Legal System Of International Regulation Of Financial Derivatives Transactions Comparative Study

Economic globalization has become the main trend in the world, financial derivatives have also been deemed to be a highly risky invest vehicle. To avoid potential risks, national and international efforts have been taken to regulate such instrument effectively so that it can be optimally utilized. There are five chapters in this essay, the first of which briefly introduces the underlying theory for financial derivatives and the market. The second chapter analyses risks of financial derivatives transactions, and the regulatory scheme of main jurisdictions in the world and the international cooperation committed by some organizations. The third chapter analyses introduces and comments on the regulatory scheme in the U.S. and U.K..The fourth chapter further introduces international corporations as to financial derivative transactions. Finally, the last chapter focuses on the domestic regulatory scheme for exchange trade and Over-the-Counters (OTC) trade as well, and develops suggestions in respect of shortcomings in such scheme.