Regulation of broking activities based on assessment of its risks

Abstract

Risk-oriented regulation of brokers is considered in the article. Its implementation helps to improve the quality of regulation and the development of the economy. Risk-based regulation of brokers in theory and practice faces the problem of a lack of indicators and risk assessment system. Therefore, the purpose of the work is to develop proposals for assessing the risks of brokers in regulation. The theoretical substantiation of the study is the approaches of smart and risk-oriented regulation. The method of comparative analysis, methods of description and interpretation, statistical analysis were used. The article identifies risk factors and their indicators based on the analysis of research, foreign and Russian regulatory experience. These indicators are divided into dynamic and constant. The study verifies, using binary logistic regressions, the actual impact of the developed indicators on the work of brokers. Thresholds are defined for dynamic metrics. Exceeding the threshold value indicates an increase in the risks of the broker’s activities. The paper establishes significant indicators and develops a broker risk assessment model. The analysis revealed that some of the current standards do not affect the risks of brokers. Indicators and methods for calculating brokers’ risks can be used by regulators, and the methodology for their development can be applied in other areas.