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Legal Research Of RMB/FX Futures

Posted on:2017-03-22Degree:DoctorType:Dissertation
Country:ChinaCandidate:D S YangFull Text:PDF
GTID:1316330509953637Subject:Economic Law
Abstract/Summary:PDF Full Text Request
5In 2007 the subprime crisis dealt a severe blow to the global economy, when the United States, Japan and Europe have launched a quantitative easing monetary policy, the appreciation trend of RMB allows the yuan to challenge the dominating status of the U.S. dollar and the euro, thus yuan has the opportunity to be the "three pillars” peacefully. At the same time, after the accession to the WTO, with Chinese financial market opening to the outside world gradually, the internationalization of the RMB becomes a reality from academic discussion. The strong promoter of RMB internationalization is the liberalization of the RMB exchange market. The RMB/FX futures market is an integral part of Chinese financial system. But so far, only China has not yet established a foreign exchange futures market. India and Brazil, etc. established their foreign exchange futures markets before the currency of those two countries can be convertible to foreign exchange without any legal limits, and Russia has already traded the RUR/FX futures early in the 1990's. Throughout whether developed countries or developing countries experience, we must accelerate the establishment of RMB/FX futures market, make the market open and transparent, adopt the modern market mechanism, and form adequate liquidity. So there will be a RMB pricing center that China can dominate, and the center will benefit to our country economic development strategy which is conducive to the internationalization of RMB ultimately.The theme of this article is inspired by the internationalization of the RMB, the construction of China's financial market and the financial system reform. The central theme of this paper is how to build the RMB/FX futures market in the legislation. The key to the construction of the legal system is to seize and understand the nature of the RMB/FX futures market, to classify market main body reasonably, to regulate the detailed rules of the trading mechanism, the internal and external risk control system, to design the specifications of RMB/FX futures contracts, the market transaction pattern and mode of financial supervision scientifically. And it is wise to configure the legal rights and obligations, to create, modify and integrate laws and regulations around market transaction pattern and the mode of financial supervision and regulation.The first chapter firstly constructs the conception of the futures, including characteristics and legal relations of RMB /FX futures and elaborates the nature of the RMB/FX futures; secondly, based on the essence of RMB/FX futures argues that the values of RMB/FX futures is order, efficiency, security; finally, this article presents that the legal system of RMB/FX futures should comprise of the legal system of the subject, the legal system of market trading and the legal system of risk controlling, corresponding to the values of RMB/FX futures and combining all elements of financial market.The second chapter is the legal system of the main bodies of RMB/FX futures market. In this chapter, this article analyzes the three main body of the RMB/FX futures market: the investors, the members of the futures exchange, and the financial supervisors. This article analyzes the market accessing rules of investors from the perspective of investor appropriateness, discuss the membership from the perspective of the rights and obligations between the futures exchange and its members, and discusses the legal system of financial regulation and supervision from micro prudential and macro prudential perspective.The third chapter is the legal system of RMB/FX futures market transactions. This chapter from the point of view of the actual operation of RMB/FX futures market and domestic and foreign exchange rules, laws and regulations, discusses the legal system of market trading, including transaction, clearing and settlement. And this chapter design specifications of the RMB/FX future contract and hybrid trading mode and settlement mode based on Chinese actuality.The fourth chapter is the legal system of the internal risk controlling of RMB/FX futures. This chapter firstly discusses the diverse forms of the internal risk of RMB/FX futures, the origin of the internal risk and the legal control means. Secondly, this chapter illuminates the legal system of price cap and floor, positions limit and a large position reporting system. Finally this chapter learns from the overseas regulatory practice and designs a new model of the micro prudential regulation.The fifth chapter is the legal system of the external risk controlling of the RMB/FX futures. This chapter firstly discusses the stock index futures as an example to present the external risks of the financial futures, argues the leverage trading of foreign currency as an example to discuss the external risks of foreign exchange derivatives, and analyzes the external risks of the RMB/FX futures. Secondly, as to the external risks for the RMB/FX futures, this chapter discusses the legal system of RMB exchange rate formatting and foreign exchange management, and put forward an idea of establishing the RMB/FX futures macro prudential regulation mode.The sixth chapter is the construction of the legal code of rules of RMB/FX futures. This chapter suggests to focus on legislation. The paper first proposes that the Legislation hierarchy of the RMB/FX futures should be clear and logic. Secondly, it is necessary to enact the "Futures Law", revise the " the people's Bank of China law " and the " Foreign Exchange Management Regulation ". Thirdly, this chapter puts forward suggestions on the legislation. Finally, it advises to consolidate the RMB/FX futures rules based on the framework that is composed of the legal relationship of RMB as horizontal axis, and the legal relationship of futures for the longitudinal axis.
Keywords/Search Tags:RMB, FX Futures, Market Traction, Risk Control, Micro Prudential, Macro Prudential
PDF Full Text Request
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