Secondary ministry of special education tashkent financial institute department of finance

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THE REPUBLIC OF UZBEKISTAN HIGHER AND 
SECONDARY MINISTRY OF SPECIAL EDUCATION 
TASHKENT FINANCIAL INSTITUTE 
DEPARTMENT OF FINANCE 
FROM "FINANCE" 
COURSE WORK 
Theme: INTERNATIONAL FINANCIAL MARKET AND
ITS DEVELOPMENT FEATURES.
Done by:
MM-56i group student
Jumaniyazov Sherzod 
Superviser: 
Assistant professor.V.B.Nuritdinova. 

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Theme: INTERNATIONAL FINANCIAL MARKET AND ITS 
DEVELOPMENT FEATURES
PLAN: 
INTRODUCTION. 
1. International finance market and types of financial market
2. Features and functions of international finance market. 
3. Importance of the international finance market. 
4. Composition of international Financial Markets. 
CONCLUSION. 
REFERENCES.
 
 
 
 

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Introduction 
Importance of the topic of the course work and Our president’s speech about 
International financial market. We need to take decisive measures this year to 
develop the banking system Unfortunately, the banking system lags behind modern 
requirements for 10-15 years, especially in terms of the development of digital 
technologies, introduction of new banking products and software Starting from 2020, 
a large-scale transformation program will be implemented in each bank. Our focus 
will be on increasing the capital, resource base and profitability of banks In the 
banking system, we should establish the activities of the “factory of projects” aimed 
at supporting entrepreneurs Our banks must enter the international financial markets, 
attract affordable and long-term resources. It is advisable to issue Eurobonds this year 
by the National Bank and Ipoteka Bank Banks with a state share will be gradually 
sold to strategic investors.The main goal of reforms in the banking sector is to teach 
commercial banks the principles of customer-oriented work. 
 
In order to train modern personnel, the Banking and Finance Academy will 
be completely reorganized with the help of foreign specialists. In order to introduce 
modern banking practice and management, new banking services in state-owned 
banks have been launched, so has the hiring of qualified specialists from leading 
foreign financial institutions. Efforts in this direction will be continued.Bank software 
should be radically upgraded through the widespread introduction of modern 
information technologies. By July 1 this year, it is vital to launch the information 
system of “credit histories” in full.It is important to build public confidence in the 
banking system and not allow outside interference in the activities of banks.
In November 2019, President Shavkat Mirziyoyev created the Council of 
Foreign Investors, a body where executives and representatives of foreign companies, 
banks, investment companies, international financial institutions and foreign 
government financial organizations will be given the opportunity to improve the 
investment climate. And in speech of president of the Republic of Uzbekistan which 
addressed to the Oliy Majlis Shavkat Mirziyoyev admit that “Investment inflow has 

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considerably grown. Foreign direct investments amounted to 4.2 billion US dollars, 
which is $ 3.1 billion or 3.7 times as much as in 2018. The share of investments in 
gross domestic product reached 37 percent. For the first time, Uzbekistan received an 
international credit rating and successfully placed $ 1 billion worth of bonds on the 
global financial market. For the first time in 10 years, our country’s position in the 
credit risk rating of the Organization for Economic Cooperation and Development 
has improved”. 
The purpose of the course work topic. Study the structure, goals and objectives 
of regional and international financial institutions, theoretical and practical analysis 
of some of their financial activities and make important proposals and conclusions to 
raise the investment climate in Uzbekistan to a new level. 
Tasks of the course work topic. The following main tasks have been identified 
to achieve this goal to study the structure and general characteristics of investment 
policy in-depth study of the nature, goals and objectives of regional and international 
investment policy; to study the current financial situation of regional investment 
policy and draw the necessary conclusions; systematic analysis of the impact of 
regional investment policy on the government financial system, their financial 
performance comprehensive review of investment projects currently being 
implemented jointly by the Republic of Uzbekistan, proposing priorities for the 
development of cooperate on to a new level and the development of important 
conclusions. 
The subject of the course
 
is the study of the main activities of financial market and 
the further development of international financial market of Uzbekistan.International 
finance market and types of financial market. The International Financial Market is 
the place where financial wealth is traded between individuals (and between 
countries). It can be
 
seen as a wide set of rules and institutions where assets are 
traded between agents in surplus and agents in deficit and where institutions lay down 
the rules. 

