MARKET OF FINANCIAL SERVICES

LUPENKO Yurii ¹, FESCHENKO Volodymyr

¹NSC "Institute for Agrarian Economics"
OrcID ID : https://orcid.org/0000-0001-6846-0300

Financial risks hedging and modern derivatives market for enterprises of agricultural sector

Technologies of financial risks hedging of agrarian business with derivatives are considered. It is revealed the essence of the main types of derivatives - forwards, futures, options, warrants and swaps The comparative analysis of the capabilities and features of various types of derivatives to minimize financial losses of agrarian businesses from changes in market prices, interest rates and exchange rates is conducted. It is developed the definition of derivatives market, as well it is characterized participants of derivatives market, its infrastructure and performed functions. It is revealed the main advantages and disadvantages of an organized and OTC derivatives markets. The use of derivatives technology to minimize financial risks in agricultural sector of Ukraine is analyzed. The factors that prevent spread of that technologies and reduce the effectiveness of their application are determined. It is considered the main reasons for immaturity of modem derivatives market in Ukraine, in particular, shortcomings of current legislation. The author has suggested recommendations to create derivatives market for the agricultural sector of the national economy.

Keywords: financial risks, derivatives, hedging, spot market, financial market, derivatives market, clearing, central counterparty

JEL: G30, G32, Q13, Q16

LUPENKO Y. . Financial risks hedging and modern derivatives market for enterprises of agricultural sector / Y. LUPENKO, V. FESCHENKO // Фінанси України. - 2014. - № 11. - C. 98-115.