Research On Legislation Of Futures Regulation

Futures market plays vital role of price discovering and risk managing. In order to accomplish these functions the government must impose effective regulation on futures market,and do best at lawmaking.Only in this way,excessive speculation and manipulation would be prevented, and systematic risks would be controlled.Futures regulation is involve with the core of futures market system. The market's basic regulation framework,measures of regulation and risk controlling system,are all included in the scope of futures regulation and legislation.The law must draw clear scope of future or non-futures among derivatives,and let the industry know which product were in the regulation scope and which agency take charge of such regulation.Risk controlling system,including but not limited to margin system, mark-to-the market,price limitation,clearing member arrangement,and so on,should be well designed.As for measures of regulation,legislation of futures regulation should pay attention to legitimacy,capital or net capital,and data disclosure.The global futures regulation and legislation trend is share the same tendency that every market is committing to deregulation while tries for effective regulation.The U.S.is the leading country in this field.So China should learn the U.S.from advanced futures regulation and legislation.First of all,we should transplant American regulation and legislation framework and her regulation experience.Next,we must transplant the regulation and legislation philosophy of deregulation and delicate balance between effective regulation and innovation.Again,we should accelerate enact the "the futures exchange act" because it is the fundamental law of future market.Only if the rule of law be established,modern futures market may develop and do good to the economy.Further,the futures market also relies on regulation.So the futures exchange law should be well designed to the market innovation and effective regulation.Regulation measures should not be misused.Since the imperfect of the law,legislation and regulation should harmonize,i.e.the law should suit the market and its regulation.