Research On The Legal Supervision Of Warrants Access

Warrants are the securities which are issued by the underlying securities issuers or other issuers. The holder of warrants is entitled to purchase or sell the underlying securities or is entitled to collect settlement price by cash settlement way within a specified period or a specific maturity date. Warrants have been the first choice in many countries and regions when they launched financial derivatives because of the unique features and the economic effects that they can obtain the big with little. Throughout the development process of financial derivatives in the world's capital markets, we can see the development of warrants demonstrate strong vitality.All countries and regions regard warrants as securities and adjust them by the Securities Law. Warrants monitoring system is an important part of the securities regulatory system. Many countries and regions have constructed complete legal regulatory system supporting warrants'development. In practice, warrants markets in different countries or regions adopt different supervision mode, such as:The supervision mode is "prior review type" in Hong Kong; The supervision mode is "risk control type" in Tai Wan; The supervision mode is "continuous monitoring type" in Singapore. The specific system of warrants supervision designed by each country or region has difference due to different supervision mode. In china, warrants are sill new thing, so we must emphasize their regulation by legal means, especially, we should pay attention to their regulation in access stage of issuance and listing. When we design the legal regulatory system of warrants' access, we should emphasize the protection of the rights of the small and medium investors and stress the Government's gatekeepers to warrants'risk, so that we can release the risk caused by the issuer's credit, speculative or manipulation and asymmetry of information.At present, our warrants market is still in the initial construction phase and the legal regulatory system of warrants in its access stage is not perfect, for example, the legal regulatory system is lack of effectiveness, the system of access audit isn't coordinate, the system of access conditions isn't scientific, the system of access information isn't complete. In order to protect the interests of small investors better and make the development of warrants market healthy and prosperous, the inevitable choice is we must learn and absorb advanced foreign experience related to our existing problems. We should framework the complete legal system of warrants that is added to the original securities law system and coordinate with it as soon as possible, improve the legal effect of access supervision and perfect the legal regulatory system of warrants in its access stage. In the design of specific system, we should notice the difference between company warrants and derivative warrants and consider the future development trends in developed warrants markets besides considering the reality in china to cope with the change of future.