A Study Of Chinese Futures Brokerage Firms' Regulatory System

Beginning with an introduction of the establishment and development of Chinese futures brokerage firms, the dissertation examines the status, function and existing problems of futures brokerage firms in Chinese market economy, analyzes and assesses Chinese futures brokerage firms' evolution and institutional changes of regulatory system. Compared with both foreign futures commission merchants and domestic securities firms, and from the prospective of general principle of economics, new institution economics, and regulation economics, it elaborates the rational and general content of the regulatory system of Chinese futures brokerage firms, followed by a .proposition of regulatory framework involving the objectives of regulatory system, regulatory authority, legal system, regulation methods, and regulated institutions. Facing the new situation of accession to WTO, online trading and network globalization etc, this dissertation makes further discussions on the regulatory problems of futures brokerage firms.The regulation history of Chinese futures brokerage firms has gone through a disordered multi-authorities regulation period, State Industry and Commerce Administrative Bureau regulation period, CSRC regulation period, and the period of three-level co-regulation cooperated with self-regulation under CSRC, CFA, and exchanges. At the present stage, Chinese futures brokerage firms have a large number of internal and external problems, especially on unsuitable institutional criterions referring to finance, accounting and tax. Futures brokerage firms should set up industrial standards of their own. A comparative study of foreign futures commission merchants and their management and Chinese futures brokerage firms indicates that foreign futures brokerage firms subject to the economic attribute of non-bank financial service organization and the legal attribute of brokerage merchants, whereas the identity of Chinese futures brokerage firms is not made clear yet. Something must be done to change the present weak tendency status and industry development lag in Chinese futures brokerage firms. So it is of great significance to establish Chinese futures brokerage firms' regulatory system in order to promote industry image and bring about a rapid progress.From basic economics prospective, the dissertation argues that the existence of market failure makes it necessary for government intervention, which provides public goods while market does not, to correct market failure. In accordance with the theory of new institutional economics, it verifies the merit and defect of the government intervention. In accordance with relevant theory of regulation economics, the dissertation points out government regulation, while offering public goods, leads to negative effect due to Regulation Rent and Regulation Capture etc. Combining with the analysis of regulation cost and benefit, the dissertation proves government must consider regulation cost while implementing essential regulation, and pay attention to the efficiency of regulation. Secondly, in terms of law, the principles of open, fair and just construct the law foundation of the regulation of futures brokerage firms.The regulatory authority of Chinese futures brokerage firms is ChineseSecurities Regulatory Commission (CSRC). The regulation methods may be divided into prudential regulation and opportunist behavioral regulation, the former regulates the financial risk and normal management ability of futures brokerage firms, including regulation of market access, on-going operation and market withdraw, the latter regulates the violation of rules and regulations, the opportunist behaviors that do harm to the public but benefit themselves. With regard to regulated institutions, the establishment and execution of internal control system of futures brokerage firms consist of main content and direct target of regulation. The self-regulation organization of futures brokerage firms is a helpful supplement to the regulation system. However, it should accept the regulation of CSRC...