PROSPECTS FOR THE GAS DERIVATIVES SPREADING IN UKRAINE
DOI:
https://doi.org/10.56197/2786-5827/2024-3-1-2Keywords:
financial development, capital market, natural gas, energy derivatives, gas futuresAbstract
Introduction. Although a lot of attention has been paid to the creation of the capital market in Ukraine since the beginning of independence, it is still in its infancy. Long-term attempts to develop the Ukrainian stock market were limited by the fact that the dominant majority of operations on it had an extremely limited connection with the real sector of the economy. Despite this, one of the key conditions for building an efficient capital market is a modern toolkit that is in demand in the real sector of the economy. The purpose of the article is to substantiate the prospects for the introduction of derivatives on the organized natural gas market and to determine their potential impact on the development of the stock market in Ukraine.
Materials and methods. Official reports of the Ukrainian Energy Exchange were used to analyze the indicators of the Ukrainian market. The state of the spot gas market was assessed based on the reports of national energy exchanges, stock exchange and futures trade associations for the period 2007-2023. The substantiation of prospects and the determination of trends in the distribution of gas derivatives in the world and in Ukraine, using general scientific methods.
Results and discussion. It is shown that there are prerequisites for the spread of gas derivatives in view of the growing demand, world trends, European initiatives to create gas hubs and the actual presence of an energy exchange in Ukraine with a growing volume of spot contracts. The positive impact of the spread of gas futures on the institutional development of the capital market of Ukraine due to the diversification of supply and tools, price equalization and reduction of transaction costs was determined. Regulatory measures to promote the spread of gas futures circulation in Ukraine are justified.
Conclusion. the spread of gas futures in Ukraine has a number of significant advantages for the structural development of the national capital market due to the strengthening of the relationship between the capital market and the real sector of the economy, diversification of participants and supply, increased competition, transparent market pricing, increasing the stability of the national economy against energy deficits through hedging mechanisms.
References
Oliinyk, V., Burdenko, I., Volynets, O. and Yatsenko, V. (2019), Organized derivatives market and economical growth: Relationship and impact, Periodicals of Engineering and Natural Sciences (PEN), 7(2), 806-817. URL: https://doi.org/10.21533/pen.v7i2.585
Lutsyshyn, Z., Klapkiv, Y., Kucher, T. and Svirskyi V. (2019), Development of innovative instruments in the financial market of Ukraine, Revista Espacios, 40(28).
Shyshkov, S.I. (2011), Fondovi birzhi Ukrainy: vyprobuvannia kryzoiu [Stock exchanges of Ukraine: tested by the crisis]. Kyiv: State Institution “Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine”. 206 p.
Prymostka, L., Krasnova, І., Kulish, G., Nikitin, A. and Shevaldina, V. (2020), Modeling the segment interactions of Ukraine’s financial market. Investment Management and Financial Innovations, 17(2), 101-112. (109) URL: https://doi.org/10.21511/imfi.17(2).2020.09
Yukhymets, R. (2021), Rynky pryrodnoho hazu Ukrainy ta YeS: liberalizatsiia ta intehratsiia [Natural gas markets of Ukraine and the EU: liberalization and integration]. Kyiv: State Institution “Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine”. 196 p.
Marozva, G. (2014). A Causal Relationship Between Derivatives Trading, Capital Market Development and Economic Growth: Evidence from South Africa, Corporate Ownership and Control, 11(2).
Qamruzzaman, M. and Wei, J. (2018), Financial innovation, stock market development, and economic growth: An application of ARDL model, International Journal of Financial Studies, 6(3), 69. URL: https://doi.org/10.3390/ijfs6030069
Haiss, P. and Sammer, B. (2010), The Impact of Derivatives Markets on Financial Integration, Risk, and Economic Growth, Conference proceedings of the 10th Biennial Conference on Regulatory Responses to the Financial Crisis. Conducted by the Bundesbank/Athenian Policy Forum. Frankfurt: the Bundesbank/Athenian Policy Forum. URL: https://doi.org/10.2139/ssrn.1720586
Nakajima, T. and Toyoshima, Y. (2020), Examination of the spillover effects among natural gas and wholesale electricity markets using their futures with different maturities and spot prices. Energies, 13(7), 1533, 14 p. URL: https://doi.org/10.3390/en13071533
Rizvi, S., Naqvi, B., Boubaker, S. and Mirza, N. (2022), The power play of natural gas and crude oil in the move towards the financialization of the energy market, Energy Economics, 112, 106131. URL: https://doi.org/10.1016/j.eneco.2022.106131
Frolov, S., Orlov, V. and Dykha, M. (2022), Development of the Ukrainian stock market in terms of the interrelationships of the stock markets across the world. Modeling the development of the economic systems, (2), 8-18. URL: https://doi.org/10.31891/mdes/2022-4-1
Pavlov, R., Grynko, T., Pavlova, T., Levkovich, O. and Pawliszczy, D. (2020), Influence of monetary information signals of the USA on the Ukrainian stock market. Investment Management and Financial Innovations. 2020. 17(4). URL: http://dx.doi.org/10.21511/imfi.17(4).2020.28
Shkolnyk, I., Frolov, S., Orlov, V., Dziuba, V. and Balatskyi, Y. (2021), Influence of world stock markets on the development of the stock market in Ukraine. Investment Management and Financial Innovations, 18(4), 223-240. URL: https://doi.org/10.21511/imfi.18(4).2021.20
Bublyk, Y. O. (2018), “Structural and functional deformation of financial sector in Ukraine’s economy”. Economy and forecasting, 2, 48-61. URL: https://doi.org/10.15407/eip2018.02.048
Goonesinghe, J., Aukati, A., Iakovenko, M. and Miroshnychenko, V. (2021), Development of the wholesale and retail gas market of Ukraine. Program for opening access to volumes of natural gas – Proposal document for application in Ukraine. Tetra Tech. ES. USAID. 65 p.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Евгеній Бублик
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
