Anastasiia Petruk


Over the past decades, the use of derivatives as risk hedging instruments has grown in scope due to the strengthening of their role in global financial markets. The market of derivative financial instruments performs a number of functions inherent only to it: hedging, stimulating, informing about future price changes and ensuring the liquidity of the underlying assets. The activity of banking institutions as the largest participants in the derivatives market is exposed to the negative influence of a large number of external threats, which, transforming into risks, reduce the level of their financial stability. The Ukrainian market is inefficient and non-transparent, which causes the risk of information asymmetry, fraud, moral hazard, the use of private information and increases systemic risks – all of these problems are caused by the lack of an effective legal framework and rules for the functioning of the derivatives market, imperfect infrastructure and weak state regulation. It is expedient to manage the individual risks of commercial banks in operations with derivative financial instruments at the level of risk management of the relevant institution. However, considering the probability of macroeconomic shock events, it is necessary to minimize the impact of such risks by improving the macroeconomic regulation of the derivatives market and its participants.

Increasing the level of transparency, liquidity and efficiency of the Ukrainian derivatives market, as well as guaranteeing the safety of its participants, is possible due to the implementation of an appropriate state regulation model and the necessary conditions for the proper performance of its functions by the market. Comparative analysis of the state regulation models by the possibilities of reducing the impact of external threats indicates the need to use a cross-regulation model in Ukraine. Despite the introduction of the reforms developed on the basis of the European legislation, the study of the legal regulation of the Ukrainian derivatives market indicate its fragmentation and imperfection. Owning to this fact, the article presents proposals for improving the regulation of the derivative financial instruments market in Ukraine based on the legislation of the European Union.


derivative financial instruments; derivatives; transparency; macroeconomic regulation; regulation of capital markets; systemic risk


Babenko,V., Nazarenko, O., Nazarenko, I., & Mandych, O. (2018). Aspects of program control over technological innovations with consideration of risks. Eastern- European Journal of Enterprise Technologies, 3/4 (93), 6-14.

Bacache-Beauvalleta, M., & Perrotb, A. (2017). Economic Regulation: Which Sectors to Regulate and How? Notes du conseil d’analyse économique, 44(8), 1-12. Retrieved 26.12.2020 from

Baker, S.D., Hollifield, B., & Osambela, E. (2016). Disagreement, speculation, and aggregate investment. Journal of Financial Economics, 119(1), 210-225.

Bakoush, M., Gerding, E.H., & Wolfe, S. (2019). Margin requirements and systemic liquidity risk. Journal of International Financial Markets, Institutions and Money, 58, 78-95.

Berger, A.N., & Bouwman, C.H.S. (2013). How does capital affect bank performance during financial crises? Journal of Financial Economics, 109(1), 146-176.

Bergh, D. D., Ketchen Jr, D. J., Orlandi, I., Heugens, P. P., & Boyd, B. K. (2019). Information asymmetry in management research: Past accomplishments and future opportunities. Journal of management, 45(1), 122-158.

Borochin, P., & Yang, J. (2017). Options, equity risks, and the value of capital structure adjustments. Journal of Corporate Finance, 42, 150-178.

Boyarchenko, N. (2012). Ambiguity shifts and the 2007–2008 financial crisis. Journal of Monetary Economics, 59(5), 493-507.

Burdenko, I., & Dudko, V. (2016). Modeling of the influence of transparency of the derivatives market on financial depth. Risk governance & control: financial markets & institutions, 6(3), 52-59.

Dodd-Frank Wall Street Reform and Consumer Protection Act. Retrieved 26.12.2020 from

Driouchi, T., So, R.H.Y., & Trigeorgis, L. (2020). Investor ambiguity, systemic banking risk and economic activity: The case of too-big-to-fail. Journal of Corporate Finance, 62, 101549.

European market infrastructure regulation (EMIR). Retrieved 26.12.2020 from

Ghamami, S., & Glasserman, P. (2017). Does OTC derivatives reform incentivize central clearing? Journal of Financial Intermediation, 32, 76-87.

Guidelines and recommendations for establishing consistent, efficient and effective assessments of interoperability arrangements. Retrieved 26.12.2020 from

Hairston, S.A., & Brooks, M.R. (2019). Derivative accounting and financial reporting quality: A review of the literature. Advances in Accounting, 44, 81-94,

Huchet, N., & Fam, P.G. (2016). The role of speculation in international futures markets on commodity prices. Research in International Business and Finance, 37, 49-65.

Izhakian, Ye., & Yermack, D. (2017). Risk, ambiguity, and the exercise of employee stock options. Journal of Financial Economics, 124(1), 65-85.

