Regional Economic Development in Russia by Niyaz Kamilevich Gabdrakhmanov & Lenar Nailevich Safiullin

Author:Niyaz Kamilevich Gabdrakhmanov & Lenar Nailevich Safiullin
Language: eng
Format: epub
ISBN: 9783030398590
Publisher: Springer International Publishing

3 Formation of the Single Stock Market: Conditions and Difficulties

At the present day, Russia and Kazakhstan attach particular importance to the issue of the future single stock market. Firstly, stock markets operate on the basis of electronic trading systems, which in the near future would be integral parts of the global financial system. Secondly, stock market integration implies business expansion of stock exchange market, increases volume of the market and income basis stock exchanges. Thirdly, index values of stock exchange activity are indicators of the national economy’s state. Fourthly, the situation on the stock market reflects an economic environment and sends a message to investors for allocating their capital.

Russia and Kazakhstan, as parties of the Eurasian Economic Union (EEU), set a target to integrate their key economic segments, including national stock markets, to provide financial market development of these countries and formation of the single exchange area. It is a system of international treaties that establish the rules and procedures of access to the exchange EEU. State operators of exchange trading of all types of financial instruments, including securities and cash, also formed a unified system of regulation and supervision of the participants of exchange trade EEU.

There are economic factors of the financial integration which provide favorable conditions for capital flows between Russia and Kazakhstan: common information space, lack of language and cultural barriers, and others.

Despite the proximity and socioeconomic similarity of partner countries, imbalances in the development level of their financial systems and legal restrictions cause a number of complications for the formation of the integrated stock market. Proof of that is accumulated experience of the Russian and Kazakhstan stock market integration, in which there is an insignificant investment cooperation of the financial markets of Russia and Kazakhstan.

The primary cause of this situation is the existence of inhibiting factors, which impede effective cooperation of these countries’ financial markets:asymmetry in the development level of the stock markets;

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