China's Financial Institutions Engaged In Credit Derivatives Trading Laws

Credit derivatives appeared in 1990s and were mainly used to reduce credit risk. At the same time, as a financial derivative instrument, it also exists great risk. Legal disputes and financial incidents that are related to credit derivatives always happened.After China's entry into WTO, China was speeding up Steps of Reforming financial market in line with international practice, which required us to set up credit derivatives market with Chinese characteristics. Under the conditions of immature basic financial market and interrelated laws, suddenly developing credit derivatives transaction will necessarily cause a lot of legal problems. Therefore how to set up perfect legal system of credit derivatives transaction becomes an important legal subject at present.Based on the theory of Economic Law, this paper mainly talks about the property and features of credit derivatives, master agreement and related documents delivered by International Swap Dealers Association (ISDA) and conflicts with China's laws in application, which gives importance in over-the counter credit derivatives transaction. Based on research achievements of domestic and foreign scholars, the author gives some proposal on transaction act of domestic credit derivatives and hope it may help the legal institutions of credit derivatives transaction.This paper is mainly composed of three parts: preface, main body and conclusion. The main body is divided into five chapters.PrefaceIn this part, the author gives a review of background of thesis and narrated research status of domestic and foreign credit derivatives, and also presents the meaning of research on credit derivatives. At the end of this part, the author shows the research method and limitations of this paper.