THE CONCEPT AND LEGAL FUNDAMENTALS OF DERIVATIVES (FINANCIAL INSTRUMENTS) IN THE REPUBLIC OF UZBEKISTAN
The paper concentrates on the legal analysis of approaches to the understanding of derivative financial instruments (derivatives). The author has analyzed laws and regulations governing relations in the derivatives market in the Republic of Uzbekistan and special features of their legal regulation in various legal systems. The author considers the processes of historical evolution and formation of the concept of derivative financial instruments (derivatives). Alongside this, the paper proposes findings of the special features of integrating new types of derivative financial instruments (derivatives) into the financial market of the Republic of Uzbekistan, as well as conclusions on the prospects and trends of sustainable formation of legal regulation of derivative financial instruments. In his research, the author proceeds from economic and sociocultural approaches to law and state. The matter of the paper demonstrates the permissible limits of independence of the financial market of the Republic of Uzbekistan. Obviously, despite the ongoing processes of globalization of the country’s economy accompanied by converging the national legal systems and harmonization of law in the field of financial legal standards, the tasks associated with this changes remain unresolved. As such tasks, the author considers bringing approaches to understanding terms related to the financial market and, in particular, the concept of ‘a derivative financial instrument (derivative)’ to authenticity. In doing this, the author draws attention to the importance of maintaining the traditional practice, local specifics and established customs in certain areas of legal regulation of this financial marketin the process of unifying and harmonizing the legislation. Using the method of comparison of approaches to understanding the subject of research existing in the world scientific community, the author demonstrates and justifies the permissible limits and ways of implementing the standards, norms and recommendations of international financial institutions concerning this subject in national legislation. The author also provides his comments and suggestions on making changes to optimize the financial market of the Republic of Uzbekistan as a whole, and, in particular, focuses on solving challenging issues of legal regulation of relations with derivative financial instruments (derivatives). As approaches to solving these issues, the author proposes that: • the inclusion of the concept of ‘derivative financial instruments (derivatives)’ in the content of Article 3 as a separate definition in the list of basic concepts of the Securities Law should be jump-started; • the law-making body should dismiss the term ‘derivative securities’ replacing it with the concept of ‘derivative financial instruments (derivatives)’; • the law-making body should adopt a new regulatory legal act, the subject area of which will cover relations related derivative financial instruments (derivatives) only.