Kryvenko, L., & Isaeva, O. (2015). Feasibility of the financial market mega-regulator model implementing in Ukraine. Economic Annals-XXI, 3-4(2), 33-36.

Kühl, M. (2017). Bank capital, the state contingency of banks’ assets and its role for the transmission of shocks. Journal of Macroeconomics, 54, 260-284,

Lanets, S. (2016). Financial stability of banks in times of crisis. Baltic Journal of Economic Studies, 1(1), 122-125.

Li, F., & Perez-Saiz, H. (2018). Measuring systemic risk across financial market infrastructures. Journal of Financial Stability, 34, 1-11.

Loon, Y.C., & Zhong, Z.K. (2016). Does Dodd-Frank affect OTC transaction costs and liquidity? Evidence from real-time CDS trade reports. Journal of Financial Economics, 119, (3), 645-672.

Mixon, S., Onur, E., & Riggs, L. (2018). Integrating swaps and futures: A new direction for commodity research. Journal of Commodity Markets, 10, 3-21.

Melnychenko, O. (2021)., The Energy of Finance in Refining of Medical Surge Capacity. Energies, 14, 210.

Melnychenko, O. (2021). Energy Losses Due to Imperfect Payment Infrastructure and Payment Instruments. Energies, 14, 8213.

Novak, O., Osadcha, T., & Petruk, O. (2019). Concept and сclassification of derivative financial instruments as a methodological precision on their regulation in the financial services market. Baltic Journal of Economic Studies, 5(3), 135-144.

Novak, O., Melnychenko, O., & Oliinyk, O. (2021). Improving the regulation of the derivatives market as an objective prerequisite for sustainable development of the global financial system. E3S Web of Conferences, 307, 1-12.

Oliinyk, V., Burdenko, I., Volynets, O., & Yatsenko, V. (2019). Organized Derivatives Market and Economical Growth: Relationship and Impact. Periodicals of Engineering and Natural Sciences, 7(2), 806-817. Available online at:

Osadcha, T. & Melnychenko, O. (2021). Payment transactions’ energy efficiency. European Cooperation, 2(50), 18-39.

Osadcha, T. , Melnychenko, O. & Spodin, S. (2021). Money circulation in conditions of energy fever. European Cooperation, 3(51), 7-33.

Petruk, A. (2020). Risk regulation of banking activities with derivative financial instruments: a comparative aspect. European Cooperation, 1(45), 39-50.

Petruk, A., & Stadniichuk, R. (2020). Credit derivatives in banking: benefits and threats. European Cooperation, 3(47), 7-16.

Principles for financial market infrastructures. Retrieved 26.12.2020 from

Radova, N.V., & Garkyscha, Y.O. (2018). Methods and Instruments of Credit Risk Management in Banks. Financial and credit activity: problems of theory and practice, 3(26), 64-71. DOI:

Recommendations for Central Counterparties. Retrieved 26.12.2020 from

Riggs, L., Onur, E., Reiffen, D., & Zhu, H. (2020). Swap trading after Dodd-Frank: Evidence from index CDS. Journal of Financial Economics, 137(3), 857-886.

Schuknecht, L., & Siegerink, V. (2020). The political economy of the G20 agenda on financial regulation. European Journal of Political Economy, 65, 101941.

Shkodina, I. , Melnychenko, O., & Babenko, M. (2020). Quantitative easing policy and its impact on the global economy. Financial And Credit Activity-problems Of Theory And Practice, 2, 513-521.

Stephens, E., & Thompson, J.R. (2017). Information asymmetry and risk transfer markets. Journal of Financial Intermediation, 32, 88-99.

Verona, F., Martins, M.F., & Drumond, I. (2017). Financial shocks, financial stability, and optimal Taylor rules. Journal of Macroeconomics, 54, 187-207.

Закон України Про регулювання ринку капіталів та організовані товарні ринки. Retrieved 10.08.2021 from

Закон України Про ринок капіталів та організовані товарні ринки. Retrieved 20.08.2021 from

Положення про клірингову діяльність. Retrieved 10.08.2021 from

Положення про підтримання ліквідності центрального контрагента. Retrieved 10.08.2021 from

Положення щодо пруденційних нормативів професійної діяльності на фондовому ринку та вимог до системи управління ризиками. Retrieved 10.08.2021 from


  • There are currently no refbacks.

Copyright (c) 2022 Anastasiia Petruk

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

ISSN (Print) : 2449-7320

ISSN (Online) : 2449-8726