Holovach Marko, postgraduate student of the Department of Finance, Banking and Insurance, Banking University, Lviv, Ukraine

ORCID ID: 0000-0002-0309-8475
e-mail: holovach.markoo@gmail.com

Financial Security of the Stock Exchange in the War Times

Abstract. Introduction. The article examines the functioning of the stock exchange during martial law in the country. Measures taken by the state to secure the national securities market are analyzed. Paid attention to the issue of the origin, issuance, and redemption of a “new” type of domestic state loan bonds for Ukraine, the so-called “military bonds”. Has been studied the issue of stopping the circulation of financial instruments and carrying out transactions as a justified mechanism only for a short and planned period, in particular, to minimize the influence of residents of the aggressor state, which in modern conditions of digitalization does not require significant technical efforts, but only the political will of the regulator.

Purpose. The issues of the functioning of economies and the securities market have already become the subject of research by many researchers. In addition, economists are focused on the global impact of the war on the world economy, the leading financial markets, and the cost of energy carriers – on the threats of the world food crisis. However, due to the locality and relatively small volume of the Ukrainian securities market, the issue of influence on it during military operations in Ukraine did not find interest among scientists.

Results. Were considered the level of sufficiency of the grounds for stopping the circulation of state securities in war conditions and the mechanisms for reducing risks by the state were analyzed, as well as the interests of the owners of state securities in preventing the price of domestic debt securities from falling in connection with the war. Was briefly investigated the question of the impact of Russia’s war against Ukraine on the world securities markets, as well as a historical overview of the impact of previous wars on the securities markets, was made. The consequences of the current restrictions on the circulation of financial instruments and current activities of institutional investors in capital markets and certain sectors of the economy are highlighted.

Conclusions. It was found that the permission to circulate only a small part of state securities, so-called “military bonds” is insufficient for investment activities, diversification of risks of financial portfolios, and satisfaction of the demand of individuals and legal entities, which under such a framework can resort to investments in assets that are beyond regulatory limits or not regulated by law.

Keywords: financial security of the stock exchange; stock market; capital market; martial law; securities; domestic government bonds; military bonds; issuer; investor; index.

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