trends on the derivatives market in Russia under sanctions and identify prospects for its development.

Objectives. To study the theoretical basis and functions of the derivatives market; to analyze its current state in Russia, to assess the impact of sanctions on the dynamics and structure of the derivatives market; to identify trends and determine scenarios for its development in the Russian state under sanctions; to develop recommendations to improve the efficiency and development of the derivatives market under external pressure.

Methods. The author applied the methods of analysis, synthesis, generalization, comparison, analogy, historical analysis. The analysis of publications with the subsequent interpretation has been carried out, the results of research have been summarized, on the basis of which the author’s understanding of the derivatives market development trends has been derived. Comparison of the existing opinions concerning the considered problems was carried out, statistical data were investigated.

Results. Under the conditions of sanctions Russian banks, financial organizations, exporters and importers faced restricted access to international markets, there were changes in demand, there were needs for new instruments. Sanctions contribute to the development and implementation of new instruments in the derivatives market. The main scientific result of the work is to identify effective approaches to the development of the derivatives market under external pressure. The results of the study can be used in the practice of financial institutions, banks and government agencies to develop strategies and development of operations with derivatives.

Conclusions. The derivatives market plays an important role in the Russian economy, performing the functions of risk hedging, price formation and contributing to the predictability of financial flows, which is especially important in the conditions of sanctions pressure. An assessment of the current state of the derivatives market in Russia has revealed significant changes in its structure and dynamics. The introduction of sanctions led to the introduction of new financial instruments, sanctions stimulated innovation and development of domestic infrastructure. The role of financial market infrastructural organizations, state institutions and the Bank of Russia is increasing. There is a growing interest in local and regional hedging instruments, increasing importance of the domestic market and markets of friendly countries. The prospects for the development of the derivatives market in the Russian state look promising if a number of steps are realized. Possible development scenarios include: further strengthening of internal infrastructure, simplification of accounting procedures, development of new financial products adapted to current conditions.

1. Goryunov M., Popov M. Digital financial assets (DFAs) in Russia in 2024. Komsomol’skaya pravda. URL: https://www.kp.ru/money/lichnye-finansy/tsifrovye-finansovye-aktivy/ (accessed on 22.03.2024). (In Russ.).

2. On digital financial assets, digital currency. Federal law of July 31, 2020 No. 259-FZ. Official website of the President of Russia. URL: http://www.kremlin.ru/acts/bank/45766 (accessed on 22.03.2024). (In Russ.).

3. Gavrilov P. Moscow Exchange derivatives market: Results of 2023. Alfa-Bank. Dec. 27, 2023. URL: https://alfabank.ru/make-money/investments/learn/t/srochnii-rinok-mosbirzhi-itogi-2023-goda/ (accessed on 22.03.2024). (In Russ.).

4. Polyanskii D. Moscow Exchange will launch futures on indices of Brazil, Turkey and India. RBC. Oct. 28, 2023. URL: https://quote.rbc.ru/news/article/653ceb659a79476babe4528a (accessed on 22.03.2024). (In Russ.).

5. Kotchenko K., Polyanskii D. Moscow Exchange will launch futures on Asian indices before the end of the year. RBC. Aug. 26, 2022. URL: https://quote.rbc.ru/news/article/6308b47c9a7947fabfaa2372 (accessed on 22.03.2024). (In Russ.).

6. Polyanskii D. Moscow Exchange will launch futures on the US technology stock index. RBC. Sep. 02, 2022. URL: https://quote.rbc.ru/news/article/6311d1ee9a7947ae7788fab7 (accessed on 22.03.2024). (In Russ.).

7. Kotchenko K. Moscow Exchange announced the launch of “perpetual” futures for the dollar, euro and yuan. RBC. Apr. 0, 2022. URL: https://quote.rbc.ru/news/article/625fe1289a79470bbb80df8e (accessed on 22.03.2024). (In Russ.).

8. Polyanskii D. Trading in perpetual futures on the Moscow Exchange index will begin before the end of November. Oct. 28, 2023. URL: https://quote.rbc.ru/news/article/653cf3979a79477c8b486a77 (accessed on 22.03.2024). (In Russ.).

9. Derivatives market. Moscow Exchange. URL: https://www.moex.com/ru/derivatives/ (accessed on 22.03.2024). (In Russ.).

10. Kolotovich N. The share of individuals on the Moscow Exchange derivatives market has increased 1.5 times since February. RBC. Sep. 29, 2022. URL: https://quote.rbc.ru/news/short_article/633569e59a794770e0171cc6 (accessed on 22.03.2024). (In Russ.).

11. Register of digital financial asset exchange operators. Bank of Russia. URL: https://cbr.ru/finm_infrastructure/registry/ (accessed on 22.03.2024). (In Russ.).

12. Market of over-the-counter derivative financial instruments. Moscow: Bank of Russia; 2023. 29 p. URL: http://www.cbr.ru/Collection/Collection/File/46340/OTC_derivatives_market_ 2023.pdf (accessed on 22.03.2024). (In Russ.).

13. Anufrieva M., Polyanskii D. The Central Bank will evaluate the actions of the Moscow Exchange due to the largest failure of the derivatives market. RBC. Sep. 20, 2023. URL: https://quote.rbc.ru/news/article/6509d9f89a79473d213b005d (accessed on 22.03.2024). (In Russ.).