International Legal Regulation Of Financial Derivatives

Presently, Derivatives which is considered a double-edged blade at the money market, dodges as well as induces risks. The exchanges of derivatives not only bring in the booming of the money market, but also influence the business categories and rules of banking system in some extent. With the liberalization and internationalization of the money market, financial innovation brings on the inflation of the Derivatives and it's bargaining. While being confronted with latent risks, the supervisory system is weak and frangible. So, how to reinforce and improve the supervisory system is a great task for maintaining the stability of the international money market.Because of lacking the knowledge of international derivatives instruments, most financial authorities use the common supervisory system to control the risks of financial derivatives. But they can't get rid of the risks of international financial derivatives. In order to meet the demands of international derivatives instruments, the supervisory system should be improved and strengthened. And there is a tendency of international supervision cooperation in the world. Domestically, there are two models of supervision. They are called American model and English model. They supervise the international derivatives instruments through governments , market and self-discipline .Internationally, many international organizations developed different methods to control the risks of derivatives instruments.the author analyzes the legal definition, the categories and the legal characters of financial derivatives instruments. Then the author set forth the occurrence and development of the international financial derivatives markets, and pays more attention to the supervisory system and developing trend, and combines with the experience of foreign countries and international organizations as well. At last, the author constructs the supervision system of our country's financial derivatives markets. The aim is to provide enough theories to instruct practice, promoting the effective healthy and fast development of the financial derivatives market Chapter one mainly introduces the basic concepts of financial derivatives the generalization of its development the legal character and its classification.Chapter two states the micro-risks which includes market risks and macro-risks which can destroy the effect of monetary policy, and dissertates the necessity and stringency of enhancing the legal supervision.Chapter three Based on the fundamental theory of financial supervision law, illustrates the concept of the legal supervision of the Derivatives, come up with some difficulties of the legal supervision, elaborates the supervisory structures of Derivative market, analyzes legal measures of the supervision of Derivatives in some countries (regions) and international collaboration, finally discusses the tendency of the legal supervision.Chapter four, based on the above mentioned two chapters, states the necessity of developing Derivatives in China, elaborates the uses and present supervisory situation of Derivatives of China, produces some constructive suggestions.The last chapter is the conclusion.