INSTITUTIONAL RISKS ON THE RUSSIAN STOCK MARKET
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Author(s): | Slyunyaev D. A., |
| Number of journal: | 4(69) | Date: | November 2024 |
| Annotation: | The article analyses the new type of risks that arose in the Russian stock market in 2022-2023 as a result of sanctions and blocking of foreign assets of Russian investors. The purpose of the study is to identify the characteristics of this new type of risks and develop methods for their quantitative assessment and management strategies. Particular attention is paid to political and legal factors influencing the occurrence of these risks. The term “institutional risks” is introduced to refer to the threats associated with the blocking of assets, which expands the theory of risk management in the stock market. The asset blocking became an unexpected challenge for Russian investors, many of whom faced the inability to manage their investments. The total value of blocked assets was estimated at 6 trillion rubles by the end of 2022, affecting more than 5 million private investors. The study highlights that traditional categories of financial risks, such as market, systemic or infrastructure, cannot fully explain asset freezes. The main difference between institutional risks is their simultaneous impact on the stock market infrastructure and political nature, as well as the impossibility of eliminating their impact through conventional methods of portfolio diversification. The article also suggests directions for future research, including the development of methods for quantifying institutional risks and strategies for managing these threats. The author emphasizes that the introduction of a new category of risks expands the existing theory of risks in the stock market, adding the aspect of politically motivated threats. The main significance of the work is that it provides investors and financial institutions with new resources for managing assets in conditions of sanctions and political instability. | ||
| Keywords: | stock market, infrastructure risks, sanctions, sanction risks, institutional risks, asset blocking, foreign assets, exchange-traded fund / ETF, exchange-traded mutual fund / ETMF, foreign stocks |
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| For citation: | Slyunyaev D. A. Institutional risks on the Russian stock market. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2024;4(69):56—63. DOI: 10.25683/VOLBI.2024.69.1119. |
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