The purpose of the research consists of the development of a conceptual framework for the formation and development of the financial markets of the Republic of Azerbaijan for the regulation and integration into world financial markets. In order to achieve these goals, tasks such as developing the methodology of financial markets, assessing the conditions and principles of organization, studying the place and role of financial markets in the structure of the economy are set.

The methodology of the research consists of the principles of systematic analysis and logic, the concept of market equilibrium and the effective behavior of market participants. General scientific methods were used in the research: inductive and deductive analysis, classification and grouping, foreign and economic-statistical methods. Their coordination allows to ensure the necessary depth and universality of research and the validity of the results.

The practical importance of research. In connection with the development of a market economy, the government of Azerbaijan is faced with the need to improve the financial markets of Azerbaijan in order to strengthen its competitiveness in the financial market. Recent economic and political developments in the world make it necessary to ensure the flexibility and transparency of the securities market investment fund banking and insurance, as well as the paid system, as well as to improve the system of regulation and control in these areas, as well as public control.

The results of research. Despite the measures taken, the pace of development and the current state of the financial market in Azerbaijan in modern times can not be considered quite encouraging. The main reasons for this are the imperfect information base, low level of transparency, as well as the small number of investors, lack of financial literacy, lack of interest of the population in this area, problems can be shown and so on. Experience shows that the approach of developed countries to such a delay in the development of both the overall financial system and the financial market is to eliminate the three proposals and recommendations to address many existing problems in this area.

The originality and scientific novelty of research. The article is a very effective functioning of financial markets, as well as protection of the rights of creditors, investors and insured persons in order to make the country's financial system more stable and sustainable competitiveness, which assesses the benefits of increasing the efficiency of financial markets in the country. Based on the analysis of the development features of the Azerbaijani financial markets, it was concluded that its formation and activity are identical with the general world law, which consists of the gradual formation and integration of individual sectors of the financial market, as well as liberalization and its entry into the world financial market. Scientifically substantiated proposals and recommendations have been developed to improve the functioning of Azerbaijan's financial markets.

Keywords: financial market, investment, financial resources, securities market, financial instruments, economic system.