Topic. 1: Economic essence, role and functions of international exchange activity

In international activity, the concepts of “organized markets” or “organized trade” are common, which can be replaced by the terms “exchange markets” and “exchange trade”.

Thus, in many classical works on the study of international exchange activity, exchange trade is associated with organized places or organized trade, which is concentrated in large cities - financial or logistical centers of the world.

International exchange activity can be defined as an economic category that involves the creation and maintenance of organizational and legal relations regarding the purchase and sale of exchange assets with the help of professional participants on international commodity and stock exchanges.

The concept of international exchange trade is based on the definition of organized trade in exchange assets.

International exchange markets are highly organized markets for wholesale trade in commodity and financial assets of standardized parameters.

Spot international exchange trading can be considered as an effective tool for forming initial market conditions in commodity and financial markets.

The main feature of international exchange activity is ensuring market conditions for pricing and forecasting market conditions.

International exchange activity allows speculators to obtain and redistribute free investment capital, ensuring the protection of buyers and sellers on international exchanges based on established exchange trading rules.

Exchange trading is already based on significant transformational changes around the world. The existence of historically formed international exchange centers has created additional conditions for the use of innovative tools and innovative technologies for trading in futures contracts - derivatives.

Intensification of international exchange competition in modern conditions has created opportunities for commodity and stock exchanges of the world to become leading financial centers and integrate into intercontinental alliances of electronic exchanges.

International stock exchange activity arose in large centers of trade and financial settlements and became a sign of liquidity in organized trade in goods and financial assets.

Historically, the first international stock exchange activity arose in organized markets for agricultural products. Initially, trading took place in available assets, later trading was carried out mainly in futures and options contracts on the price of commodity and financial assets.

The openness and transparency of international stock exchange trading is the basis for creating conditions for the formation of competitive advantages. Open access of participants in international stock exchange activity to stock quotes led to the expansion of stock exchange trading, covering new countries and continents.

To ensure compliance with the rules of stock exchange trading, the participation of stock intermediaries has been necessary since the beginning of the development of international stock exchange activity.

Exchange trading has undergone a long process of international transformation and can be considered as a component form of organized trade, built on historical rules of trade, social principles and economic relations between market entities.

Exchange trading is possible only in the presence of organized markets for the sale of physical assets, that is, spot markets. The latter markets arose thousands of years ago BC and gradually developed from simple commodity markets to electronic international exchange platforms. International exchange trading is identical to the concept of organized international exchange trading in underlying assets.

International exchange activity, as an organized form of trade, characterizes the degree of development of a market economy. Therefore, the functional tasks and characteristics of modern international exchanges have changed somewhat, in accordance with the new requirements of participants in organized markets and current market conditions for producers and consumers of commodity and financial assets.

Today, an important role is played by the search for new basic needs and requirements among potential participants, taking into account technological changes and the use of artificial intelligence in various industries.

Based on the above, it can be argued that modern international stock exchange activity is organized commodity and financial markets, where the main advantage is on the side of buyers or demand sets the basic rules of the game for all market participants.

If there is an advantage in supply, this means that buyers still have advantages. Consumers and their needs become a priority for both producers in their economic activities and sellers in organized markets.

In such a situation, competition between market participants intensifies, as there is a struggle between buyers and sellers, and there is also a need to conquer new markets and new customers. Modern markets stimulate their participants to search for new opportunities and additional investment resources both domestically and globally.

Modern international stock exchange activity is another form of competitive organized market. Stock trading has become a new driver of competition.