On The Mode Of Financial Derivatives Supervision

In 1970s,the financial situation in the world was characterized by turbulence and intranquility,and the world's interest rates,exchange rates and stock markets had all experienced significant impact.In order to avoid risks,the financial derivatives first came into being in the United States and quickly swept the world.Though the financial derivatives were to avoid market risks primarily,they brought into the enormous risk as well as prosperity to the market for their own intrinsic quality of highly leveraged and being out of tables,etc..The failure of the financial derivatives market transactions directly led to the bankruptcy of enterprises and banks,and rapidly impacted on the stability of the whole financial environment.Therefore,countries in the world pay increasing attention to the supervision of the financial derivatives market nowadays.If China would like to integrate its financial system into the world-wide financial environment,it must put the development of the supervision of the financial derivatives market on the agenda.Financial derivatives market because of their important status and high-risk nature, should not go the old way as development first and treatment followed at its design of supervision which we have already learned the lesson before. Because it on the one hand,will cause enormous social costs,on the other hand,would hurt investor's confidence and to slow down the pace of building our country's financial derivatives market.To this end,we need a more systematic point of view,about the adoption of foreign experience to explore the future development trend of the market,selecting the direction of development to reduce duplication of construction,and strive to build a modern mode of regulation of the financial derivatives.This article will mainly be aimed at four major aspects of building a modern mode of regulation of the financial derivatives.That is,the basic principles of supervision,the legal system,the organizational system and the methodological system.Through the framework,the possible regulatory recommendations for the development of derivatives of our country were proposed.The body of this article is divided into four chapters:ChapterⅠdescribes an overview of financial derivatives and the need for supervision.The first part of this chapter proceeds with an overview of the financial derivatives and takes into account the corresponding risk factors while analyzing the characteristics of the financial derivatives,which paving the way to the regulatory analysis followed;The second and the third part of the chapter look into the need for supervision of the financial derivatives from the macro-and micro-perspective,of which is the question necessary to consider;then the fourth part comes to the basic mode of regulation of financial derivatives market conclusions which is fit to the national development conditions in our country.The second chapter systematic analyzes the main four aspects to be taken into account of building the mode of regulation of financial derivatives.These four aspects are the basic supervision principles,the legal system,organization system and method system.And subsequent sections of this chapter and the following are also in accordance with the structure from the analysis of four aspects.The first part introduces what the status of the basic principles is at the mode of the financial derivatives supervision system,as well as the developmental trend of the current international principle already established;the second part and the third part are considered of the direction of constructing the legal system and the organizational structure,and explores the complementary relationship between the two;the fourth part,in order to reach the entire financial derivatives supervision unified,introduces our specific means to build the financial derivatives supervision system at the basis of the front discussion.ChapterⅢanalyzes the mode of financial derivatives regulation of the United States,and the reference for our country.The first part introduces the basic principles of supervision of the United States, knowing that the United States put even more emphasis on legal norms to regulate the financial derivatives market,which is the future direction of our country;the second part refers to legal norms aimed at all aspects of the market of the United States;in the third part,the conclusion of studying three-tier regulatory mode of the United States is given,however, for the supervision subject,the unified supervision route will be kept to, so as to exert the advantages of China's totalitarianism and reduce regulatory inefficiencies;the fourth part mainly examines the access and exit mechanisms to the financial derivatives market of United States,and specifically realizes the features and advantages of the preventive supervision mechanism of the United States.ChapterⅣfrom four aspects analyzes the regulatory model of our country's financial derivatives,and put forward concrete proposals.The first part from five perspective discusses the basic principles of supervision of China's financial derivatives;the second part evaluates the active legal system of our country on the basis of the first part,coming out that it is still inadequate with fitting the unified supervision of the financial derivatives market;the third part analyzes the organizational system of our country,and emphasizes on the necessity of the unified supervision of the financial derivatives;the fourth part proposes some specific corresponding recommendations of building China's financial derivatives supervision system containing the market access mechanism, the assurance mechanism in the process of transactions,the market exit mechanism,and so on.