Otc Financial Derivatives Transactions Secured Legal Issues Studied

In recent years, the secured OTC financial derivative trades develop on large scale in our financial market. The current one emphasizes intense characteristic of Anglo-American Law, however, the absence of related system in our financial market, which is for the steady development of OTC financial derivative trade, lays down hidden danger. That is why the analysis of related legal problem of OTC financial derivative trade has so urgent and far-reaching significance. This thesis is trying to discuss how to promote the amalgamation between the secured OTC financial derivative trade and Chinese present legal system from a comparative law perspective, and suggests creating a better legal environment to make a full use of its value.This thesis consists of four chapters. Chapter One, is the summary of OTC financial derivative trade. The objective of this chapter is to definite the fundamental conceptions. In Section One, the financial derivative instrument is defined as the means and contents of financial derivative trade. The following is the chief instruction on its legal characteristics and basic categories. Section Two mainly concerns history, growth and present situation of OTC financial derivative trade, especially its legal characteristics.Chapter Two, analysis on the legal system of the secured OTC financial derivative trade, which is to make it clear that in this thesis's, the secured one will be in its narrow sense, and its content is defined to ISDA Credit Support Annex subject to Security Interest Approach. This Chapter lays heavy stress on the chief instruction of the secured OTC financial derivative trade on the fundamental content and legal characteristics, thereby understanding the particularity between that and traditional legal system of security, especially the right of pledge.Chapter Three, as one of this thesis's emphasis, is trying to discuss the fundamental legal problems of the secured OTC financial derivative trade. The objective of this chapter is to find such legal obstacles that establish related system in Chinese law perspective, by means of analyzing the particularities on creation, effect and realization of the secured OTC financial derivative trade.Chapter Four, which is the other emphasis of this thesis, is the assumption and suggestion that develop related legislation on Chinese secured OTC financial derivative trade. On the basis of analysis above of the Chinese existing legal provisions and drawing on the foreign successful experiences, this thesis makes suggestions on the legislative model about Chinese secured OTC financial derivative trade and the special law to be enacted on it .