The Research On Supervision Law Of International Financial Derivatives Instruments

In the tide of freedom of financial and the financial innovation, the international financial derivatives instruments are developing quickly. They have became the main methods to avoid the risks and to earn money . Nevertheless, the financial crisis made the financial supervisory became more and more urgent. The financial risks of international derivatives instruments can be divided into two parts. They are micro-risks which includes market risks and macro-risks which can destroy the effect of monetary policy. Because of lacking the knowledge of international derivatives instruments , most financial authorities use the common supervisory system to control the risks of financial derivatives. But they can't get rid of the risks of international financial derivatives. In order to meet the demands of international derivatives instruments, the supervisory system should be improved and strengthened. And there is a tendency of international supervision cooperation in the world. Domestically, there are two models of supervision . They are called American model and English model. They supervise the international derivatives instruments through governments , market and self-discipline. Internationally, many international organizations developed different methods to control the risks of derivatives instruments. Adopted from foreign countries' experience , the author intended to build the supervisory system of China. The principle law of supervision should include equality and safety. The government , the market and the financial organizations should all take part in the supervision. The measures strengthening the supervision of international derivatives instruments include: designing of exchange contracts , controlling the market entrance , maintaining the adequate capital, market supervision and international supervision cooperation , etc.