PROBLEMS OF THE IMPACT OF SECURITIES MARKET INSTITUTIONAL DEVELOPMENT ON FINANCIAL STABILITY AND WAYS TO ADDRESS THEM

This article examines the channels through which institutional development of securities markets influences financial stability, with particular attention to emerging capital markets and Uzbekistan. Drawing on institutional economics, market microstructure and financial-stability research, the study develops a structured diagnostic framework linking regulatory credibility, disclosure quality, investor composition, market liquidity, clearing and settlement arrangements, and interconnectedness. A comparative qualitative assessment identifies persistent obstacles including concentrated ownership, limited free float, episodic trading, insufficient long-term institutional investment, weak disclosure incentives and operational vulnerabilities. Three analytical tables distinguish underlying mechanisms, international policy lessons and a phased reform agenda. The findings suggest that market expansion alone is not a sufficient indicator of resilience: institutional quality and shock-absorption capacity determine whether capital-market deepening stabilizes or amplifies financial disturbances. The proposed policy package combines credible supervision, disclosure enforcement, improved market infrastructure, investor diversification and continuous systemic-risk monitoring. The analysis is conceptual and does not claim causal estimates from unavailable time-series data.