Research On Legal Regulation Of Over-The-Counter Financial Derivatives

Derivatives are divided into Over-the-counter-Derivatives and Exchange Derivatives. The later began to develop at the late stage of the 20th century. In recent years, Over-the-counter-Derivatives have gradually become effective tool of the market participants to manage risks and the important benefit source of the products exchanger. From 2007, own to the financial storm caused by America Sub prime crisis spread over the whole world, which caused a huge financial earthquake. At present, the market of Over-the-counter-Derivatives in our country is undeveloped and its supervision regulation is not complete. So it is necessary to strengthen legal regulation to the Over-the-counter-Derivatives. The author was greatly interested in it when she read relative literature.This paper is greatly based on the current theoretical law of China, and at the same time refers to the foreign advanced theoretical law. The author applies the integrated method of Economy and Law and pays more attention to the analysis of legal supervision system. Besides these, the author analysis the current situation of Over-the-counter-Derivatives system in our country using the comparison method and comes up with legal supervision system of Over-the-counter-Derivatives system that correspond with our country after combining with the foreign good experience. All this paper includes five parts and the main content as following:The first part simply introduces the Over-the-counter-Derivatives from its definite and varieties. It defines the research range clearly to the legal supervision of Over-the-counter-Derivatives.The second part is about the current situation of the legal supervision of Over-the-counter-Derivatives in our country. The author analysis the problems exist in supervision system and course. Firstly, supervision coordinate system is not complete, so it damages the unity of the Over-the-counter-Derivatives market. Secondly, because of the undeveloped supervision law, there is a place without any supervision in the market. The last one is useless self-regulatory organization, imperfect message release system and not enough protection to the investors. All these problems restrict the Over-the-counter-Derivatives market development badly.The third part refers to the supervision system in Japan and America. The author introduces it from the system and content.The fourth part talks about how to establish perfect supervision system of our own. We rebuilt the legal supervision system of Over-the-counter-Derivatives of our country based on the stage of American and Japanese experience. It mainly includes these four parts, the design of regulate content, the design of regulate system, the design of regulate pattern and the regulate responsibility. The design of regulate content is the most important one. In this part, the author references American and Japanese system to rebuilt the market access system, risk regulation and internal control system, message release system and investor protect system.The fifth part simply summarizes the whole article: calling on lawmakers and regulators perfect the related laws and regulations of OTC financial derivative market.