Stock Trading as a Factor of the Establishment of the Competitive Environment in the Commodity Market

Bidding is a competitive way of choosing a counterparty and one of the factors in the formation of a competitive environment. Organized auctions presuppose the presence of a specialized intermediary, and their conduct is conditioned by a number of organizational conditions. The conditions for the admission of goods to trading and the special procedure for concluding contracts at organized auctions act as an institutional restriction of exchange trading and predetermine the fact that not every product is able to be sold on the exchange (recognized as an exchange commodity). Exchange trading pursues the goal of organizing trading activities and, as a secondary effect, forms stock prices (stock quotes, stock indices). The obligation of the seller (manufacturer) to sell part of the goods on the stock exchange (the mechanism of administrative compulsion to sell goods on the stock exchange) is aimed at forming national market price indicators for key groups of goods for regulatory purposes, and not the development of competition as such.