CURRENT STATE AND PROSPECTS FOR DEVELOPMENT OF STOCK EXCHANGE IN GLOBALIZATION CONDITIONS

Nikoliuk O. Ph.D., Associate Professor Department of Management and Logistics Odessa National Academy of Food Technologies Kanatna str., 112, Odesa, Ukraine, 65039 E-mail: alenavn11@gmail.com ORCID ID: 0000-0002-1665-0361 Krusir T. The student of the fourth grade of Economics and Law Faculty Odessa I.I. Mechnikov National University Dvoryanskaya str.,2,Odessa, 65082 E-mail: tanyashargorod@gmail.com


Statement of the problem and its connection with important scientific and practical tasks.
The problem statement as a whole and its relevance to important scientific or practical tasks. Stock exchange is a specially organized securities market. It has a long history of development. For more than four centuries, both the forms of securities trading organization and the role of the stock exchange in the economic life of a society have changed.
In 1792, the New York Stock Exchange, the largest of all exchanges in the world, was established in the United States. Following it a number of stock exchanges were established in Europe at that time. Exchanges already played a significant role in the economy of the most developed countries. Exchange operations contributed to the expansion of the international trade, the acceleration of primary capital accumulation and, thus, the transition from feudal mode of production to a developed market society.
The analysis of the latest publications on the problem, which initiated the solution of this problem and which the author, based on the allocation of previously unsettled parts of the general problem to which this article is devoted. There are different interpretations of the "stock exchange" concept. Loevetsky D. A. in his definition of the exchange uses such concept as "an organized market for supply and demand for money capital" [7]. Alyokhin B. I., in his concept of the term, focuses on the very nature of the trade and defines that "the stock exchange is an auction where trade is conducted through the exchange of oral instructions between traders" [3]. Bortnik M. Yu. gives the most common interpretation of the exchange. He says that "the stock exchange is the most developed form of a regularly functioning wholesale market for replaceable goods sold on the basis of standards (grades), and sometimes on samples, as well as the securities market (stocks and bonds) and foreign currency [6]. Forming of the aims of the research. Formulating the goals of the article (statement of the task). To determine the laws of development of stock exchanges in the conditions of globalization. To substantiate the list of exchanges by the criterion of the election; provide information on the work of the exchanges; Identify the differences and common features in the mechanism of work, trends, participants, history of development.
Giving an account of the main results and their substantiation. The Stock Exchange is a special, institutionalized market where securities of the highest investment quality are traded and the operations are carried out by professional securities market participants. Globalization of stock-exchange activity has become one of the driving forces of the development of the economies of the leading countries of the world, as well as the formation of new horizons of stock exchanges activities. Avakyan A. A. says that the following factors make stock exchanges go beyond the national framework and offer their services in the foreign market: a new competitive environment; progress in the development of exchange technologies; transformation of national financial legislation [1].
The formation of a new competitive environment manifests itself in the growing competition between stock exchanges both nationally and internationally, as well as between stock exchanges and alternative trading systems.
From a technological point of view, globalization of markets becomes a reality, therefore, the development of exchange technologies is one of the fundamental factors of globalization, while the activity of stock exchanges is also determined by the specificity of national legislation, which, in its turn, can support or slow down the activity of stock exchanges.
Globalization of stock markets is an objective side of everyday life, it occurs on different continents of the planet. Due to it integration of stock exchanges happens with completely different geographical position, and if at first it was at the level of economic regions, now it is of international.
Mergers, absorption's and combinations character of stock exchanges began shortly after the start of the globalization process in 1991 and continues to this day. In North America, the merger and absorption process began in 1994 with the merger of New York's largest commodity exchanges: the New York Mercantile Exchange Inc. (NYMEX) and the Commodity Exchange Inc. (COMEX). As a result of the merger, the world's largest commodity exchange, the New York Mercantile Exchange, which traded derivatives for oil and natural gas, precious and non-ferrous metals and electricity, took place at that time.
In Europe, MEFF Sociedad Holding De Productos Financieros Derivados SA bought 100% of the shares of the two Spanish stock exchanges MEFF SA and MOFEX. Later they were renamed into MEFF Renta Fija (trading in interest futures and options) and MEFF Renta Variable (stock futures and options trading).
In the Asia-Pacific region, the process of integration began in 1992 with the joining of the New Zealand Stock Exchange futures and options to the Sydney futures exchange.
Together, the 10 largest exchanges in the world account for about 77% of the world stock market capitalization, or $65.6 trillion.
The daily volume of trading in shares with them is more than $5 trillion, which is 40% of the world's turnover, with 22% being exclusively on the NYSE and the NASDAQ.
Shares of 24 thousand issuers are available at bids. JPX is leading, where about 7% of all world's emitters can be found.
The New York Stock Exchange (NYSE) is the largest stock exchange in the United States, the largest one in the world. It's a symbol of the financial power of the US and the financial industry in general.
On May 17, 1792, when the 24 New York brokers working with financial instruments and the deals that concluded, as their London counterparts, in coffee houses, signed the "Buttonwood Agreement" on the creation of the New York stock exchange.
Today, the New York Stock Exchange is the largest in the world and shares with Euronext the largest exchange holding, the Intercontinental Exchange (ICE). The capitalization of the NYSE market for June 2018 is more than $23 trillion, which is more than the aggregate stock market capitalization of the European market. In the quotation letter there are 2,229 companies, the daily stock market turnover is about $1.5 trillion ( fig. 1).
The NASDAQ, the National Association of Securities Dealers Automated Quotation, is an American off-the-stock market specializing in high-tech companies (electronics, software, etc.). One of the three major US stock exchanges (along with NYSE and AMEX), is a NASD subdivision, controlled by the SEC.
NASDAQ was founded on February 5, 1971. The name comes from the automatic quotation system that launched the stock exchange. At the moment, more than 3,200 companies trade at NASDAQ. NASDAQ is currently the second largest stock exchange in the world. The capitalization of its companies is more than $11 trillion, 3,004 issuers are listed, and the average daily turnover in June 2018 is at $1.3 trillion ( fig. 2).

Fig. 2. Dynamics of the Nasdaq Composite index for 2015 -2018 [9]
As a result of the merger of the two largest exchanges in Japan (Osaka Stock Exchange and Tokyo Stock Exchange), the third-largest trading floor in the world -the Japan Exchange Group -was formed. The official date for the opening of JPX is January 1, 2013, but the Tokyo and Osaka stock exchanges began operating in 1878.
The Tokyo stock market in terms of market capi-talization is in inferior only to New York. It currently trades around 2300 securities of Japanese companies and more than 30 securities of foreign issuers. The share of Tokyo stock exchange accounts for 80% of the country's stock turnover. Market capitalization for June 2018 is more than $6 trillion. Listing has 3,628 companies, and the trading volume is on average about $0.5 trillion ( fig.  3). The largest trading platform of Continental China, the Shanghai Stock Exchange, began trading in the 1860s. The Shanghai Stock Exchange is a non-profit organization run by the China Securities Regulatory Commission. A distinctive feature of the stock exchange is trade in two types of shares. The first type is traded in yuan and is available to all investors. The second type was nominated in US dollars and originally was only available to non-residents. Since 2014, the restrictions have been removed, which has shown its results. Since then, market capitalization has grown almost 2 times to $4, 5 trillion, and turnover in 4 years has grown to $470 billion ( fig. 4).  The London Stock Exchange (LSE) is one of the largest and oldest exchanges in Europe.
The stock exchange was officially founded in 1801, but in fact its history began in 1570, when the royal financial agent and advisor Thomas Gresham built the Royal Exchange for his own money. The London Stock Exchange is a joint-stock company itself, whose shares are circulating on it.
The London Stock Exchange is considered to be the most international oneit accounts for about 50% of international stock trading. According to the number of companies in the quotation list, the exchange overcomes Euronext in 2 times with virtually the same capitalization ( fig. 6). Today the market capitalization is more than $4.2 trillion. with a daily turnover of $205 billion ( fig. 7). Shenzhen Stock Exchange is similar to Shanghai one. It is also under the protection of the China Securities Regulatory Commission. Bidding is carried out by two types of shares, and the stock exchange is on the ten largest trading platforms in the world.
Shenzhen stock exchange is a Chinese NASDAQ, making an analogy with the largest exchanges of the USA. On the basis of SZSE, since October 2009, ChiNext, a trading platform specializing in attracting innovative and fast growing companies, has been launched.
