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Juvenis scientia 2018 № 11 | Экономические науки
УДК: 336.763 ГРНТИ: 06.73.35 DOI: 10.32415/jscientia.2018.11.05
JUSTIFICATION OF RISK MANAGEMENT IN VIRTUAL SECURITIES TRANSACTIONS
M. V. Sokolovsky, I. V. Tselikhina
Kemerovo State University 4 Krasnaya St., 650000 Kemerovo, Russia
El Tselikhina Irina - fluffygane1@mail.ru
The article explores the specific risks that accompany online securities transactions. Private investors are focused on speculative operations, long-term investments are unpopular. This increases the risk and forms the need for risk management. The article attempts to analyze the risk management system of virtual work of Internet brokers on the stock exchange. The emphasis has been shifted specifically to private investment, since this block is one of the most promising for the development of the securities market at the present stage. The purpose of risk management in the system of Internet trading in securities is positioned in the article, primarily as a reduction of financial losses, and then ensuring the financial stability and reliability of the system for the client.
Keywords: internet trading, risk and profitability of virtual securities transactions, risk management, risk assessment, private investment on the stock exchange.
ОБОСНОВАНИЕ УПРАВЛЕНИЯ РИСКАМИ ПРИ ВИРТУАЛЬНЫХ ОПЕРАЦИЯХ С ЦЕННЫМИ БУМАГАМИ
М. В. Соколовский, И. В. Целихина
Кемеровский государственный университет Россия, 650000, г. Кемерово, ул. Красная, 4
И Целихина Ирина Владимировна - fluffygane1@mail.ru
В статье исследуются специфические риски, сопровождающие онлайн операции с ценными бумагами. Частные инвесторы нацелены на работу со спекулятивными операциями, долгосрочные вложения непопулярны. Это увеличивает риски и формирует потребность в риск-менеджменте. В статье сделана попытка проанализировать систему управления рисками виртуальной работы интернет-брокеров на фондовой бирже. Акцент перенесен именно на частное инвестирование, так как этот блок является одним из наиболее перспективных, для развития рынка ценных бумаг на современном этапе. Цель управления рисками в системе интернет-трейдинга ценными бумагами позиционируется в статье, в первую очередь как снижение финансовых потерь, а затем обеспечение финансовой устойчивости и надежности работы системы для клиента.
Ключевые слова: интернет-трейдинг, риск и доходность он-лайновых операций с ценными бумагами, управление рисками, оценка риска, частное инвестирование на фондовой бирже.
The logical question of how much profit can be obtained by doing online trading is directly related to the degree of risk for private users. The risk and profitability of on-line operations is much more greater, for example, the placement of money in bank deposits. This, of course, depends on how well the player's strategy in the stock market is thought out. The situation develops in such a way that speculative operations prevail [4, p.83]. The hope that the situation will begin to change in favor of long-term investments has long remained, however, the entire period of the development of online trading in securities in Russia did not occur as expected, and now they are no longer predicted with any significant probability.
If we talk about the ratio of risks while performing virtual operations with securities and their profitability, then the vector significantly shifts to the risk component [7, p.44].
In addition to the standard risks, generally characteristic of trading on the stock exchange, such as:
- systemic risks associated with the instability of the political situation, imperfect legislation, currency fluctuations;
- market risks of direct losses or loss of profits, due to the loss of liquidity of assets or problems of disproportionate functioning of the Russian securities market, we want to highlight the risks inherent directly to the network purchase and sale of securities.
1st group - technical risks.
- Due to errors in the algorithms and in the texts of the programs, the influence on the market of external conditions can occur in the operation of mechanical trading systems.
- Risks data exchange processes. These include limited bandwidth of communication channels, the possibility of technical failure of the channel «investor-trading platform».
2d group - individual risks.
- Lack of experience in online trading systems, most often this is typical for novice investors. In this case, the problems can be caused, firstly, by the complexity of the interface of the trading terminal, since pressing the wrong button (or pressing it late) means losing money. Secondly, possible errors when entering orders into the trading system and thirdly, novice brokers can choose the wrong trading strategy, do not have a developed policy of working in the market, which also in turn leads to financial losses. Simplification of access to trade in the stock market attracts people who are not always well aware of the specifics of working on it.
The purpose of risk management in the system of Internet trading in securities is, first of all, the reduction of financial losses, as well as ensuring financial stability and reliability of the system for the client [42, p.26].
The risk management process involves several steps, different authors suggest different approaches for distinguishing these steps. We propose to highlight the following:
Economics | Juvenis scientia 2018 № 11
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Stage 1. - definition and assessment of risk - the risk is determined, its sources and conditions of occurrence are identified.
To estimate the risk of investing in securities, we suggest applying a fairly simple model of business risk assessment, when the initial data contain a maximum of uncertainty. Similar models based on the use of fuzzy - multiple descriptions are used to assess the risk of entrepreneurial and investment activities based on fuzzy data.
