Financial Security in International Banking Law

At the present stage, the derivatives market is one of the fastest growing segments within global financial market, including in Russia. However, the long history of the failures of the largest corporations with derivatives, the financial crisis of 2007-2008, as well as the controversial Russian court practice clearly show the existence of problems related to the conclusion, execution and termination of derivatives. Due to the risky nature of derivatives, the questions arise, first, about ways to ensure the fulfillment of obligations by the parties; second, how to minimize (possible) adverse effects due to risk taking. This paper presents a legal analysis of the existing methods of financial security that have been developed in the world practice, as well as established in the legislation of Russia, the EU and the US. First, the paper deals with the problem of the concepts of "financial security" and "financial instrument"; Secondly, mechanisms for securing derivatives traded on organized markets are considered; Thirdly, a detailed analysis of the ways of taking security of OTC derivatives is presented. In conclusion, the identified trends in the regulation of the international derivatives market are presented, as well as the main problems that need to be addressed in order to better harmonize regulation and improve the efficiency of the derivatives market.