Improvement Of The Financial Futures Market Regulatory System

First half of the 1990s, financial futures experienced an unsuccessful short history in China. Due to immature market, nonstandard of market supervision and excess intervention of the government power, financial futures risk events emerge in endlessly. Since 1995, more than ten years, China's financial derivative market has got into low tide. In recent years, with the development of the securities market as well as China's financial system reform, the systemic risk of market has gradually increased. Re-introduced and developed the financial futures and derivatives is necessary and inevitable. September 8, 2006, China's first financial futures exchange was established in Shanghai. March 16, 2007, State Department promulgated Futures Exchange Management Regulations and Securities Regulatory Commission has issued the relevant supporting management rules. The initial condition has been formed to come the formal launch of stock index futures into market.As financial futures is credit transactions based on deposit and has significant leveraged, it is also a tremendous risk transactions. In recent years the failure of the United Kingdom of Bahrain bank, the bankruptcy of the California Orange County, 1997 Asian financial crisis, and other financial events are all related with financial futures. The serious economic damage brought by these events made governments to attach importance ever-increasing to strengthen the financial futures market supervisal. Financial futures in China is still a new thing and have relatively little practical experience, so there is still a considerable gap compared with the supervisal regulations of the mature Western futures market. Studying how to improve the financial futures market regulatory system has great realistic significance to establish market economy system of the financial futures market, ensure its efficient, standardize operation, reduce the market risk, and accelerate the internationalization of the financial markets.This article uses comparative analysis, historical analysis and theory with practical research methods. The whole article divided into four parts:Chapter 1: the general theory of financial futures and financial futures market supervision. Firstly this part introduces the concept of financial futures, history, characteristics, functions and the basic operation theory. Secondly, explaining its necessity for supervisal by demonstrating the high-risk of financial futures market, and further discussing the goal of supervising, mechanisms for achieving the goal of supervising and supervisal system.Chapter II: comparative study of foreign financial futures market regulatory system. Through comparative study foreign financial futures market regulatory system such as America, England, Japan, Singapore, Hong Kong and South Korea, and study the development trend of modern international financial futures market regulatory system, this part sums up mature and advanced market supervision experience.Chapter III: status quo of the financial futures market and the regulatory system in China. This part firstly demonstrate the inevitability of the development of China's financial futures market on the base of reviewing the origin, failure, neatening, lessons and status quo of the financial futures market in China, then analysis and detailed dissertate China's financial futures market regulatory system existing, and summarizes the advancement of the new Futures Exchange Management Regulations and other related management practices in the regulatory system. Finally, the article points out the questions of our financial futures market's regulatory system. Chapter IV: some advice about perfect the financial futures market regulatory system. By comparatively studying and analyzing, this chapter put forward some advice about perfect the financial futures market regulatory system from three aspects:1. To improve government regulation, we must constitute Futures Basic Law and supporting measures. The Futures Basic Law should be formulated clearly the regulatory philosophy and goal in the background of financial globalization and reserve enough roomage for market innovation and international, strengthen joint meeting system in the condition of the current separate regulatory, reinforced overseas transaction regulatory system operable while relaxing restrictions to prevent regulatory vacancy, also strengthen the supervision of international cooperation.2. To improve industry self-regulation, we should focused on the self-regulatory organizations autonomy and made it complement the insufficiency of exchange regulation and government regulation.3. To improve the self-regulatory of exchange, the key is to strengthen and implement the current regulatory system performance. Meanwhile, grasping the development trend of exchange system, additionally economic development status of"rising and transition"of our country, we should actively promoted the exchange of institutional innovation.