Development of Exchange Trading as a Foundation of the Organized Commodity Market

Анотація

Introduction. The growth of the national economy necessitates the development of market institutions, with exchange trading playing a central role. Exchanges facilitate market expansion, help determine the objective market value of goods, and increase their competitiveness. As pricing, hedging, and speculation centres, modern exchanges are essential for the Ukrainian market, where the lack of such infrastructure hinders the formation of a well-functioning market mechanism necessary for a prosperous economy. Methodology. The research objectives were addressed using both general scientific and specialized research methods: theoretical generalization (to explore the economic essence and components of the commodity exchange market), abstract-logical reasoning, induction and deduction (to systematize domestic and foreign experiences in developing agricultural exchange markets), dialectical methods (for data collection, processing, and theoretical generalizations), and comparative analysis (for examining mass statistical data to evaluate status, variability, dynamics, and comparative indicators of the studied object). Results. The transition from a localized to a national exchange inevitably involves the use of warehouse receipts (WHRs). WHRs are valuable to various market participants. Farmers can store their harvest instead of selling it immediately and use WHRs to access credit. Processors can use working inventories as collateral, thereby easing the financial burden of storing physical goods. Reduced storage costs and favourable borrowing conditions based on stored goods will help reduce seasonal price volatility, benefiting consumers. Provided that WHRs indicate specific product grades, exchanges can collect and disseminate price information by class and supply centre. This increased transparency generates new opportunities for farmers, traders, and processors.

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