Article title Trading in Currency Values as a Type of Professional Financial Activity
Authors

Ph.D. in Law, Associate Professor (Kyiv, Ukraine) avpopova@meta.ua

 

Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 2/2020
Сторінки [215-227]
DOI https://doi.org/10.33498/louu-2020-02-215
Annotation

The relevance of the issues raised in this article stems from the need to improve legal regulation of trade in currency values, and is also necessitated by an insignificant number of theoretical studies and insufficient elaboration of the issues intrinsic to this legal category. The purpose of the article is to analyze the correlation between trading in currency values and currency transactions, between the categories “trade” and “exchange”. Furthermore, based on the identified essential features, the article aims at proposing the definition of trading in currency values and at classifying this type of professional financial activity by various criteria. The author arrives at the conclusion that trading in currency values is a form of currency values exchange which is exercised by entering into respective sales contracts, and that the relationship between the categories “currency transactions” and “currency values” is that of part-to-whole, since current legislation regards trading in currency values as a component of foreign exchange transactions. The article highlights a drawback in legislative regulation of economic relations on the foreign exchange market with regard to the established list of currency values applied at the sub-legislative level. Following the analysis of essential features of currency values trading, the author suggests that this legal category be defined as a professional financial activity of banks and non-banking institutions which comprises currency values exchange in cash or noncash form (for bank metals – with or without physical delivery), mostly by entering into purchase and sale contracts on the currency market of Ukraine and international currency markets. The author concludes that trading in currency values is a separate type of professional financial activity characterized by its intrinsic qualifying features: special (limited)parties involved – banks and non-banking institutions; its content is a financial service for exchange of currency values; it has a commercial and risky nature; it combines private and public interests; and it is carried out within the public production sector – on the currency market of Ukraine and international currency markets. It is proposed to classify trade in currency values by the following criteria: parties involved; area where it is carried out; type of currency values; the form in which it is carried out; and the method by which it is carried out.

 

Keywords currency transactions; currency risks; trading in currency values; professional financial activity; exchange
References

Bibliography

Authored books

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Edited books

2. James J (ed), Currency management: Overlay and Alpha Trading (Risk Books 2004) (in English).

 

Dictionaries

3. ‘Konvertatsiia’ [‘Conversion’] (SLOVNYK.ua) <https://www.slovnyk.ua/index. php?swrd=кон вертація> (accessed: 21.01.2020) (in Ukrainian).

4. Velykyi entsyklopedychnyi yurydychnyi slovnyk [The Great Encyclopedic Dictionary of Law] (Shemshuchenko Yu red, Yurydychna dumka 2012) (in Ukrainian).

 

Journal articles

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6. Bubenets I, ‘Suchasnyi stan torhivli yak haluzi hospodarskoi diialnosti’ [‘Current State of Trade as a Branch of Economic Activity’] [2009] 1(1) Ekonomichna stratehiia i perspektyvy rozvytku sfery torhivli ta posluh 337 (in Ukrainian).

7. Demchuk T, ‘Analiz ryzykiv pry zdiisnenni pidpryiemstvamy valiutnykh operatsii’ [‘Risk Analysis for Foreign Currency Transactions Conducted by Enterprises’] [2009] 6(24). Ch. 2 Ekonomichni nauky. Seriia “Oblik i finansy” 162 (in Ukrainian).

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9. Kostiuchenko O, ‘Poniattia ta klasyfikatsiia valiutnykh operatsii’ [‘The Concept and Classification of Foreign Currency Transactions’] (2008) 11 Visnyk Akademii advokatury Ukrainy 40–1 (in Ukrainian).

10. Rebryk M, ‘Valiutnyi ryzyk v umovakh hlobalizatsii rynku bankivskykh posluh’ [‘Exchange Risk in the Context of Globalization of the Banking Services Market’] [2010] 1(43) Visnyk Akademii mytnoi sluzhby Ukrainy. Seriia “Ekonomika” 138 (in Ukrainian).

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12. Zhuravel V, ‘Tendentsii funktsionuvannia svitovoho finansovoho rynku’ [‘Trends in the Functioning of the Global Financial Market’] (2011) 935 Visnyk Kharkivskoho natsionalnoho universytetu im. V. N. Karazina 145 (in Ukrainian).

 

Thesis

13. Filipenko T, ‘Mekhanizm derzhavnoho upravlinnia valiutnym rynkom Ukrainy’ [‘The State’s Mechanism for Management of Ukraine’s Currency Market’] (avtoref dys d-ra nauk derzh uprav-nia, 2011) (in Ukrainian).

14. Haleshchuk H, ‘Oblik i analiz operatsii v inozemnii valiuti’ [‘Accounting and Analysis of Foreign Currency Transactions’] (avtoref dys kand ekon nauk, 2015) (in Ukrainian).

15. Pruskyi O, ‘Orhanizatsiia diialnosti komertsiinykh bankiv na valiutnomu rynku Ukrainy’ [‘Organization of Commercial Banks’ Activities on the Currency Market of Ukraine’] (avtoref dys kand ekon nauk, 2006) (in Ukrainian).

16. Sheremetieva O, ‘Pravovi osnovy rehuliuvannia valiutnykh ryzykiv’ [‘Legal Framework for Regulation of Foreign Exchange Risks’] (avtoref dys kand yuryd nauk, 2007) (in Ukrainian).