The stock market infrastructure development in formation of the investment bank business model in Ukraine

Abstract

Introduction. Modern trends in the world economy development cause an objective process of increasing stock market role and stimulate forming of investment bank business model in the domestic financial markets. Aim and tasks. The aim is to determine the role of the stock market infrastructure development in formation of the investment bank business model in Ukraine. It is necessary to perform the following tasks to achieve this goal: to determinate direction of Ukrainian financial market development and to analyze dynamic of the structure of loan and investment bank portfolio in last five years which allow to evaluate forming of the investment bank business model in Ukraine; to estimate the stock market infrastructure development through its participants. Results. The analysis of the loan and investment bank portfolio structure has shown rising of banks’ interest to the operations in the stock market and forming of the investment bank business model in Ukraine. But the structure of the investment portfolio of Ukrainian banks is dominated by domestic government bonds. The main reasons of such investment structure: the low total trading volume in the stock market; the absence of other financial instruments in the stock market; the low level of stock market development through the need to form stock market infrastructure. Studying the stock market infrastructure essence has substantiated the using of institutional approach to identify the level of its development. To the infrastructure participants in the stock market it is carried out organization of trade in financial instruments, clearing institutions, depository system, information, analytical and rating agencies. The infrastructural participants of the stock market in Ukraine has been characterized and analyzed. Conclusions. The Ukrainian stock market infrastructure is actively developing in the direction of creating conditions that brings it as close as possible to European and world standards. Such situation will make foundation of the investment bank business model forming. But conducted research has shown that it is necessary, on the one side, to stimulate the increase in stock trading volume and, on the other side, to make the stock market more accessible not only to investors, but to individuals too. The development of information technologies as an integral part of the stock market infrastructure in Ukraine has been worked out.