The Research Of Legislative Improvement On Credit Derivative Transactions Of China

In 2000, the United States Congress passed the "Commodity Futures Modernization Act, "the lifting of credit default swaps (Credit Default Swap, CDS), including the legal regulation of financial derivatives. In 2007 the United States occurred in the sub-prime crisis and trigger a global financial crisis. The crisis was sparked off by the U.S. real estate sub-prime mortgage default rates rise, while the boost is the main reason for the escalating crisis in the credit default swaps and other financial derivatives. The U.S. sub-prime crisis has exposed the country's financial regulation, there are serious gaps and loss of control. Can be seen, financial derivatives and trading rules of regulatory system defects that can contribute to excessive speculation in derivatives, and trigger a financial crisis.Credit derivatives solve the "paradox of credit" issue, the issue incremental non-performing assets, improve efficiency and provide high-quality risk management, credit market access channels active role. Although China's commercial banks have not yet established credit derivatives trading market, but the future is bound to credit derivatives based on the development of our country, in order to guard against the potential risks of financial innovation should actively learn from and draw on international markets, credit derivatives relating to the development of lessons learned to raise awareness of risk management in China's commercial banks, improve the relevant regulatory laws and regulations, it is necessary to understand credit derivatives transactions that may exist in a number of legal issues.This article was composed of the introduction, the main text and the conclusion. In the first part of the introduction, the author briefly describes the topics of this paper background, meaning and demonstration ideas.Partâ…¡is divided into text, is divided into three chapters:the first chapter, an overview of credit derivatives. This chapter first reviews the emergence of credit derivatives and the development process; presented the definition of credit derivatives, types and effect; comparative analysis method using credit derivatives and guarantees, property insurance, gambling, and then set out to compare the law of credit derivatives the nature and characteristics. Chapterâ…¡, China's credit derivatives are the main legal issues. Combination of credit derivatives transactions in foreign-related cases, elaborated on China's development of credit derivatives to face legal problems, including the legal effect of credit derivatives issues, credit derivatives trading subject qualification and licensing issues; applicable law and jurisdiction to Selection problem; netting so-forth. Chapterâ…¢, our credit derivatives improved the legislation. Analysis of our current credit derivative transactions legislation defects and improve this legislative proposals accordingly.The last section is the concluding section of this article, the author summarizes the main contents of this paper, and once again point to understand the main points of this article.