Study On Legal Issues Of Regulation Of OTC Financial Derivatives Exchange

With the economic globalization and financial internationalization, especially since 1980s, the OTC financial derivatives markets have been developed amazingly, and have taken an increasing important part in the financial industry. The global financial risks happened recently, caused by the sub-prime mortgage loan of the United States stroke the bell to all the countries in the world. Hence, every country of the world should hold a serious attitude to the development of the OTC financial derivatives, both with encouragement and more strict supervision. Under the background above, the paper, from the legal prospective, tries to provide the suggestions to better the legal supervision system of our nation.Chapter 1, on the basis of the related theories of supervision of the OTC financial derivatives, and this part of the paper comes to the conclusion that it is urgent to regulate the OTC financial derivatives trade. Chapter 2 analyzes and demonstrates the related legal theories of the OTC financial derivatives'supervision, and to build the supervision framework of the OTC financial derivatives. After this analysis, the chapter 3 makes a comprehensive analysis o the situations in regulation of the OTC financial derivatives market in our nation, and points out the existing problems..Based on the analysis above, chapter 4 makes countermeasures as to how to better the regulation systems of the OTC financial derivatives in China, such as enhancing the rank of related legislation and perfecting the law system of them, establishing sound and effective organizations of self-regulation in finance industry, strengthening the international co-operation and coordination. Thus our country can construct a perfect OTC financial derivatives trading market regulatory system.