Institutional determinants of stock market development in Russia

This article is devoted to the formation and development of the stock market (securities market) in Russia as the most important element of the financial system in a market economy. The author emphasizes that the functioning of the stock market (or stock markets) in a stable economy is extremely important for its self-regulation, and also performs the most important functions. The securities market in our country began its formation in the first half of 1991 after the adoption of Decree of the Council of Ministers of the RSFSR No. 601 of December 25, 1990 No. 601 "On approval of the Regulations on Joint-Stock Companies" and went through four stages in its development. In general, the formation of the Russian stock market both began and continued along a completely non-standard path for world practice. Today, the Russian stock market, despite its relative youth, is closely connected with politics and the global economy, where it directly or indirectly affects the value of assets (stocks, bonds and derivatives), and the main trend in the development of the Russian stock market at the present stage is its growing popularity as a tool for managing personal finances.

The article emphasizes that understanding both the dynamics and determinants of the development of stock markets is necessary not only to understand the relationship between finance and economic growth, but also has important policy implications, as it sheds light on those areas in which government intervention is required to change the economic and institutional environment.

An important factor determining the development of the stock market is the structure of the economy, and sustained positive economic growth leads to the emergence of new markets, as well as to the expansion of companies' opportunities for growth and profit, which serves as an incentive for companies to receive financing by attracting capital to expand operations. In addition, the development of the stock market requires a deep and diverse investor base.

However, the most important block of support and development of the stock market are institutional factors or determinants, which include a wide range of factors such as regulation affecting public securities issuers, market intermediaries, asset management, supervisory and enforcement tools, trade payments and settlement systems, as well as corporate governance and transparency. With regard to the development of the stock market, institutional factors can be grouped into the following three components: regulatory framework, market infrastructure, and "other" factors, the range of which varies significantly and which are analyzed in detail in this article. As a result, the author concludes that a stable macroeconomic environment is crucial for the development of stock markets, and rational and predictable macroeconomic policies increase investor confidence in the market and create a favorable environment for making investment decisions.

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