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Definition: A financial market is a marketplace where trading or exchange of various 
financial instruments and assets takes place. The price of these assets is dependant on 
its demand and supply in the respective market. All the financial and economic 
activities in a country are dependent upon these markets 
Example: The most common financial market is Real Estate Investment 
Trusts (REITs). It initiates investments from small investors who are interested in real 
estate investing but lack sufficient funds for the purpose. These trusts pool in the 
funds collected from such investors into profitable real estate projects. 
The financial market comprises the markets strictu sensu (stock market, 
bond market, currency market, derivatives market, commodity market and money 
market), the institutions which work in them with different aims and functions 
(Central Bank, Ministry of Economy and Finance, Monte Titoli, Borsa Italiana and 
CONSOB), as well as direct/indirect policies orientated to making the market the 
place (not necessarily a physical place and not necessarily ruled but regulated) where 
the exchange between surplus and deficit units is carried out as efficiently as 
possible.With regard to policies, consideration must be given to those connected with 
monetary, fiscal and more structural policies, as well as those directly connected with 
the governance of the market itself.
Governance in the financial market can be 
defined as a set of rules useful in interconnecting the agents who operate within it and 
the institutions. These rules define the market. Governance rules in a financial market 
can be defined at both a microeconomic and macroeconomic level .
Microeconomic rules deal not only with individuals (single money savers, 
professional agents, and companies) but also with the market itself and its 
microstructure. Macroeconomic governance rules deal with the market as a whole, 
but they are also strictly connected with policies regulating the market.At a 
macroeconomic level governance is important for the financial market in order to 
define every single rule of the trading process: from those which regulate the stock 
exchange or the Over The Counter (OTC) trades to those which define who can join 
the market.

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Moreover, great importance is given to the market microstructure, where 
microstructure is understood as the set of rules that makes and defines the asset 
exchange price. This is a main point in allowing the market to function properly. The 
liquidity/thickness/depth of the market depends on the price formation rules 
according to which the asset is traded off. At a microeconomic level, the steps to 
trade assets on the financial market are: listing, trading, and post-trading.
The latter comprises clearing, settlement, and custody. From the market 
insiders’ point of view, each of these steps needs to be defined in order to conclude 
the exchange at a time and price previously defined. Each step has its own rules that 
allow those who operate in the financial market to establish their own strategy with 
respect to their specific expectations. The traded asset returns are linked to the 
definition of these rules. Each market has its own rules that deal with the 
microstructure. Different markets have different liquidity and this depends on the 
micro-rules that they themselves have established. These rules are relevant both for 
(official) exchange trading and for the OTC trading.Another class of microeconomic 
governance rules are those which state, for instance, who can operate in the market 
and how. Microeconomic rules also concern the manner in which the institutions 
themselves operate in the market Macroeconomic rules of the financial market have a 
different task and are linked to the broad-spectrum policies of the market. These can 
indicate the required market institution, the market structure and furthermore its aims 
and its own monetary and fiscal policies. All these characteristics make the market 
unique with respect to the economy in which it works. One of the features of this 
uniqueness is market transparency. This characteristic is defined on the basis of 
(governance) rules, institutions, agents, and polices connected to it. The more people 
know how to complete the trading asset process, the more a market is transparent. In 
this manner, expectations become heterogeneous for individuals/agents and, at the 
same time, they reflect the information at hand, which is then elaborated depending 
on the different sell/buy strategies. This leads to the definition of expectations. 
Defining the role of expectations in a financial market has a two-fold purpose. The 

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first is defined at a macroeconomic level. Expectations are defined with respect to the 
policies and rules to be adopted in the market. 
This leads to defining the sell/buy strategies on the basis of the role that, for 
instance, inflation will have in the subsequent period t+1 given the policies/rules 
defined in t. This kind of expectation may vary depending on the discretion that exists 
in defining the rules, not only at a macroeconomic level but also at a microeconomic 
one. The second objective is microeconomic. Agents formulate their expectations to 
predict asset price variations in order to determine the asset returns. This point leads 
back to the liquidity concept previously introduced. The different level of liquidity in 
the trading process determines a different formulation of expectations. In the same 
way, the diverse discretion utilised in setting macro-economic rules determines a 
different formulation of the expected inflation. 
Macroeconomic rules, as previously defined, are connected to different 
monetary and fiscal policies. The financial market is subjected to policies that depend 
mostly on the regulating institutions. At the same time, institutions are responsible for 
defining rules and for enforcing the application of these rules in the market. The 
institutions determine the rules that in turn define their field of action. 
Individuals who operate in one market have to follow these rules but, at the 
same time, their decision is based on the rules that a given market has set itself. 
Transparency, liquidity, and expectations help individuals to choose the market in 
order to maximise their own utility. 
The financial market examined in this manner is an extremely complex 
system in which rules, individuals and institutions interact. This complexity increases 
even more in time and space (in the case of international financial markets). In time, 
financial markets cover an increasingly important role in the financial saving 
mediation of agents at an international as well as at a national level. In space, agents 
have instruments at their disposal that have become increasingly more complicated 
and specific. These instruments are utilised through the markets of reference (stock 

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market, bond market, currency market, derivatives market, commodities market, 
money market) that are a fundamental part of the financial market. Each market has 
its own characteristics that in turn define the contexts in which agents operate on the 
basis of the risk associated to them. Any market which deals in financial assets is a 
financial market. The following are the different types of financial market: