The derivative financial instruments market in the Russian Federation: features and development challenges

Abstract

The article examines the key features of the functioning of the derivatives market in the Russian Federation. It analyzes the structure and dynamics of the derivatives market, as well as the role of exchangetraded and non-exchange-traded derivatives. Special attention is paid to legal regulation, institutional infrastructure, and market participants. The article identifies the main challenges that hinder the development of the derivatives market, such as low liquidity, limited number of instruments, insufficient investor awareness, and high volatility. The article proposes measures to improve transparency, expand the product range, and the confidence of market participants. The purpose of the study is to develop recommendations for transforming the PFI market into an effective risk hedging institution. The following research methods were used in the study: literature analysis, content analysis, problem-oriented analysis, as well as graphical and tabular methods for presenting research results. Based on statistical data for 2021–2025, a volatile trend has been identified. Specifically, there was a sharp decline in trading volumes in 2022, followed by a partial recovery in 2023–2024 and a growth in 2025. During the analyzed period, there was an increase in open interest in futures and options, as well as a shift in the structure from currency to commodity and index instruments. During the study, the key problems hindering development were identified: insufficient trading volume, narrow choice of available instruments, weak investor training, sharp fluctuations in quotes and administrative restrictions. To improve the situation, the authors recommend introducing mandatory reporting on concluded transactions, improving the accounting system in repositories, introducing new assets, as well as unifying contract terms and launching training projects. These steps will contribute to increased transparency, increased loyalty among participants, and the transformation of the derivatives market into an effective mechanism for hedging and minimizing risks in an unstable economic environment.