Legal Supervision On International Financial Derivatives Markets

Economic globalization is the main current and necessary trend in the world. The international flow of commodities and capitals is the most important embodiment of it. The flow has brought benefits to more and more countries, but at the same time it has already brought risks from one country to the world. Financial derivatives instruments are new products in the financial field and they have direct functions for production and circulation as follows: to avoid danger and to accelerate the flow of capital between different countries and areas. Together with the economic globalization and financial internationalization, financial derivatives instruments develop quickly. The development speed of financial derivatives markets has already exceeded other financial markets. Whether one country has financial derivatives markets is the symbol to decide whether its financial markets are integrated and mature. When it promoted the global finance, financial derivatives instruments have also provided the possibilities to accumulate risks and promoted the occurrence of financial storm. So supervision on financial derivatives instruments has been taken attentions by any supervisory organization increasingly.The financial derivatives markets in China are not mature. But any market will face grim challenges from international market together with the development of Chinese economy, the increased reform and especially the entrance into WTO. On the one hand, we must develop and utilize our financial derivatives markets, linking it to the world market. On the other hand, we must enhance the supervision on financial derivatives markets to keep away and melt the risks and to promote the development.Firstly, the author analyzes the legal definition, the categories and the legal characters of financial derivatives instruments. Then the author set forth the occurrence and development of the international financial derivatives markets, and pays more attention to the supervisory system and developing trend, and combines with the experience of foreign countries and international organizations as well. At last, the author constructs the supervision system of our country's financial derivatives markets.The aim is to provide enough theories to instruct practice, promoting the effective healthy and fast development of the markets.