Institutional Approach to Financial Market Regulation: Problems and Perspectives

Introduction. The institutional approach to financial market regulation is relevant and necessary to ensure its stability, transparency, and efficiency, which in turn contributes to sustainable economic development. The article aims to study the problems and modern trends in the development of the financial market within the framework of the institutional approach. Materials and Methods. In studying the topic of institutional regulation of the financial capital market, we used publications in peer-reviewed journals on economics and finance, as well as open sources dedicated to the theory of financial regulation, institutional economics, and financial markets. Results. Successful resolution of issues on institutional regulation of the financial market (using Russia as an example) requires a comprehensive approach and all interested parties involved, including the government, investors, and representatives of the business community. The prospects for financial market development are linked to the need to adapt it to new conditions, strengthen the protection of market participants rights and of society as a whole, increase the transparency and accountability of market participants, as well as strengthen the role of regulators and international cooperation. Conclusion. Recognizing the inherent fragility of financial markets and focusing on systemic risks, the institutional approach can lead to more reliable regulatory frameworks that contribute to overall financial stability.