The identified risks are ranked and divided into groups: risks that can be avoided and risks which probability of occurrence equals one. The first risk group is characterized by a lower probability of occurrence, in this case it is possible to resort to the transfer and division of risk. The second group of risks is being carefully studied and they proceed to the next stage.
Stage 2 - development of impact methods - at this stage, further work with risks is determined, tools and methods of insurance against them are selected, minimization options are considered or the project is abandoned.
The main exposure options are:
1) If the risk level is too high, the project should be abandoned.
2) If there is a chance of reducing the risk, diversification and hedging are applied.
3) Sometimes a partial or full transfer of risk can be used, for example, the insurance company.
4) With the adoption method, reserve or insurance funds are formed. [9, p.16]
Stage 3 - direct impact.
The main methods for reducing risks associated with the purchase and sale of securities in general are:
1) diversification of risks, which is the revision of the set of securities in the portfolio;
2) risk hedging or insurance against investment or portfolio risks;
3) Transferring damages to another person, using guarantees or insurance. The actual insurer is engaged in diversification of risks, insuring various risks and concluding contracts with different insurers.
4) The distribution of risks among a large number of persons involves the creation of joint insurance funds, in which many people participate, and the loss is redistributed among the participants;
5) Reservation is the creation of an individual or collective reserve fund.
We propose to supplement this list with methods of influence that help to manage the specific risks of Internet trading.
Similarly, diversification of the securities portfolio, investments in derivative products, that is, those financial products that combine diverse sets of securities. On the basis of Internet trading, each individual market participant has an access to create their own portfolio independently , to perform operational balancing of profits and risks. But in this case, a private investor should be ready to spend a lot of time on trading, know the market and technologies of online trading well. As an alternative could be the use of services of specialized financial companies offering a wide range of services, ranging from recommendations to «package» offers with risk limitation. In the case of using this alternative, diversification is required in the form of a preliminary assessment of the Internet broker.
1. Checks after making a deal by a trading robot. This method helps to prevent the risk of unplanned financial losses, as a result of errors in the algorithms and in the texts
of programs that lead to the failure of mechanical trading systems. It is functional and inexpensive in embodiment. If the robot understands that the operations are carried out in a minus, then terminate them. The main disadvantage of this method is that the inspection is carried out after the fact, that is, a loss and, possibly significant, has already happened [16, p.23]
2. Pre-trade control. In this case, the rate of execution of orders, time limits or trading volume are analyzed. Unfortunately, such a functional is rather complicated in practical implementation [61, p.39]. All these functions are introduced by traders in the software independently or separately ordered from the developers of robots. In the case of the implementation of the trader's operations in the stock market independently, success or failure will be determined only by himself and the effectiveness of his chosen strategy. And here we are again returning to the diversification method -the careful selection of traders, including the client's risk management work performed by them.
3. Individual risk management. A private investor should understand that the financial result from the operation may be contrary to his expectations. In this case, the investor bears the risk of both partial and total loss of funds. Therefore, the awareness of their capabilities, the necessary part of individual risk management, can be invested in securities only in such a sum, the loss of which will not destroy or lower the standard of living.
It is also necessary to understand that there is an opportunity to buy shares in a company that will later face financial problems, in this case, the decline in the value of the shares will begin. Accordingly, investors who did not have time to sell them in time will receive significant losses. To avoid such a situation, it is necessary to understand the principles of the functioning of the securities market and the operation of its protective mechanisms.
Stage 4 - monitoring the results of impact - is to continuously monitor and analyze the losses or profits that have occurred. In the first case, measures to minimize them are considered and applied, up to a complete change of methods of exposure.
According to our research, we want to offer the following recommendations for improving online trading in the securities market.
1. It is necessary to tighten the supervision of market participants and the regulation of the market itself by the supervisory authorities, primarily the Bank of Russia.
2. The investor needs to be able to analyze and calculate their individual risks. Since it is impossible to accurately and unambiguously calculate everything, we can recommend -firstly, while choosing online trading, especially for novice investors, to choose brokers who occupy leading positions in ratings and, secondly, to strive for the diversity of assets acquired.
3. To limit the influx of speculative investments in the financial market, using the prescribed restrictions, and to encourage the inflow of long-term investments. Long-term investments can be accompanied by providing investors with various benefits and preferences in order to increase motivation.
4. Limiting risks using special trading software settings. Development of a suitable trader system, its constant modification and adaptation to changing economic and political conditions.
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Juvenis scientia 2018 № 11 | Экономмнескме HayKU
5. In the conditions of exposure of the Russian securities market to the influence of external factors, professional participants of the stock market need to closely follow the developments by means of daily and weekly market analysis.
6. Improving legislative regulation on the following issues: - technical security of transactions;
REFERENCES
- protection of personal data of the client, especially if for operations with securities over the Internet, a bank card is used for payment;
- identification of the subjects of the relationship, as an individual, with the possibility of confirming his personality and ability, and the broker, who must confirm his status.
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Received 07.11.2018
