SPECIFICS OF THE BANK'S TRANSACTIONS WITH OTC DERIVATIVES IN MODERN CONDITIONS

The purpose of the article is to examine the regulation of the use of derivative financial instruments (OTC derivatives) by banks in Russia, their role in financial risk management and key problems in law enforcement practice. Despite the prohibition for credit organizations to engage in production, trading and insurance activities, they are entitled to enter into contracts with PFIs to protect their clients and counterparties from risks of changes in exchange rates, commodity prices and interest rates. The underlying principle behind the use of OTC derivatives is risk optimization in export-import activities and debt management. A key challenge is the uneven access to information and risks associated with the absence of a central counterparty in the OTC derivatives market, as well as differences in the professional background of the parties and legal regulation, including standard contracts borrowed from foreign systems such as ISDA. It is concluded that it is necessary to improve risk analysis by all parties when using OTC derivatives with the introduction of a limit system by banks when analyzing counterparties, similar to credit limits, as well as to improve the legal regulation of parties who initially have different awareness of the nature of the transaction to be concluded.