Сontract of a currency futures as a sub-institute of currency regulation: legal nature, structure and mechanisms of performance

Можаровська, Наталія Олегівна (2025) Сontract of a currency futures as a sub-institute of currency regulation: legal nature, structure and mechanisms of performance Міжнародний науковий журнал «Інтернаука». Серія: «Юридичні науки», 94 (12). pp. 58-67. ISSN 2520-2308, 2709-5452

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Abstract

Introduction. The currency futures contract occupies a special place within the system of contemporary currency regulation, as it combines mechanisms of market self-regulation with the imperative instruments of state monetary and foreign exchange policy. In the context of wartime economy, digitalisation of financial markets, and Ukraine’s gradual European integration, the need for a comprehensive legal understanding of currency derivatives as elements of public-law influence on exchange rate dynamics and macro-financial stability has significantly increased. Given the high level of volatility, the use of unconventional monetary instruments by the National Bank of Ukraine, and global challenges associated with military aggression and currency market restrictions, the currency futures contract functions not only as a hedging tool but also as a legally significant mechanism for managing currency risk. International standards of IOSCO, the Basel Committee, the ECB, and the EU regulatory framework on derivatives set key benchmarks for modernising approaches to the legal regulation of currency futures in Ukraine, highlighting the need for their systematic scholarly examination as a sub-institute of currency regulation. Purpose. The purpose of the article is to provide a comprehensive theoretical and legal analysis of the currency futures contract as a sub-institute of currency regulation, to formulate its legal nature, structural components, and performance mechanisms, as well as to identify the normative, organizational, and doctrinal challenges that affect its functioning within the framework of Ukraine’s contemporary currency policy. Materials and methods. The materials of the study include the normative legal acts of Ukraine in the sphere of currency regulation and the derivatives market, in particular the Law of Ukraine “On Capital Markets and Organized Commodity Markets” (2020), the Law of Ukraine “On Currency and Currency Operations” (2018), the regulatory acts of the National Bank of Ukraine governing currency supervision and derivative contracts (such as NBU Resolution No. 63 of 29 June 2021), as well as the rules of organized trading venues and clearing houses. The theoretical basis of the research is formed by the works of Ukrainian scholars in financial and commercial law – I. Tsuniak, L. Zavoloka, Ye. Koliesnik, I. Silina – and by foreign studies authored by S. Kaup, S. Ramesh, G. Wang, as well as by the research team of K.-L. Wang, C. Fawson, M.-L. Chen and A.-C. Wu, together with analytical materials issued by the NBU, IOSCO, the Basel Committee, the ECB, and the IMF on derivative regulation and financial risk management.The methodology relies on the principle of methodological pluralism and combines dialectical, systemic-structural, comparative-legal, formal-legal, economic-legal, and analytical-legal methods, which together enable a comprehensive identification of the legal regularities governing currency futures and the development of the author’s concept of their public-law nature as a sub-institute of currency regulation. Results. The study establishes that a currency futures contract is a hybrid legal construct combining elements of a private-law exchange contract and a public-law mechanism for implementing the state’s currency policy. Its legal nature manifests as a sub-institution of currency regulation aimed at structuring currency risk, ensuring the predictability of exchange-rate expectations, and supporting macro-financial stability. The key legal elements of a futures contract are systematized: underlying asset, price (rate), maturity, margin requirements, and standardized clearing and settlement rules. It is shown that the performance of currency futures is based on centralized clearing, daily mark-to-market valuation, variation margin, and mechanisms of forced position closure. It is substantiated that the NBU’s foreign-exchange control shapes the legal regime of such operations by determining their admissibility, volume, delivery procedures, and documentation requirements. The main regulatory challenges are identified: volatility of currency legislation, procedural fragmentation, insufficient standardization of derivative instruments, and technological barriers to their practical implementation in Ukraine. Discussion. Future research should be directed toward developing a comprehensive model of the legal regulation of currency futures as a sub-institute of currency regulation in its interrelation with the state’s financial stability. Promising areas include refining the criteria for distinguishing between deliverable and non-deliverable currency derivatives within a public-law framework, elaborating unified standards for their accounting treatment, and enhancing clearing procedures in accordance with IOSCO and EU regulatory requirements. Further development is required in the concept of public-law liability for breaches of obligations under currency futures contracts, particularly in the context of currency supervision during wartime economic conditions. Another relevant direction is the study of legal mechanisms for integrating the national market of currency derivatives into the European financial space, which would strengthen Ukraine’s financial sovereignty and enhance the effectiveness of currency risk management instruments.

Item Type:	Article
Uncontrolled Keywords:	currency futures; currency derivatives; currency regulation; public-law sub-institute; currency risk; margin requirements; clearing; futures contract; currency control; financial law; exchange market stability; performance mechanisms; deliverable and non-deliverable futures; exchange infrastructure; currency policy
Subjects:	Статті у періодичних виданнях > Фахові (входять до переліку фахових, затверджений МОН)
Divisions:	Факультет права та міжнародних відносин > Кафедра публічного права
Depositing User:	Доцент Наталія Олегівна Можаровська
Date Deposited:	05 Feb 2026 14:44
Last Modified:	05 Feb 2026 14:44
URI:	https://elibrary.kubg.edu.ua/id/eprint/56292

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