Regulatory Legal System Of China's Financial Derivatives Research

Together with the economic globalization and financial internationalization, financial derivatives instruments develop quickly. The development speed of financial derivatives markets has already exceeded other financial markets. Whether one country has financial derivatives markets is the symbol to decide whether its fiancial markers are integrated and mature. When it promoted the global finance, financial derivatives instruments have also provided the possibilities to accumulate risks. The main risks of financial derivatives involve market risk, credit risk, circulate risk and law risk, which can mutually be influenced. In the case, the effect of the risks can be doubled, not only bringing the huge loss to the trade, but also making the whole financial market a violent turbulence. So supervision on financial derivatives instruments has been taken attentions by any supervisory organization increasingly. All countries hold a careful attitude for developing financial derivatives, both with encouragement and stict supervision.In the United States, U.K, Gernany, Japan etc. nation and region, the development of financial derivatives has long history, mature market and rich experience, also the supervision systen is gradually mature and the level of supervision is comparatively high. Compared with these nations and regions, the market of financial derivatives instruments in our country is backward: the variety is not rich and the supervision level is not rich and the supervision level is inferior. But any market will face grim challenges from international market together with the development of Chinese ecomomy, the increased reform and especially the entrance into WTO. On the one hand, we must develop and utilize our financial derivatives markets, linking it to the world marker. On the other hand, we must enhance the supervision on financial derivatives markets to keep away and melt the risks and to promote the development.This essay, on the basis of the fundamental theory of derivatives, analyze the definition and models of financial derivatives legal supervision, emphasizes the necessity of enhancing legal supervision, analyze the two methode to enhance the supervision on financial derivatives markets, point out that enhancing the legal supervision is very necessity and on the same time should pay more attention to the inner supervision. Then introduce the legal supervision system of The United States, UK, Germany, Japan and important international organizations, conclude the same characters of legal supervision in those nations and what can be utilized in our country. At last the essay analyze the present situation and the problems of legal supervision system in our country and provide the suggestions to better the legal supervision system.The author believes that our country must take five measures to better the legal supervision systems on financial derivatives: adopt functional supervision model; better law systems of supervision on financial derivatives; enhance the inner supervision function of associations and exchange of fiancial derivatives; better the legal system of information exposure of financial derivatives and enhance more talks and co-operations of internaltionl supervision on fiancial derivatives...