Peculiarities of intermediaries activity on the exchange market

Abstract

Introduction. Exchange trade is an integral component of modern business processes. At the same time the largest world exchanges have an impact on pricing policy in different areas of economy. They help to identify promising areas of investment, goods transfer and money flows. It should be noted that the modern exchange market shows really good dynamics. Nowadays it can be characterized by a permanent transformation of the market structure, instruments, forms and technologies of the trades. Also modern exchange market requires a significant level of decision-making efficiency. Under these conditions exchange intermediaries play one of the key roles in the exchange market organization and functioning. They contribute to the cooperation of exchange assets’ buyers and sellers. It leads to successful implementation of exchange operations in the exchange market.

Purpose. The aim of the research is to study the peculiarities of intermediaries activity, which ensure the organization and management of exchange trade.

Method (methodology). To achieve the article objectives the following research methods have been used: method of comparative and statistical analysis (to study the trends of the exchange market); method of system and logical analysis (to study the theoretical basis of intermediaries activity in the exchange business).

Results. The article considers the nature and role of intermediaries in the organization and management of exchange business. Types of exchange intermediaries are analyzed. It is determined that such intermediaries as brokers, dealers, brokers-dealers, jobbers, traders and financial advisors provide the main activity in the exchange market. The peculiarities of the mentioned intermediaries activities on exchange market are described. It is revealed that all the brokers depending on the specifics of their activities can be divided into two groups – full service brokers and discount brokers. It is defined that these groups of brokers have both advantages and disadvantages. It depends on the specifics of their activities. The main payment features of the exchange intermediaries activity, depending on the type and the nature of the performed work, are identified.