Thinking On Legal Improvement Of Our Country's Financial Derivatives Supervision Structuring

The outbreak of secondary mortgage loan crisis in USA in 2007 , has affected the whole world financial market tremendously. Many housings mortgage loan organizations, famous commercial banks, investing banks and hedge funds were caught in the grave financial affairs. The SociétéGénérale announced in January, 2008, it got a huge sum of 4, 900, 000, 000 Euro loss since whose business personnel handled stock index futures disobeying the relevant rules and regulations. It avoided going bankrupt like Bahrain bank by the method of expedited execution 5, 500, 000, 000 Euro complement minimum capital requirement. These events shaking the whole world have taken the attention of the supervision of financial derivatives once again.Financial derivatives came into being in last century 70's. Chicago Mercantile Exchange took the lead in having foreign exchange futures, which indicated the financial derivatives on modern significance coming into being. Just like a coin, financial derivatives have advantages and disadvantages. Financial derivatives bring huge risk and affect the stability of financial market. Such risk is not really produced by itself, but produced by the loss of supervision. Therefore, we ought to adopt appropriate and effective supervision measure, and promote the development of financial derivatives.The thesis discusses the supervision structuring, which is the important part of the whole financial derivatives legal supervision system. On basis of introduce and analysis of our country's supervision structuring, the thesis provides some legal proposal to perfect our supervision structuring of financial derivatives.The thesis includes four chapters:The first chapter defines the boundary of the thesis' researching subject. The subject of the thesis is the supervision structuring of financial derivatives. Therefore, brief introduction of the concept, classification, law character, the history and current situation is brought first. Then the fundamental theory of supervision structuring of financial derivatives and the necessity of supervision of financial derivatives are set forth and discussed.The second chapter discusses the structuring about several supervision institutions. There are different supervision institutions in charge of different operation in our country. On basis of introduction and discussion of the current situation of our supervision structuring, the three targets of short-term, mid-term and long-term are constructed. Some relevant legal advice is also brought.The third chapter discusses improvement of administrative levels about financial derivatives. Administrative levels about financial derivatives include three parts: the function and responsibility of the government and self-regulation, the government's supervision to self-regulation and the guild's supervision to exchange. On basis of introduction and discussion of current situation, relevant legal advice is proposed.The fourth chapter discusses mainly the international supervision coordination and cooperation. The international organizations, such as the Basel Committee, IOSCO, BIS, ISDA, guide the international supervision coordination and cooperation. The governments of different countries enhance the supervision coordination and cooperation by signing memos between them. The relevant legal advice to improve our legal system is given through analysis above.