The Research On Regulation Of Financial Derivatives Risk

Since the 80s of the 20th century, global economic and financial situation rapidly changed, all the frequent fluctuations in asset prices, as well as companies, institutions and individuals resulting in the enhancement of risk management and control needs as financial derivatives can be rapidly developed is the most fundamental cause. In the development of financial derivatives in China, China's financial reform and financial innovation, improve the efficiency of financial market, and promote capital market development and growth, to improve China's international financial market and the status of the international economy has urgent and far-reaching significance .Initially, the establishment of financial derivatives was to avoid the risk of spot goods investments, but with the capital markets and the development of varieties of financial derivatives, financial derivatives in its natural and highly leveraged transactions ingenious mechanism, quickly became a speculative tool. With the 2004 CAO applications for bankruptcy, the 2008 U.S. financial crisis and corporate investment in 2009, the central financial derivatives and a series of huge loss of investment in financial derivatives activities, the vicious economic events arising after the occurrence of financial derivatives investment risk regulation have become the theory of international investment and financial research community and policy-making circles are most concerned about.The paper first introduces the theory of financial derivatives, financial derivatives and financial derivatives market regulatory risk the basic concepts of the regulation of financial derivatives based on the necessity and economics, and then combined with the current world financial situation and the development of derivatives regulatory status and the development of domestic financial derivatives and regulatory status quo, to pave the way later in the empirical study of the theoretical basis. Currently, VAR risk measurement methods have become most investment banks, commercial banks, investment institutions and government regulatory authorities adopted by the mainstream risk management in modern financial risk management has a central role. This paper analyzes the calculation of a link with Hong Kong shares of China Mobile's KODA products VAR value, projects financial derivatives that contain a significant market risk, also put forward for such products, the regulatory approach should be taken. End of the article summarizes the development of domestic financial derivatives should pay attention to issues and put forward the recommendations of supervision of financial derivatives.