Today, the Shenzhen Stock Exchange has 2,115 companies, of which 730 are ChiNext. The total capitalization of the market is $3 trillion ( fig. 8).

Fig. 8. Dynamics of the SZSE index of the Shenzhen Stock Exchange for 2015 -2018 [9]
The Deutsche Börse stock exchange ranked ninth in the ranking of the largest exchanges in the world. In 1585, when a number of dealers decided to standardize exchange rates for various currencies used in Germany, the Frankfurt Stock Exchangeone of the key assets of the Deutsche Börsewas being formed.
Distinctive features of Deutsche Börse are the smallest quotation list among the largest stock exchanges only 509 items and fairly low average daily turnover ( fig. 9). The Toronto Stock Exchange (TSX) is a "quiet" in the world of economics, which the world hears about every two to three years. No agreements of the century are concluded and financial empires do not collapse, financial crises are not born and do not happen every two years (as in Tokyo). Toronto is simply one of the twenty largest exchanges and is located in the conglomerate of the TMX Group.
The Toronto Stock Exchange has had its history since 1852, when the Independent Association of Brokers united on a common trading platform.
As at February 2018, Toronto Stock Exchange listed 1532 companies with a capitalization of $2.322 trillion. Requirements for participation are specific: all companies are divided into three groups of industrial, mining or oil-and-gas complex. If the business cant be referred to one of these categories, the enterprise is considered to be industrial ( fig. 10). In general, the above listed world stock exchanges have their own peculiarities of development: 1) the index of capitalization of stock exchanges tends to increase; 2) the number of participants demonstrates constant growth, including through the way to the IPO; 3) the level of liquidity of securities on the world stock exchanges is high; 4) the majority of listed listed stock exchanges are characterized by a high level of transparency, accessibility to financial indicators that determine the work of the market and its participants; 5) there is a high level of regulation on the stock exchanges by a significant number of bodies, including public ones, as is the case with the Shanghai and Shenzhen exchanges.
Below is a comparative description of the world stock exchanges by capitalization (Table 1). From the merger of the two exchanges, the following categories of securities market participants benefit from the conduct of business. Firstly, issuers, as there will be a reduction in the cost of capital by increasing liquidity; they will have access to larger sources of capital, including international investors; strengthening the reputation of a large trading platform, comparable to other world stock exchanges. Secondly, investors will be able to access new products and services based on the combined portfolios of the two exchanges; the depth and liquidity of the market will increase; the attractiveness of the exchange for foreign investors will raise. Thirdly, for brokers, the settlement procedure will be simplified; reduction of expenses due to unified operations with one exchange; increase in the profitability of post-trading operations and capital efficiency; increase in the volume of trades at the expense of increasing the number of market participants will take place (table 2). From the merger of exchanges there will be such general market advantages: 1.creation of the model of a single integrated market infrastructurethe only trading and post-trading structures; 2.reduction of total infrastructure costs; 3.elimination of regulatory arbitrage and arbitration in risk management.
However, there are also the negative aspects of such a deep integration of uniform trading platforms. Lowering the level of competition may lead to the consolidation of stock exchanges in a monopoly, which will increase the value of stock-exchange services. On the other hand, the growing global integration of capital markets threatens the economic policies of individual countries, as foreign capital, in the form of direct and portfolio investments, puts a certain threat to the national economy due to its ability to quickly disappear from the country and, to appear as quickly as possible.
Conclusions and prospects of the further investigations. Stock exchanges today play a very important role in the global economy. Countries in the world depend on the situation on the stock exchange; economic growth is also related to what is happening on the ex-changes around the world.
The tendency towards globalization, to the free transfer of capital from one country to another has become. The main characteristic of the development of modern stock exchanges. This gives a powerful impetus to the development of enterprises that have a real opportunity to use not only domestic but also foreign capital.
Considering the current world trends and peculiarities of stock exchanges, we can conclude that the main world tendencies for the further development of the stock industry will be: internationalization of stock exchanges; universalization of stock exchanges; -Further increase in the consolidation of exchanges and increase in their capitalization level; strengthening of merger and cooperation processes; -Increasing the role of financial and stock markets in the international economy.
In our opinion, a few large mergers will take place within several decades, and in the end one world trading platform will remain in the world, that is, all the money will be in one of the most influential and competent stock exchange.